Managed Funds vanguard australia

Discussion in 'Shares & Funds' started by Matt87, 5th Mar, 2019.

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  1. Matt87

    Matt87 Well-Known Member

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    Hey all,

    Thinking of investing in vanguard australia.

    Anyone had good experiences with them or invest in them as opposed to individual shares.

    Was thinking of 2k per month investment,

    Matt
     
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  2. RS Gumby

    RS Gumby Well-Known Member

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    Yeah i have a few Vanguard ETFs and I'm happy with them. I had individual shares but wanted to cover more of the market as well as investing in different sectors.
    DYOR
     
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  3. tess_

    tess_ Well-Known Member

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    I do like Vanguard managed funds for the set and forget aspect of drip-feeding in contributions. Plus the minimal paperwork is a big win. I previously dabbled on the ETFs but always second guessed myself when it came time to buy more.

    If you start in the retail managed fund then when your balance reaches 100k you can move into the wholesale for lower fees.
     
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  4. Cmelderis

    Cmelderis Well-Known Member

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    Also looking at this option. Partner has approx 30k inheritance that has been sitting in an NZ band account for 3 years now earning virtually nothing....thinking he should put it into Vanguard.
     
  5. Big A

    Big A Well-Known Member

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    When you say Vanguard is there a particular vanguard fund you are referring too? Remember vanguard is the fund manager who manages many many funds.

    A popular vanguard fund is VAS which is the asx 200 index fund. I and I believe a fair few on here invest in this fund. It’s a simple way of investing in the australian stock market without trying to hand pick individual stocks. And the fees are low compared to most actively managed funds.
     
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  6. Cmelderis

    Cmelderis Well-Known Member

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    Yes likely VAS but not sure if its the best idea as we may need to access this money within a couple of years.....
     
  7. Big A

    Big A Well-Known Member

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    Generally you would want to only invest money you won’t need to access in the next 5-7 years. 2-3 years and you risk drawing the funds out at a lower valuation then when you went in.
    UBank offer 2.87% on there online saver. There’s peer to peer lending options that have 12-18 month terms. Though right now I’m not liking the economical climate and the risks that poses with regards to lending your capital for a return.
     
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  8. Cmelderis

    Cmelderis Well-Known Member

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    Yes was just looking at the U Bank offer, not bad.....or this CUA eSaver Extra Account
     
  9. DoggaPP

    DoggaPP Well-Known Member

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    Chiming in late - however have recently gone from vanguard ETF to their equivalent managed funds and LOVING it. No paperwork, no fiddling, all 100% automated (pay comes in and 20% gets auto Bpayed the next day). I now find myself no longer watching the market, not stressing about paperwork and share registries, tax etc etc. I had to be honest with myself and admit that owning ETF's directly triggered too much FOMO and urge to worry and fiddle with the portfolio. Works for me. I still hold some WHF and AFI (still undecided what to do with these as they do have proxy bond like qualities) but all my other ETF's are now Vanguard Managed funds.
     
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  10. The Falcon

    The Falcon Well-Known Member

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    Well done. I think for behavioral reasons these funds are very good. My only concern relates to the distributions in comparison to ETFs, but all in all, probably not a massive deal.
     
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  11. pippen

    pippen Well-Known Member

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    Great job! My partner is in these two! Individual wholesale funds to try and minimise the possible negatives of cgt distributions investing in a all in one high growth or growth fund but all in all bpay funds go in and life goes on!

    Looking at the distributions not a hell of a lot in it, definitely try and avoid retail, vanguard australia said they wont budge on lowering their fee for wholesale funds due to the higher costs in them buying and selling units!
     
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  12. DoggaPP

    DoggaPP Well-Known Member

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    Yeah, I did consider this for quite some time, however the behavioural factor is a really big one for me. Interesting, Bogle himself was not a fan of ETFs compared to mutual funds, for this very behavioural reason I gather (the temptation to fiddle!). If I remember correctly he even is quoted to saying not even to peek at the balance, just keep adding ..... but that is a little too much to ask :)
     
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  13. DoggaPP

    DoggaPP Well-Known Member

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    I did stumble across that problem when researching the Diversified funds as they auto balance (as you would expect) but of course the CGT implications are not controllable compared to building your own portfolio from single indexed funds where you can balance by buying and not selling. Balancing via buying-only is my preferred balancing technique.
     
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  14. pippen

    pippen Well-Known Member

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    My partner hasnt looked at it once, leaves that for me to give her updates, she rolls her eyes and says "dont care not withdrawing for years to come" if she wanted to redraw she wouldnt invest all of her disposable income and instead leave a buffer fund for discretionary expenses which she does.

    Looking at big ern and jl collins and charley ellis probably the best way to go about it in my honest opinion. Dont have to time the market, dont have to um and ah on commsec and and wonder is the price too high cause i bought vas at 71 and now its 84 etc etc.

    Bpay every month in 2 funds with cash as buffer, time is the most important factor now as in my experience chopping and changing only hurts the investor and looking at 30 year fund returns looks great but we realise we are only in year 5 for example of our journey and if you match year 5 on a graph it looks like its hardly moving in comparison to year 28 cause you dca every month for 28 years and that is when you have the most meat in your portfolio!
     
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  15. pippen

    pippen Well-Known Member

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    I stand corrected! I spoke with a vanguard consultant about a week ago in relation to lowering the fees with wholesale funds after the etf mer % was reduced. He was quoted as saying they didnt have a fee reduction on the radar however i just saw as at july 1 2019, the vanguard wholesale fund mer % will be reduced from .18% to .16%. Good win there!
     
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  16. SatayKing

    SatayKing Well-Known Member

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    It is still all about ME!
    You must be a very persuasive chap, young Master Took.
     
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  17. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Buy $4k of VDHG ETF every 2 months.

    Not advice.
     
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  18. LeeM

    LeeM Well-Known Member

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    Hi @DoggaPP i’m just starting out on this journey and I’m dabbling between Vanguard EFT and their equivalent managed funds. I’m not sure if I should buy EFT directly on online broker or buy direct from Vanguard website? I called them this morning, they were quite helpful but I’m not sure if I understood him because of my limited knowledge! I wonder if you could kindly shed some lights on this for me please.? Or/and direct me to where I can learn more about this? I’m looking at at investing about $300k. Thanks
     
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  19. thydzik

    thydzik Well-Known Member

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    the S&P 300 wholesale fund is 0.16% vs the S&P 200 EFT 0.14%.

    The EFT has broker fees which is something to consider.
    Possible more growth prospects of the S&P 300.
     
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  20. geoffw

    geoffw Moderator Staff Member

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    That's ETF rather than EFT. Those are listed funds, so you can buy them through your broker. For that amount, I'd definitely go through a discount broker such as SelfWealth rather than a full service broker. CommBank for instance would charge $360 on $300k, SelfWealth $9.50.

    But that's with a retail option, I don't know how the wholesale option works.
     
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