The key? Focus on ETFs that prioritise dividends, diversification, and consistency.

Here are three of the best ASX ETFs for income investors right now.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This Vanguard ASX ETF is a go-to option for investors chasing reliable dividend income.

This ETF tracks an index focused on high-yielding Australian companies. It tends to lean heavily into banks, miners, and other mature businesses with strong cash flow.

Top holdings include BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) — two of the biggest dividend payers on the ASX.

Strengths? This ASX ETF offers broad diversification and a historically strong yield. Vanguard's low-cost structure is another big plus.

Risks? It's concentrated in a few sectors, particularly financials and resources. That can lead to volatility if those sectors fall out of favour.

Still, for pure Aussie income exposure, it's hard to ignore.

BetaShares Australian Dividend Harvester Fund (ASX: HVST)

BetaShares Australian Dividend Harvester Fund takes a more active approach to income.

Rather than simply holding high-yield stocks, it aims to 'harvest' dividends by rotating through ASX shares before they go ex-dividend.

Key exposures often include names like Telstra Group Ltd (ASX: TLS) and Westpac Banking Corp. (ASX: WBC).

Strengths? This ASX ETF can deliver frequent income distributions, often monthly, which appeals to investors seeking regular cash flow.

Risks? This strategy can lead to higher turnover and potentially lower capital growth. Returns can also vary depending on market conditions and timing.

It's less traditional, but potentially very effective for income-focused portfolios.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

This ASX ETF offers something different: exposure to real estate investment trusts (REITs).

Property trusts are known for paying attractive income, as they're required to distribute most of their earnings.

Top holdings include Goodman Group (ASX: GMG) and Scentre Group (ASX: SCG).

Strengths? This ASX ETF provides diversification beyond traditional equities and offers exposure to property-driven income streams.

Risks? REITs are sensitive to interest rates. When rates rise, property valuations and yields can come under pressure.

That said, for investors looking to diversify income sources, property exposure can be a valuable addition.

Foolish takeaway

Income investing doesn't have to mean picking individual dividend stocks.

These three ASX ETFs offer different approaches to generating income. One focuses on high-yield blue chips, another actively targets dividends, and the third taps into property income.

Blend them wisely, and you could build a resilient income stream with less stock-specific risk.

The post 3 of the best ASX ETFs for income investors appeared first on The Motley Fool Australia.

On Tuesday, we saw scores of internationally-focused ETFs reach either 52-week highs, multi-year highs, or all-time record prices.

Some of the most popular ETFs were among them, such as iShares S&P 500 ETF (ASX: IVV), Betashares Nasdaq 100 ETF (ASX: NDQ), Vanguard MSCI Index International Shares ETF (ASX: VGS), Global X FANG+ ETF (ASX: FANG), and iShares Global 100 AUD ETF (ASX: IOO).

The ETFs soared due to ongoing strength in the US market, with the S&P 500 Index (SP: .INX) smashing another all-time high this week.

Over the years, Aussies have enthusiastically invested billions in ASX ETFs to gain easy, diversified exposure to international shares.

This trend continues today, with a record $5.28 billion invested in July alone.

Next week, scores of ETFs go ex-dividend, which means time is running out for investors who may want to top up their holdings.

To receive an ETF's next dividend, you must buy or already own the ETF before its ex-dividend date.

We provide a sample of ETFs going ex-dividend below.

If you want to buy any of these ETFs to score their next dividend (or 'distribution') payments, you'd better be quick!

24 ASX ETFs with ex-dividend dates next week

At this stage, most providers have only released estimated distribution amounts. They will release finalised figures in due course.

The post 24 ASX ETFs going ex-dividend next week appeared first on The Motley Fool Australia.

However, the median house price in capital cities currently sits at more than $1 million dollars. 

That means you're looking at a deposit of $200,000 to buy a house in a major city. 

While not all investors have that kind of cash to splash, you can still gain exposure to this sector through thematic ASX ETFs. 

Here's three to consider which focus on real estate investment trusts (REITs)

Vanguard Australian Property Securities Index ETF (ASX: VAP)

This fund offers a diversified blend of Australian real estate investment trusts (A-REITs) with residential, office, retail, and industrial assets.

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

Some REITs focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. Others specialise in residential property investment, such as aged care villages and apartment buildings.

This ETF seeks to track the return of the S&P/ASX 300 A-REIT index. 

