Weekend Reading – 0.03% Fee SPDR S&P 500 ETF Becomes Europe’s Cheapest
Weekend Reading is a collection of Investment Research and Lifestyle topics from all corners of the Web. We source the highest quality insights from Wall Street and Main Street that you may apply to your investment process. Unlike the rest of Bankeronwheels.com, this series is provided without additional guidance. As usual, everything is to be used at your own risk. Below is the type of content we shortlist:
The most important quality for an investor is temperament, and not intellect.
INVEST WISELY
CONSTRUCT YOUR PORTFOLIO
Should you invest in Gold in 2024? (Bankeronwheels.com)
A recent study from Robeco suggests a 5-15% portfolio allocation to minimise risks.
By some metrics, Gold looks vulnerable. That’s because Gold often tracks the opportunity cost of holding a much better diversifier – Bonds. If Gold was only correlated to real yields, its price today would be below $1,300 or even lower, depending on the model.
Today, a 1980s-style Gold crash is held up by inflation and geopolitical uncertainty – in Europe, the Middle East and potentially around Taiwan.
- Two Fund vs Three Fund Portfolio (Pension Craft - 16 min)
- Why the outlook for the 60/40 portfolio isn’t as bleak as some claim. (Morningstar)
- Bonds as Diversifiers Aren't Dead--Just Dormant (Jonathan Levin)
- Have you outperfomed? Which index to benchmark your portfolio against? (Finominal)
- Match the timelines of your financial goals with the timelines of your investments (Best Interest)
In this episode, Standpoint’s Eric Crittenden talks all weather investing. The discussion focuses on the case for an all weather strategy relative to a stock and bond portfolio, the challenges of looking different than the market, portfolio construction, international diversification, leverage, the characteristics of a good back test and a lot more.
UNDERSTAND FINANCIAL MARKETS
Aswath is a Professor of Finance at NYU’s Stern School of Business and is often referred to as the Dean of Valuation for his clarity of thought on the subject. This conversation covers a wide range of topics from macro risks to Nvidia and the process of crafting a personal investment philosophy.
Sources of YTD Total Returns (Blackrock)
With the AI rally, valuation continues to drive total equity market return this year, having dethroned earnings.
Earnings (red) will need to come through for equities to stablise at these levels, especially in the face of elevated rate vol. The AI theme continues to stand out – driving recent earnings estimate upward revision and accounting for half of circa. 10% earnings growth expectations next year.
Source: BlackRock
The Largest Stock Exchanges in the World (Visual Capitalist)
Today, there are roughly 80 major stock exchanges worth a combined $110.2 trillion in value.
The world’s top two exchanges, the New York Stock Exchange (NYSE) and the Nasdaq, command 42.4% of global market capitalization. Despite the rapid growth of emerging economies, the U.S. continues to lead capital markets by a wide margin—even as countries such as India see considerable growth, surpassing the UK in 2023.
This visualization shows the largest stock exchanges in the world, with data from the World Federation of Exchanges
Read more on Visual Capitalist
HOW TO INVEST
Active Investing
FACTOR investing
discretionary investing
- Navigating the Magnificent Seven's Fundamentals (Validea)
- Risk and Returns, Before and After the Fact (Capital Gains)
- Walking the tight rope - High valuations in an inflationary environment (Meb Faber - 45 min)
- Shorting Socialism (Verdad)
- How Time Horizon Affects the Odds of Equity Investing (Morningstar)
Charted: The Key Investment Theme of Each Decade (1950-Today) (Visual Capitalist)
Over modern history, a key investment theme has broadly characterized each decade.
In each case, a particular asset class, sector, or region captivated investors for an extended period, driving returns and outperforming the rest of the market.
This graphic shows 70 years of key investment themes, based on analysis from Ruchir Sharma of Morgan Stanley Investment Management
Read more on Visual Capitalist
Market Bipolarity: Exuberance versus Exhaustion! (Aswath Damodaran - 22 min)
In this session, Aswath uses the end of the third quarter of 2023 as an opportunity to look at economic and market movements during the quarter, and to try to make judgments about what the last quarter has in store. While the market looks close to fairly valued, given consensus earnings estimates and interest rates today, your judgment will change based on whether you think inflation will remain stubbornly high (subside) and on whether you think the economy is headed for a recession (soft landing).
ALTERNATIVE ASSET CLASSES
WALL STREET
SUSTAINABLE investing
crypto
Michael Lewis authored “Going Infinite: The Rise and Fall of a New Tycoon” which aptly describes the tale of SBF & FTX. This conversation gives us background on his relationship with SBF & his fallen empire, why he wrote the book & what he thinks you should think about Sam’s guilt or innocence.
