What's the Risk?

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Published November 2024. In this episode of "What's the Risk?" we take a look at the historic performance of the CRSP US Total Market Index, which represents 100% of the investible US equity market. Investors may be familair with Vanguard's VTI or VTS ETFs which seek to track the return of the US total market, depending on whether they are using the Australian or US ETF.

Investors often ask the question, or make the comparison between the S&P 500 and the US Total Market Index, and wonder which one they should choose. We look at the outcomes over various time frames, but overall note the correlation between the two is high. 

CRSP Deciles 1-10 Index (market) 1/1926 - 12/2023. Source: CRSP, total returns in USD$. Jul 1962 - Present : CRSP Deciles 1-10 Cap-Based (Market) Portfolio Rebal. Quarterly - All Exchanges CRSP Market Index-Weighted average of CRSP 1 through CRSP 10. Jan 1926 - Jun 1962: NYSE, Rebalanced Semi-Annually. CRSP data provided by the Center for Research in Security Prices, University of Chicago.

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Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

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Published November 2024. A common misconception for investors is not being aware of price and total return, along with the difference between the two.

In this video we compare two versions of the S&P/ASX 300 Index to see how wide the difference in returns can be. Vanguard's VAS attempts to track the total return version of the index.

Not knowing there is a price and a total return index can lead to confusion over historic returns when an investor sees a chart, or a quoted price, and it's only factoring in the price change. Quite often the media, either aware or not, will use price returns, which will add to the misinformation, leaving investors believing returns have been lower than they are. 

The price vs total return issues extends beyond indexes to stock prices and ETFs. Google is a common place to search for an ETF or stock code and the charts returned by google only show the price changes.

In an attempt to address this problem, Mark Hebner of ifa.com has launched a petition to persuade the media to change their ways and start reporting total returns as standard. 

Sign Mark's petition at http://www.ifa.com/petition.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/  

https://www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

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Published October 2024. In this episode of "What's the Risk?" we take a look at the historic performance of the Bloomberg AusBond Composite 0+ Yr Index. Investors who invest in Australian bonds or fixed interest may know Vanguard's VAF and Blackrock's IAF as ETFs that seek to track this index.

Bonds aren't exactly popular with many retail investors, who gravitate to equities due to higher returns, and in recent years the performance of bonds hasn't changed the minds of many investors, but they can and do have a place in many portfolios.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

https://www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253

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Published October 2024. The popularity of Self managed super funds or SMSFs continues to grow in Australia, but for all the success stories there are those investors who aren't well informed and lured into an SMSF by promoters who end up destroying their retirement nest egg with high risk and untested schemes and investments like United Global Capital.

We're joined by financial advisers Tristan Dallas and Georgia Eade, who've both recently seen two SMSF disasters where the investors may lose the majority of their retirement savings, via in one case their accountant, and in the other, by being cold called for a super "heath check".

We also finish up by looking at justifiable cases for an SMSF because there certainly are some good options out there, but SMSFs are not for everyone.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

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Published October 2024. In this episode of "What's the Risk?" we take a look at the historic performance of the NASDAQ 100 Total Return Index since 1999.

A popular index with investors via Invesco's QQQ and Betashares NDQ in Australia due to tech focus and strong returns in recent years, but going back a little further there was a significant peak to trough fall that many investors aren't aware of. It's important to consider the prior downside because this is a concentrated index and it was only a little over 2 decades ago. Some investors write off the potential for large declines because the worst ones occurred back in the 1930's.

NASDAQ-100® Index (Total Return) USD XNDX & NASDAQ-100® Index Net Total Return (AUD) XNDXNNR © 2024. Nasdaq, Inc. All Rights Reserved.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

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Published September 2024. ETFs are easy to get started with, but some investors choose to combine them based on the labels on the outside and not the assets in the inside.

They may assume they are diversifying because they’ve added an extra ETF, but in some cases it does nothing to diversify their portfolio, increases its concentration in some stocks and increases the risk.

We take a look at a combination of Vanguard’s VGS, Blackrock’s IVV, Betashares’ NDQ and ETHI and see how adding additional ETFs adds holdings and how the composition of the 10 ten holdings in the portfolio changes.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

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Published September 2024. In this episode of "What's the Risk?" we take a look at the historic performance of the FTSE Developed Core Infrastructure Index. An index comprising infrastructure assets in developed markets.  

Over the years there has been some discussion that infrastructure could be a fixed interest replacement, but we look at the data to see it performs more inline with developed market equities and not fixed interest.

Some people would know Vanguard's VBLD as an ETF that attempts to track the return of this index before fees, expenses and tax.

FTSE Developed Core Infrastructure Index (Total Return) Total Returns in AUD. Copyright 2024 FTSE Russell® All rights reserved.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

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Published September 2024. Andrew McKimmie of Mancell Financial Group joins this episode of "What's the Risk" to discuss how he recently helped a client who was medically disabled and running out of the money she was living on after a disability payment. There was a risk she'd soon be unable to pay her mortgage.

Her neighbour offered some free advice, firstly that she shouldn't see an adviser because it would cost money, and not to take money from superannuation because she'd pay tax.

So what would she do and how could Andrew help?

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

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Published August 2024. In this episode of "What's the Risk?" we take a look at the historic performance of the FTSE Emerging Markets All Cap China A Inclusion Index (net divs.) AUD. An index comprising emerging markets across large, medium and small companies. 

Some people would know Vanguard's VGE as an ETF that attempts to track the return of this index before fees, expenses and tax, which are an important consideration as investors may not achieve a return as close to the index as they'd like due to fees and taxes.

FTSE EM All Cap China A Inclusion NR Index AUD/FTSE Emerging Markets All Cap China A Transition NR Index AUD (prior to Sep 2016). Copyright 2024 FTSE Russell® All rights reserved

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

Hosted on Acast. See acast.com/privacy for more information.

Watch episode on youtube: https://youtu.be/iBJtKNVkDg4

Published August 2024. In this episode of "What's the Risk?" we take a look at the historic performance of the MSCI World ex Australia Small Cap Index (net div., AUD), which is an index comprising international small companies. 

Some investors might be surprised to find the performance since inception has outpaced the large companies MSCI World ex Australia, since 1999, so we pose some questions on recency bias.

Some people would know Vanguard's VISM as an ETF that attempts to track the return of the MSCI World ex Australia Small Cap Index (net div., AUD) before fees, expenses and tax.

MSCI World ex Australia Small Cap Index (net div.) January 2001 - Present: MSCI World ex Australia Small Cap Index (net div.) Country Code AA

Total Returns Net Dividends in AUD. Source: MSCI. MSCI data © MSCI 2024, all rights reserved.

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/

www.mfg.com.au

Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253.

Hosted on Acast. See acast.com/privacy for more information.