At the time of writing it is made up of 31 holdings, with its largest allocation being to Goodman Group (ASX: GMG), which represents 39.50% of the fund. 

The fund has risen 44.66% over the past 5 years. 

The fund has a management fee of 0.23% per annum, and its next dividend payment is 161.2115 cents per unit. 

VanEck Vectors Australian Property ETF (ASX: MVA)

MVA ETF gives investors exposure to a diversified portfolio of Australian REITs. The fund is made up of a minimum of 10 Australian REITs, with a maximum weighting of 10% for each REIT.

This ETF currently has 14 holdings in the fund. 

Each company has a weighing of between 2% and 10%.

The fund has risen 33.40% in the last 5 years. 

MVA ETF offers more diversified positioning within A‑REITs compared to VAP ETF, which is heavily concentrated in Goodman Group.

The fund has a management fee of 0.35% p.a. Its dividend yield is currently 4.37%. 

SPDR S&p/asx 200 Listed Property Fund (ASX: SLF)

SLF ETF seeks to closely track, before fees and expenses, the returns of the S&P/ASX 200 A-REIT Index.

The ETF is managed by State Street Global Advisors. 

It is also heavily weighted (41.14%) towards Goodman Group. 

It currently has 20 companies making up the fund. 

Over the last 5 years, it has risen 36.61% 

The fund currently has a dividend yield of 3.15% and a management fee of 0.16% p.a.

The post Can't break into the housing market? Here's 3 REIT ASX ETFs to consider appeared first on The Motley Fool Australia.

Except for the SPDR S&P 500 ETF Trust (ASX: SPY), the ex-dividend date for the distributions listed below is today.

The payment date is 11 July.

Here are the details.

How much will SPDR ASX ETF investors get?

The SPDR S&P/ASX 200 ETF (ASX: STW) will pay 66.6712 cents in cash per unit. The ETF will also pay 13.5988 cents worth of franking credits and 0.2108 cents worth of foreign tax credits.

The SPDR S&P/ASX iBoxx Australian Government Bond ETF (ASX: GOVT) will pay 18.0410 cents in cash per unit.

The SPDR S&P/ASX 200 ESG ETF (ASX: E200) will pay 107.1402 cents in cash per unit, plus 5.0135 cents worth of franking credits and 0.0323 cents worth of foreign tax credits.

The SPDR S&P/ASX 50 ETF (ASX: SFY) will pay 64.0319 cents in cash per unit plus 13.2627 cents worth of franking credits.

The SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI) will pay 264.7328 cents in cash per unit. The ETF will also pay 7.8319 cents worth of franking credits and 0.0002 cents worth of foreign tax credits.

The SPDR S&P/ASX Small Ordinaries ETF (ASX: SSO) will pay 21.5897 cents in cash per unit, plus 6.9222 cents worth of franking credits and 0.1865 cents worth of foreign tax credits.

The SPDR S&P/ASX 200 Resources ETF (ASX: OZR) will pay 20.6316 cents in cash per unit, plus 8.0525 cents worth of franking credits and 0.03770 cents worth of foreign tax credits.

But wait, there's more!

The SPDR S&P/ASX 200 Listed Property ETF (ASX: SLF) will pay 31.5595 cents in cash per unit. The ETF will also pay 0.0144 cents worth of franking credits and 0.0475 cents worth of foreign tax credits.

The SPDR MSCI World Quality Mix ETF (ASX: QMIX) will pay 109.9871 cents in cash per unit, plus 0.5967 cents worth of franking credits and 6.4629 cents worth of foreign tax credits.

The SPDR S&P Global Dividend ETF (AUS) (ASX: WDIV) will pay 125.7777 cents in cash per unit, plus 0.0365 cents worth of franking credits and 9.1763 cents worth of foreign tax credits.

The SPDR S&P World ex Australia Carbon Aware ETF (ASX: WXOZ) will pay 345.1500 cents in cash per unit. The ETF will also pay 11.4313 cents worth of foreign tax credits.

The SPDR S&P/ASX 200 Financials Ex-A-REIT Fund ETF (ASX: OZF) will pay 70.5192 cents in cash per unit plus 11.4581 cents worth of franking credits.

The SPDR S&P 500 ETF Trust (ASX: SPY) will pay US 1.761117 cents in cash per unit. The ex-dividend date was 20 June. The expected pay date for ASX investors is 14 August. State Street will announce the foreign exchange rate for the conversion into Australian currency in due course.

