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20-01-2016, 09:52 AM
Hi Pantoo,
I think what you mean is the lack of retail investors in the ETF and the spread.
The liquidity is there, CIMB has to provide it, around 7000 units for buying and selling.
The problem is the spread is around 1.3% for example, today's price is 7.35 for Selling and 7.45 for buying.
So, in that sense, one starts with a 1.3% hurdle, i.e. right after buying, technically, we are down 1.3%.
By and large you are right, there is hardly any volume in the counter.
However, if you are following an asset allocation strategy and want ASEAN exposure without getting into stock picking, this could provide it.
Full Disclosure : I have held it for close to 2 years, following this approach.
I think what you mean is the lack of retail investors in the ETF and the spread.
The liquidity is there, CIMB has to provide it, around 7000 units for buying and selling.
The problem is the spread is around 1.3% for example, today's price is 7.35 for Selling and 7.45 for buying.
So, in that sense, one starts with a 1.3% hurdle, i.e. right after buying, technically, we are down 1.3%.
By and large you are right, there is hardly any volume in the counter.
However, if you are following an asset allocation strategy and want ASEAN exposure without getting into stock picking, this could provide it.
Full Disclosure : I have held it for close to 2 years, following this approach.
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures