Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.



TechnoGuy001

825 posts

Ultimate Geek

ID Verified

#293945 23-Feb-2022 16:21
Send private message

I've been looking around different managed funds from different companies, and seems most, even there "growth" funds are falling behind S&P500 ETFs (e.g. VOO).

 

 

 

Was just wanting to get some thoughts on why people opt to invest $$ into actively managed funds when the returns are lower than sticking them in an S&P500 ETF via say Hatch (though some do offer S&P500 matched funds).

 

Are funds deemed a safer investment? Or is it just that it's historically been tricky to invest in stocks or ETFs directly, so people stick with what they know.

 

Or am I missing something, are there TAX implications with Hatch S&P500 investment (as far as I know both investment funds and hatch ETFs have the same TAX costs).

 

 

 

Maybe it's the USD/NZD exchange that worries people, since S&P500 is USD.

 

 

 

IDK, just trying to understand why there can be so many investment companies around (offering kiwisaver and managed funds), all doing similar things.

 

 


Create new topic
mattwnz
19568 posts

Uber Geek


  #2873369 23-Feb-2022 16:43
Send private message

I am not a financial adviser. Now is a really volatile time with rising interest rates, covid unknowns and potential war, and many tech stocks have plunged in value. So comparing them at the moment is not the best snapshot to be using IMO.


 
 
 

You will find anything you want at MightyApe (affiliate link).
TechnoGuy001

825 posts

Ultimate Geek

ID Verified

  #2873387 23-Feb-2022 17:05
Send private message

mattwnz:

 

I am not a financial adviser. Now is a really volatile time with rising interest rates, covid unknowns and potential war, and many tech stocks have plunged in value. So comparing them at the moment is not the best snapshot to be using IMO.

 

 

Hmm, that's a good point. I'll keep monitoring them and see how things look when things are more "normal"/


Handle9
10119 posts

Uber Geek

Trusted
Lifetime subscriber

  #2873390 23-Feb-2022 17:17
Send private message

The significant majority of actively managed funds are generally poor net performers compared to passive funds but produce good fees for the managers. There are a lot of incentives for the market to keep selling active funds.

 

I don't invest in actively managed funds, only ETFs, loosely following a boglehead philosophy. I also invest a significant percentage in bonds, which provides some diversification and counter cyclical impact.


Create new topic





News and reviews »

One New Zealand Extends 3G Switch-off Date
Posted 11-Apr-2024 08:56


Amazon Echo Hub Review
Posted 10-Apr-2024 18:57


Epson Launches New Versatile A4 Desktop Scanners
Posted 10-Apr-2024 15:31


Motorola Mobility Launches New Android Phones in New Zealand
Posted 10-Apr-2024 14:59


Logitech G Unveils the PRO X 60 Gaming Keyboard
Posted 9-Apr-2024 19:01


Logitech Unveils Signature Slim Keyboard and Combo
Posted 9-Apr-2024 13:33


ExpressVPN Launches Aircove Go Portable Router With Built-in VPN
Posted 26-Mar-2024 21:25


Shure MoveMic Review
Posted 25-Mar-2024 12:47


reMarkable 2 Launches at JB Hi-Fi New Zealand
Posted 20-Mar-2024 08:36


Samsung Galaxy S24 Ultra review
Posted 19-Mar-2024 11:37


Google Nest Wifi Pro Review
Posted 16-Mar-2024 11:28


Samsung Galaxy A55 5G and Galaxy A35 5G
Posted 12-Mar-2024 12:41


Cricut EasyPress Mini Zen Blue launches at Spotlight New Zealand
Posted 12-Mar-2024 12:32


Logitech Introduces MX Brio Webcam
Posted 12-Mar-2024 12:24


HP Unveils Broadest Consumer Portfolio of AI-Enhanced Laptops
Posted 3-Mar-2024 18:09









Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.