iseq etf

[wheeler dealer]

After my small shareholding in aryzta being decimated ,i have contemplating to get shut of the rest of my individual shares and lump into iseq etf .I see the wisdom tree iseq etf at near 3 year lows and now seems a good enough time if ever to invest .I remembering enquiring off goodbody manager before about iseq etf and he let on that he never heard about it ,but wonder can you buy iseq etf trough goodbodies .I do not want anyhassle having to open up a/c with any other brokers

 

[Brendan Burgess]

I would not recommend the ISEQ ETF.

You can't set your Capital Losses on Aryzta for example, against gains in the ISEQ ETF.

From memory, the actual costs are high because it's so small.

Get one of the other ETFs.

Brendan

 

[jpd]

Investing in iseq is very limited and not diverse. You would be better of investing in a euro wide etf or even a world wide etf.

 

[moneymakeover]

On degiro there's an iseq20 etf
Lse
Euro denominated
Currently at €12.53

 

[Jim2007]

After my small shareholding in aryzta being decimated ,i have contemplating to get shut of the rest of my individual shares and lump into iseq etf .I see the wisdom tree iseq etf at near 3 year lows and now seems a good enough time if ever to invest .I remembering enquiring off goodbody manager before about iseq etf and he let on that he never heard about it ,but wonder can you buy iseq etf trough goodbodies .I do not want anyhassle having to open up a/c with any other brokers

You are essentially proposing to invest in a small caps or more likely micro caps fund concentrated on one small Euroland region. Unless you hold a very big portfolio and it will about to only a couple percent of it, it is not a great option.

 

[moneymakeover]

If Irish economy is growing at 7%
Wouldn't iseq be similarly growing?

Agreed compared to larger economies it's tiny but in terms of return what's the problem?

 

[Steven Barrett]

If Irish economy is growing at 7%
Wouldn't iseq be similarly growing?

Agreed compared to larger economies it's tiny but in terms of return what's the problem?

Risk and return are related. As Jim said, you will mainly be investing in small and micro size companies. Higher expected return but also higher risk. It wasn't that long ago that some of the biggest companies that would have been in the ISEQ were in effect insolvent.

It's just as easy to buy a European or Global ETF that provides access to large cap companies that sell all over the world.


Steven
www.bluewaterfp.ie

 

[PMU]

If Irish economy is growing at 7%. Wouldn't iseq be similarly growing? Agreed compared to larger economies it's tiny but in terms of return what's the problem?

Because it's got the highest valuation of developed market economies, which implies IE stocks are pricey, i.e. future returns will be low, if bought at current valuations. Here are calculations of Prof Robert Shiller's 10 year CAPE ratio https://www.starcapital.de/en/research/stock-market-valuation/, as of Sept 2018. Ireland has the highest CAPE of 45.

 

[galway_blow_in]

After my small shareholding in aryzta being decimated ,i have contemplating to get shut of the rest of my individual shares and lump into iseq etf .I see the wisdom tree iseq etf at near 3 year lows and now seems a good enough time if ever to invest .I remembering enquiring off goodbody manager before about iseq etf and he let on that he never heard about it ,but wonder can you buy iseq etf trough goodbodies .I do not want anyhassle having to open up a/c with any other brokers

Goodbody are an old style, lazy, smug, entitled firm, dump them while your at it.

Their fees are extortionate.

I've heard of the wisdom tree Ireland etf, suspect volume is thin however, personally I'd just buy an s+p etf, Europe always trails the U. S when it comes to equities and European markets have been terrible this past three years.

 

[BilliamD75]

Goodbody are an old style, lazy, smug, entitled firm, dump them while your at it.

Their fees are extortionate.

I've heard of the wisdom tree Ireland etc, suspect volume is thin however, personally I'd just buy an s+p etf, Europe always trails the U. S when it comes to equities and European markets have been terrible this past three years.

