Hi all,
Sorry me again. Can someone explain the difference between two ETFS which too me like similar? Is there a difference between these?
Example: £HMCH & £IASH
£IASH looks to outperformed in last year but £HMCH in the last 30 days?
The main difference in these ETFs is that IASH is actually tracking the MSCI CHINA A index. This is poorly labelled in Freetrade so it looks like both ETFs track just the MSCI CHINA index.
China A-shares add meaningful portfolio diversification, given their low historic correlation with major equity markets globally, and can help investors access a broader investment universe reflecting the faster-growing sectors of China’s “new economy”
HMCH tracks MSCI CHINA which includes a basket of all the 3 types of China stocks
The three categories of Chinese stocks
Chinese A-stocks (A-Shares): Stocks of Chinese companies that are listed on the Shanghai or Shenzhen stock exchange and traded in local currency.
This category has been exclusive to Chinese investors. However, professional foreign investors with a special license are able to invest in these stocks under certain restrictions.
Chinese B-stocks (B-Shares): Stocks of Chinese companies that are listed on the Shanghai or Shenzhen stock exchange and traded in foreign currency.
This category has been open for foreign investments. Since the restrictions on A-Shares have been lowered, these shares tend to be losing liquidity.
Hong Kong H-stocks (H-Shares): Stocks of Chinese companies that are listed on the Hong Kong stock exchange and traded in Hong Kong Dollar (HKD).
This category has been open for foreign investments as well. Most institutional investors prefer H-stocks due to their relatively high liquidity
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That’s brillant thank you. I’ve currently got chairs in HMCH and was just unsure why one was out performing the other!
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Hi all,
Still plodding on here. Not doing too bad apart from global green clean energy nose diving when I bought. But I’ve bought back in at the lower price.
Looking more into it now. I’m currently weighted
25% each SMT, Global Clean Energy, Ishare MSCI world and ishare msci china.
Looking to consider whether selling out of msci China into an Emerging Market to covers area MSCI world doesn’t. Or doubling down onto MSCI world. Sadly with the money I’m putting in each month I cannot get vanguard all world.
Also thinking of moving the weighting and wasn’t sure on the view of having a higher % in ‘safer’ etf such as msci world and less into SMT and green energy. The money won’t be touched for 10+ years.
@GMA1867 I’ve just started out as well, similar plan, a touch more going in each month but not much more. Maybe interesting to share my thinking on the above, but obviously not advice - I’m totally new to this myself.
I was getting fed up with savings accounts so set my goal as beating general savings account returns by > 3% for money that I can lock away.
As a result (and after a ton of research and deliberation) I’ve decided to weight heavily to the relative safety of VWRL (64%), added in VUSA (20%) to up the weighting a little more to the US.
I then have smaller investments that introduce a little risk / reward with 7% in WLDS and then much more more risk / reward with 9% split across three individual stocks - for these I currently have DOCU, ETSY and FDX.
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There is no such thing as relative safety with any fund or share. Funds or shares should not be treated like savings accounts or compared to them. Those who started investing in 2007 or 2008 will have experience to teach that…
Relative safety here seems to be used as just a synonym for lower volatility.
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Is £100 in an ETF not a safer investment relative to £100 in a specific stock?
Certainly aware of the risks compared to a savings account, but from everything I’ve read and learned so far the ETFs are more likely to have lower volatility and if one company goes bust in an fund at least they’re typically a small % holding within that fund.
Whereas picking a specific stock, if that goes south then there’s no buffer.
That’s what I would describe as relative safety, relative being the key word.
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Yes however what concerns me is when funds are spoken of to say I just want to get a bit more than my savings account. You could buy even a very well diversified fund and it could be down 50% in a year’s time.
OK let me rephrase from ‘safer’ to a stock that is historically less volatile
Ah yes, totally understand that @JimSmith but that’s not what I intended to say.
At the start of investing I wanted to set myself a target, and that target is to aim to beat what I would get from a savings account. I’m very aware that’s no given.
But having that target has helped keep me grounded the in making more sensible decisions to invest the majority in diverse funds vs individual stocks (when my natural inclination would definitely be to chase double digit returns from picking individuals).
Yeah, I would go with World + Emerging Markets.
Now might be a reasonable time to get into EMIM as Asian markets are doing pretty poorly atm, so it’s on a dip again this morning.
Personally I would also consider adjusting the weightings. 25% splits doesn’t really seem that ideal. I would be looking to put more into one particular holding, probably the World holding and less into sector bets.
I put 60% into the All World myself, but I don’t have that many holdings and I don’t have that much money to invest, so I want to concentrate the money to grow it rather than spread it around too much. 
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Thanks rob. I’m thinking of moving to three and leaving global clean energy then having a 50% 25% 25% spilit. But at present I’m holding the global clean energy hoping it picks up so not selling at a loss.