The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.
HEAD-TO-HEAD: iShares vs Vanguard
FSA compares two Japan index products from the industry’s two giants: the iShares Japan Equity Index Fund and the Vanguard Japan Stock Index Fund.
While both products are managed efficiently with highly automated technology, Lamont has a preference for the iShares fund because of its low-cost structure, a diversified approach, and the technology advantage.
In terms of fees, the Vanguard fund is 0.05% more expensive than the iShares fund. Investors should take into account the differences in the exposure and level of diversification the funds offer.
The iShares fund manages to mirror the market’s performance in a more representative way by holding close to 500 companies, compared to 320 held by the Vanguard fund.
“Typically, the more stocks a passive fund tracks, the higher the fees.” However, the iShares team has been able to generate a broader exposure with a lower cost to investors, compared to the Vanguard fund.
In addition, there is an almost identical product in the market to the Vanguard fund, which is far cheaper.
Between the two index funds, Lamont has the stronger conviction for the iShares tracker.
Related Stories
Promoted Content
-
Conditions in the high yield market
-
Ninety One: Finding opportunities in times of change
-
How ETFs offer an active way to drive sustainable returns
-
Who’s afraid of higher interest rates?
-
China bonds: plugging the yield gap
-
Exciting opportunities in AI & Robotics outside of traditional tech
-
China’s post-pandemic growth gathers pace
-
Step up your portfolio by doubling down on sectors set for long-term growth
-
The year of living dangerously for income investors
-
Appetite for thematic investments grows amid rates and inflation concerns
