ETF Exchange Traded Funds (ETFs) 2020

The downside with equal weight indexes is the high turnover (and resulting capital gains) from the constant rebalancing.

VGS follows the MSCI World ex-Australia index covering 85% of the developed market (22 of 23 countries). Currently 67.6% USA and 22.2% IT, so while it will have significant exposure to FANG stocks, it is only at market weight unlike something like NDQ which will be overweight in tech.

Anything you tilt outside of market cap weighting is essentially a bet that there is an inefficiency in the market somewhere that you are looking to exploit. Do you have access to any information that would not already be priced into the market?

Another way to diversify away from large/mid caps is to also add emerging markets (eg VGE or VAE) and/or small caps (VISM) at market cap weight.

From our friend at Passive Investing Australia How to get worldwide index exposure on the ASX - Passive Investing Australia

 

VGS only has about 10% exposure to FAANG stocks so I wouldnt worry about it myself.
Otherwise as the previous poster mentioned VGE or VAE might serve as a good compliment.

I personally have VAE with VGS for my international exposure, but it's not due an aversion of the FAANG stocks.

 

Passive Investing Australia

 

Thanks all. I think I will keep it simple and just go with VGS. I can think about adding small caps and EM later on.

 

Some indication for those who may have an interest in these matters.

STW: 38.2c. Payable 13 January.

60.1c for pcp so down 36%

First half of 2020/2021 is 81.2c compared with $1.422 pcp. A 43% reduction.

No surprises if VAS is around the same which is probable and hope those additional 100 holdings gives it some kick along.

Solution? Buy more and review your outgoings if invested via ETFs.

Note the distribution is only an estimate at this point.

 

Normally if dividends are low it atleast means one can buy more shares than usual for the same amount of money, but not currently.

I would realy have to review outgoings if inwanted to buy more shares than usual, lucky i enjoy 2 minute noodles!

 

213 options and 61 Billion dollars under management: A brief history of ETFs in Australia


Another interesting chart from Datamentary

 

Chicken or beef flavored noodles?

 

Mi Goreng

12 ways to fancy up 2 minute noodles

 

Include this for even more variety

Chilled coffee noodles for dessert are Japan’s newest summertime sweets innovation

And for an additional dessert

Coffee Pudding - Use Your Noodles | Delicious & Nutricious Recipes

 

They look expensive @SatayKing. I would only be able to buy penny stocks if i ate those, not VAS at $75 a share

 

Depends. With $10k @ $75 + brokerage should leave you about $15 in change.

Always look for a work around.

 

So now ya know.

https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4

 

For a little bit of fun to fool around with pcp comparisons.

Vanguard Australian Shares Index

Warning: If one starts to fool around with such calculations you do so at your own risk (to your sanity and peace of mind.)

 

Well thats nothing to get excited about for VAS holders

thanks for posting that SK,

 

Still don't understand why so many people put money into vas...trash.

 

No probs. Easy as to simply copy and paste a link. I haven't read it but I gather you're not over the moon.

Not really surprising if the result isn't, um, stellar. As I mentioned in the LIC thread I haven't heard of a lot of (if any) companies declaring an increase in earnings and thus dividends. I anticipate rather subdued results for at least the next couple of years.

It's happened in the past so there is no reason it won't happen again.

Such is the share market.

 

Can't speak for anyone else but I put money into it because I realised I don't have the skills to pick the winners from the losers. Considering only a miniscule few % of professionals can do that, and even then I don't know if it is due to luck or skill, I don't feel I could pick a winning fund manager either. So I'd rather just have a basket of shares in the top 300 companies and be satisfied with the market average.

 

Yeah, I'm OK with foregoing the possibility of having an edifice named after me in recognition of my greatness.

A strange thing can happen too when in that zone. Over five years ago when I was dealing with multiple entities, I had a meeting to review the respective performances and I mentioned I was beginning to feel they were just numbers which moved about. The response from the financial professional was along the lines of "It gets that way."

I know it's money but there is a remote and almost abstract aspect to it.

 

I'm just glad I wasn't drinking when I saw the VGAD distribution - I'm sure I would have spat it out. VGAD is the new income LIC?