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Ishares clean energy Etf - thoughts

13

Comments

  • Alexland
    Alexland Posts: 10,561 Forumite
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    aroominyork said:
    Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs? 
    No idea but yes I would expect the comments to apply to all of them.
  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
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    aroominyork said:
    Alexland said:
    How much do you know about the underlying companies? Do you really need to take the risks associated with thematic investments? They tend to launch in bull markets, get bought by unsophisticated retail investors, can do quite well riding a speculative wave (often before you buy them) but are eventually likely to underperform a more diversified fund before getting closed in bear markets.

    Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs? 

    If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.
  • ChilliBob
    ChilliBob Posts: 2,429 Forumite
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    Thrugelmir said:
    ChilliBob said:
    I'm aware it's probably irrational, but sometimes you can't rationalise every decision. 
    You can debate with yourself by writing two lists, the pros and cons of a particular investment. Weigh up the opportunity in a detached manner. May well help reduce the number of holes you fall into. 
    That sounds like good advice, cheers 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    edited 6 March 2021 at 1:38PM
    aroominyork said:
    Alexland said:
    How much do you know about the underlying companies? Do you really need to take the risks associated with thematic investments? They tend to launch in bull markets, get bought by unsophisticated retail investors, can do quite well riding a speculative wave (often before you buy them) but are eventually likely to underperform a more diversified fund before getting closed in bear markets.

    Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs? 
    ETF's are very much driven by US investment bankers. Only listed holdings in an ETF. No unquoted stocks. 
  • aroominyork
    aroominyork Posts: 3,809 Forumite
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    Voyager2002 said:
    aroominyork said:
    Alexland said:
    How much do you know about the underlying companies? Do you really need to take the risks associated with thematic investments? They tend to launch in bull markets, get bought by unsophisticated retail investors, can do quite well riding a speculative wave (often before you buy them) but are eventually likely to underperform a more diversified fund before getting closed in bear markets.

    Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs? 

    If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.
    Do ETFs always track an index? Passively not actively managed? 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    aroominyork said:
    Voyager2002 said:
    aroominyork said:
    Alexland said:
    How much do you know about the underlying companies? Do you really need to take the risks associated with thematic investments? They tend to launch in bull markets, get bought by unsophisticated retail investors, can do quite well riding a speculative wave (often before you buy them) but are eventually likely to underperform a more diversified fund before getting closed in bear markets.

    Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs? 

    If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.
    Do ETFs always track an index? Passively not actively managed? 
    MSCI will create an index to your specification. They operate over 220,000 for their clients. 
  • ChilliBob
    ChilliBob Posts: 2,429 Forumite
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    Thrugelmir said:
    aroominyork said:
    Voyager2002 said:
    aroominyork said:
    Alexland said:
    How much do you know about the underlying companies? Do you really need to take the risks associated with thematic investments? They tend to launch in bull markets, get bought by unsophisticated retail investors, can do quite well riding a speculative wave (often before you buy them) but are eventually likely to underperform a more diversified fund before getting closed in bear markets.

    Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs? 

    If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.
    Do ETFs always track an index? Passively not actively managed? 
    MSCI will create an index to your specification. They operate over 220,000 for their clients. 
    I had thought that seemed a little odd tbh, some of the 'indexes' these etfs track seem very bespoke, quite a far cry from MSCI World!

    So it's passive because it follows an index, but if the manager in effect creates the index it practically makes it active surely?! 
  • aroominyork
    aroominyork Posts: 3,809 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thrugelmir said:
    aroominyork said:
    Voyager2002 said:
    aroominyork said:
    Alexland said:
    How much do you know about the underlying companies? Do you really need to take the risks associated with thematic investments? They tend to launch in bull markets, get bought by unsophisticated retail investors, can do quite well riding a speculative wave (often before you buy them) but are eventually likely to underperform a more diversified fund before getting closed in bear markets.

    Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs? 

    If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.
    Do ETFs always track an index? Passively not actively managed? 
    MSCI will create an index to your specification. They operate over 220,000 for their clients. 
    220,000!? Do you have the comma in the right place?
  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ChilliBob said:
    MSCI will create an index to your specification. They operate over 220,000 for their clients. 
    I had thought that seemed a little odd tbh, some of the 'indexes' these etfs track seem very bespoke, quite a far cry from MSCI World!

    So it's passive because it follows an index, but if the manager in effect creates the index it practically makes it active surely?! 
    The index is a list of companies that satisfy specific criteria. That is (supposedly) somewhat different from an active manager using judgment and experience to select companies, taking account of these (and other) criteria.

  • ChilliBob
    ChilliBob Posts: 2,429 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Voyager2002 said:
    ChilliBob said:
    MSCI will create an index to your specification. They operate over 220,000 for their clients. 
    I had thought that seemed a little odd tbh, some of the 'indexes' these etfs track seem very bespoke, quite a far cry from MSCI World!

    So it's passive because it follows an index, but if the manager in effect creates the index it practically makes it active surely?! 
    The index is a list of companies that satisfy specific criteria. That is (supposedly) somewhat different from an active manager using judgment and experience to select companies, taking account of these (and other) criteria.

    Yeah its the supposidly bit that's important I guess! Sometimes hard to gague. 
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