We all love ETFs but the question we get all the time is how do they make money? This week we dig into how ETFs work and how they make money for us.
Podcast: Can I lose all my money when I invest?
The phrase “all their money” gives me the creeps. Throughout my life I’ve heard that line followed by something completely ridiculous. In this episode, we explain how you make and lose money in the stock market. And why it’s very unlikely that you’ll make, or lose, ALL your money by investing.
ETF: Where should I invest my dividends?
Nothing warms our hearts more than a chunky dividend. With distributions heading our way next week, it’s time to think about how to put those bad boys to work. Cashing out is for the old Dividends are the reason compounding can apply to investing. Without it, you can only count on share price movements for ...
Podcast: I can’t save!
Crushed under the weight of debt, a younger, dumber version of me would resolutely put money away – toward debt repayments or honest-to-goodness cash. As often, there was some unexpected financial event, and my resolution would dissolve. Eventually I’d accept I’m bad at saving and give up. It was easier than living with failure month after month.
ETF: 40 vs RAFI
Smart beta and factor-based ETFs are all the rage at the moment. The Satrix RAFI 40 ETF is the grandfather of factor-based ETFs on the JSE. Listing in November 2008, the RAFI has underperformed the Top 40 total return index by less than a percent. A slight under-performance might not be the strongest sales pitch, ...
Podcast: To index or not
Dhiraj asks us to defend our index-tracking strategy in this episode. It’s hard to do when the theory works but the practice hasn’t delivered the goods in four years. At this point I can only cling to the success others have had with this strategy and hope.
ETF: Year-to-date going nowhere
Warning: This post contains very bad news. Do not read if depressed, broke or pregnant (just in case). We are officially 26 weeks into 2018. If you had high hopes for your portfolio, as I did, prepare to be crushed. So far, a lucky few ETF investors have earned more or less what a bank ...
Money Hacks: Time your tax return
I either submit my tax return at the very beginning of the tax season or at the very end. I base this decision on whether I am going to be owing SARS money, or if they are going to be giving me a refund.
Podcast: Debt in high-income households
When we get into debt, we think it’s a temporary state of affairs. We’ll get rid of it once we earn more money. However, nothing is more delicious to a financial institution than an indebted individual getting a raise. As our income increases, so increases our access to credit.
ETF: Wesley Hellyar on tech ETFs
I’m not going to provide a deep-dive into how to evaluate a company, nor which company has the best management team, nor which ETF’s cost structure is the least of a rip-off. Instead, I’ll utilize my contrarian personal perspective and explain that, when it comes to technology, the most important question should be: “Will this ...