At Equity Mates Media, we’ve got two podcasts designed to help new investors and those who are yet to get started. Here’s what we’re chatting about this week…
We’re going under the hood….
BGBL: 1500 companies, 1 ETF.
What’s this series all about? It’s our way of addressing one of the most common questions we get from our community: With hundreds of ETFs on offer, how do I actually analyse the options in front of me?
Each episode we unpack one major ETF to get a better understanding of how it’s constructed and what we can learn from it. So, let’s get to today’s candidate: ASX ticker: BGBL.
- What’s in a name? From the title Betashares Global Shares ETF (ASX: BGBL) we learn a few pretty obvious things – Betashares is the product issuer, it’s an international index, and the asset class is equities. That’s a broad remit though, so upon a closer look, we find that BGBL has a clear purpose it aims provide exposure to approximately 1,500 developed markets companies, but not Australia. It tracks (follows) the performance of the Solactive GBS Developed Markets ex Australia Large & Mid Cap Index.
- We hate fees, so how do they look? BGBL has management costs of only 0.08% p.a. Which translates to $8 for every $10 000 invested. Low fees are crucial when building a long-term portfolio as they allow more of your money to stay invested and grow over time.
- Lifting the hood, what’s in there? The index sector allocation is 22.7% information technology, 14.2% financials, and 12.9% healthcare. The index country allocation is 71% United States, 7.1% Japan, and 3.4% Canada. Always consider how this will fit into your individual portfolio!
What other questions do you want answered about ETFs? We’ve done stacks of ETF themed episodes, from understanding how to managing a portfolio to assessing ETF overlap. And remember to check out Under the Hood – with new episodes dropping on Fridays!
Need more? Here’s 4 links to keep you going this week…
- Aussies share their favourite $10 meal hacks
- The Dive: Japanese scientists are regrowing teeth
- Will I owe money? Every question you have about the 22/23 tax return
- Love and finances: Questions you should ask your partner about money
Before you go – if you like this newsletter – do us a massive favour. Send it to a friend! And if you’ve received this from a mate – sign up here.
Should I invest my emergency fund?
That depends. (Btw: 83% of you are absolutely killing it.)
“I am 25 and have worked full-time for 3 years and now have a sufficient emergency fund. However, before full-time work I definitely did not have an emergency fund and spent most of my payslip each fortnight.” Community Member
Last week we read a Compare the Market survey that said the average 18-25 year old has $1,019 saved for emergencies. We wanted to know if that resonated with our community – and only 17% of you said it’d be hard to get your hands on that cash quickly.
Firstly, if you’re finding it hard to bump up your emergency fund, you are not alone. It’s hard work, but it’s a great goal to work towards for your own peace of mind. Our recommended steps are: separate your accounts (choose one that’s different from your everyday bank), maximise it by picking a high interest account, automate your deposits, and put any windfalls (tax, bonuses, the $100 million dollar jackpot this Thursday) directly in there for a boost.
It made us think – once you’ve do you do have an emergency fund, what should you do with it? Should you invest it? We covered this in an episode earlier in the year – listen here. TLDR: It depends on how liquid and accessible you need your emergency fund to be. Do you need to be able to access it straight away? Could you wait 24 hours? How about til the end of the week?
So it got us wondering…
Have you any student debt?
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