Google Chrome and Microsoft Edge are in the process of rolling out a version update which is impacting some nabtrade functionality, including buy/sell buttons and certain page loads. If you are a Chrome or Edge user and are experiencing these problems, please visit the following FAQ to review the steps that need to be taken to prevent this issue from occurring.
The value of your investments can be affected by several things such as stock market movements, political and economic news, company earnings and major corporate incidents. While many of these you may not be able to predict or plan for, a better understanding of your investment choices can potentially minimize the effect of these risks.
Capital risk: All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.
Tax risks: International taxes will impact your return. Do your research to assess how much your ETF returns may be taxed.
Currency risks: ETFs feature some level of currency risks. International ETFs are priced in local currencies, so changes in exchange rate will impact the value of your investment.
Liquidity risk: Liquidity is the ability to turn an investment into ready cash quickly, with no loss in value. Low liquidity of an ETF s can lead to higher trading costs or difficulty in buying or selling the ETF. For a regular investor to assess liquidity, you should look at statistics such as:
Average bid/ask spreads which is the difference between the buy and sell price of the ETF. In general, the narrower the spread, the more liquid an ETF is.
Average trading volume. In general, the higher the volume, the more liquid an ETF is
Whether the ETF is trading close to its net asset value, an indication of the fair value of each ETF share the closer it is, the more liquid the ETF is.
If you are an investor who is trading a large quantity of shares at once, the liquidity of the ETF’s underlying securities is the more important factor.
You can’t eliminate risk completely but you can reduce it in many ways. Diversification is one of the ways you can do so, by spreading your investments across different sectors, geographies and asset classes. If one sector or asset isn’t performing well, other investments can balance out any potential loss.
However, it is important to note that diversification may not fully protect you from market risk and does not guarantee returns or eliminate potential for loss, so do your research carefully!
Before making any investment decisions, it’s important you fully understand the risks involved. Do your research, consult the fund’s offering documents, or talk to a financial advisor to help you make the best choice.
The nabtrade service is the information, trading and settlement service provided by WealthHub Securities Limited ABN 83 089 718 249 AFSL No. 230704 (WealthHub Securities). WealthHub Securities is a Market Participant under the ASIC Market Integrity Rules and a wholly owned subsidiary of National Australia Bank Limited ABN 12 004 044 937 AFSL No. 230686 (NAB). NAB doesn’t guarantee its subsidiaries’ obligations or performance, or the products or services its subsidiaries offer. WealthHub Securities is not an authorised deposit-taking institution, and its obligations do not represent deposits or liabilities of NAB.
This material contains general advice only and has been prepared without considering your objectives, financial circumstances or needs. Before acting on any general advice or information in this material, you should consider the appropriateness of the general advice or information with regard to your objectives, financial circumstances or needs and you should obtain and consider the relevant Product Disclosure Statement, Terms and Conditions, Financial Services Guide and any other disclosure document. Subject to any terms implied by law and which cannot be excluded, neither WSL nor NAB shall be liable for any errors, omissions, defects or misrepresentations in the information or general advice (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the general advice or information. If any law prohibits the exclusion of such liability, WSL and NAB limit its liability to the re-supply of the information, provided that such limitation is permitted by law and is fair and reasonable.
© National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.
BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230 523 (BIMAL)
Information provided on this site in respect of BIMAL products comprises general information only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should assess whether the material is appropriate for you and obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. Refer to BIMAL’s Financial Services Guide on its website for more information. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any jurisdiction.
No part of this material may be reproduced or distributed in any manner without the prior written permission of BIMAL.
© 2022 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES and the stylised i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.