Australian (ASX) Stock Market Forum

STW - SPDR S&P/ASX 200 Fund ETF

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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Hi Guy's,

STW is actually traded on the australian warrants market so i guess all brokers get their outstanding STW orders purged at the EOD.
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

If you are thinking the costs are far out weighing the service you are receiving from a smooth talking salesman or sorry"financial adviser", then this link may be for you.

Financial advisers are going the way of the dinosaurs for years of fleecing unsuspecting average men and women out of the hard earned dollars. Not everyone can be expected to school up and know when they are being taken advantage of, or have the time.
But you would expect a certain level of integrity or honesty of people in such positions, you will never get it.

Best of luck


www.sanfranmag.com/story/best-investment-advice-youll-never-get
 

So_Cynical

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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Business spectator had a piece the other day on the strangeness of investing in
index funds...i know a fund that buys based on something other than value.

QUOTE business spectator article.
These funds do not buy based on value. The focus of index funds is to buy based
on the size of the company. This activity causes rampant mispricing of securities.


http://www.businessspectator.com.au...he-lazy-pd20090401-QP3Q9?OpenDocument&src=sph
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Business spectator had a piece the other day on the strangeness of investing in
index funds...i know a fund that buys based on something other than value.

The author of that article runs a listed fund, CAM, which has underperformed the index (and index funds) by double digits since listing... so I would take any arguments he makes about index funds with a grain of salt
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

The author of that article runs a listed fund, CAM, which has underperformed the index (and index funds) by double digits since listing... so I would take any arguments he makes about index funds with a grain of salt

CAM isn't anything like an index fund, its not in and way weighted to the ASX 200 that STW is, i hold and often add to my STW holding and iam very happy with how it performs and the dividends i receive from it, it mirrors the index very well which it is meant to do.

CAM after listing at $1 actually went to about $1-60 but has since been walloped down to about 70 cents, it did get caught with its trousers down with Credit Corp of which it had a sizable stake, that fell from about $10 to under a dollar in a few short weeks but CAM didnt get out until it was below a dollar :confused:, Don'T think it was in the ASX200 so STW wouldn't have been impacted at all and even if it was it would have been minimal.

TBH alot of these fund managers have really been shown up during the recent rout in stocks, many of whom run funds that have been smashed even harder than the index which maybe goes to show how much they really know, but time and again these managers get quoted in the press as if there gurus in the market when in fact there funds have fared worse, some like WIL which listed in 2003, missed the bull market run and underperformed then got smashed in the rout that followed any one who invested in WIL (i did for a while) would be very disalousioned with them particularly as there managers are always in the press with there advise and market opinions, go figure ?
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Well I just purchased stw using all my savings. However I am still worried about what happens to the ETF if the comany goes broke. I've read the PDS for the fund and I don't recall seing the word trust fund anywhere. Can someone with experience please answer this question?

Thanks
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Well I just purchased stw using all my savings. However I am still worried about what happens to the ETF if the comany goes broke. I've read the PDS for the fund and I don't recall seing the word trust fund anywhere. Can someone with experience please answer this question?

Thanks

Yes it operates as a trust with State Street acting as the responsible entity, and is registered as a managed investment scheme.

If the state street were to go broke, shareholders of that company do not get access to the assets in the ETF - more likely they would sell the management business, similar to Barclays' sale of the iShares business recently
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Hi,
First post. I've also been accumulating STW over the past few months, attracted by the instant diversification and dividend yield. However I've just discovered that the final dividend will only be 74 cents per unit. That's only 2% and around 5 % for the year. Am I missing something because everywhere I read that the dividend yield should be around 10%!
Thanks
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

"Everywhere you've read" - and where might that be? If you are talking say the estimate on Commsec's page, that's exactly that, usually based on the price of last year's dividend divided by current prices -- so it's notoriously incorrect in a rapidly changing market such as this.

Yup, around 2% at current prices... doesn't look like any franking credits are attached to, so you get taxed on that at your full marginal rate as well.

So no, STW is probably not the best stock if you want yield, but then again, dividends right across the ASX are being slashed right back, so it's just a reflection of the market.
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

There should be franking credits passed on for the franked dividends the fund has received. Perhaps this will form part of the distribution components to be provided in a future announcement. I note that historically distributions carry partial but not full franking credits.

The yield perhaps reflects that while the overall market is still well down from it's 2007 peak, it does not necessarily represent outstanding value. I don't know though much though is stripped out annually as management fees.
 

So_Cynical

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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Hi,
First post. I've also been accumulating STW over the past few months, attracted by the instant diversification and dividend yield. However I've just discovered that the final dividend will only be 74 cents per unit. That's only 2% and around 5 % for the year. Am I missing something because everywhere I read that the dividend yield should be around 10%!
Thanks

That 10% is based on historical dividends not current dividends, also ya gota remember that some ASX200 company's don't pay any dividends and alot of them don't pay fully or even partly franked...so STW's dividend will reflect that.
 

