ETF Exchange Traded Funds (ETFs) 2021

Reckon that extra .14c in the original investment made all the difference

 

Lets see how tomorrow looks

 

Hello Team,

Hope you all are staying safe drom Rain (aparently qld to vic coast is getting drenching).

Portfolio under my name is kinda set and forget for the time being and I am assiating setting up one under Mrs name.

I do not want to double up the holdings hence seeking opinion on the following:-

MVW- bit higher fee but different to my holding of VAS as its equal weight

VEU- low fee, stock standard excluding US as I have VGS and VAE

A200- low fee and tracks top 200 largest companies

US target- IVV/VTS- this is where the main confusion as yes IVV is AU domicile to avoid any US tax issues but only tracks 500 compared to 3500 of VTS with slightly cheaper fee.

Do you know if a holder of VTS gets reminder to complete that W-8BEN form regularly?

Great minds here so look forward for value add criticism on the above mentiones info.

 

Let her set it up.

By all means, discuss the pros and cons with her regarding her choices but then stay out of it.

Her investments if it's her funds or even if you are providing the money whether as a loan or not.

You probably didn't expect that response.

 

why would you pick potentially inferior holdings just to avoid doubling up?!
Also agree with @SatayKing her name=her funds=her choice

 

@SatayKing - wasn't expecting as in our house holds its all joint. But thank you for the input.

@Islay - may I please ask why do you think those are "inferior products"?

 

I have MVW, I use it to sit alongside what I think is a concentrated VAS / aussie index.

I wouldn't worry too much about doubling up. When you look at what makes up different ETFs there is often not much difference..... VAS and A200 are as good as the same thing for example, VGE and VAE have only fairly small differences too in the overall scheme of things.

I wouldnt worry about small differences in fees either. As long as you are not paying more than say 0.5% its not worth getting too bothered about.

 

I was careful to use the word potentially. They may or may not be inferior but choosing an investment because it doesn't double up with something held by another entity within the household/family unit may not be the best way to choose an investment. Personal thoughts only of course

 

If your portfolio is VAS/VGS/VAE and you are looking to avoid doubling up with the same funds, another way to achieve the same would be A200/VTS/VEU. Like others have stated, I personally wouldn't be too worried about doubling up and instead replicate the same portfolio across both of you, perhaps with different bond/equities allocations if you are different ages or risk tolerances

How to get worldwide index exposure on the ASX - Passive Investing Australia

IVV vs VTS are about the same over the long term and given you will already be filling out a W8BEN for VEU, it probably doesn't matter too much. A200/IVV/VEU at least diversifies manager risk away from Vanguard if you care about that sort of thing.

ComputerShare will remind you every 3 years when the W8BEN is due.

MVW is going to be less tax efficient due to the rebalancing. Perhaps also consider EX20 which will have a lower turnover than an equal weight fund if you are looking to reduce the concentration on the big banks, miners etc

 

Fair enough. Frankly, I was conveying a view of what my late wife would have told me, very firmly too, if I had attempted to make the decisions on her investments. We also had joint investments as well separate ones. Same with bank accounts. Independence but also collaboration. It worked.

 

Thank you everone , realky appreciate your comments.

@Hockey Monkey - thank you for your validation re riak spread and W-8BEN form

 

Nabtrade will do it for you not sure how many others do?

Nabtrade attributes some of the take up to removing the pain points for new customers who want to trade on US exchanges. Nabtrade was the first Australian retail qualified intermediary which removed the need for multiple paper forms to be filled out.

"We've made that an efficient digital experience for clients, rather than having to fill out a W8BEN, you simply get activated," Mr Walsh said.

 

STW est distribution: $0.518 ($0.472 pcp) payable 14 April.

 

Interactive Brokers does the same. You have to keep your tax residency details up to date under your account profile and they do the rest.

 

We are with Selfwealth

 

I think a lot of people would benefit from writing that statement out hundreds of time @Redwing

 

@Big A

Hyperion Global Growth Companies Fund (Managed Fund) (ASX: HYGG) $8 million traded on day 1 - the most ever traded on day 1 for an Exchange Traded Fund (ETF).

 

State Street Global Advisors will launch a new exchange-traded fund in Australia two thirds cheaper than its peer group in a competitive challenge to the burgeoning sustainable investment market.

The $US3 trillion funds management giant, a subsidiary of Boston-headquartered bank State Street, intends to list a new ETF on the Australian Securities Exchange in August, providing a "sustainable alternative" to its existing SPDR S&P/ASX 200 Fund.

The imminent launch will end a five-year hiatus for State Street's ETF business, SPDR, in the Australian market after pioneering the country's first ETFs in 2001 and brings its suite for the region to 17 funds.

The fund, which will operate under the ticker E200, comes with a management fee of just 0.13 per cent a year, dramatically undercutting the average fee of 0.53 per cent for an Australian "socially conscious" ETF, according to research house Morningstar.

 

I don’t hold the Hyperion global. Just the australian fund. It’s tempting though as Hyperion have had a great run. But I refuse to be tempted by the active devil. I have seen the light and only add to index funds from here on. I will keep the active funds I have and keep drp on them so they will grow somewhat. All other capital goes index.
The Hyperion aus fund has struggled a little lately due to the rotation out of growth stocks and into value. Overall they are still well ahead considering how strong they performed last year.
Can’t be tempted by active short term outperformance. Eventually luck runs out and they will come back to meet the market if not drop below it.