Exchange Traded Funds

bowlhead99

jamesd wrote: »

XWXU: global tracker to make selling easy when I decide to reduce my global tracker holdings.

Just curious, when you say make selling easy, do you mean because you can sell in real time when the markets are open rather than waiting as you'd otherwise have to do with an OEIC or UT?

I was guessing XWXU was maybe a short which you were using to get a temporary hedge (i.e. virtual exit) on your global tracker holdings without the hassle of selling them, but it seems it's just an ex-UK tracker.

redbuzzard

Being able to buy or sell at a known price, and/or the availability of different tracker types, are what make them worth looking at, for me.

They also fit with a passive outlook.

jamesd

bowlhead99 wrote: »

Just curious, when you say make selling easy, do you mean because you can sell in real time when the markets are open rather than waiting as you'd otherwise have to do with an OEIC or UT?

Lower initial charge than some otherwise inexpensive funds and real time selling, so more suitable for things I expect to sell in a timeframe that isn't years. It also happens to track a different global index from the bigger chunk.

A_Flock_Of_Sheep

Yes ETFs seem to be like real time funds. It's just like selling and buying shares rather than a wait and see approach. If I'd had a nikkei tracker ETF rather than a Japan fund where I had to wait and see what the damage was I may have not sold with such a bruise. You live and learn.

Shaolin_Monkey

With daily priced funds you never know the price you are going to sell or buy at. This is due to forward pricing. Putting a sell instruction in before the cut off time will mean you get that days price which you won't know in advance. Obviously with ETF's that is not the case. You can see the 'damage' straight away