The post Own SPDR ASX ETFs? Here is your next dividend and when you'll receive it appeared first on The Motley Fool Australia.

There are now 399 ETFs trading on the ASX and CBOE exchanges, according to BetaShares.

Aussie investors clearly love the ease, convenience, and instant diversification that ETFs provide.

In this article, we review newly published figures from the ASX documenting which ETFs holding Aussie stocks performed best in the calendar year 2024.

Best 6 ASX ETFs for total returns in 2024

According to the data, here are the top six ETFs:

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

The ATEC ETF delivered a total annual return of 42.21%. The historical distribution yield is 0.37%.

This exchange-traded fund has a market cap of $317.05 million and a management expense ratio (MER) of 0.48%. Its success in 2024 represents the tech sector's status as the No. 1 market sector of the year.

The BetaShares S&P/ASX Australian Technology ETF is trading at $29.23 on Thursday, up 1.18%.

SPDR S&P/ASX 200 Financials ex A-REIT Fund (ASX: OZF)

The OZF ETF delivered a total one-year return of 35.68%. The historical distribution yield is 5.02%.

This ETF has a market cap of $56.93 million and a MER of 0.34%.

The SPDR S&P/ASX 200 Financials ex A-REIT Fund is up 2.4% at $28.33 per unit.

BetaShares Financials Sector ETF (ASX: QFN)

The QFN ETF delivered a one-year return of 34.5%. The historical distribution yield is 2.66%.

This ASX exchange-traded fund has a market cap of $91.45 million and a MER of 0.34%.

The BetaShares Financials Sector ETF is trading at $16.40, up 2.63%.

VanEck Australian Banks ETF (ASX: MVB)

The MVB ETF delivered a total annual return of 33.1%. The historical distribution yield is 4.9%.

It has a market cap of $221.5 million and a MER of 0.28%.

The VanEck Australian Banks ETF is trading 2.1% higher at $39.21 at the time of writing.

BetaShares Australian Quality ETF (ASX: AQLT)

The AQLT ETF delivered a total one-year return of 24.3%. The historical distribution yield is 4.01%.

This ASX ETF has a market cap of $337.8 million and a MER of 0.35%.

The BetaShares Australian Quality ETF is trading at $30.9, up 1.47%.

SPDR S&P/ASX 200 Listed Property (ASX: SLF)

The SLF ETF delivered a total annual return of 19.08%. The historical distribution yield is 3.59%.

This ETF has a market cap of $526.16 million and a MER of 0.16%.

The SPDR S&P/ASX 200 Listed Property is trading at $13.81, up 2.37% at the time of writing.

More about the No. 1 ETF

The BetaShares S&P/ASX Australian Technology ETF seeks to track the performance of the S&P/ASX All Technology Index (ASX: XTX) before fees.

The ETF gives investors exposure to leading tech-related market segments, including information technology, consumer electronics, online retail, and medical technology.

The top five holdings by weight are Computershare Ltd (ASX: CPU), Car Group Limited (ASX: CAR), Wisetech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and Pro Medicus Limited (ASX: PME).

The post Top 6 ASX ETFs holding Aussie stocks that delivered the best returns in 2024 appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) shares rose 7.83%, for total returns of 12.1% including dividends.

Meantime, the national median property value, which reflects all types of property in a single data point, rose by 8% with total returns of 12.2% after rental income is factored in, according to CoreLogic data.

But a combination of the two in the form of ASX property exchange-traded funds (ETFs) delivered far greater returns in FY24.

Shares vs. property: 2 ASX property ETFs outperform

There are three Australian property ETFs and three global property ETFs listed on the ASX.

The ASX recently published total returns data for all ASX shares, ASX ETFs, listed managed funds and listed investment companies (LICs) in FY24.

The two top-performing ASX property ETFs simply smashed it out of the park with above 20% gains.

SPDR S&P/ASX 200 Listed Property (ASX: SLF)

This ASX property ETF delivered total returns of 24.35% in FY24.

The SLF ETF tracks the returns of the S&P/ASX 200 A-REIT Index (ASX: XPJ) before fees and expenses.

State Street says the ETF is a low-cost way of investing in ASX property shares. The management expense ratio (MER) was 0.4% in FY24 (reduced to 0.16% from 1 July 2024).

