ETF Your choice for International exposure

Discussion in 'Shares & Funds' started by Prashant Mahajan, 22nd Apr, 2019.

Join Australia's most dynamic and respected property investment community
  1. Prashant Mahajan

    Prashant Mahajan Active Member

    Joined:
    1st Mar, 2017
    Posts:
    28
    Location:
    Melbourne
    Hi All,

    I am currently investing in VGS for international exposure. Not sure if this is the best choice or should I be investing in others like IVV, VTS etc.
     
    Last edited: 22nd Apr, 2019
  2. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,936
    Location:
    On a Capital and Income Growth Safari
    Did you really mean that? :eek:

    I have IVV, IJR, NDQ, IOO in my superannuation.

    Not necessarily a good time to buy (although not following them closely).
     
    Last edited: 22nd Apr, 2019
  3. Prashant Mahajan

    Prashant Mahajan Active Member

    Joined:
    1st Mar, 2017
    Posts:
    28
    Location:
    Melbourne
    Fixed the typo :).
     
  4. Synergy

    Synergy Well-Known Member

    Joined:
    6th Jun, 2019
    Posts:
    45
    Location:
    Brisbane
    VGS is a top choice op. It replaces vts/veu without emerging markets. If you really want emerging markets then 5-10% of vae (0.40 mer) or vge (0.56 mer)
     
    bobbyj likes this.
  5. Fargo

    Fargo Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    686
    Location:
    Vic
    NDQ, has given about double the returns of VGS in the past with 15%+ returns p/a. VGS has not been great.
     
  6. Synergy

    Synergy Well-Known Member

    Joined:
    6th Jun, 2019
    Posts:
    45
    Location:
    Brisbane
    NDQ just tracks the Nasdaq, so it’s overweight on US tech companies. VGS is far more diversified covering the whole US market and also includes other developed economies such as UK and Japan.

    Also, NDQ’s fees are 0.48%, compared with VGS’ 0.18%. That’s a massive difference.
     
    Burgs and bobbyj like this.
  7. dranzer

    dranzer Member

    Joined:
    28th Sep, 2018
    Posts:
    17
    Location:
    Sydney, Australia
    VGS has returned 12% p.a. since inception. (a useless time frame of only 4 years)
     
    sharon and bobbyj like this.
  8. Synergy

    Synergy Well-Known Member

    Joined:
    6th Jun, 2019
    Posts:
    45
    Location:
    Brisbane
    past performance is not an indicator of future outcome
     
    dranzer likes this.
  9. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,843
    Location:
    WA
    oracle and Anne11 like this.
  10. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    7,562
    Location:
    Sydney
    I have IOO and VGS...in my portfolio.
     
    Burgs likes this.
  11. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    2,052
    Location:
    Australia
    If the purpose is diversification though, IOO seems too concentrated compared to VGS.
     
  12. dranzer

    dranzer Member

    Joined:
    28th Sep, 2018
    Posts:
    17
    Location:
    Sydney, Australia
  13. bobbyj

    bobbyj Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    324
    Location:
    Sydney
    +1 for VGS
    It is far more diversified than just the US market.
    It might not have as high recent returns but as others have said, past performance is not a predictor of future performance. If anything, a high past performance is likely to be followed by periods of underperformance.

    VGS is the core of my portfolio. Along with VAS VAE
     
    pippen, sharon, Froxy and 1 other person like this.
  14. Piston_Broke

    Piston_Broke Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    311
    Location:
    Builderberg
    Are there any 100% China funds.
    I remember years back there were some but haven't heard about any last few years.
     
  15. sfdoddsy

    sfdoddsy Well-Known Member

    Joined:
    19th Mar, 2019
    Posts:
    92
    Location:
    Sydney
    I have the wholesale fund version of VGS and VISM, although I must admit VISM makes me a tad nervous.

    Going all US would make me even more nervous, however. I'm a bit of a believer in the 'Asset Quilt' (which I just made up) method of allocation. In other words new money goes into asset classes which have done poorly in the previous year.
     
  16. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,731
    Location:
    Homeless
    IZZ, CETF, CNEW

    All 100% china.

    Plenty of Asian offering's and emerging (which tend to have a high % exposure to China)
     
  17. Fargo

    Fargo Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    686
    Location:
    Vic
    Actually it is a little bit less so as I said not great, I wouldn't call NDQ great either I set a minimimum target of 15% . Since NDQ inception in June 2015 @ $10 the CG is 92%, in the same time VGS has gone from about $57.00 to $$77.00 only 40%, this poor performance makes the 4 or 5 % yield whatever it is look good. While it makes the 2.5% yield on NDQ look bad, but it is 4.5% on original investment probably the same as VGS. BUT YOU HAVE HAD A 126% more CG with NDQ, compound that with increasing divergence as NDQ is much more concentrated in what I considered stronger companies and the end result could be massive. Giving up a fortune 100% profit, to save a piddling .05 % in fees, and a lower but perceived higher income doesnt make sense to me. The 8% p/a CG VGS has had is poor given the great bull run in that time.
     
    Last edited: 13th Jul, 2019
  18. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,843
    Location:
    WA
    upload_2019-7-14_6-51-14.png

    @sfdoddsy

    The Asset Quilt warmth and happiness ;)

    [​IMG]
     
    Burgs and geoffw like this.
  19. dranzer

    dranzer Member

    Joined:
    28th Sep, 2018
    Posts:
    17
    Location:
    Sydney, Australia
    You're talking about past performance, but how do you know NDQ will continue to return +15% p.a. going forward?

    The fees compound over the long term, the ~0.3% difference in fees would hurt if NDQ did not outperform in perpetuity.

    Either way comparing NDQ and VGS isn't fair. The international exposure of VGS will always be the differentiator here (for better or worse).