ETF Exchange Traded Funds (ETFs) 2019

Discussion in 'Shares & Funds' started by Redwing, 10th Jan, 2019.

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  1. SatayKing

    SatayKing Well-Known Member

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    Sorry to learn that @geoffw. It is disheartening for many.

    I solved the problem yonks ago by not bothering to look at it or keep track of share price fluctuations. Adds to stress levels and I don't need an additional one right now with surgery coming up in the near future.

    I'd like it to drop to deploy cash.
     
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  2. Gestalt

    Gestalt Well-Known Member

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    Unfortunately it looks like any market falls in the US etc are going to be mitigated by the AUD dipping on the same fears. After all, we have more to fear from a US-China trade war than most nations.
     
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  3. geoffw

    geoffw Moderator Staff Member

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    I'm new to all of this. I've only had funds in (and substantial funds) for just over a month.

    While I know that it's a long term investment, I'm still on the fence as to whether to drop more funds in or to wait and see.

    A "market correction" many years ago lost my new wife's nice nest egg just before our wedding; it also prevented my parents from coming to our wedding in Mexico. I'm much more worried about a long term drop than day to day movements.
     
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  4. oracle

    oracle Well-Known Member

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    @geoffw it depends on what type of funds you have invested your money in.

    Low costs index type funds should recover no problems. Leveraged funds or more exotic type one not so sure.

    Are you in it for the dividends only? Are you going to accumulate more over time or are you done with accumulation?

    Many things to answer but the most important thing to remember is treat the stock market like your super market. Whenever there is a sale going on (prices are down) it is time to be happy and go shopping.

    Cheers,
    Oracle.
     
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  5. blob2004

    blob2004 Well-Known Member

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    Did you wife/parents own a properly diversified portfolio of global index funds and bond/cash allocation? If discipline was followed to draw on the fixed income portion during the correction, why was the effect large enough to lose your wife's nest egg and your parents trip to Mexico?

    I feel it may not have been the correction itself that caused these things to happen, but perhaps a poorly diversified portfolio with over estimation of risk tolerance?
     
  6. geoffw

    geoffw Moderator Staff Member

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    @oracle I have almost all index funds, with a range of investment types - Australian equity, US equity, global equity, bonds and Australian property.

    I'm far more interested in growth than dividends, especially with the imputation changes which would affect me adversely.

    I'm wary of committing more ATM - I'm also trying to learn as much as I can. Though I figure that if the so-called experts out there don't beat the market more often than not, I don't stand a chance myself.
     
  7. geoffw

    geoffw Moderator Staff Member

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    I've no idea what they had. My parents were most likely blue-chip investors at a guess - perhaps banks and BHP. We're talking 1987.

    My wife sold out when the correction took place.

    My parents I think were selling down and drawing down on dividends. I'm guessing that they couldn't really sell down enough for an unexpected expense like a trip when the market had dropped so much.
     
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  8. oracle

    oracle Well-Known Member

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    Fair enough. I think you have nothing to worry about as long as you are in it for the long term.

    Be prepared things can get lot worse before it gets good. It is completely possible we could see correction of 10%-25% from the most recent peak. We are not even 5% there yet.

    One thing I have learnt in all my years of investing is the worst time to sell an asset is when there is blood on the streets. No matter how hard it is to hold on but you need to stay calm and ride it through.

    If you prepare yourself to not sell but instead buy as soon as you have funds to invest when things go down it will make it easier to ride through the downturns.

    Cheers,
    Oracle.
     
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  9. blob2004

    blob2004 Well-Known Member

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    I guess that reinforces the importance of bond/cash allocation as a retiree. No one should be 100% stocks unless their wealth is significant enough to withstand a 50% drop in the market for 2-3 years (or longer). If you are disciplined enough with a good allocation to fixed income then you will be fine.

    Lump summing vs DCA generally has lump summing coming out ahead most of the time, but it does boil down to luck. If you have a significant amount of money to deploy then DCA over a course of a few years wouldn't be a bad idea, but holding on forever for that "drop" may cause you more missed opportunities than gains.
     
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  10. geoffw

    geoffw Moderator Staff Member

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    I've got about 50% in cash ATM, but 20% should provide enough of a buffer for a few years.

    To be fair to my parents, the wedding was very short notice.

    My portfolio spread approximates what my advisor suggested - except that he was suggesting almost all managed funds plus a hefty fee for himself. I'm quite happy to be doing similar at a much lower cost - with input from the people here. It did take me quite a while to get here though - almost 12 months - watching the market down and up again, researching and getting confidence in my own decisions.
     
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  11. SatayKing

    SatayKing Well-Known Member

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    All depends on your attitude @geoffw and that of your wife I guess.

    Lots of opinions but it's obviously not them who is doing the investing for you. That's the hard part.

    Generally, if a person is in accumulation phase, getting stuff at a lesser price than yesterday' offer. But unless you can walk on water, you'll never really know if the price after you buy will be higher or lower tomorrow.

    For me last December wasn't too bad and picked up some stuff including an SPP but even so I am a nervous type. So now I'll continue with the approach of when deciding to buy, do so and not bother to look again until I decide it's time to look at placing more funds.

    Depends really on what people's financial circumstances are and disposition. And on that it is a beautiful afternoon so a walk and finish with a coffee. The market can do what it does.
     
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  12. Nodrog

    Nodrog Well-Known Member

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    What are the best Australian share ETFs?
     
    Last edited: 15th May, 2019
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  13. Nodrog

    Nodrog Well-Known Member

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  14. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Sharesight provides TSR and is free up to a certain number of stocks.
     
  15. ChrisP73

    ChrisP73 Well-Known Member

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    Hi all - is there an ASX listed, locally dominiciled all-world ex US share ETF?
     
  16. symposia

    symposia Member

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  17. ChrisP73

    ChrisP73 Well-Known Member

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  18. Fargo

    Fargo Well-Known Member

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    WAAX stocks still booming Up 5.5, 4.2, 5.8, 1,5 respectively NEA up 10% ALC 3,5% just to-day compounding on yesterdays and similar gains.
     
  19. monkeychow

    monkeychow New Member

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    Hi Guys,

    I’m in the market for an ETF that can generate some income but will survive the effects of inflation over a long term hold.

    considering an investment in WDIV.
    It tracks “highest dividend yielding companies within the S&P Global Broad Market Index (BMI) that have followed a policy of increasing or stable dividends for at least 10 consecutive years.”

    MER is 0.50%

    Currently holds 100 Stocks, yielding around 4.8%

    It seems to be truely global as it’s got about 20% of stocks in USA, 20% Canada, 15% UK, 7% France, 2% Australia etc.

    Would love to hear any thoughts on the long term viability of this….I know a lot of the dividend funds kinda generate income at the expense of growth……

    I don’t mind loosing some growth…but I’d be considering this as an income solution for multiple decades, and so i need something where I have a reasonable chance of at least keeping up with inflation - both in terms of dividend and long term capital appreciation of the corpus.

    Any thoughts? :)
     
  20. sfdoddsy

    sfdoddsy Well-Known Member

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    Here's a longer term chart for WDIV. It was recommended to me by a financial planner, but in the end I went with a combo of VGS and VISM.
    Screen Shot 2019-05-29 at 2.13.04 pm.png