The SLF ETF exposes investors to all types of global property, including retail, office, industrial and diversified. Its biggest position today is Goodman Group (ASX: GMG) at 39.98%.

Goodman was the best-performing stock in its market sector in FY24, with an astounding 73.1% share price gain. This was largely due to the excitement surrounding artificial intelligence (AI), with Goodman leveraging its industrial property expertise to build, convert, and acquire more data centres worldwide.

The ETF's second-biggest position today is Scentre Group (ASX: SCG) shares, with an 11.66% holding. The Scentre share price rose by 17.74% in FY24 as the company benefitted from several retail sector tailwinds.

Goodman and Scentre shares make up about half the value of the SLF ETF.

Their share price gains of 73.1% and 17.74%, respectively, help explain why the SLF ETF delivered better total returns at 24.35% vs. physical residential property, which delivered 12.2% total returns.

Vanguard Australian Property Securities Index ETF (ASX: VAP)

This ASX property ETF delivered total returns of 23.44% in FY24 — only slightly less than the SLF ETF.

The main difference between the two ASX ETFs is the VAP ETF tracks the return of the S&P/ASX 300 A-REIT Index before fees, costs and taxes. So, it incorporates the performance of 100 more ASX property shares and REITs than the SLF ETF. The MER is 0.23%.

Today, the VAP ETF's biggest holdings are the same as the SLF ETF, with Goodman shares representing 39.66% and Scentre shares 10.7%.

Here's how the other 4 ASX property ETFs did in FY24

• The VanEck Australian Property ETF (ASX: MVA) delivered 7.31% total returns
• The SPDR Dow Jones Global Real Estate ESG ETF (ASX: DJRE) delivered 4.66% total returns
• The iShares Core FTSE Global Property Ex Au (AUDH) ETF (ASX: GLPR) delivered 4.12% total returns
• The VanEck FTSE International Property (Hedged) ETF (ASX: REIT) delivered 2.35% total returns.

Here's how home values across Australia changed in FY24

Here is a further breakdown of how home values changed across the city and regions in FY24.

A key factor in the performance variance is the strongest markets had tight supply and demand. The impact of this was so significant that it trumped the usual dampening effect of higher interest rates.

Foolish takeaway on shares vs. property

Choosing between shares vs. property is a classic investor's dilemma. If you have enough time on your side, many people would say you should simply buy both.

Could ASX property ETFs be another way of doing so? In a way, yes.

But it's worth noting that very few ASX property shares or REITs have direct exposure to the residential market. And you obviously can't live in them or add value to them through renovations.

So, if you want exposure to the residential market, you'll have to go 'old school' and buy a bricks-and-mortar investment.

The post Shares vs. property: These 2 ASX property ETFs delivered 20%-plus returns in FY24 appeared first on The Motley Fool Australia.

But this single-digit fall stacks up rather favourably to some ASX exchange-traded funds (ETFs) that turned in disappointing performances.

Using data from Google Finance, let's check out the worst-performing ETFs on the ASX in September. 

Global X Hydrogen ETF (ASX: HGEN)

The Global X Hydrogen ETF found itself at the back of the pack, drudging up an 18.4% loss in September.

The HGEN ETF aims to provide investors with exposure to companies that stand to benefit from the advancement of the global hydrogen industry. 

Some of its top holdings include Plug Power (NASDAQ: PLUG), a provider of turnkey hydrogen and fuel cell solutions, and Bloom Energy (NYSE: BE), a manufacturer and marketer of solid oxide fuel cells.

The HGEN ETF was formerly managed by ETF Securities before the ETF provider was taken over by Global X.

HGEN was one of the ASX's best ETF performers in August. It climbed 8.2% across the month as investors bid up hydrogen stocks in anticipation of the Inflation Reduction Act being passed in the US.

It appears momentum ran out of steam in September. Sentiment towards these hydrogen companies turned sour, sending the HGEN ETF down with it.

VanEck FTSE International Property (Hedged) ETF (ASX: REIT)

The VanEck REIT ETF took out unwanted second place, crumbling 14.5% in September to finish the month at $14.98.

The REIT ETF aims to provide investors with exposure to a portfolio of international property securities from developed markets, excluding Australia. 

The REIT ETF comprises around 340 companies. Some of the top holdings include Prologis Inc (NYSE: PLD), a global leader in logistics real estate, Equinix Inc (NASDAQ: EQIX), a data centre company, and Public Storage (NYSE: PSA), the largest self-storage company in the US.

