[Smart Investing] Vanilla vs Exotic ETFs

Investments and personal finance insights from Vanguard Australia

1 July 2020 Hi everyone,  In this week's Smart Investing, we take a look at the difference between vanilla and exotic ETFs, and why investors should fully understand the risks of exotic ETFs before buying. Vanguard Senior Financial Writer Tony Kaye also discusses the recent changes to minimum drawdown rates for retirees with account-based pensions and the reduction in social security deeming rates.  Lastly, we discuss ways to invest during a recession and why successful investors are those who hold their nerve and focus on the investment factors that they can control.  As always, feel free to email us with your questions or feedback.  Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

Vanilla vs Exotic ETFs By: Robin Bowerman As the ETF world continues to expand and evolve, we are seeing new, exotic products focused on niche sectors pop up at an increasing speed. Read More

COVID cuts risk pension pain By: Tony Kaye The Federal Government recently announced the mandatory minimum drawdown rates for retirees with account-based pensions would be temporarily halved in both the 2019-20 and 2020-21 financial years. Read More

Investing in a recession By: Robin Bowerman After a rugged quarter, investors should think about whether strategies that got them through the past three decades still hold true particularly as the new financial year begins. Read More

VANGUARD IN THE NEWS Vanguard launches SMSF functionality Elizabeth McArthur | Financial Standard | 29 June 2020  Vanguard has launched a self-managed super fund capability within its Personal Investor offering. Through Vanguard Personal Investor, SMSFs will be able to trade the top ASX shares by market capitalisation at $19.95 or 0.15% per trade (whichever amount is greater will be charged). SMSFs will also have access to an interest earning Vanguard cash account. To read more, please visit the Financial Standard website. Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

IN CASE YOU MISSED IT

How to rebalance your portfolio out of COVID-19 By: Aidan Geysen When investing for the long term, executing a disciplined rebalancing strategy during volatile times keeps the risk of your portfolio aligned with your goals and risk tolerance, and positions you for an eventual recovery, improving long term results. Read More

Superannuation for younger investors By: Robin Bowerman With superannuation so topical, now could be a good time to learn a little more about it, even if retirement seems a long way away. Read More

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