Bill M

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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Hi,
First post. I've also been accumulating STW over the past few months, attracted by the instant diversification and dividend yield. However I've just discovered that the final dividend will only be 74 cents per unit. That's only 2% and around 5 % for the year. Am I missing something because everywhere I read that the dividend yield should be around 10%!
Thanks

According to their announcement the distribution is 74.3507% franked at a franking rate of 28.8519%, so you do get some franking credits.

In addition to what other posters have mentioned, the previous returns were also higher because their were some capital gains made within the fund . This time around there are no capital gains, that is why the figures appear down. If you tally up the December distribution with this distribution it comes in at around 5% for the year (not including the franking). Considering this is the second worst market collapse we have seen in our lifetimes it is still not a bad dividend. The choice is always yours if you wish to invest in these types of funds, good luck.

By the way welcome to the forum.:)
 

SWR

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Re: STW – SPDR ASX 200 Fund – Index tracking fund

Can anybody please advise as to the Record date for distributions on STW
I am unable to ascertain from SPDR website
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

If I was to have a holding of 2000 of these STW, is it possible to buy a put option with a strike price close to the current price with a long expiry date? to enable me to have "insurance" against a massive drop? I was checking the options market and there does not seem to be much trade in STW options. I know there is XJO but I cannot use the STW as collateral with the ACH can I?
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

If I was to have a holding of 2000 of these STW, is it possible to buy a put option with a strike price close to the current price with a long expiry date? to enable me to have "insurance" against a massive drop? I was checking the options market and there does not seem to be much trade in STW options. I know there is XJO but I cannot use the STW as collateral with the ACH can I?

G'Day,

I can't see any major issues, it's just that you'll have to sell the options back rather than exercise if the index gets slammed.

If you're just going long XJO puts you don't need collateral, just enough cash to pay for the options.
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

If I was to have a holding of 2000 of these STW, is it possible to buy a put option with a strike price close to the current price with a long expiry date? to enable me to have "insurance" against a massive drop? I was checking the options market and there does not seem to be much trade in STW options. I know there is XJO but I cannot use the STW as collateral with the ACH can I?

How much does a put cost per share close to the current price? If it has a long expriration date and is close to the current price i cant imagine them being to cheap with current market volatility...
 
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Re: STW – SPDR ASX 200 Fund – Index tracking fund

*bump*

Just bought a few of these STW shares today, just a quick question. Normal shares that pay a dividend often experience a bit of a run-up when there is an impending dividend and then drop down the dividend amount on ex-div date. What stops traders from bidding up STW to get their distribution and keeps it in pace with the index?

Good/Bad time to buy? Gambling on margin.
 
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To those that hold STW

Whats the benefit in holding STW (ASX200) to holding something like Vanguards VAS (ASX300)?

The MER for Vanguards fund seems less and they pay dividends more frequently (quarterly as apposed to bi-annually).

Also, do you look at any alternatives to the fund such as passive index investors do with poorly correlated investments?

i.e. something such as (example only) Harry Brownes Perfect Portfolio

25% in U.S. stocks, to provide a strong return during times of prosperity. For this portion of the portfolio, Browne recommends a basic S&P 500 index fund such as VFINX or FSKMX.
25% in long-term U.S. Treasury bonds, which do well during prosperity and during deflation (but which do poorly during other economic cycles).
25% in cash in order to hedge against periods of “tight money” or recession. In this case, “cash” means a money-market fund. (Note that our current recession is abnormal because money actually isn’t tight ”” interest rates are very low.)
25% in precious metals (gold, specifically) in order to provide protection during periods of inflation. Browne recommends gold bullion coins.
 
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To those that hold STW

Whats the benefit in holding STW (ASX200) to holding something like Vanguards VAS (ASX300)?

The MER for Vanguards fund seems less and they pay dividends more frequently (quarterly as apposed to bi-annually).

Also, do you look at any alternatives to the fund such as passive index investors do with poorly correlated investments?

i.e. something such as (example only) Harry Brownes Perfect Portfolio

I have VAS not STW but a couple of ideas why some might be favoured idfferently:

- Well for one you've got a different distribution of stocks (ASX200 vs ASX300) which needs to be taken into account when diversifying your portfolio

- You may have different liquidity across both (perhaps STW has a higher daily volume) which might be important for some

- I think STW may have been around for longer than VAS. Not 100% sure. Anyway if it was, then people might just be adding to their existing positions

- Being exchange traded, at the time of purchase one might be trading at a discount relative to underlying assets which may make it a better purchase at the time (better capital appreciation)

These are my thoughts. Just brainstorming. May not be correct
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