Australian (ASX) Stock Market Forum

Questions about ETFs vs LICs, Apps, etc

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Hi,

I wouldn't call myself a total n00b as I do hold some shares although I think I was lucky with the timing e.g. I bought WBC at $16.

I came across ETFs and LICs which fit my appetite for set and forget.

1) From what I read in most places, fund managers who try to beat the index mostly fail. Yet isn't this what ETFs and especially LICs do?

2) I read that you should buy LICs when there is a good premium discount on them. I'm actually confused by the report e.g. https://www.morningstar.com.au/s/documents/201710_ASX-LIC-NTA-Report.pdf - do I want positive numbers or negative numbers?

3) The Barefoot Investor recommends AFI and other LICs for people earning under $37k or so, which is what confused me. If you earn more, does that mean you shouldn't invest into a LIC?

In addition, I have also been researching individual stocks. I came across an app called Simply Wall Street. Apparently my current share portfolio is relatively good but I did find that some of their data is outdated. For example the management data for FMG is outdated as it still says their former CEO is their current one. I tried to look up the ETFs and LICs in there like ARG, AFI, VAS and they are all not recommended.

Has anyone tried this app for individual stock picks and what do they think of it?
 
Joined
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Hi,

I wouldn't call myself a total n00b as I do hold some shares although I think I was lucky with the timing e.g. I bought WBC at $16.

I came across ETFs and LICs which fit my appetite for set and forget.

1) From what I read in most places, fund managers who try to beat the index mostly fail. Yet isn't this what ETFs and especially LICs do?

2) I read that you should buy LICs when there is a good premium discount on them. I'm actually confused by the report e.g. https://www.morningstar.com.au/s/documents/201710_ASX-LIC-NTA-Report.pdf - do I want positive numbers or negative numbers?

3) The Barefoot Investor recommends AFI and other LICs for people earning under $37k or so, which is what confused me. If you earn more, does that mean you shouldn't invest into a LIC?

In addition, I have also been researching individual stocks. I came across an app called Simply Wall Street. Apparently my current share portfolio is relatively good but I did find that some of their data is outdated. For example the management data for FMG is outdated as it still says their former CEO is their current one. I tried to look up the ETFs and LICs in there like ARG, AFI, VAS and they are all not recommended.

Has anyone tried this app for individual stock picks and what do they think of it?

Jeez, that's a lot of questions and answers, in one post.
There is a difference between ETF's and LIC's, from my knowledge, both work on a different principle.
Also the barefoot investor advice that you stated, depends entirely on your diligence, buying a LIC or ETF may be much better than spending your money, or having it in the bank at 1.5% interest.
It depends entirely on your own circumstances, and from what your saying, just keep learning for now.
There is no easy way to make millions, unless you work hard to understand your options, are arsey, were born into it, or are really smart and gifted.
You just have to work out where you fit in, and work with it.
 
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