BAD BETS
The fake genius: a $30b fraud (James Jani - 1 hr 5 min)
Sam Bankman-Fried was supposed to be a billionaire genius running the world’s largest Crypto exchange: FTX. In only a few weeks, his $32B empire crumbled, leading to his arrest. In this video, we unravel one of the decade’s most significant cases of financial fraud.
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ETFs
State Street to offer Europe’s cheapest S&P 500 ETF after drastic fee cut (ETF Stream)
State Street Global Advisors (SSGA) is set to offer the cheapest ETF in Europe after slashing the fees on its S&P 500 product by two-thirds.
Effective 1 November, the $5.5bn SPDR S&P 500 UCITS ETF (SPY5) will see its total expense ratio (TER) cut from 0.09% to 0.03%, the cheapest S&P 500 ETF on the European market, undercutting the Invesco S&P 500 UCITS ETF (SPXS) and its 0.05% TER.
Read more on ETF Stream
Robeco is stepping into the European ETF market with a focus on active funds. The Dutch asset manager, which has €181bn assets under management, is planning to launch its first UCITS ETFs in Q2 2024. [FT.com]
Xetra has seen the launch of 3 new fixed income ETFs by the German asset management group DWS. The ETFs provide ultra-short-duration exposure to bonds from issuers of Eurozone sovereigns. All the ETFs have a 0.07% fee. [ETFStrategy.com]
US ETFs
BlackRock is set to launch ten ETFs focused on Treasury inflation-protected securities (TIPS). Ranging in maturity from 2024 to 2033, these ETFs will seek to provide inflation protection to investors concerned with erosion of purchasing power. The new TIPS-defined maturity bond ETFs will carry an expense ratio of 0.1%. [ETF.com]
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Wealth Management
Personal Finance
Early Retirement
FINANCIAL PRODUCTS
COST OF LIVING
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Question of the week
DESIGN YOUR LIFESTYLE
Personal Development
Guy Laliberté is the founder of Cirque du Soleil, One Drop Foundation, and Lune Rouge. He was named by Time Magazine as one of the most influential personalities in the world and has been recognized as one of the most creative and innovative minds by Condé Nast. Listen to an engaging conversation around the power of belief, street gangs, wild tales from Vegas, the dangers of nurturing fear & dancing on the cliff.
A Few Laws of Getting Rich (Collab Fund )
There are 13 divorces among the 10 richest men in the world. Seven of the top ten have been divorced at least once.
Correlation isn’t causation, and that sample size is tiny. But a statistic that is so much worse than the national average, on a topic so fundamental to happiness, among a group whose lives are envied by so many, is interesting, isn’t it?
Read more on Collab Fund
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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash.
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As of 29/03/2024, Interactive Brokers offers rates up to 4.738% (GBP), 3.445% (EUR) and 4.83% (USD) on cash.
Health & Wellness
Longevity: can ageing be reversed? (The Economist - 16 min)
Ageing has always been inevitable but fasting, epigenetic reprogramming and parabiosis are just some of the scientific techniques that seem to help people stay young. Might the Peter Pan dream become real?
CAREERS
TECH AND SCIENCE
Travel
Where the Ultra-Rich Spend Their Holidays (Visual Capitalist)
There are more than 25,000 centi-millionaires around the world today, forming an elite club composed primarily of founders and heirs of family fortunes. According to Henley & Partners, most of these individuals—who have more than $100 million in investable assets by definition—split their time between several properties each year. Much of this growth is expected to be seen in countries such as China, India, and Saudi Arabia. China’s Hangzhou and Shenzhen, specifically, are expected to see the highest percentage growth in centi-millionaire populations through 2033, growing by 95% and 88%, respectively. Despite the rapid growth of the wealthy in the global East, however, it’s notable that many centi-millionaires are still graduating from American universities. More than half of the top 20 universities with the most centi-millionaire alumni are in the United States, with Harvard, Stanford, and the University of Pennsylvania making up the top three spots. The top three seasonal vacation hotspots of the ultra-rich are found in the United States: Miami, the Hamptons, and Florida’s West Palm Beach.
Read more on Visual Capitalist
From Bankeronwheels.com
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Good Luck and Keep’em* Rolling!
(* Wheels & Dividends)
Weekend Reading – Global Shocks: How Do Stocks Perform?
Trading 212 Review: Pros & Cons
Cash Is Not Enough: Why Hold Bond ETFs Despite Price Rollercoasters.
The Truth About €1 Million Broker Guarantees (Updated With Trading 212 Cap)
Halifax Share Dealing Review – Similar To Lloyds With SIPP On Top
Lloyds Share Dealing Review – Old School But Ticks The Boxes For Golden Retrievers
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