The FSA Spy market buzz – 13 December 2024
M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.
Data: FE, return in US dollars, 30 November 2017.
Performance of an ETF is affected by many factors. Ongoing cost is the obvious one. Whether a fund pays out dividends or reinvests them is another. Trading costs of the underlying equities vary, whether due to their liquidity, the skills of the fund’s brokers or the timing of transactions.
On the plus side, ETF managers may engage in securities lending to generate additional returns.
While all seven ETFs underperform the CSI 300 index, which is expected, their performance varies widely. The China AMC ETF did best over the past three years and placed third over the past one year.
On the other hand, the C Shares ETF severely underperformed the index, delivering only 11.6% over the past three years, less than a third of the return of the index. FSA estimates that the high OCF ate away around 9% of the returns. Even before the fees, the fund delivered just over half of the return of the index over the past three years.
M&G’s positive outlook; Wisdom from Schroders’s podcast; Alliance Bernstein on the power of curiosity; Janus Henderson on responsible AI; China’s retirement revolution; Apple and much more.
Part of the Mark Allen Group.