Is the ETF will grow well in Indonesia 3-5 Year Again?
This question of children jakarta: “Is the ETF will grow well in Indonesia 3-5 years from now?”.
Questions exactly like this:
things I want to ask is whether ETFs will grow well in Indonesia in the future between 3-5 years. is there any chance the ETF will develop and glimpsed a large MI. given that now the index is falling if seiringnya rebound may lead to a promising ETF as an investment?
sorry if the question of a beginner is a bit weird …
In this case I was a little less clear whether this question is ‘specific’ (Perhaps in this case is about the R-LQ45X ETF) or the question is ‘broad’ (in other words to talk about the ETF world in general).
Therefore, I will answer from both sides. But first maybe I need to remind you once again that the ETF is MUTUAL FUND. There are some differences, but it could be said the main difference is that ETFs are traded on the stock exchange mutual funds while the ‘normal’ is.
Now we talk specifics, which in this case talking about R-LQ45X ETF. As we know, the ETF is trying to ‘mimic’ the movement of LQ-45 index stocks. If in 3-5 years, the LQ-45 Index rebounded, then of course the value of the ETF will rise following the rebound.
Nevertheless, here may be useful to me to add something. From my observations upon entering the instrument R-LQ45X, this ETF Investor will have difficulty when the market is very volatile (volatile as today). Sometimes investors who want to make a purchase could not find a seller for buying and selling spreads in the market is very large, sometimes there are no sellers at all. And in times like these, it is a good time to make a purchase.
PS: For the ‘fairness’, need I add also that in normal circumstances (even when in any bear market, provided it is not volatile at all), buy-sell spread is quite small, and often only Rp 1.
Perhaps in this case, the ETF manager (Indopremier) need to increase their market-maker role. It would be ideal if it had they been more active in as a seller (the price is ‘reasonable’ according to the ETF NAV). Thus the prospective investors who intend to make purchases not only able to ‘bite the fingers’ because they can not make purchases when the price is so attractive.
If we speak is the ‘world’ ETF Indonesia (overall) will be more developed in the future, then it probably will eventually come back to whether the ETF-ETF in Indonesia could offer an ‘excess’ is real compared to mutual funds ‘ordinary’
In America for example, Index ETF has a management fee structure is very small, even smaller than the mutual fund Index (can be only 0.07%), although it must be remembered also that the ETF investment index will be associated also with a stock broker commissions. Abroad there, depending on the value of investments and tax factors, most investors would be better to invest through ETFs (and some others would be better off investing through index funds ‘normal’) …
Hopefully as time goes by, the other MI are also interested in ETF products that bear ETF’s increasingly competitive world. Thus investors can also enjoy ‘murah’nya investing in ETFs as investors outside the country of Indonesia