Real estate investment trusts (REITs) are thought to be rather resilient in an inflationary environment as property prices and rental income keep up with inflation.

However, REITs have been battered and bruised this year over concerns about rising interest rates. In a rising interest rate environment, the high yields on offer from REITs become less attractive compared to lower-risk, fixed income options.

What's more, REITs are mainly funded through debt, which becomes more expensive as interest rates head north.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

ASX REITs weren't immune to this selling pressure in September. As a result, the SLF ETF sat in third place with a 13.9% monthly fall.

The SLF ETF seeks to track the S&P/ASX 200 A-REIT Index (ASX: XPJ), which comprises the 24 REITs in the ASX 200 index. 

Nearly one-quarter of SLF's portfolio is weighted to Goodman Group (ASX: GMG). Other top holdings include Scentre Group (ASX: SCG), Dexus Property Group (ASX: DXS), Stockland Corporation Ltd (ASX: SGP), and Mirvac Group (ASX: MGR).

The SLF ETF has tumbled around 33% in the year to date as ASX REITs have been sold off on the back of rising interest rates.

The post These were the worst-performing ASX ETFs in September appeared first on The Motley Fool Australia.

However, I think that these days, ETFs can be an income investor's best friend. Having high-yield as well as high diversification all in one share is a more risk-averse strategy of chasing good returns, in my view.

So here are 2 exotic ASX ETFs that I think any income investor should at least consider for their portfolio today.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

This ETF follows the S&P/ASX 200 A-REIT Index (ASX: XPJ), which in turn tracks the biggest REITs (Real Estate Investment Trusts) on the market. REITs are companies that primarily own land and property assets, and pass on their rental incomes as dividends to their owners. This naturally makes REITs very desirable investments to own if you're an income-focused investor.

SLF tracks 20 ASX REITs, which include big names like Goodman Group (ASX: GMG), Scentre Group (ASX: SCG) and Stockland Corporation Ltd (ASX: SGP). It offers a tailing yield of 4.61% on current prices, which I think makes it a great option to consider, especially if your dividend portfolio is currently heavy on the big banks.

iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD)

The name really says it all on this one. IHD tracks a list of approximately 50 ASX dividend-paying companies that "offer high dividend yields while meeting diversification, stability and tradability requirements", according to iShares.

Amongst these 50 stocks, we have Wesfarmers Ltd (ASX: WES), Woodside Petroleum Ltd (ASX: WPL), AGL Energy Ltd (ASX: AGL) and Commonwealth Bank, so I think this ETF covers most bases on the diversification front. This ETF is basically an 'all-stars' team of the best dividend stocks, so it might be a good option for a core/backbone stock for your portfolio. IHD currently has a trailing yield of 6.45% on current prices.

Foolish takeaway

I think these 2 ETFs would play a lucrative role in any income-focused portfolio. Having a wide range of different assets is always a good way to go, and it's my belief that these 2 ETFs are an easy way to achieve this.

The post 2 exotic ETFs to buy for dividend income appeared first on The Motley Fool Australia.

Take Retail Food Group Limited (ASX: RFG) for example. It is a high dividend yield stock but shareholders have seen its share price drop 67% over the last year.

One way of addressing this issue might be to diversify through Exchange Traded Funds (ETFs) holding a number of high yield stocks. Here are three ETFs that you could look further into:

• Vanguard Australian Shares High Yield ETF (ASX: VHY). This fund holds 43 ASX listed stocks with an average dividend yield of 5.7%. Top holdings in the fund include blue chip stocks such as Telstra Corporation Ltd (ASX: TLS), Westpac Banking Corp (ASX: WBC) and Wesfarmers Ltd (ASX: WES). I like the Vangaurd funds because they tend to have lower management fees compared to similar products. This fund has a management fee of 0.25% per annum.
• SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF). This fund invests in real estate stocks such as Scentre Group (ASX: SCG), Goodman Group (ASX: GMG) and Stockland Corporation Ltd (ASX: SGP). It has a dividend yield of 4.99%. The fund provides a good avenue to diversify and gain exposure to the real estate industry.
• BETANASDAQ ETF UNITS (ASX: NDQ). This fund invests into large cap US stocks with technology being the dominant sector. Tech giants such as Apple, Microsoft, Amazon and Facebook are the the largest holdings within this fund. I like the overseas exposure that this fund provides and the additional growth potential in stocks such as Facebook. The downside however of this fund is that it has a lower distribution yield.

