ETF Exchange Traded Funds (ETFs) 2016

Discussion in 'Shares & Funds' started by Nodrog, 6th Jan, 2016.

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  1. Jack Chen

    Jack Chen Well-Known Member

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    I thought I was done with IPs until I starting going to property meetups and connected with a new mortgage broker....

    But still gonna keep some equity aside for the next major sharemarket dip
     
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  2. Redwing

    Redwing Well-Known Member

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  3. Redwing

    Redwing Well-Known Member

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    30 years.JPG
    From Vanguards online tool to compare the growth of $10,000 invested in major asset classes over historical periods (30 years in this case i.e. 1986-2016) I got the above


    [​IMG]
     
    Last edited: 24th Sep, 2016
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  4. wombat777

    wombat777 Well-Known Member

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    Perhaps a dumb question. Are the any good industrials-focused ETFs or LICs available on the ASX? ( whether they be invested in local stocks or global )
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Redwing, that is interesting - shares slightly above property. But it probably doesn't take into account leverage into property.
     
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  6. Nodrog

    Nodrog Well-Known Member

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    No Industrial ETFs but a pure Industrial LIC is available being WHF. QVE is likely to be all industrials most of the time. MIR and WAX also but very expensive at the moment.
     
  7. Nodrog

    Nodrog Well-Known Member

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    And the above figures don't take into account franking credits. Shares can be leveraged too. Leverage may be less depending on the source of borrowings but with higher income (plus franking) greater leverage is not needed.
     
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  8. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Raises an interesting point. Leveraging into property is much more accepted than into shares; no margin calls and less perceived risk.

    However, shares / companies are designed to grow over time. Companies start with business plans and work on ways to increase profit / grow their business. Property however, just sits there and grows on the back of supply and demand. Does it therefore seem odd that property has been able to keep up with shares over that period or is it that the constant increase in population and limited land availability that makes property continue to grow consistently? Is it sustainable?
     
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Great point ErYan

    Also read something years ago by the great Austin Donnelly - the property growth figures are not true growth figures because it doesn't take into account improvements made.

    If I buy a property for $200,000 and do $100,000 in improvements and then sell it may show up as being sold for $300,000, but really there had been no growth.
     
  10. Redwing

    Redwing Well-Known Member

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    Bond ETF news

    BlackRock says Australians playing catch-up in bond exchange-traded funds

    Australian investors have traditionally skewed their investments more toward equities, although over the past decade bonds have shown themselves to be a more profitable and stable bet. The 87 per cent gain provided by the Bloomberg AusBond Composite Index in that time outstripped the 62 per cent return on the S&P/ASX 200 Index, and bonds last posted an annual loss in 1999, while shares lost 11 per cent in 2011 and 38 per cent in 2008.

    Even after the recent rout in global debt markets spurred a slide in local fixed income, the AusBond Composite is up 5 per cent in 2016, outpacing the 2.4 per cent return on stocks.

    Read more:
     
  11. Nodrog

    Nodrog Well-Known Member

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  12. Jack Chen

    Jack Chen Well-Known Member

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    Amazeballs

    Now do VGS!!
     
  13. Nodrog

    Nodrog Well-Known Member

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    Last edited: 6th Oct, 2016
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  14. Nodrog

    Nodrog Well-Known Member

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  15. Hodor

    Hodor Well-Known Member

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    EX20 Mgmt Fee** (% p.a.) 0.20% seems reasonable. Be interesting to see where they yield comes out.
     
  16. Zenith Chaos

    Zenith Chaos Well-Known Member

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    What would happen if one of their shares gets into the top 20? Big sell off incurring CGT?
     
  17. Hodor

    Hodor Well-Known Member

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    There are no specific clauses to grandfather the holding. So that would possibly be the case and that would imply a large purchase of the now ex20 company that is now included in their criteria.

    These are the problems rules based selection faces. For me some flexibility here would be nice, the LIC QVE specifically addresses this concern in an appropriate way IMO.

    Also of interest that per the website the largest sector holdings are;

    Materials 19.1% - Discussed extensively around here why they aren't favoured in general by many
    Real Estate 13.4% - Many here already have their own direct investment in this area (largely residential, over CIP I guess)

    30%+ weighing to sectors I am using shares to try and underweight.
     
    Last edited: 11th Oct, 2016
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  18. Observer

    Observer Well-Known Member

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    Hi @austing. Could you please comment on the kind of portfolio you'd setup from that list if that was your super?
     
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  19. Nodrog

    Nodrog Well-Known Member

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    I'm not liscenced to give advice and tend to avoid giving specific portfolios anymore. However I've bolded those below we hold in our SMSF. You'll find many of the LICs / ETFs available through ING Super discussed on this site such as:

    LICs:
    AFI, ARG, BKI, MLT, WHF (large caps)
    MIR, WAM (mid / small caps)
    PMC, MFF (international)

    ETFs:
    VAS - ASX 300
    VGS - international developed markets
    VAF - Australian fixed interest

    I don't invest in all the above but there is plenty there to enable most to put together a decent portfolio whether you're an asset allocator or a dividend investor. ING Super offer heaps more than those shown above if you decide to get adventurous.

    Of course the above doesn't tell you at what price to buy particularly in the case of LICs (discount / premiums etc).
     
    Last edited: 11th Oct, 2016
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  20. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Buy low, sell high, that's what I always say.

    Not advice.
     

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