Hidden Costs in Your 'Low-Cost' ETF Portfolio [Chills 200 ft Singapore Exchange (SGX)]
Description
Are Millennials over-indexing on ETFs? As Singapore's ETF market approaches $12 billion and user adoption triples post-COVID, industry experts dive into this trending investment vehicle.
Featured Guests:
- Kang Wei Chin, Director, Securities Trading, SGX Group
- David Wu - Financial Coach from Minimalist in the City
Key Discussion Points:
- The evolution and explosive growth of ETFs in Singapore ($12B AUM)
- Cost structures, market dynamics, and whether ETFs are still the budget-friendly option they're marketed to be
- Hidden costs and complexities behind "cheap" ETF investing
- Evolution from simple index funds to complex thematic ETFs
- The real impact on traditional mutual funds
We also discuss the rise of thematic and leveraged ETFs, as well as the impact of new trends like Stock Deposit Receipts (SDRs), which make global markets more accessible to local investors.
Are Millennials striking the right balance, or are they overloading their portfolios with ETFs? Tune in to hear expert insights, uncover common misconceptions, and get tips to build a more effective ETF strategy. Don’t miss this insightful episode!
00:00 - Intro
02:50 - What is an ETF?
05:19 - What are the different types of ETFs beyond traditional index funds?
09:27 - Are ETFs still a cost-effective option for investors, given the higher fees of many local and niche ETFs?
11:45 - What if active funds become as cheap and efficient as ETFs - how would that affect investment choices?
14:51 - What's your take on ETFs evolving into complex products like inverse and leveraged options?
20:41 - Are millennials over-diversifying by heavily investing inETFs, potentially diluting their returns?
27:06 - Does ETF's intraday trading risk overtrading for passive investors?
32:55 - You recently launched a product on Hong Kong SDRs - can you explain what it is and its purpose?
36:32 - What are the cost advantages of buying BYD on SGX instead of Hong Kong?
Disclaimers: For tax advice, do seek out a legal advisor for better guidance and actionable steps for your unique situation.
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Disclaimer: The content discussed in this episode is intended for educational purposes only and should not be considered as financial advice. The information provided is based on our understanding at the time of recording and may not reflect the current regulations or market conditions. The opinions expressed by guests are their own and do not necessarily represent those of The Financial Coconut. Please do your due diligence before making any investment or financial decisions.
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