The post Here's a quick way to boost your income with these 3 ETFs appeared first on The Motley Fool Australia.

I won't get bogged down in an argument for or against it, you'll find that anywhere on the net. But the bottom line is, anything is possible.

3 ways to short sell Australian property

I recently covered the ins and outs of short selling, here. Basically, it is borrowing something in the hope of buying it back at a lower price later on. You make money if the asset (e.g. a share) falls. But short selling Australian shares are not the only way to make money from falling Australian house prices.

Here are three ways you could do it:

1. Buy put options. If your online broker allows you to, you could buy a put option on Australia's big bank shares, like Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd. (ASX: NAB). A put option makes money if a stock price falls below a pre-agreed price (called the strike price). Options have a limited life. For example, right now, you could buy a $29.07 put option on NAB shares, which would start profiting when the share price fell below that level. It would expire in December 2017 and cost you about $2.50 per contract, which is 103 shares.
2. Short sell property developer shares. Your broker may even allow you to short sell shares in a property developer, like Mirvac Group (ASX: MGR). It'll cost you a few percent, maybe, 10% per annum, to do it. But you could short sell one of Australia's biggest property developers quite easily. You could also short sell a real estate investment trust (REIT). Given this strategy may offer exposure to commercial property it is not a perfect play on falling house prices. The SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF) is an exchange-traded fund (ETF) that invests in a diverse basket of property funds. If Australian property was about to fall you could short sell units in the ETF like any other share.
3. Use CFDs. Contracts for difference (CFDs) are a contract between you and your broker. They can be highly levered (e.g. you can enter a position using just 5% of your own money), which maximises your losses or gains. You could sell a CFD on bank shares, the Australian dollar or an index. However, this is an extremely high risk way to invest (read 'gamble').

Foolish Takeaway

Australian property appears priced to perfection, in my opinion. Of course, high property prices are concentrated in Sydney and Melbourne, but so to are the activities of the banks, developers and REITs that finance projects in and around these cities.

Shorting is a risky business and can require a lot of capital, a high risk tolerance, timing and skill. Personally, I do not think any of these three options is a bona fide way to make money over time and should be used sparingly by experts.

The post 3 ways to short Australian property appeared first on The Motley Fool Australia.

Are QBE Insurance Group (QBE) shares safe in 2017?

Unfortunately, as you can see in the chart above, QBE has done a poor job of insuring shareholders a decent return. Even with dividends, QBE Insurance shares have underperformed the market over the past five years. And going back 10 years from today, around the height of the global financial crisis, QBE Insurance shares were trading over $30 a piece. Now they are $12.44.

Of course, the market is forward-looking because if investing were as easy as looking at the history books librarians would make the best investors.

But insurance is not an easy business and decisions now and in the past can plague a company for many years, as they have done in QBE's case.

Basically, insurance businesses make money two ways:

1. Assessing risk – they have 'actuaries' who use statistical techniques to determine the likelihood of events occurring and weigh them against variables like the sum insured to arrive at a premium. Needless to say, pricing your premium is not always easy. Sure, some actuaries are wicked smart and paid the big bucks, and regulations and reinsurance exist to help company's deliver on their promises. But pricing premiums is not an easy way to make money.
2. Investing the 'float' – the premiums you pay today are put aside in either a rainy day fund for that period or put in an investment portfolio to grow over time. Think of this as a superannuation account or personal investing portfolio on steroids. Given the regulations and usual complexities of investing, it is not as easy as you may think to make money from these assets. 

The point here is that insurance is tough. Look at the chart above, does it seem like each and every year has its own sets of triumphs and tribulations for QBE? To me it does.

Foolish Takeaway

Long-term investors can make huge dollars investing in insurance businesses, just look at Warren Buffett's Berkshire Hathaway (GEICO) in the U.S. or Markel Corporation. Given the complexity of its businesses and legacy issues, I don't believe QBE Insurance is in the same league.

Sure, QBE has undergone a simplification process and arguably set itself up for a brighter future. But, as with all insurance stocks, it also makes sense to wait for a major problem with both the premium side of the business and the investing returns before buying in — that's when shares will be cheapest.

The post Are QBE Insurance Group Ltd (QBE) shares safe in 2017? appeared first on The Motley Fool Australia.