Has anyone actually invested with ishares?

T

tonster01

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If so, how do you go about it? I mailed them but just got a generic babble of a response..

To clarify, I just need to go to any broker to trade ishares?

Thanks
 
i have looked into it but havent done so yet, they are run by barclays so presume all is above board. Looked at using keytrade.com to buy into one of their ETF's but letting market settle for a couple of months before making a decision. not sure whats going on with all this madness at the moment
 
Do yourselves a favour. The markets are likely to be a Roller-Coaster for a fair few months yet. Keep your money in your pockets until this passes over. If you really want to have a go try www.selftrade.co.uk. Owned by Lloyds Bank.
 
I have owned ishares for 5 years. Bought some in USA, some London, and some Paris.
You need to use a stockbroker. Dividends are collected in the normal fashion. There's nothing complicated about them. Good Luck.
 
Yes, I bought the some through my stockbroker exactly the same way as you would with normal shares. I also setup a CREST account to hold them as I don't think they issue certs.
Hope that helps
 
I bought some ishares through an online account.

Exactly the same as any other share, except there are differences from a tax perspective.
 
You might try Lyxor as an alternative to iShares. Their commissions are better and using one of their European websites you can trade in Euros, avoiding Sterling/Dollar charges.

www.lyxoretf.fr
 
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I am a bit confused. Am considering ETF's and want to diversify across different indexes. Reading the ishares info on MSCI fund in emerging markets it seems more like a managed fund, even gives profiles of portfolio managers - I thought ETF's were passive index trackers?

The bigger picture for me is that I want to invest 100,000. At the moment I have distilled my decision making this far : 25 in high earning deposit drip feeding into regular savings account, 25 directly into blue chip irish shares and 50 into ETF's which I want to spread between US-25, UK-10, Europe-10 and emerging markets-5. Am trying to pin down my ETF's before going to broker. Any advice appreciated thanks.
 
i assume that you've had a look at - the best thing to do is some investigative work on the different ETFs which they have for the regions you're looking at. The majority of ETFs are passive trackers for different indicies but some may be managed differently - you have have to do the specific research into the funds you are interested in.

some of the most popular EFTs are ishares S&P 500 & ishares FTSE 100.

best of luck
 
laila said:
Am considering ETF's and want to diversify across different indexes.
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You should diversify across different asset classes; if the indexes you select are highly correlated there’s not much diversification benefit.
laila said:
At the moment I have distilled my decision making this far : 25 in high earning deposit drip feeding into regular savings account, 25 directly into blue chip irish shares and 50 into ETF's which I want to spread between US-25, UK-10, Europe-10 and emerging markets-5.
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So looking at asset classes rather than indices, you intend to invest as follows: 25 % cash; 35% domestic (i.e. euro) equities; 35 % foreign (i.e. non-euro) developed equities; and 5% emerging market equities.
Does the cash include your emergency stash? Otherwise, you appear to be overweight in cash. In general, cash deposits do not beat inflation whereas equities do (in the long run, but at the price of volatility). You’re putting a lot (i.e. 25%) into direct IE equities, which makes up less than 1% of world market cap, so maybe you could look again at your allocation between IE and the rest of euroland. You’re ignoring asset classes such as: commodities; foreign government debt; foreign property; timber, water, etc. for which you can buy ETFs.
 
I'm thinking for example of the tax headache which share investors through Rabobank have to deal with and would like to know the following.

As they seem to operate outside of the republic; are these ishares accounts etc available for an Irish resident investor without any tax headache ?
 
Thanks PMU for highlighting flaws in my strategy. Oh dear It is hard to find a simple well balanced solution - I thought I had it with the ETF but it seems I must look again or at least broaden the range of ETF's.

I am aware that I need to be invested in equities and want to make as informed a decision as I can then just let it run with minimum interference from me and hopefully have a buding dividend income. Trying to make the wise decision is very time consuming and the more reading I do the more complex it seems to be. Talked to a broker but he was not in favour of ETF's which I understand may be more a fee's issue but throws me back on my own limited abilities. Thanks everyone.
 
