Podcast: ETF price wars

Simon BrownJSE Direct, Latest

ETF price wars

ETF price wars

Simon Shares

  • Finally, 5 weeks after moving my FTTH has been installed so I am going to Periscope each recording as it happens which is typically Wednesday afternoon.
  • Calgro M3* (JSE code: CGR) update on their missing SENS. Feeling is that the impact is marginal and will hardly hurt earnings? Time will tell, I still don’t like asymmetrical information.
  • Oakbay (JSE code: ORL) is delisting from the JSE as they can’t find a sponsor. No surprises but real bad for any shareholders.
  • Sygnia (JSE code: SYG) announced the details of the rights offer and it is at 900c but only for R160million as apposed to the expected R320million. So much less dilution, albeit also much lower price.
  • Pubic Protector not fighting the SARB objection of her attempt to change its mandate.
  • New emerging market ETF from Satrix
  • Upcoming events

* I hold ungeared positions.

ETF price wars

With the new issue of ETFs from Satrix and Sygnia taking over the DB x-trackers (to be branded Itrix) we’re seeing some price wars forming. Very good news for consumers, but some buts.

  • Read the small print.
  • Don’t rush. Much of this is targeted TERs and the incumbents may also adjust their TERs downwards.
  • Switching into a same but cheaper ETF may not be economical
  • Tax, costs and spread adds up.

My strategy will be where I buy an ETF that now has a cheaper alternative I will start buying the cheaper immediately. Switching will take longer.

We Get Mail

  • Everybody is asking
    • Are you buying the new emerging market ETF from Satrix?

An then this tweet from Nerina Visser as I was recording.

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