ETF Exchange Traded Funds (ETFs) 2015

hi radson, if you take some money off the table, where would you reinvest it, if any ? in some hedged fund ?

 

Hey Filip, I am a dip or correction buyer. So keep in cash and wait until maybe a market overreaction to a slight fed rate increase. I am trying to keep a 50/50 split between aussie and international investments. I currently have 40 different products (shares, ETFs and managed funds) and trying to whittle them down to a more manageable size.

 

Hi Radson

Would be great to hear more about your stategy

 

Oh... my strategy is currently akin to stumbling around in the dark. Im learning by doing, making mistakes and refining a process that will be a strategy. Fundamentally I'm of the value investor ilk and like to be very diversified but certainly not at a stage where I could pass on any wisdom with good conscience. In somewhat of a defence I have a voracious appetite for information and love to learn, discuss and critique.

 

Hey guys, just a quick question, should I expect to receive some sort of annual tax statement from my Vanguard ETFs?

Particularly with my international share VGS, I was expecting to have to fill out my tax return like a managed fund with the foreign tax credits and all that jazz.

Also, in my estimated dividend summary from CommSec for FY14/15, it's missing my April distribution from VGS for some reason, any idea why?

 

Don't forget VGS is domiciled here, unlike VTS

How long have you held VGS?

 

I've had VGS and VAS for almost a year now.

So the tax treatment is pretty straightforward then? Because for FY13/14 tax return (all direct shares, no ETFs at that time) I just forwarded my CommSec dividend summary report to my accountant as it lined up perfectly with all the individual payment advices. It had columns for unfranked, franked amounts and franking credits.

Strange thing is for the most recent FY, the report included the VGS distribution from January but it missed the April one.

 

WOW exit today ...

 

Exited 1/3rd position Monday at 2855cps

 

I'm keeping my WOW and WES for now, topping up slightly when WOW is less than 27.50 and WES less than 40.

 

I was really overweight WOW so used the opportunity to trim, still holding though.

 

yeah, probably by far the better strategy than mine...WOW and STO are the biggest drags on my portfolio. Very much a long term hold I suspect.

 

anyone into / looked at zyus? sounds reasonables

Among the six products launched in May is the S&P500 High Yield Low Volatility ETF. The fund manages to squeeze out additional yield by scanning for the 75 highest-yielding stocks in the index, picking the 50 which have had lowest levels of share price volatility for the previous 12 months, and then weighting allocations by dividend yield, not market cap.


“By doing those simple screens our ETF doubles the yield of the S&P500,” says Laidler. (And of course, you only get one-tenth of the benchmark.)


The fund, ZYUS, is yielding 3.7 per cent compared with 1.9 per cent from the index and income is net of US tax.

 

Hi S1mon

Hadn't heard of it until you posted, though now found this on ANZ getting into the ETF Markets..

The suite of funds includes the world's first ETF tracking the ASX100, the ANZ ETFS S&P/ASX100 ETF (ZOZI), which includes Australia's best performing 50 large cap companies and 50 mid-caps.

ANZ also launched two smart beta funds; the S&P/ASX300 High Yield Plus ETF (ZYAU), which "looks at total share buybacks of each ASX300 company over the last year and total dividends. With that combined figure we pick the top 40 yielding companies and weight them based on the yield," ANZ ETFS head of distribution Danny Laidler said.

The other smart beta ETF is the S&P500 High Yield Low Volatility ETF (ZYUS), which selects the 75 highest yielding companies in the US-based S&P500 index and picks the 40 that have the lowest volatility. This fund, as all the others, is Australian-domiciled and unhedged.

The three remaining funds are the Physical Gold ETF (ZGOL), with exposure to ANZ's gold bullion stored at its Singapore vault; the Physical Renminbi ETF (ZCNH), exposed to an ANZ account holding offshore Renminbi; and the Physical US Dollar ETF (ZUSD), holding US currency.

 

I like IXI for international exposure and benefit from low $A.

 

I like IXI too, its just a little exxy from MER standpoint. I am a big fan of many of its constituents though, but I prefer to hold them directly rather than via an ETF.

 

Do new smart betas mean the other betas were all dumb

I prefer strategic as the term, rather than smart

Smart beta vs indexers

 

Maybe smart beta is about trying to eliminate the rubbish! Perhaps some conservative active management with very low fees can help in this regard eg the older internally managed LICs!

 

Sorry guys, another tax related question. Trying to fill out my tax returns and the dividend payment advices for my Vanguard ETF (VAS) doesn't contain any franking information, only a single gross amount.

Should I be expecting to receive an annual tax statement? I couldn't find it through Computershare

 

The % break up can be found on the Vanguard website or the announcements section of ASX and your brokers website.