ETF Exchange Traded Funds (ETFs) 2023

Yes I am aware it's only $11mil at the moment. Also worryingly has had a 50% turnover already. Still If it closes or I don't like it I will just place the money in VLC. If it works out to be a good performer, I'll keep it.

Either way it won't be the end of the world. It's also giving me a bit of an interest studying it and corresponding on this thread. Even if I might not agree with other's opinions it still stimulating. I am not sure if I will survive being retired - not the money or anything, just the boredom.

 

This is what I’m running with with some DJRE included

Vas 20%
VGS 50%
VAE 15%
DJRE 15%

 

Is it really necessary to have more than 2 ETFS? My theory is to have one local and one overseas, whether US or world. Emerging is junk.

If I wanna complicate things I take single stock punts on stuff that interests me, but my core are the two ETFS.

 

Less is best.
Less to think about. Less to manage.

 

You can have just one if simplicity is your priority Eg VDHG or DHHF

Unfortunately we don’t have a whole world fund like VT that includes small caps and emerging markets but if you are happy to skip them, lots do a VAS/VGS combo

 

I wouldnt invest in VAE too many dodgey unscrupulous Chinese companies that Xi wont let get too strong, there is also lack of oversight and governance. I was invested in some of the components individually including LUKC.Y. Learnt the hard way that Chinese company reports are fabricated and BS, some of the main components of VAE were kicked of the US exchanges for not complying with auditors requirements.

 

I personally would be happy enough to overweight the large cap Oz companies BECAUSE they are heavy on resources and our banks. To me this is one of the big benefits of overweighting locally, as our market is very different from the USA market (particularly large caps). No offence to Aussie companies, but I'm more interested in my tech companies being USA based. Our banks are quite different from overseas banks in many ways too.

I don't feel there's any need to do this though as asx200 ETFs have plenty of resources and banks, low fees and have plenty of money under management. I'd be worried about investing in niche products in Australia in case they close the fund, that can screw you when it comes to tax if you're not careful.

 

Due to my bizarre way of thinking I wonder how much international income is generated by companies listed on the ASX.

According to its last Annual Report, Macquarie states it derives 71% of its income from overseas operations. CSL has overseas subsidiaries but I haven't looked to see what each contributes to CSL. The same would, I assume, apply to other companies, especially the larger ones.

I'm too busy (substitute the word lazy if you must) to go through each Annual Report - one was more than enough effort for me.

 

+1. We constantly hear complaints about OZ concentration in resources and banks and US concentration in Tech. But to me that’s why a combination of both markets is such a great match.

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