ETF Exchange Traded Funds (ETFs) 2016

A comparison on IOZ, STW (ASX200) and VAS (ASX300) ....

Australian index ETF showdown: IOZ, STW & VAS compared

Whilst all the excitement in recent times has focused on the proliferation of Smart Beta and Actively Managed ETFs, our look at the top ETF inflows for FY2016 showed that by far the most popular ETFs remain the traditional index weighted funds. For those looking for exposure to the broad Australian market, there’s 3 funds which dominate this space, these being iShares S&P/ASX 200 ETF (IOZ), SPDR S&P/ASX 200 Fund (STW) and Vanguard Australian Shares Index (VAS).

 

How would VAP compare to these?

 

Is someone able to shed a little light on the tax benefits of a VTS/VEU mix over VGS, obviously there will be greater brokerage costs with buying the VTS/VEU mix, without being able to figure the exact tax implications I can't assess against the higher management fees of VGS.

I would also be looking to purchase these under a name that currently isn't earning enough to exceed the tax free threshold.

Additionally what im looking at is a mix of 40/60 between VAS/VGS or VAS/(VTS/VEU). No bonds as I am planning to have approx the same amount in an offset against PPOR as invested in ETF's. Is there anything glaringly wrong with this. Planning on keeping a decent chunk in the offset due to uncertainty on completion of my current employment contract.

 

Make sure you have a written loan agreement with the person that will be investing.

 

Terry it will be my wife that would be receiving any tax benefits while not currently working. Still figuring out if it is worthwhile starting a discretionary trust for the amount that would be invested.

Written loam agreements with a trust is something I have on my list to chat with my accountant with when he is back in the new year. But having a written agreement to lend to a trust is there any benefit if my wife is receiving the distributions?

The PPOR loan is currently under both our names.

 

Highlights from Vanguard's 2017 global economic and investment outlook

 

Hanso you may not need a loan agreement with your wife if you co-mingle you funds. I draw up loan agreements for some spouses where they keep funds separate and they may want to shift some income from the higher tax payer to the lower.

Is there a benefit in lending to a trust? Yes. The other alternative is to gift and if you gift the funds are no longer yours and will not form part of your estate on death - this may be good for some but not for others.



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