Bought 300 shares in an Australia ETF (EWA)...

Discussion in 'ETFs' started by Cabin111, Nov 27, 2020.

  1. Cabin111

    Cabin111

    I bought it today for $23.27 and change. Did a covered call for Jan 22 $25. I got $1.10 ($330.) for the option. It also has a 3.2% dividend. Basic cash flow for me...
     
  2. themickey

    themickey

    Ya, ok, interesting, that code is not listed on ASX bourse, possibly the closest which comes to it on ASX would be A200.AX.
    My preference in buying, I like to see a swing back under MA20, so it entails a reasonably large watchlist of favorites and usually waiting around 4-6 weeks for these to cycle around.
    The swing below a MA20 can be correlared to swings to the monthly lows.
    Below is 12 month chart of A200.AX with MA20 and a comparison of the two, just for fun.
    download.png
    download-1.png
     
  3. jharmon

    jharmon

    Don't forget that any foreign equity ETF also implies an exposure to the exchange rate (unless it employs hedging), so you might want to add that leg too.
     
    zdreg and themickey like this.
  4. Cabin111

    Cabin111

    The problem is most of my money is in US dollars. And the US is printing them as fast a possible. I believe inflation to be a real threat. Why not have some of the money in other countries. Also I've gone into a gold mining ETF. Preserve capital #1...Some income #2.
     
    themickey likes this.
  5. themickey

    themickey

    Yup, imo, should inflation begin to get away, commodity stocks and possibly RE along with Tech should continue to rise, infact most stocks other than the pennies which often fail due to undercapitilization and competition.
     
  6. jharmon

    jharmon

    If you want to take an inflation perspective, you need to consider that as an entirely separate trade.

    Traders of stocks in country X mostly don't care about country Y or exchange rate Z. If you want to capture country X returns, hedge.

    In this thread:
    X=AU
    Y=US
    Z=AUDUSD

    You can substitute X,Y and therefore Z accordingly.