Boglehead/Vanguard way to retire.

Doesn't happen for ETFs.

Also, many companies no longer discount dividend reinvestment, or it's really skinny, say 2% off VWAP.

VEU to an extent is now superceded in application by VGS. (World ex Oz). Likewise you don't need VTS either unless you aren't happy with VGS weights. It's small bucks but the 5% Oz in VEU doesn't get any franking on divs. So VGS is a very clean way to go, in combination with VAS those 2 ETFs can be the core holdings for a portfolio.

 

I've VEU that I've held since 2012 and have added to along the way . Some of the newer ETF's weren't around then

 

Thanks for the tip, I had picked VEU as I was only looking at the Cross-listed ones since I had been led down this path by the Bogle method (US based) and was looking for cheap fees.
VGS looks quite cheap too 0.18.

However being less history, I can't see the performance history.. but yeah it doesn't predict future results either and should be much the same.

I'll stick with my 4 way split don't want to change too much, aiming for 12 months then probably going to put a large amount of it back into property if I find something worthwhile next year

 

Dan, the performance history is the index history of those markets, per portfolio weights, unhedged in AUD. You'll be able to find index rules / construction online. There is no alpha, it is what it is.

Agree there is no point changing now. Interesting strategy with a 12 month time horizon I would have thought, but I wish you well with it mate.

 

Interesting John Bogle Jnr runs an actively managed fund

Bogle Small Cap Growth (BOGLX)

Jnrs fund has outperformed its comparative index since listing until of recent times, with index funds.... time matters

 

I think there is a place for both active and passive strategies in a portfolio. I'd be looking for active management for small-mid cap, value focus. Key is active management that is based on a rigorous, systematic approach, something that mitigates key man risk as much as possible. Quantitative type smart beta ETFs do a similar thing, but I think they work best in large cap application.

 

For active, what do you guys think of the montgomery fund?

 

I think Roger is a great salesman.

 

Hahaha a good answer

 

+1
But I will still invest with him.

 

I guess my view is that Roger is a master of reinvention, he has done all manner of things in the past some of which was not very prudent. He has jumped on the Buffett / Value bandwagon in recent years. His funds have been running since 2012, so really far too early to make a judgement as to performance. In this space, I'd look at Hyperion, Paradice investment management (both who at last look were closed to new money unfortunately) or IML, who in my view might be the pick for cost / long term performance (17 years) and a rigorous methodology, they have stuck with their mandate in all conditions.

But, having said that Montgomery does a good job highlighting the importance of small/mid cap in a portfolio, and there is certainly a place for this kind of exposure in any portfolio.

 

I agree! His fund seems to have done well, so all credit to him for that.

But for three or four years he has been all about value investing in Australia with his Montgomery Fund. Now suddenly he's produced an international fund.... then a long / short international fund! This seems like quite a change of tack to me. And surely these require dramatically different approaches to the simple value investing approach he has been advertising for the last few years.

 

Geez I wasn't aware he had gone down that path....as I said, he is quite the salesman! Pretty obvious cash grab. He's no Douglass, Mackay or Neilson.

 

It's an interesting one.. http://www.montinvest.com/sites/default/files/08102015_MONTAKA_GAF_Factsheet.pdf
He's also got the "Montgomery Global" fund.

As an alternative to the active funds or passive ETFs - what do you guys think of the Aussie LICs?
Most of them are above NTA when I looked a few weeks ago.

 

For large cap, I like the big 3 (AFI/ARG/MLT) and also WHF and some others at wide enough discount (you obviously need to time this), and for small mid cap I like QVE. International, I like MFF. I hold stock and options for QVE and MFF, and stock in WHF. I recently sold down AFI and MLT when they went +8-10% NTA when the market hit 5000pts, and bought VAS in an arbitrage opportunity.

I wont buy at a premium, and would take VAS, and or QOZ (which is an interesting non passive, rules based fundamental index ETF) in the place of LICs, or I will buy direct stocks as well.

 

Thanks, I got some MLT before but will keep an eye on the prices of ARG and AFI. I was also watching BKI.

And for active funds - have you ever looked into Forager? Seems to be fairly similar performance to Montgomerys

 

a lot of banks stocks in those DanW (arg/afi/mlt)..how much property exposure does one need

having said that better / less risky to get bank exposure now while prices are lower, rather than not long ago when they were higher

 

I have both Forager Australia and International Funds. Them and Magellan have kept me in the black with my overall portfolio performance this year.

 

Thanks guys

Forager looks quite interesting.

Although I'm hoping Sydney and Melbourne have some desperate property sellers in 2016 or 2017 I can help out with a purchase

 

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