Is it possible to invest in the NZX SciTech Index?

[gonzo56]

It seems like a much safer bet to spread out the risk by investing in the index of the 19 companies. Is is just a tool for analysis or can you invest in the NZX SciTech Index?

[CJ]

Dont beleive so.

I think a NZX is planning a futures exchange that would offer the likes of this but not positive. Probably not enough of a market to offer.

[gonzo56]

Ok, thanks for your reply. I just read that John C. Bogle says index funds are the way to go. Long term of course ;) How would I use Direct Broking to invest in an ASX index then?

[GTM 3442]

It seems like a much safer bet to spread out the risk by investing in the index of the 19 companies. Is is just a tool for analysis or can you invest in the NZX SciTech Index?

Just a tool.

But it's small enough that you can cover the sensible components without too much trouble

[gonzo56]

I found this on asx.com.au :


Options are currently available over the following ASX indices:

•S&™/ASX 200™ Index - code XJO

So I searched XJO on Direct Broking and got a page full of results! 3797

Does anyone have any exprerience with any of these? Like I said in my earlier post I would like to invest in an index, but which one to choose...:blink:

[AliceSaville]

Ok, thanks for your reply. I just read that John C. Bogle says index funds are the way to go. Long term of course ;) How would I use Direct Broking to invest in an ASX index then?

Hi gonzo56,

If you're keen to invest in an ASX index (e.g. Energy, Financials or Metals), this page on our website could be a good place to start:

https://www.directbroking.co.nz/DirectTrade/dynamic/etfinstruments.aspx

Cheers,
Alice

[gonzo56]

Great, thanks so much Alice. I will have a look.

**Just had a look**

That page gave me exactly what I was looking for, I see the NZX 50 Portfolio Index listed there amongst others. It's a shame the SciTech isn't there though.

Wow, on the ASX you can even trade an EFT based on the FTSE/Xinhua China 25 Index: 25 of China’s largest listed companies.

[Snoopy]

It seems like a much safer bet to spread out the risk by investing in the index of the 19 companies.
Is is just a tool for analysis or can you invest in the NZX SciTech Index?

Have just trawled the NZX website to get information of the current make up of the Scitech index


NZX SciTech Index (NZTS)

The NZXSciTech Index includes companies from the NZSX and NZAX markets with significant business interests in research, development and commercialisation of science and new technologies. Index weighting is by full market capitalisation, capped at 10%.

A2 Corporation Limited
BLIS Technologies Limited
Comvita Limited Ordinary
Diligent Boardbooks
Finzsoft Solutions Limited
Fisher & Paykel Healthcare
Glass Earth Gold Limited
Genesis Research & Development
Livestock Improvement Corporation
Energy Mad Limited
Pacific Edge Limited
Rakon Limited
Renaissance Corporation
Scott Technology Limited
Sealegs Corporation
Wellington Drive Technology
Wool Equities Limited
Windflow Technology
Xero Limited Ordinary


My first reaction is, what a motley lot! I know I am probably being unfair but I do wonder about investing in NZAX companies (ATM, GEL, LIC, WEL, WTL) except for the most sophisticated and specialised investors in whose ranks I generally do not put myself! I think a couple of those (LIC, WTL) you cannot invest in unless you own a farm anyway. Of the NZX listed companies I can only identify Comvita, Fisher and Paykel Healthcare, Rakon and Scott Technology as being profitable. I tend to agree with GTM 442 that an investment in a selected few might be a better solution than buying the entire basket.

Of course I will be proved wrong by one or two of the remaining 15 striking it big. But which ones? And if you did own them all, would the big gainers produce enough profit to offset the losses on the others who will likely fail?

SNOOPY

[CJ]

Snoopy -I think DIL are now profitable and the Xero is still rising despite the unusual business plan of not focusing on being profitable (another $20m put in today by those in the know).

Some I wouldn't want to touch though - MAD, Renaissance, sealegs, WDT, Windflow