Low yield, high wealth creating ETF's?

Hi guys,

I've got $1M(sale of an IP) to stick into a wealth generating ETF over a 15-20 year period. I'm not interested in distributions or dividends, as this ultimately lowers the value of the fund. I'm after a wealth generating fund that my kids can eventually tap into when they are older so that they can buy a house with. The plan is to eventually sell when I hit retirement so my taxable income is lower.

Any recommendations or advise please? Maybe an ETF is not the answer...

PS. Not interested in buying another IP - been there done that and have a few more to offload.

Thanks.

 

VGS is a great diversified starting point. Being an international fund, yield is low relative to Australian equities. You could add emerging markets and small caps as desired.

Stock picking based on a companies dividend strategy (or lack thereof) is not a strategy which results in higher expected returns and should be avoided if it results in a less diversified portfolio.

How to get worldwide index exposure on the ASX — Passive Investing Australia

 

NDQ, has been doubling VGS returns, given 200% returns over the last 5 years and 10% in the last month compared to 90% and 5% for VGS. ARK inovation has given 500% return other ARk ETF's have given over 200% in the last 5 years. ASIA and NDQ may be good ones to buy , if you want to take advantage of volitility and make serious money by buying in dips ARK could be best. NDQ has better capital concentration in better companies but still has great diversification. VGS has worsification, inferior weightings, more capital in inferior companies.

 

Chasing the recent out-performers often leads to future under performance as you are buying at a premium.

The companies in NDQ are already at eye watering valuations. Sure, they might continue to produce unexpectedly high relative returns for a bit, but they are probably more likely to underperform relative to unloved "inferior" companies.

Over the long term, S&P 500 and NDQ have has similar returns, but with NDQ having double the volatility. A more reliable result is to just buy the whole haystack.