Investing Updates : Is the NikkoAM-StraitsTrading Asia ex Japan REIT ETF Dividend Sustainable?

Source : 

https://growbeansprout.com/nikkoam-straitstrading-reit-etf-dividend-sustainable

Apple Intelligence : 

The NikkoAM-StraitsTrading Asia ex Japan REIT ETF (SGX: CFA) recently distributed a dividend, with about one-third classified as a return of capital. This raises concerns about dividend sustainability, as returns of capital reduce the fund’s net asset value and future income potential. While the ETF’s long-term data shows a majority of distributions coming from income and gains, the recent return of capital component warrants further investigation for long-term investors.

The NikkoAM-StraitsTrading Asia ex Japan REIT ETF’s distributions are largely supported by underlying REIT performance, with around 90% of payouts backed by earnings and profits. While the ETF’s distribution yield is currently around 5.9%, the weighted average dividend yield of its top 10 holdings is approximately 6.06%. However, potential risks include rising interest rates, sector-specific challenges, and foreign exchange movements, which could impact future payouts.

The NikkoAM-StraitsTrading Asia ex Japan REIT ETF remains a viable option for investors seeking broad-based exposure to the REITs sector.

Investing Updates : Worried about Your UCITS ETFs Denominated in USD? Perhaps the Funds Should be Denominated in Yen!

Source : 

https://investmentmoats.com/money/ucits-etfs-denominated-usd-denominated-in-yen/

Apple Intelligence : 

• Currency Denomination Concerns: Investors express concerns about the impact of USD-denominated UCITS ETFs on their wealth, especially with rising gold prices and potential USD overvaluation.

• Fund Recommendation: Dimensional Global Core Equity fund, available in SGD, GBP, USD, EUR, and JPY, offers a solution to currency concerns.

• Performance Comparison: Investing in the JPY-denominated version of the fund since August 2017 would have yielded the highest returns compared to other currencies.

• Fund Comparison: Global Core fund is more similar to MSCI World index than some European, Pacific Basin, Global Targeted Value funds.

• MSCI World Performance: $1 million GBP invested in MSCI World denominated in GBP becomes $7.2 million in 21 years.

• Currency Impact: Same underlying securities but different performance due to different currencies.

Investing Updates : Vanguard Cuts Fees on Dozens of ETFs, Mutual Funds

Source: https://www.etf.com/sections/news/vanguard-cuts-fees-dozens-etfs-mutual-funds?utm_source=yahoo-finance&utm_medium=rss&utm_campaign=yahoo-finance-rss

Apple Intelligence:

• Fee Reduction Impact: Vanguard’s fee cuts will save investors over $350 million in 2025.

• Fee Reduction Scope: The fee cuts apply to 168 mutual fund and ETF share classes, including both active and passive strategies.

• Fee Reduction Rationale: Lower costs enable investors to keep more of their returns, which compound over time.

• Fee Reduction Timing: May benefit bond investors as yields are expected to stabilize at higher levels.

• Performance of Vanguard Funds: 91% of active bond funds and ETFs outperformed their peer group average over the past decade.

• Expense Ratio Reduction Scope: Applies to U.S. equity, international equity, and money market funds, with immediate effect.

Opinion:

Good news for ETF lovers.

Hope more will follow suit to cut fees.

Investing Updates: ETFs could face obstacles in 2025 after bumper year

URL: https://finance.yahoo.com/news/etfs-could-face-obstacles-2025-110511236.html

Gemini Summarized:

Key Takeaways:

• Record Inflows: US ETFs experienced a record $1.1 trillion in inflows in 2024, nearly doubling the previous year's figures.

• Driving Factors:
• Bull market in the US.
• Innovation in cryptocurrency and options-based ETFs.
• Growing investor preference for ETFs over mutual funds.

• 2025 Challenges:
• Increased Competition: A crowded ETF market may lead to increased competition and closures of underperforming funds.
• Navigating Innovation: Determining which new products will resonate with investors.

• Continued Growth: Despite challenges, the ETF industry is expected to continue growing significantly in 2025.
  • New product launches, including spot bitcoin ETFs, are expected to continue.
  • Options-based strategies like buffered and defined outcome ETFs are gaining popularity.

In essence: While 2024 was a record year for US ETFs, the industry faces new challenges in 2025, including increased competition and the need to identify successful innovations. However, strong growth is still anticipated.

Investing Updates: 2024 Sees ETF Inflows Surpass $1 Trillion, Extending Record Year

URL: https://www.moomoo.com/community/feed/113644963299341?is_recommendation=0&is_recommend_pos=1&futusource=news_headline_list

Summarized:

In 2024, the ETF industry reached a record high with over $1 trillion in inflows, surpassing the previous record of $920 billion set in 2021. This growth is attributed to a shift in investor preference from traditional mutual funds (which saw outflows) to ETFs.

The most popular ETF was the Vanguard S&P 500, attracting $100 billion. However, the fastest growing new ETF was the iShares Bitcoin Trust, reflecting growing interest in cryptocurrencies.

Looking ahead to 2025, Bitwise Asset Management predicts a "golden age of crypto" with continued growth in bitcoin ETFs due to factors like increased institutional investment and potential regulatory improvements.