ETF Exchange Traded Funds (ETFs) 2021

The main thing going for CommSec Pocket is $2 brokerage and CHESS sponsored but the ETFs available are less than optimal

IOO is more than double the cost of VGS and much less diversified. Large cap vs Large + Mid

VGS has slightly outperformed IOO even with the recent massive performance of large cap growth companies



NDQ is another high fee fund which underperforms long term after fees with double the volatility of a broader index. It is basically a bet on tech and healthcare. Recent out performers at eye watering valuations just as likely to underperform going forward

 

I sold CD1 and CD3 today. Put in a price at +10% and got filled.
So I made 10% in a month and ran. Changed my mind and would rather use funds as margin to sell puts. Not much but enough for a weekend away.
Also expecting a pull back of the ASX200 at 7300-7500.
Maybe yes, maybe no.



And since there's a bit of Buffet quoting around here:

"once you're in the business of evaluating businesses and and you decide that you're going to bring the effort intensity and and time involved to get that job done then I think that diversification is a terrible mistake....

if you can identify six wonderful businesses that is all the diversification you need and you can make a lot of money and I will guarantee you that going into a seventh one rather than putting more money in your first one it's got to be a terrible mistake"

 

Hit a high of $92.41

 

Preamble: I've not directly held or traded shares for quite a while - I figured my industry super was mostly shares so I'd put my active money towards property.

But in 2017 on my trading platform I did a simple Vanguard ETF hypothetical portfolio of $25k in each of:
VAS
VEU
VHY
VTS

As of today, that $100k would be $135k. Plus dividends (no idea that value).

VTS was the big winner, up 76%.

Pretty sure my little IP unit in Adelaide hasn't gone up 35% in value in 4 years.

*sigh*

 

Concentration leads increases variability in outcomes. Sure you may shoot the lights out but more likely to underperform.

Dispersion Definition

Just look at Berkshire over the past 15 years
Berkshire Hathaway Versus The S&P 500 Through The Years (NYSE:BRK.A) | Seeking Alpha

 

Berkshire's problem is it's size. A few extra billion in profits just doesn't make much difference to the overall return.
They can't buy and sell on such a scale without moving the market against themselves.
It's a very different issue than diversification.


And to be precise
"Berkshire now enjoys $138 billion of insurance “float” – funds that do not belong to us, but are neverthelessours to deploy, whether in bonds, stocks or cash equivalents such as U.S. Treasury bills. "
So they need to play very safe with that money and keep it liquid.

 

Right there you have encapsulated the noble art of doing SFA.

 

Had a quick look at 5 years (with dividends) and the hypothetical would-be around $167,675.27

 

Close enough as a rough estimate.

 

Comparing apples with apples - leveraged 3:1 like real estate it would have been around 200k profit after interest. With no stamp duty, conveyancing, pest inspection etc.....

Ah hindsight, often the most useless vision we have. Not advice - Please don't lever up that much unless you know what you're doing.

 

$200k you say. D'oh!

 

I love the thrill of speculating and wish to increase the odds.

Is 3:1 leverage possible with shares now?

 

How much coffee did you drink today

 

I am following my GP's health advice and restrain myself to two coffees a day.

Of course, she doesn't have to know each coffee consists of a 6-cup Moka.

 

Step 1. Refinance your home loan to the maximum amount, use all of this money except $5 to buy GEAR.
Step 2. Use the remaining $5 to buy bonds (underpants). You'll need them.
Step 3. Line up at centre link.

Easy as!

 

Seems conservative. Possibly BEAR would be better choice along with BBOZ, BBUS and OOO as a satellite.

 

And a freezer full of chicken drummies and the odd breast!

 

So your bored with the share market too it would seem. By any chance, do you know the VAS price per kg of chicken?

 

Not in the slightest, seems to be a bit high sort of like premium tenderloin prices at the moment. Just sipping some lavazza pondering........the effects of the next poultry crisis

 

Amazingly stark and clear)))

May i know is there a quick calculator for the above or where can i find the source of the calculation please? thank you