Low Fee Investments

[CJ]

Article on point re investing in an Active NZ pie vs overseas index ETF : http://www.nzherald.co.nz/personal-f...ectid=10834864

Its a shame the iShares aren't repackaged for the NZ market onto the NZX. NZX should be pursuing but that would ruin their own Smartshare product.

[Lizard]

The difficulty I have with using any Smartshares products is that whenever I draw a comparative price chart against the nearest index (in Yahoo Finance), the underperformance of Smartshares seems signficant. I haven't ever looked any closer to find out what this is, but presume it is fee related? Or perhaps Yahoo is not adjusting correctly for dividends on the ETF's?

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[slowmover]

You can buy some Vanguard eg VTS on ASX as you would any Australian share.

[Snoopy]

The difficulty I have with using any Smartshares products is that whenever I draw a comparative price chart against the nearest index (in Yahoo Finance), the underperformance of Smartshares seems significant. I haven't ever looked any closer to find out what this is, but presume it is fee related? Or perhaps Yahoo is not adjusting correctly for dividends on the ETF's?

As far as I am aware the NZX50 is the only share index globally to include the cumulative effects of dividends. I suspect Yahoo is not adjusting correctly for dividends because they don't adjust for dividends at all on any of the shares (including Smartshares) they chart.

From a global perspective Smartshares fees are high (around 1%). But not high enough I would guess to produce the lack of correlation your graphs depict Lizard.

SNOOPY

[Sauce]

Today's star performer is tomorrow's loser.

I would rather not try to beat the index (just aim to match it) and lose as little to fees/tax along the way as possible. I am in this for the long haul not for speculative gains.

Smart, smart, smart