ETF, LIC & LITs

Tracking Difference and Tracking Error are two measures that can assist clients in evaluating the efficiency of a manager’s ability to replicate reference index returns.

Following amendments in the regulatory body, Authorised Participants (APs) are no longer required to identify as an Australian resident for tax purposes.

On June 16th the yield on 10-Year US Treasury Notes was higher at ~1.6% after the Federal Reserve signposted a rise in interest rates next year with two increases pencilled in by 2023.

Environmental, Social and Governance (ESG) issues are showing an increasing impact on Australian investors with the number of designated responsible ETFs surging 77.8% YoY as at 31st March 2021

Volumes in the Vanguard Global Value Equity Active ETF (VVLU) are on the rise coinciding with the re-opening of global economies, positive GDP growth and prospects of a reflation trade.

As a sustained economic recovery starts, we look at two LICs: Tribeca Global Natural Resources (TGF), a well-rounded commodities portfolio; and WAM Leaders (WLE), their 6.9% Financials weight may benefit from a steeping yield curve.