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Exchange Traded Funds (ETFs)

Discussion in 'Other Asset Classes' started by The Falcon, 21st Jun, 2015.

  1. austing

    austing Well-Known Member

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  2. Redwing

    Redwing Well-Known Member

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    Hmmm...

    ETF.JPG
     
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  3. Hodor

    Hodor Well-Known Member

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    I couldn't find that same graph on their website. I read this however;

    "In our SPA3ETF research we have used 1.6:1 leverage"

    Does anyone or has anyone here used these products from share wealth systems?

    All seems a big worry to me.
     
    Last edited: 10th Dec, 2016
  4. austing

    austing Well-Known Member

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    @Hodor, you seem to be doing a lot of worrying lately:). I think the investing bug's got you bad.

    Gary Stone's SPA systems have been around for ages. They are heavily based on technical analysis which is what I used to trade years ago. I attended and / or studied courses by Radge, Guppy, Bedford, Tate, Stone, Securities Institute and numerous others.

    Better make sure you've got the right sort of psychological makeup if you're going start trading or you'll end up a nervous wreck. Cutting losses short is absolutely paramount, no ifs or buts! And at times there can be multiple losses in a row before you catch a trending winner.

    Stone's systems are some of the better ones out there. From memory they're medium term trading systems. But for a variety of reasons most traders tend to fail with psychology a big factor.

    In fact I think the best strategy to succeed as a trader is to write a book about it (people automatically think you're a guru), run courses and sell a trading system:rolleyes:.
     
    Last edited: 10th Dec, 2016
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  5. orangestreet

    orangestreet Well-Known Member

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    Thanks @austing. Does this apply to VGS vs VTS? With VGS being domiciled in Australia?

    I have not looked into international ETFs (yet) and have wondered about going down the VGS vs VTS + VEU route.
     
  6. austing

    austing Well-Known Member

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    Yes, VGS is local. I favour VGS in part due to the reasons stated in the article. There's a little more diversification with VTS + VEU (addition of US small caps and emerging markets from memory) but this is just tinkering around the edges. VGS keeps things nice and simple which for me is an important criteria.
     
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  7. Redwing

    Redwing Well-Known Member

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    Exchange trade funds to over take listed investment companies by 2018

    Exchange traded funds (ETFs) are poised to overtake listed investment companies as the most popular pooled investment option on the ASX within two years if current trends persist.

    ASX data for November shows that the value of ETFs rose by 17 per cent to $24.5 billion, while the value of listed investment companies rose just 2.3 per cent to $30.5 billion.

    Experts point to the increasing sophistication of investors, regulatory change, growing numbers of ETF strategies available at low cost and the rise of the self-managed super fund as among the key forces driving ETF fund flows.

    Listed investment companies, which have a long history of performing for retail funds, charge comparatively higher fees and can trade at a premium or a discount to underlying value, which can be frustrating for investors.....continues
     
  8. Newfast

    Newfast Well-Known Member

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    Why all of the sudden everything is going up?
     
  9. Redwing

    Redwing Well-Known Member

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    "Trump rally" ?
     
  10. Redwing

    Redwing Well-Known Member

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    A comparison on IOZ, STW (ASX200) and VAS (ASX300) ....

    Australian index ETF showdown: IOZ, STW & VAS compared

    Whilst all the excitement in recent times has focused on the proliferation of Smart Beta and Actively Managed ETFs, our look at the top ETF inflows for FY2016 showed that by far the most popular ETFs remain the traditional index weighted funds. For those looking for exposure to the broad Australian market, there’s 3 funds which dominate this space, these being iShares S&P/ASX 200 ETF (IOZ), SPDR S&P/ASX 200 Fund (STW) and Vanguard Australian Shares Index (VAS).
     
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  11. Zine

    Zine Member

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    How would VAP compare to these?
     
  12. Hanso

    Hanso Active Member

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    Is someone able to shed a little light on the tax benefits of a VTS/VEU mix over VGS, obviously there will be greater brokerage costs with buying the VTS/VEU mix, without being able to figure the exact tax implications I can't assess against the higher management fees of VGS.

    I would also be looking to purchase these under a name that currently isn't earning enough to exceed the tax free threshold.

    Additionally what im looking at is a mix of 40/60 between VAS/VGS or VAS/(VTS/VEU). No bonds as I am planning to have approx the same amount in an offset against PPOR as invested in ETF's. Is there anything glaringly wrong with this. Planning on keeping a decent chunk in the offset due to uncertainty on completion of my current employment contract.
     
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Make sure you have a written loan agreement with the person that will be investing.
     
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  14. Hanso

    Hanso Active Member

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    Terry it will be my wife that would be receiving any tax benefits while not currently working. Still figuring out if it is worthwhile starting a discretionary trust for the amount that would be invested.

    Written loam agreements with a trust is something I have on my list to chat with my accountant with when he is back in the new year. But having a written agreement to lend to a trust is there any benefit if my wife is receiving the distributions?

    The PPOR loan is currently under both our names.
     
  15. Redwing

    Redwing Well-Known Member

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  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Hanso you may not need a loan agreement with your wife if you co-mingle you funds. I draw up loan agreements for some spouses where they keep funds separate and they may want to shift some income from the higher tax payer to the lower.

    Is there a benefit in lending to a trust? Yes. The other alternative is to gift and if you gift the funds are no longer yours and will not form part of your estate on death - this may be good for some but not for others.
     
  17. Newfast

    Newfast Well-Known Member

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    Where can I find information "if we are allowed to take part or apply for Lic spp plans for the holding Lic''s in ING direct or Australian Super??
     
  18. austing

    austing Well-Known Member

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    From what I understand you can't. I'll leave it to those here who use the product to confirm this and direct you to related information.

    It's generally because holdings are held in trust, not by the individual member.
     
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  19. big max

    big max Well-Known Member

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    Why do ETFs make it so hard no calculate their yield? They typically publish total returns. Does this frustrate anyone else?

    What I basically want is a high yield blue chip etf like VAS where the underlying stocks hopefully keep up with inflation (ideally exceed) and their yield is around 4-5%.
     
  20. Newfast

    Newfast Well-Known Member

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    My holidays have finished-back to work from tomorrow.

    But I have managed to read Lic and Etf thread along with other useful threads.

    Ocean of information here and big big thanks to @austing for the encouragement and all the members who have been contributing @The Falcon @wombat777 @pinkboy (1 comment of pink boy made me think twice about IPO ) @CatCafe @Redwing (great graphs-I think your platinum in fund growth graph was really attractive)
    @Hodor (great explanations) and all other members (sorry if I am unable to mention your name)

    I never knew much about etfs or lics and I wish I could knew about these since 2012.(initially when I started to do experiment with direct shares.

    Anyhow, I am looking forward to hear from ING Direct and Australian Super members about options in SPP of Lics and have also put wheels in the motion to get advise on SMSF.

    We are heavily invested in properties so also considering* to sell 1 IP and use those funds to initiate the long term investment plan.(*= it's in pipeline not in rush)

    No one knows what future holds but with great minds contributions , I know where my money will be going.

    I am still learning and there are few areas where I need to learn a lot e.g. tax calculations of ETFs-why it is important to know this in so much details and what complications it can have.( in general my accountant looks after our tax and advise)

    At the end the message is clear -keep it simple and sit back and watch the money grow.
     
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