Investing vs. Trading: What's the difference?
Owen Raszkiewicz
Since Selfwealth was formed in 2012, we've embarked on a journey to revolutionise peer-to-peer investment portfolio construction and disrupt the Australian broker industry. Along the way Selfwealth has become Australia fastest-growing retail share trading platform, winning numerous awards and helping investors trade smarter, every time.In 2017 Selfwealth listed on the ASX, offering investors a chance to join us on our journey. Two months ago, we launched Selfwealth Adviser, Australia first percentage-fee-free non-custodial platform. Now, Selfwealth is delighted to achieve yet another milestone with the listing of our first ETF on the ASX, set to commence trading on 12th November 2019.As one of Australia most innovative ETFs, the Selfwealth SMSF Leaders Fund (ASX: SELF) will debut with support from some of the industry best names, including the highest third-party seed funding ($100m) for an ETF in Australia.
What is the Selfwealth SMSF Leaders ETF?
As the latest addition to our product suite, the Selfwealth SMSF Leaders Fund (SELF') is an exchange-traded fund (ETF) that aims to outperform the market benchmark using a world-first ETF construction method.A growth investment option intended to complement existing Australian equities, the ETF draws on a concentrated selection of up to 75 ASX-listed stocks to track the performance “ before fees and expenses “ of the benchmark fund, the Selfwealth SMSF Leaders Index.For more information on the back-tested performance of the index, please see the ETF fact sheet.
How is the Selfwealth SMSF Leaders ETF constructed?
Through a unique and innovative approach, Selfwealth has developed a never-before-seen method to construct the SELF' ETF.
Using real data from over 80,000 SMSF portfolios, every quarter we rank these portfolios via peer-to-peer time-weighted performance to establish the top-performing decile (10%). With this sub-set, we remove REITs, LICs, LITs and ETFs, before then ranking stocks according to how often they feature among the leading SMSF portfolios.
Next, we apply two more filters to refine the stock selection. First, all stocks outside the ASX 200 are removed from consideration to ensure adequate liquidity. Among those stocks which remain, they must feature in at least 45 of the top-performing SMSF portfolios, or else they too will be excluded.
At the conclusion of this process, there are 25 to 75 ASX stocks remaining for inclusion in our ETF. The fund is rebalanced quarterly, with each stock holding equal weight.
Which parties are involved with the ETF?
The Selfwealth SMSF Leaders Fund has received support from some of the largest names within the ETF sector. Upon launching the ETF last month, Selfwealth was thrilled to announce that specialist ETF investment company ETFS Capital would seed the Fund with $100m.Selfwealth has also partnered with ETFS Management (AUS) Limited, Australia second-oldest ETF provider and the only truly independent, wholly Australian-owned ETF manager. The firm will act as the Responsible Entity to the SELF' ETF, drawing on its experience that extends to more than $1.7bn in funds under management, and a host of ETF launches. Finally, an integral part of the ETF portfolio construction process relies on data provided by BGL. As Australia largest SMSF software administration platform, the company provides Selfwealth with the means to evaluate data from more than 80,000 SMSF portfolios.
How do I invest?
If you're already a member of the Selfwealth Community, then we have some great news! With your Selfwealth trading account, it is free to buy units in the Selfwealth SMSF Leaders ETF. All you have to do is search for the ASX ticker code SELF', and you'll be able to invest with just a few clicks. However, please consult the PDS before making any investment decision.Of course, those without a Selfwealth trading account may still invest in the ETF via their broker but now could be as good a time as ever to join Australia cheapest and fastest-growing share trading platform to take advantage of this member-only offer.For more information, including the PDS and up-to-date fund information, please visit etf.selfwealth.com.au. Alternatively, for any investment questions, please contact sales@selfwealth.com.au.
Important disclaimer: SelfWealth Ltd ABN 52 154 324 428 (“Selfwealth”) (AFSL 421789). The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser and/or accountant. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice. You should obtain the relevant Product Disclosure Statement for any product mentioned and consider its contents before making any decision. SelfWealth Ltd ACN 52 154 324 428 (Selfwealth) (Australian Financial Services Licence Number 421789). Selfwealth SMSF Leaders ETF is issued by ETFS Management (AUS) Limited ("ETFS") The Responsible Entity (Australian Financial Services Licence Number 466778). Selfwealth is the appointed distributor of the Selfwealth SMSF Leaders ETF. Except for their respective roles with respect to the Selfwealth SMSF Leaders ETF, ETFS and Selfwealth are unrelated companies. Please consult the PDS before making any investment decision, which is available at etf.selfwealth.com.au.
