ETF Exchange Traded Funds (ETFs) 2016

{Note from mods - this thread continued from here: Exchange Traded Funds (ETFs) 2015}




Another research tool for ETFs and LICs. Haven't really had a good look at it but some may find it useful:

ETF Watch - Australian ETF and LIC information

 

Just plodding along, topped up on the ASX and World indices

 

I have the dividends set to reinvest for my Vas and VHY etf's. I'm thinking in future I may be best to have the money deposited into my bank account and purchase extra units myself. Today I received notification of dividends for both etf's. I was surprised to learn that the reinvestment price for purchasing extra units in Vas was 67 ( today's price is around 61 per share) and 57 for VHY when each share is trading for around 52. Can anyone shed light on why the reinvestment price is set so high?

 

Read DRP rules, DRP price will likely be VWAP of a few days prior to ex div date.

 

Thanks Falcon, I'll check it out. In this instance, I certainly would have been better having the divs paid into my bank account!

 

Had some funds to invest so picked up some more world on the 21st as it was the lowest trending index

Plus some dividends have dropped n over recent times which is a nice 100% top up

 

Sector specific funds are a great way of increasing the bang for your buck on super funds as well. I have done this with my super using options available through my super fund - rather than taking the self managed approach.

If you're active, you can bet market average returns. I haven't done it for years because of changes in jobs, lifestyle, countries of residency.

At the moment, I have my super funds parked in cash/bonds/interest............and will soon, take a more active role once I feel confident that the market has bottomed.

My best result with index funds was during 2006/7. I double my super funds by investing in growth sectors at that times - small caps, building and technology.

I moved to safe haven cash, etc, before the market crashed - thanks to market gurus I was following at the time.

 

@The Falcon Any thoughts of where IVV will bottom? Was looking strong prior to recent market jitters.

 

No mate, that would require the ability to predict the future, of both market and currency. Beyond me im afraid

 

Last 3 months VAS-VTS-VEU

 

How would it fit within your strategical asset allocation?

 

Shouldve put it all on BBOZ when the XJO hit 5995 or whatever it was last year. I'll consider GEAR if it gets below 4000. I like leverage.

 

From Cuffelinks

Fundamental indexing over the cycle

 

Thanks @The Falcon and all esteemed shares investors and traders. Fascinating read of this thread on the way to work. I don't know how to pick stocks individually and risk profile is moderate. I remember investing in Colonial Managed Funds many years ago with little returns (high fees). I will be investigating Vanguard's ETF products over the next few days and reading up the threads here. Slow and steady is my motto.

 

Hi all. Some of you may know I'm an avid shorter with max leverage but I've been looking at getting into an index fund for a Buffet style of investment, too.

Thanks to everyone for explaining what is what and why; it's so valuable to not just me but all the lurkers reading and not posting.

I did a quick spreadsheet and was wondering if I'm missing anything...

I looked at 40% in VHY and 20% each across VAP, VAS and VTS.

I'm wanting to add 1500 per quarter into the position as well, divided between the ETFs as per their weighting.

I plan on rolling over all dividends and letting it sit for 10 years while adding and rolling over.

I wanted a 25% leverage (so 1.25) brokers margin as well.

After costs, fees, brokers fees, annual tax etc I ran the exercise and came up with some astronomical numbers at the end - like, thousands of percent up.

To work the position out I used the average of the 3yr growth rate (quarterly) plus the current dividend percentage compounded quarterly.

Remember I'm not touching it for 10 years, just rolling over all growth, dividends and contributions. Obviously there's a level of assumption that the yield and average 3 yr growth pattern will hold.

Does this seem right? Should I post up the file for scrutiny?

Cheers.

 

I for one would love to have a look

 

@Aaron Sice yes please.

 

Agree. Would be interesting to see and a great contribution.

 

attached - excel file inside zip file - only 26kB.

can alter the inputs and obviously assumes continual growth at current 3 year advertised average weighting here >

Vanguard Australia Retail - Investment products

works on a company structure paying 31.5% tax at the end of each year too.

open to criticism for learning.

A.

 

Aaron
The M column you also need to take away the margin ($1000.00 in the very first amount)
As you currently have margin on margin so the LVR would a lot higher than 25%. So E8 would be $5806.25 at 25%LVR.