ETF Exchange Traded Funds (ETFs) 2021

an Index fund is only a reflection of the NTA of the Index ( covered ) ( and index constituents can change as share market caps. change )

so i only buy ( or add to ) when that index has plummeted ( to say 5000 points for the XJO )

now a 'high yield ' fund has a sharply defined and might be bought ( or added ) when a sector is being smashed , say the financial sector during the Hayne Royal Commission .

FOR ME probable div. yields are important to me ( unit price becomes more important if i want to sell ( or reduce )

i still prefer to pick my own stocks so use ETFs as sector/style coverage , in case i have a run of bad selections ( and i do have my lean patches )

 

I recall one excellent individual stock I chose years ago that showed my timing was impeccable ...if you turned the chart upside down. Any hot tips turned into hot trips, however, there were also a few that did well over the longer term such as REA, FMG, CBA etc

 

impeccable timing is something i haven't mastered yet , i devised a 'good enough ' strategy ( might be handy for those my faulty crystal balls , like mine )

IF i am looking to buy an ETF say an index fund i will pick a trigger point say the XJO = 5500 and have a close look at the constituents of that index , are the components generally being hit or just on or two niches , if one or two niches are they likely to be rebalanced to lesser importance in the index ( for example international travel may never return to it's former popularity )

if the index damage looks repairable say banks and resourcee stocks are hit , i will look harder and start setting targets ( flexible downwards of course , i always start with the MAXIMUM acceptable price and edge down )

and THEN decide if i will nibble ( small buys ) or make medium sized buys into the coming weakness say if the price drops an extra 15% each time

on a few occasions i have 'picked the bottom ' but also ended up with a part-filled order 10 shares at a multi-year low is great for the ego , but chilling for your average share price

so have given up that strategy , but investing is always about learning and refining ( and preparing in case it is REALLY different this time )

cheers

 

That seems way to complicated for me. I prefer a simpler approach. Earn money. Stick that money in the index fund. Go back out and earn more money and then again stick that money in the index fund. Keep doing that until I am no longer able to earn any more money from working then live of the income from that index fund.

The thing is no approach is right or wrong. It easy to follow such a simple approach when you have ample capital to stick into index funds and the market return whether that be 6%,7% or 8% would be plenty to live comfortably off. With this simple strategy if the market return over the next 20 years or so was 6% p.a or even 5% p.a then I would still be more than comfortable. Maybe if I had significantly less capital invested then a simple index approach would not be satisfactory and I would be aiming for outperformance to achieve the desired income.

Its easy to sit on a forum and recommend what approach is best, but how you judge that will vary significantly for someone with say $1mill invested compared to someone with $10mill invested. I guess what I am saying is that someone with less capital might be inclined to take greater risk to achieve the desired outcome via attempting to outperform the market. Is that the right / wrong approach? That comes down to the individual to decide.

 

complicated , yes i agree , but your solution of concentrating on earning from your work , is no longer available to me , sure i can usually save $100 a fortnight on the pension and i get div. returns ( and reduce some holdings )

but by most members standards my earning days are over , i have a portfolio and a bit of cash , and i need to make the best of it , , the upside is i know what my future earning potential is ( within a few thousand dollars a year ) so i know how much risk i can take , and i have MOST of the trading week to sit and watch the market ( and learn better investing skills )

depending on my lifespan , i arguably have enough money for the frugal lifestyle i have , so all i need to do is resist the real inflation ( loss of spending power ) that must come in time , if i can boost the portfolio by 20% on the way ( via DRP and wise investment well that is a bonus

i need baby cautious steps now , a person in their 30s or 40s has a world of choices waiting for them

 

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

 

Thanks, @Greedo.

I'll find out the number of additional units allotted when the distribution statements are sent.

Until then not much to do investing-wise as usual.

 

liable to receive more VHY than VAS as the numbers are nearly equal now ( both are 100% DRPed )

originally in 2011 the VAS holding was numerically larger ( 22% larger )

good luck holders

 

Couldn't resist. Bummer.

A few more $$$ gone to sate one of my few obsessions of rounding holdings to n,000. Oh well, may have to re-use the coffee grounds and hunt down one of my neighbour's chickens.

 

I assume it's due to technical issues but it is strange the distribution statement for STW was only issued today when payment was made, and additional units issued, two days ago. The actual distribution statement was available on the share registry that day. A small quirk.

 

While clean out the Mish Mash folder of links to various articles I had saved, I came across this one. It may be of interest.

Invest in ETFs | 9 things to know | Education | BetaShares

 

I have exactly the same timing that uses the same chart!

 

Have both of you been dabbling in this one by any chance? Whoo. Tiger country.

 

Investors have put more money into stocks in the last 5 months than the previous 12 years combined

• More money has gone into stock-based funds over the past five months than the previous 12 years combined, according to Bank of America.
• In raw numbers, $569 billion has flowed into global equity funds since November, compared with $452 billion going back to the beginning of the 2009-2020 bull market.

The latest wave of market enthusiasm has brought with it a stunning rush of money, in which more of investors' cash has gone to stock-based funds in the last five months than the previous 12 years combined.

That statistic, from Bank of America, reflects a period in which the Dow Jones Industrial Average has risen more than 26%.

At the same time, the market has undergone some wild trends that included a massive influx to meme stocks such as GameStop and AMC Entertainment Holdings. Trading volume rose 40% in the first quarter from the previous three months, with investors snapping up sectors that performed poorly last year amid hopes for a pronounced economic rebound from the Covid-induced slide in 2020.

Amid the frenzy, some $569 billion has gone to global equity funds since November, compared with $452 billion in the previous 12 years that go back to the beginning of the longest bull market run in history, according to Bank of America's chief investment strategist, Michael Hartnett.

cont......

 

Guess that's why we're seeing it go higher & higher,time will tell if it's a slow-moving train wreck.

 

The Craziest Market I’ve Ever Seen
Nick Maggiulli

I was only 10 years old when the DotCom bubble was at its peak. Though I didn’t invest through that era, I feel like I finally understand it now. Not because I believe we are in a similar type of bubble today, but because I have now seen valuations that I cannot rationalize whatsoever. Let’s take a moment to review what I’m talking about.

Currently, we have an antiquated video game retailer (GME) being valued at $10 billion (nearly 10 times what it was worth at the start of the year). We have a literal joke internet coin (Dogecoin) that has a market cap of over $50 billion. And I just recently heard about a single deli in New Jersey (HWIN) that was recently valued at over $100 million. The deli had $35,000 in sales over the previous two years. Here’s a picture of the interior:



$100 million. You read that right.

But this is just the tip of the investment iceberg. Because if you actually look at how much some of these assets have appreciated you will be shocked. For example, if you had put the three U.S. stimulus checks into Dogecoin around the time they were sent out, you would have over $300,000 now

 

I knew I should have read this thread before I topped up on VAS and VGS this morning!

Daaaaamn.

 

Definitely a 50% crash coming, let's split the risk and i'll buy them off you at 25% under market. Seems fair to me.

 

Please sign and return