We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Ishares clean energy Etf - thoughts
Options
Comments
-
No idea but yes I would expect the comments to apply to all of them.aroominyork said:Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?0 -
aroominyork said:
Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?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.
If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.
0 -
That sounds like good advice, cheersThrugelmir said:
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.ChilliBob said:I'm aware it's probably irrational, but sometimes you can't rationalise every decision.0 -
ETF's are very much driven by US investment bankers. Only listed holdings in an ETF. No unquoted stocks.aroominyork said:
Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?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.0 -
Do ETFs always track an index? Passively not actively managed?Voyager2002 said:aroominyork said:
Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?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.
If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.0 -
MSCI will create an index to your specification. They operate over 220,000 for their clients.aroominyork said:
Do ETFs always track an index? Passively not actively managed?Voyager2002 said:aroominyork said:
Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?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.
If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.0 -
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!Thrugelmir said:
MSCI will create an index to your specification. They operate over 220,000 for their clients.aroominyork said:
Do ETFs always track an index? Passively not actively managed?Voyager2002 said:aroominyork said:
Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?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.
If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.
So it's passive because it follows an index, but if the manager in effect creates the index it practically makes it active surely?!0 -
220,000!? Do you have the comma in the right place?Thrugelmir said:
MSCI will create an index to your specification. They operate over 220,000 for their clients.aroominyork said:
Do ETFs always track an index? Passively not actively managed?Voyager2002 said:aroominyork said:
Why does it only discuss ETFs? Does it not apply equally to thematic OEICs and ITs?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.
If an active manager is doing her job (big if) then individual companies within the theme will have already been screened.0 -
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 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?!
0 -
Yeah its the supposidly bit that's important I guess! Sometimes hard to gague.Voyager2002 said:
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 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?!0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards