100k to invest in growth Asian stocks

Something something mean reversion

 

Though shalt not mention bend at the end to believer of trend.

 

ESG will probably outperform in the short term due to P/E expansion.....but you've got to pay the piper eventually.

 

ETHI - ASX ETHI | Global Sustainability Leaders ETF | BetaShares
ETHI aims to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as “Climate Leaders” that have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

FAIR - ASX FAIR | Australian Sustainability Leaders ETF | BetaShares
FAIR aims to track the performance of an index (before fees and expenses) that includes Australian companies that have passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations. The Fund’s methodology also preferences companies classified as “Sustainability Leaders” based on their involvement in sustainable business activities.

ESGI - ESGI - VanEck International Sustainable Equity ETF | ESG International equities
ESGI gives investors exposure to a diversified portfolio of sustainable international companies listed on exchanges in developed markets around the world (ex Australia). ESGI aims to provide investment returns before fees and other costs which track the performance of the Index.

 

@unicorntears @dunno @mtat what platform are you guys using for trading ETFs? I got a Commsec account the fee 0.3% to buy ASIA. Is that reasonable?

 

SelfWealth $9.50 flat fee

 

CommSec $120 brokerage for $100,000 vs SelfWealth $9.50 brokerage for $100,000. CommSec might be better if you already bank with CBA, have your offset with them, and can instant transfer to take advantage of a random 1-2% price drop. SelfWealth requires 1-2 business day transfer via BPAY or direct deposit. It doesn't matter too much if you're doing one trade to set-and-forget.

 

Youse lot are still trying. Cut it out.

 

Mate, sounds like a pretty valid discussion for someone planning to DCA just $100 a week. 2% brokerage vs 10% brokerage per trade is a lot to make up for.

 

I just answered a question that was literally directed at me.

 

Unfortunately, any detail or complexity all too often illicit's similar response.

I'll risk the wrath and respond because I was directly asked.

I just use Commsec as it is who I bank with. Transferring is easy. Ability to change qty and price on the one order is useful for some illiquid stuff. Not having to settle until T+2 plus them offsetting within T+2 is also useful.

I pay 0.12% which is expensive compared to other options. I am prepared to pay for convenience.

But if you are starting out there are probably better options.

Some considerations:
On smaller parcels brokerage as a % is likely to be higher.
Paying for convenience shouldn't be high on your agenda at the initial formation of a snowball.
% of costs matter - especially when you have a long compound period in front of you.

Balance the above with time matters - don't take too long picking a workable option and don't stay in cash too long just to get the investment amount up and brokerage % down. Its a weighing option and there are some complexities to learn to make good judgement.

I can't really help much from my experience, beacuse I have forgotten the art of penny pinching and the providers today are different. My recent experience is with Comsec and IB. IB is much cheaper but complex and you don't hold your assets under Chess, so its more suited to trading. Recognizing that cost control is important from the outset I think people starting out are right to be looking for low costs providers and working out the sweet spot between costs and frequencies.

 

They got jokes...

 

Agree with this. Tried to set up an account for a trust with CMC last March. It took forever with no response for weeks. Switched to Commsec and it was done in a week. We missed out on some significant gains waiting for CMC because we wanted lower brokerage costs.

 

yay! brought my first batch of ASIA ETF yesterday, I am in for the long haul. Thanks for the all the info and recommendation.
Just want to share an article about cloud computing in China and how much upside growth potential it has
China's Burgeoning Cloud Computing Market Is A Tremendous Opportunity | Seeking Alpha this will impact Alibaba and Tencent in quite a significant way like how AWS has impacted Amazon.

will buy more batch of Asian or green/sustainability related ETFs as I learn more.

 

Nice, just as an aside, I don't think the ASX has any specific renewables-focused ETFs yet? ETHI & FAIR are mainly "ethical" due to negative screening. I have ETHI holdings, but for personal reasons, rather than an expectation it'll outperform. Example, it excludes Facebook, but invests in Tesla.

Maybe this?

ACDC - https://www.etfsecurities.com.au/product/acdc
ETFS Battery Tech & Lithium ETF (ASX Code: ACDC) offers investors exposure to the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining. Demand for energy storage is being driven by the movement towards emissions reduction and renewable energy, such as solar and wind.

 

The author doesnt mention the restrictions and regulations the CCP put on these companies so that they dont get too big, they may not have the runway you think ,there are obstacles . Jack Ma disappeared and you need to be able to read between the lines of what he said when he appeared . ANT was knocked on the head. The CCP use Alibaba facial recognition to identify and track Uighers, be carefull that you arent assisting in genocide if you invest in CCP controlled companies. Failing US regulations on auditing requirements and lack of transparency may mean they maybe delisted or not qualify for listing on some of the major exchanges.

 

I think we need to be careful of sitting on a moral high horse if we can't be consistent with black and white judgements. Let say if we can apply that logic the American companies that have help developed bombers, communication systems, guns and missiles that have killed hundreds of thousands of innocent people around the world and desecrated governments base on liars. The US government with the help of technologies developed by their major public companies have done far more destruction thought-out recent history that means we should stop investing there? There's no argument that CCP has done plenty wrong during their rule, but it should also give credit for pulling China out of extreme poverty and division in the power house that it is today. Politics aside(or this thread will get ban), the economic center is shifting whether we like it or not, I think those tech companies are in the box seat. We have to be a realist to recognize it and prepare for it, otherwise we will fall behind.

 

Ray Dalio have some in depth articles analysing the rise and fall of empires in the past how the economy and currencies are affected. He draws similarities of current period we are in in relation to lessons from past. Ray Dalio | LinkedIn I am still reading, so far found it very insightful.