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Old 09.03.2020, 10:01
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Starting with ETF Investment: What to Know and Where to Follow?

Hi,

Thanks to pressure from PostFinance, I invested some of my cash in their -e-trading platform. I am going to focus on ETFs, since they seem less complicated as they follow following indices (Is that true, by the way?).

Now, I appreciate it if you give me some more advice on how to continue. Where can I learn more, especially about ETFs and indices (e.g. why do multiple ETFs following the same index have varying prices and which one is then the best to choose?). Any resource of a "for dummies" type is more than welcome.

Also, what are some good news/info sources I can follow to be in touch with ETFs and indices?

More than thanks
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Old 09.03.2020, 10:44
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Re: Starting with ETF Investment: What to Know and Where to Follow?

There you go: https://www.amazon.de/dp/1119121922/...s%2C171&sr=8-3

And you donít need a news service because all you are doing is tracking an index, just dollar cost average.
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Old 09.03.2020, 13:45
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Re: Starting with ETF Investment: What to Know and Where to Follow?

And then it depends whether you care where your money is/what it does.

Blackrock (iShares) the biggest provider of ETF's for example has by now a lot (A LOT) of power over the companies the money is invested in. Blackrock does, with your money, not you. You're not shareholder of those companies, got no say. Yes, you normally don't (unless you are really blooming rich) but you give Larry Fink a playground to fiddle with/influence (worst case black mail) economy. Blackrock handles 185,8 Mrd. at the moment.

And it's a "incorporated", that would be a GmbH here. It is an independent asset manager - not a bank - no idea how well those are controlled.

They invest everywhere = let's say Nike and Adidas, Apple+Microsoft+Android which influences what we know as competition. And work with their own analytic software Aladdin which we don't know what it really is. I remember an other guy in the US who had an unfailable software and - disappeared (okay, in a German jail in the end but that was little satisfaction for the investors). There is more to research about this if you're into it.

But most people aren't bothered with all these details, so you might not be either. There are banks offering ETF's as well - but the offered profit is smaller (strange, huh? ).

As mentioned above, all you look at once you invested is the index the ETF follows (may it be the SMI, Dow Jones or any other they chose. ETF's seem to be THE thing now and it's not the worst thing I ever heard about but I believe it's worth looking at the host and implications.
Pretty cool there is a dummy-book about it.
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Old 09.03.2020, 15:01
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Re: Starting with ETF Investment: What to Know and Where to Follow?

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And then it depends whether you care where your money is/what it does.
Thanks. I do care and have hence no iShares. I look exactly for such insights and information.

Last edited by higgsboson; 09.03.2020 at 16:17.
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Old 09.03.2020, 19:44
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Re: Starting with ETF Investment: What to Know and Where to Follow?

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There are banks offering ETF's as well - but the offered profit is smaller (strange, huh? ).
That's because they are trying to be "smarter than the market", not because they are less greedy or ethical (actually au contraire - their fees are exorbitant compared to the services and results - especially when it comes to actively managed funds).

Yours is a very "pessimistic" and "contrarian" view of ETFs.
I suggest the OP to look for "the other side of the coin" too.
And regarding learning - to start reading investopedia for general knowledge, maybe a few "bible" books on index/ETF investing (like https://www.bookdepository.com/The-L.../9781119404507), and then forums like bogleheads.org (mostly american) or forum.mustachianpost.com (for swiss specific topics).

Long story short, for starters: Get yourself a whole-world index-tracking ETF (or a couple), with as cheap fees as it gets, tracking the whole world by market cap index, and DCA into it.
Then you can get more complex (but really don't have to, can keep it simple) once you feel confident enough.
Examples: VT or VTI+VXUS or VTI+VEA+VWO - all by Vanguard (which I use, and using InteractiveBrokers for lowest fee purchases).
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Old 09.03.2020, 21:29
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Re: Starting with ETF Investment: What to Know and Where to Follow?

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That's because they are trying to be "smarter than the market", not because they are less greedy or ethical (actually au contraire - their fees are exorbitant compared to the services and results - especially when it comes to actively managed funds).

Yours is a very "pessimistic" and "contrarian" view of ETFs.
I suggest the OP to look for "the other side of the coin" too.
And regarding learning - to start reading investopedia for general knowledge, maybe a few "bible" books on index/ETF investing (like https://www.bookdepository.com/The-L.../9781119404507), and then forums like bogleheads.org (mostly american) or forum.mustachianpost.com (for swiss specific topics).

Long story short, for starters: Get yourself a whole-world index-tracking ETF (or a couple), with as cheap fees as it gets, tracking the whole world by market cap index, and DCA into it.
Then you can get more complex (but really don't have to, can keep it simple) once you feel confident enough.
Examples: VT or VTI+VXUS or VTI+VEA+VWO - all by Vanguard (which I use, and using InteractiveBrokers for lowest fee purchases).
Re. banks I did not think "less greedy or more ethical", LOL, rather "more controlled".

I totally suggest OP looks at the other side of the coin - including the edges. , generally the way to approach things. And come to their own conclusions as well.
Coincidentally ETFs became a subject to me last December and I know many people don't do the research I did. And the things I mentioned outweighed others for me, which can be completely different for others.

I would like my post to be seen as informative and to be taken into the consideration. Not as an advice whether or not to invest in ETFs.
From the later post of OP I conclude, they already did buy ETFs though, so the basic decision seems to have been taken already.
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Old 09.03.2020, 21:36
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Re: Starting with ETF Investment: What to Know and Where to Follow?

EFT's can get you into trouble, you might wish yo read what Terry Smith wrote 8.5 years ago.
https://www.reuters.com/article/etf-...8CI42H20120118
https://www.professionaladviser.com/...th-etfs-warned
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Old 10.03.2020, 13:53
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Re: Starting with ETF Investment: What to Know and Where to Follow?

OK, as a counterpoint, also take this point of view into consideration.
This guy has simple and to the point explanations in general, backed by various research sources.


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Old 11.03.2020, 08:46
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Re: Starting with ETF Investment: What to Know and Where to Follow?

Is there any resource on which ETF provider to choose, and how different they are?
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Old 11.03.2020, 09:24
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Re: Starting with ETF Investment: What to Know and Where to Follow?

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Is there any resource on which ETF provider to choose, and how different they are?
You would have to google "ETV Vergleich" and find stuff like this. And study it attentively, lots of it will be advertising.

How to google in English you know yourself, right?
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