S&P/ASX 200 (ASX:XJO) - Tuesday 18th December - What rally ?, 36910161, page-33 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

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7,753.7 s&p/asx 200

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West Coast

1,697 Posts.

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19/12/18

17:59

Post #: 36910161
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Originally posted by Archean ↑

Originally posted by West Coast
hey Voltaire, The longer I hold this ETF the bigger betashared margin becomes. Will work well in some cases for quicker trades but over time if you get stuck in it waiting to break even you need the market to go well past your buy in price.

Also I was in BBOZ, XJO was 100pts under my buy in price and I still lost a small amount of $ eg. Bought 5850 sold 5750 after holding around 6 months.

Currency was not a factor for bboz surely.
Dividends are going to account for a large part of that loss. You are effectively short the ASX 200 basket and have to pay for any dividends going ex div over that whole period. If it is levered 2 times as you suggest, you’d have to pay double the divas. This would all be contained in the PDS for the product. Stock borrow cost and funding credit would come into play as well but on this kind of product you get gouged everywhere.

Dividends do not have any direct effect. In that case if you long on an etf then you are ahead of the XJO when it rises.

Its a gouge and it is far too big a gouge when in effect the ETFs can set their own price. I would rather be told exactly the coats upfront not on page 164 of the pds.

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XJO Value at posting: 5,580.6
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