ETF Exchange Traded Funds (ETFs) 2019

You are going to have that problem regardless ; are you going to invest in a single fund, either hedged or unhedged? And that’s it? Which one? Or maybe you go 50/50....but unhedged performs better so you backfill a rationale for adding a bit more to the unhedged fund....

The only way you avoid those asset allocation decisions and have a diversified portfolio is to outsource the decision making to others. Next best is writing a policy statement that clearly outlines the asset allocation and rules around portfolio management...if you are prone to performance chasing that may help.

 

Yes, the idea would be to only invest in those two funds. At the moment it can be roughly replicated with VTS/VEU/IHWL (the latter causes a slight tilt away from 10% EM to developed). A 2:1 ratio unhedged/hedged equities.

If I could narrow it down to just 2 funds and making sure I stay within my set currency split then I'd be happy. Thinking of the future I would be most comfortable with that. For now I think I'll be diligent and won't chase performance anyway, but simplicity is king.

Sure, Vanguard could eliminate this particular risk for me (e.g. via VDHG) and stop me from tinkering. But then we run into different problems if I can't agree on their hedging or market allocation to begin with.

By the way, I've been lurking for a while, thank you Falcon for your wonderful non-advice.

 

The more I think about things the Vanguard diversified ETFs (or even the wholesale AMIT funds) with a trust sitting behind them are close to an ideal solution for most people. Over time I think the the asset allocation changes for the most part aren't a huge deal, results in typically some long term CG. For a total return investor a bit of long term CG is preferable to income anyway due to tax rates. I've made a big deal about recent changes in SAA in the past but I think I overdid that. Growth Index (70/30) has distributed 5.8% pa over 17 years, underlying portfolio distribution would be 3-3.5%. Most of the overs are long term (discounted) CG. I've changed my mind a bit on this I think...

 

@The Falcon

Not that I have it but I like VDHG with additional VAF/VGB as you gracefully age

MER of 0.27%, so for a $1M portfolio $2'700 p/a

VDHG (High Growth) 90 / 10
VDGR (Growth) 70 / 30
VDBA (Balanced) 50 / 50
VDCO (Conservative) 30 / 70

 

Here are the 3 cheapest ETFs on the ASX

ETFs (exchange-traded funds) have ballooned in popularity over the last decade – in no small part due to the ultra-low fees they charge.

Founder of the modern ‘index fund’ – the late John Bogle – came up with the idea of an index fund after noticing that professional fund managers over in the US were charging massive fees (often over 2% p.a.) to deliver what was usually a market-matching performance. The company that he subsequently founded – the Vanguard Group – is now one of the largest ETF providers in the world.

So, which ASX ETFs offer the cheapest fees? Here are 3 ETFs with market-leading costs.

 

I bought a200 when vas mer was still 0.14 will most likely continue this path. They are a for profit company though and margins must be super tight so I worry they will raise there mer.

A VGS mer cut will be very welcomed when it comes.

 

Vanguard Australia is owned by US investors. I don't think they worry about how much Australians are paying, in fact they can use us to subsidise their offerings.

Vanguard here is more interested in expanding their active lineup right now. In the mean time: iShares converts all their US-domiciled ETFs; Betashares introduces the cheapest ASX ETF; IWLD is now half the price of VGS.

I invest in VTS/VEU although not out of loyalty to the company but because the product itself is great.

 

If you own VTS are you a part owner

Same same, though in recent years moved to VGS

 

Good question

My point still stands I think competition will keep driving costs down.

 

Vanguard plans to tackle locals in super

Also mentions a new app and from what i could decipher their own brokerage similar to the US offering

 

Has anybody he bought/hold etfs from the UK, Germany etc?

Looking at getting some direct exposure to the Greek markets and the best product seems to be the Lyxor MSCI Greece index.

The highest Greece allocation for a Euro/world etf available here is under 7% so the product above interests me as it’s their index fund.

Thoughts/experiences?

 

Not interested in it but

The Greece ETF Continues To Impress

 

What's people thoughts on an upcoming decline? I'm thinking of shifting a major % my portfolio from property to ETF's and LIC's, but want to hit a sweet spot rather than the top of the market which it is currently at.

Is anyone similarly currently holding cash with the view of buying in an upcoming slump?

Or even shorting it with one of the Betashares Bear Aus or US Short Exposed ETF's like BEAR, BBOZ or BBUS?

 

Understand it's crystal balling, I'm just asking for opinions..

Are you still buying up or are you holding cash reserves for the next 6-12 months?

Or even shorting the market?

 

Currently I am the president of the PC waiting for the big correction club. I can grant you membership but not sure if its a club you want to be part off. I have been in this club for the past 6 months and I am yet to receive any membership rewards. I am have questioned my membership in many threads on here over the past few months and come close to cancelling my membership a few times. Without repeating the whole story again ( if you look up my posts you will be able to get further details. ) I have decided to keep my membership for a little longer.

In my eyes and by no means am I an expert, there should be a correction. P/E are on the historical high side. World economy in general is on the decline. Trade war is still going even though there has been some noise about a truce, nothing has really happened yet the market goes up every time the news reports a possible truce. Chaos in the EU with all the Brexit nonsense. So plenty of negatives around.

But on the other side of the argument is people are looking for a return. Property market has turned over the last few years. Cash is yielding almost nothing. The money has to go somewhere. And the stock market looks to be the place.

My gut says that at some point in the near future we will see a wobble similar to late last year and a similar fast recovery. Followed by another period of sideways while we get trade wars / elections out of the way, before world economic outlooks stabilise and markets continue there normally movement up. That's what I see from a fairly simple non technical analysis view point.

 

Draw downs are part of normal market activity, nobody can accurately predict when or what the catalyst will be - usually black swans that very few see coming, not the widely accepted market analysis available in the financial press and considered as insight by many.

Nobody knows nothing. Fix your strategic asset allocation and rebalance to policy. Ignore the sirens of market timing, shorting and gurus. Spend some time learning about market history, economic theory and cognitive bias in investing and you will be far better for it. Coming here for advice on what others are doing - with a view to informing your actions is not the way to go imho.

 

@CTSB

I've just continued my collecting habit buying and re-balancing as required.I’ll likely “Value Average” by bolstering up the laggards with new purchases. Buffett says that "investing is simple, but not easy". It's our instincts that lead us astray, you buy something that goes up in price and you get a warm and fuzzy feeling

CXO Advisory collected 6,582 forecasts about the U.S. stock market from 68 experts from 2005 to 2012, they call it their Guru Grades.

What was the average guru accuracy? 47.4%

 

Just saw this piece by Mark Minchin at Minchin Moore. Relates to recent discussion quite well I think ;

Let's talk about market risk - Minchin Moore

You can ignore the bit at the end about bonds if you wish of course!

 

Thumbs up on putting two sides of the story.

This is a good video where Aswath Damodaran looks at both sides of the "overvaluation" Us Equities: Market Bubble hypothesis. A hypothasis that is often held by many people that wouldn't look at 1/1000th of the data that Damodaran does.