Laila - PMU advice is good but keep it simple - you were heavily loaded into equities which can and do always head in the one direction. Investing your money now could be a wise move it the market has bottomed out but if it hasnt (only time will tell) you will be regretting your investment. That is why PMU has advised to invest in different asset classes such as commodities. Wheat, silver & gold are all at or near all time high. Mining and energy ETF's are also doing well. The more diversified your assets the less exposed you are to a sudden drop in any one market or sector. I would agree to lower your investment into the ISEQ, it is heavily dependent on construction and banking and may yet see 6000. If you have a pension this may be the best way of investing in the iseq due to tax breaks.

I believe you are on the right track with ETF's and there is a huge selection out there so its just a matter of choice and good timing - easy isnt it
 
laila said:
Thanks PMU for highlighting flaws in my strategy. Oh dear It is hard to find a simple well balanced solution - I thought I had it with the ETF but it seems I must look again or at least broaden the range of ETF's.

I am aware that I need to be invested in equities and want to make as informed a decision as I can then just let it run with minimum interference from me and hopefully have a buding dividend income. Trying to make the wise decision is very time consuming and the more reading I do the more complex it seems to be. Talked to a broker but he was not in favour of ETF's which I understand may be more a fee's issue but throws me back on my own limited abilities. Thanks everyone.
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Plus there's the whole 8 year deemed disposal rule which puts a dent in your gains.
 
Any pointers to where to research ETF's?

I think there is a market out there for some DIY broker/financial advisor software that would take a punters budget and brief and spit out the optimum portfolio.
 
laila said:
I thought I had it with the ETF but it seems I must look again or at least broaden the range of ETF's.
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ETFs are just products, as are unit funds. I think the key is to develop a strategy based around asset classes / diversification and then select investment products, be they funds or ETFs that meet your strategy.

laila said:
Talked to a broker but he was not in favour of ETF's which I understand may be more a fee's issue but throws me back on my own limited abilities.
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I’ve bought ETFs, both iShares and Lyxor through Campbell O’Connor. Excellent service. The ETFs are in my name and are in a CREST account. They're dematerialized products so there are no certs. AFAIK only ETFs traded in UK and IE exchanges can be settled via CREST so you are restricted to the Iseq ETF and this lot:
http://www.londonstockexchange.com/...n/experiencedinvestors/investetf/Products.htm
laila said:
Any pointers to where to research ETF's?
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Don't research ETFs - research asset classes, asset allocation and diversification. Then look for appropriate ETFs or funds to meet your strategy. You could read Rodger Gibson’s or William Bernstein’s books on asset allocation; take a look at http://www.efficientfrontier.com/ or the ETF page at . The main problem here is that they are all written from the perspective of someone whose functional currency is USD and not EUR.
 
Lyxor ETF's cannot be held in crest for some reason and are such held in a nominee account, which as you can see elsewhere on this site is a big no no.

I also had some IShares etf (these can be held in crest) but became a bit worried about them ( sub-prime, Soc Gen etc ) as they were all controlled by Barclays so in effect all my assets were with the one company.

I would keep no more than 20% in non Euro assets purely on the principal that I live and spend in the euro zone and I want to avoid unneccessary Currency risk

In my opinon with a sum like you have it may be better to buy the shares directly (avoids charges) by maybe picking the top 16 companies of the Eurostoxx50 and putting the rest into an Emerging markets/ US ETF if you want that exposure

EG

16 top companies in Eurostoxx50 x 5000 = 80000, 10,000 emrg mark ETf, 10,000 us etf

I am not an advocate of the Cash emergency fund as the shares themselves are quite liquid so in an emergency you could get access to funds
 
Another tip that just came to me is - when you ring the broker just do what you planned to do before the call if he trys to change your mind or comes up with problems do not do anything on the spot but think about it and tell him you wil ring back later.

In my case (it was a few years ago ) I went to buy a particular Irish share and was told that the broker could only buy it in dollars in the US as there was low liquidity in the irish market.

I agreed and incurred currency charges and extra brokers fees both for buying and selling the shares.

So make a plan and stick to it
 
Thanks everyone I value all the comments I have received. I will keep working on it until I sit happy with my decision for at least one week before biting the bullet.
 
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