IVV or VTS or NDQ?

Discussion in 'Shares & Funds' started by mkbonline, 7th Jun, 2020.

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  1. mkbonline

    mkbonline Well-Known Member

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    I am considering starting regular investment in an index fund with exposure to US market. I am 40 and plan to continue investing for next 10-15 years.
    Both husband and wife in highest tax paying bracket. I plan to make larger investment now (as market is low) and smaller when market is higher.

    Few questions
    1. Does any of them give franking credit dividends?
    2. I know VTS will require US tax paperwork as it is not domiciled in ASX but it that a big pain ? (vanguard is arguably most popular and reliable brand in index fund world)
    3. Which platform? CommSec Pocket (it doesn’t have Vanguard but cheapest brokerage) or Self wealth or something else?
    Manidh
     
  2. Fargo

    Fargo Well-Known Member

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    NO they dont Frank,, NDQ, but the Nasdaq isnt low it is near an all time high and up 50% in less than 12 months since kit doctor said run for the hills. If you have a large sum comsec wont be cheap @.02. Your really need to DYR and not be so lazy.
     
  3. Francesco

    Francesco Well-Known Member

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    Welcome to the forum!

    If you are doing long term investments, you should spend time considering the most efficient structure to invest with. Do research on salary sacrifice and SMSF. Pay a bit for putting in the structure to deliver for long term steady gains and security. Look up Terry's tips on tax and structures in this forum.

    All the best!
     
  4. Blueskies

    Blueskies Well-Known Member

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    1. No franking - only applicable to AU companies,

    2. IVV - low fee, AU domiciled, SP500 only (no small caps).

    3. Lowest price platform (selfwealth would be fine) - you don't need to pay for lots of research/bells and whistles.
     
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  5. sfdoddsy

    sfdoddsy Well-Known Member

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    You seem to be considering funds that are only exposed to the US market, rather than globally diversified ones.

    This would, of course, been a wise decision over the past 20 years or so,

    But that is no guarantee it would as wise over the next 20 years.

    That's why most here choose VGS rather than VTS or IVV.

    Another option would be a core of IVV or VTS and satellite tilts.

    If you are going to make regular investments (especially with Vanguard) you might want to consider the managed fund version rather than the ETF as BPAY payments don't have broker charges.

    Vanguard's new Personal Investor platform allows you to access the cheaper wholesale funds.
     
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  6. mkbonline

    mkbonline Well-Known Member

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    I reached limit in terms of salary sacrifice. I just finished reading scott page book - who recommends low cost super fund like hostplus instead of costly SMSF. My goal is long term investment - sort of build my retirement kitty (I am 40 now)- do you see benefit in using SMSF instead of hostplus + direct investment in IVV or VTS? @Terry_w Feel free to add
     
  7. mkbonline

    mkbonline Well-Known Member

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    I did lot of research on this but no action :( - Selfwealth, stockspot, IG, eToro all look good but fees wise Self-wealth seems to be cheapest.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Plus Member

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    I have 2 legal tips on using a trust or a company to hold shares.

    See

    Legal Tip 151: Structuring the Ownership of Shares Legal Tip 151: Structuring the Ownership of Shares

    and

    Legal Tip 288: Structuring the Ownership of Shares in a Company Legal Tip 288: Structuring the Ownership of Shares in a Company
     
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  9. Bunbury

    Bunbury Well-Known Member

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    Plus they provide free brokerage on their Australian listed ETFs.
     
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  10. mkbonline

    mkbonline Well-Known Member

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    Direct investment with Vanguard sounds good option (no brokerage to pay). But VTS is not domiciled in AU. Thats means - i have to do W8-BEN tax form for US. Is it painful process or easy?
     
  11. qak

    qak Well-Known Member

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    Computershare has the W8-BEN online which is so much easier.
     
  12. Redwing

    Redwing Well-Known Member

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    Apparently if you're with NABTrade its done for you
     
  13. Francesco

    Francesco Well-Known Member

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    It is great to have such a diverse range of options available! Choice of options will depend on variables such as how much hands on you want, amount available to invest and cost to maintain. These vary with individuals.

    SMSF has a unique investment choice of being able to have non recourse loans to investments. This provides a turbo charged leveraged investment to properties and potential tax advantaged vehicle in retirement. You need to read up on these approaches if you are inclined. Cost of setup and ongoing costs of maintenance can be irksome if your capital is low to start with.