TFSA ETFs Dropping

[tanuki_elex]

So these last few days I noticed nearly all the popular ETFs in TFSA dropped like a rock in water. Is there a reason for this like some kind of market crash or dramatic change that I missed?

 

[noeljack]

@tanuki_elex Which ETFs are you referring to exactly?

Regardless, global markets have done really well over the last while. Those are eventually followed by corrections. They’re normal. Volatility is normal.

 

[tanuki_elex]

@noeljack Mostly Global ETFS like SP 500 and Total World or MSCI World. Info Tech as well.

 

[krys77]

@tanuki_elex If I average Global type ETF movement, across the board there's AT MOST been a ~1.6% drop in about 24hrs. Literally only the last 24 hours.

The general global market has had an extremely bullish run for the last few months, this minor correction is completely normal, even if it continues.

I know it's difficult for some, but try to avoid looking at the ETFs movement regularly. Look every other month if you absolutely need to.

 

[tanuki_elex]

@krys77 The reason I am asking it I recently got my younger siblings into investing into their TFSA and as luck would have it they dropped a lot this month and now I have to explan why they shouldn't worry about it since it's only been a month or two and they need to focus long term. But I would still like to know what caused nearly all the Global ETFs to drop so sharply all of a sudden.

 

[misslins]

@tanuki_elex You should have told them to buy crypto idiot

 

[techyinaz]

@tanuki_elex This is a perfect lesson on the stock market and its volatility. He needs to see how it fluctuates, crashes, fluctuations, recovers and reacts to market events, interest rate changes etc. If you wanted it to go up every month you would have bought into a money market fund, but you made the wise choice to expose it to excellent global ETFs.

 

[zorges]

@misslins Lol

 

[spiritualchristian7]

@tanuki_elex Highly recommend 2 things from personal experience 1) Don't look more than once a month or even less. 2) Use a debit order and invest the same amount every month.
If you don't need the money right now what does it matter anyway.

Another reason for the change in value is that the rand strengthened a little bit. If you look at rand values of dollar etfs, that would make them go down.

 

[tomorrowsworld]

@tanuki_elex Liquidity issues in the US in particular.

Money rotation into crypto as well is also a driver, but stocks and crypto are usually correlated because of their risk ratings.

It’ll start picking up again once rates are cut, owing to the weighting that tech has in the ETFS.