Podcast: Churn in ETFs

Kristia van HeerdenLatest, The Fat Wallet

I like to think about investment fees. A man in a clown suit can lure me into a panelled van with a cheap ETF. Over the last week or so, however, I’ve come to realise that an ETF’s price tag is only one part of a much bigger picture. Yes, Big Bad Industry, I realise this is common knowledge to you, but I’m a retail investor, remember? Until now nobody told me.

Following the now fabled conversations with Roland Rousseau – the unofficial mascot of The Fat Wallet Show – I’ve been paying much more attention to things like sectoral exposure and risk in ETFs. I enthusiastically share my findings on exposure the NewFunds GIVI in this Periscope.

I’m starting to discover cheapness is relative when it comes to ETFs. So far, I’ve been focusing on a combination of total expense ratio (TER) and brokerage fees. However, Roland mentioned churn in ETFs. I knew churn wasn’t part of the TER, but I had a sneaking suspicion that I was paying for it anyway.

In this episode, I talk to Simon about churn, we take a little trip to spread and finally end up at tracking error. I have to go back and back again a few times to wrap my head around it. I’m here to learn, so that’s okay.

I think every question deserves an answer. If you’ve been wondering about personal finance or investment concepts, drop your questions to simon@justonelap.com. He’ll try to help you find the answer.


  • Listen / download here.
  • Subscribe to our RSS feed here.
  • iTunes submitted, waiting for confirmation.
  • Sign up here to receive an email every time a new show goes live.

Meet the Just One Lap team at these free live events

Click here to meet the Just One Lap team at one of our live, free events.

Subscribe to Just One Lap