🌱 ETF investing crash course [ETF mini-series part 1]

Welcome to our ETF investing mini-series: a 5-part podcast series, aimed at building your confidence when it comes to researching, comparing and building an ETF portfolio.
Over the course of 5 podcast episodes, we’ll cover the basics of ETF investing you need to know about, and give you the tools to figure out what type of ETF you’re looking for, and how to research and compare them. Plus we’ll give you an overview of what you need to know about how to buy ETFs and managing them on an ongoing basis.
ETFs are a great investment option for both new and experienced investors, and make it easy to build a low-cost and diversified portfolio with just a few trades.
They’re simple, they work, and you don’t need to be a financial wizard to get your head around them. Investing can be as easy as opening up a brokerage account, picking a low cost diversified ETF and buying small parcels frequently over a long period of time.
So, in this episode Kate & Owen talk about exactly why we’re so keen on ETFs, how they work and how you can use them to invest.
Be sure to download our ETF Investing Checklist (Google Doc) that we’ve created for you to accompany this podcast series: bit.ly/etfchecklist
➜ Dig in deeper with the show notes: www.raskmedia.com.au/podcasts...
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Full individual disclosures for each guest are available via the show notes page. Owen, Kate and The Rask Group Pty Ltd do NOT receive anything for mentioning Super funds, products, shares, bank accounts, etc.
DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.
Access The Rask Group's Financial Services Guide (FSG): www.rask.com.au/fsg
Date recorded: 13th of Septmeber

[@wilron776]

Brilliant!! I am looking forward to the rest of the series. Key points of interest is criteria used to select an ETF, how to determine a investment strategy, how to balance regularly and the ‘triggers’ to rebalance and how do I manage ETF risk.

[@vibrantvulture]

Looking forward to the series.. great work. ❤

[@owenboxall598]

Love it looking forward to rest of series

[@soblevsa]

Great series. Thank you guys.

[@shihabkhan3218]

Very useful and helpful. Going to check out the other parts of this series. Thank you for such an informative session. 😊

[@reazrj]

This looks like a great channel. Kudos

[@owenboxall598]

Excellent explanation guys dividends not mentioned much

[@sunnyexposure5922]

Great way to explain

[@pentiumdualcore1000]

Hi can you run through again why the price of the share doesn't mean too much? What reflects the price of the share (is it the growth of the individual companies or is the demand of other people trying to trade for the fund? ) Thanks alot!

[@kiranlodhia4791]

Hi I'm new to your podcast, and I'm really enjoying them, thank you very much. I have a question, do Australians have to buy Australian ETF? If we buy American ETF are we worse off because of the exchange rate?

[@bennyl7224]

Will get same return in absolute terms from the underlying shares, but it’s priced in AUD. so the returns will be different in the short to medium term. Long term though, especially with dollar cost averaging as the AUD/USD fluctuates, will likely be pretty similar. Easier with tax for the Australian version is my thinking

[@kiranlodhia4791]

If I need dividends in my retirement should be only buying ETF that pay dividends?

[@peterj210]

Would you buy IOZ or IVV

[@ravirajmistry]

If ETF provider has 200 company share inside, can they add or remove shares based on market performance or are they just fix same 200 forever?

[@bennyl7224]

Usually they are the 200 biggest (or in the case of the SP500- 500 companies) by ‘market capitalisation’. Market cap is total number of shares outstanding for a given company x the share price. Basically, how much it would cost to buy the whole company outright. So ETF with too 200 shares will always be the biggest most expensive companies. As individual shares prices of those companies change, sometimes company number 201 gets bigger than company number 200. So at rebalancing time (once a month, once a quarter, depends on the individual ETF), they’ll sell company 200 and buy company 201. They’ll also rebalance each individual share as their ratio of market cap changes. Look up a list of market cap list of the SP500. Apple makes up 7% of it. Microsoft makes up 6.5%. In fact, the top 40 companies make up about 90% of the entire value of the SP500. Look at what that list looked like 20 years ago. And 40 years ago. See how the companies have changed positions. Look at what industries dominated at those times. Right now it’s tech. But in another 20 years, who knows! That’s why ETFs/index funds are so good. They automatically rebalance as time goes on and new industries pop up.

[@owenboxall598]

Should of waited till the end covered

[@adamgraham1802]

love your show, you are walking a fine line though be unlicensed with some comments

[@RaskFinance]

Hey Adam! Thanks for commenting and for the feedback. It’s worth noting we act under an Australian Financial Services Licence - and our FSG is available on the Rask website. Finally, I take your point more broadly - it’s important to understand what might seem like real-life examples could be somewhat fictional. Great comment and reminder though! Cheers! Owen

[@k-lab3824]

Ugh, so slow. The chocolate metaphor was dumb at best