 

[BilliamD75]

If you want to put your dough somewhere, I would put it in the US market, it will rise because the smart money will leave the bond market and look to equities, stay out of Europe, America is the last safe haven, just a hunch, a little tip never give your money to someone else to look after it for you, best of luck

 

[Sarenco]

Europe always trails the U. S when it comes to equities

That is untrue - there have been extended periods in the past where European equities have outperformed US equities.

 

[wheeler dealer]

The big problem in picking the winners is you will also pick up a fair share of lame ducks ,I have a mixture of saving certs ,an investment property ,over 10 individual shares kept on hold and keep .While i have gained on udg,glanbia & kerry ,I have lost on independent news,aib.c&c & now aryzta and end of day might be lucky to break even on shares after over 10 years . Glanbia has being my star picked up at €2.35 but at 15k down on aib .Imo holding shares long term is only a fools game ,get in low and make 10% and sell ,rinse and repeat .The reason i have picked iseq etf is because i know every company and i do not think they are over valued at moment but at same time you could not trust any of them individually and any soft brexit agreement could only be positive!!

 

[galway_blow_in]

That is untrue - there have been extended periods in the past where European equities have outperformed US equities.

Yes you have pointed to Europe having outperformed the U. S from 2003 to 2007, was the gulf that wide?, not anything like the gap since 2009 where America has vastly outperformed Europe.

 

[galway_blow_in]

The big problem in picking the winners is you will also pick up a fair share of lame ducks ,I have a mixture of saving certs ,an investment property ,over 10 individual shares kept on hold and keep .While i have gained on udg,glanbia & kerry ,I have lost on independent news,aib.c&c & now aryzta and end of day might be lucky to break even on shares after over 10 years . Glanbia has being my star picked up at €2.35 but at 15k down on aib .Imo holding shares long term is only a fools game ,get in low and make 10% and sell ,rinse and repeat .The reason i have picked iseq etf is because i know every company and i do not think they are over valued at moment but at same time you could not trust any of them individually and any soft brexit agreement could only be positive!!

Only two iseq companies right now seem to be doing well, both begin with the letter K

 

[wheeler dealer]

Only two iseq companies right now seem to be doing well, both begin with the letter K

Yes and they are probably both over valued ,IMO more likely to fall in price then gain 10%

 

[Sarenco]

Yes you have pointed to Europe having outperformed the U. S from 2003 to 2007, was the gulf that wide?, not anything like the gap since 2009 where America has vastly outperformed Europe.

Your chosen end point has a massive impact on performance.

Try the 20 years to the end of 2007. Which do you think performed better - US or European Equities?

As always, the past is not a prelude to the future. But to say that US equities have always outperformed European equities in the past is just not true.

 

[galway_blow_in]

Yes and they are probably both over valued ,IMO more likely to fall in price then gain 10%

Time will tell I suppose.

 

[joe sod]

If you want to put your dough somewhere, I would put it in the US market, it will rise because the smart money will leave the bond market and look to equities, stay out of Europe, America is the last safe haven, just a hunch, a little tip never give your money to someone else to look after it for you, best of luck

The time to invest in US stocks was over 5 or 6 years ago for europeans, then you were buying them with cheap dollars, remember the exchange rate went to $1.5 to the euro back in 2012. This was also a reason for the under performance of european markets back then, the euro was way over valued and this was a headwind for european equities. Now the opposite is the case you only get $1.13 to the euro and the US markets are way more expensive than europe now.

 

[Jim2007]

If Irish economy is growing at 7%
Wouldn't iseq be similarly growing?

Agreed compared to larger economies it's tiny but in terms of return what's the problem?

Risk versus return, never take on more risk than is required to obtain the desired return. General consensus, at least where I work, is equities will return around 5% to 6% over the next ten years, while well managed private portfolios can expect around 8% to 10%. You might get 7% on your proposal but it comes at the risk of investing in a micro fund of which two positions account for about 40% of the fund. You are constructing a very high risk portfolio with getting a matching return.