What Is Your ETFs Investment Portfolio?

stephentran on 21/03/2019 - 11:47
Last edited 21/03/2019 - 12:47 by 1 other user

Hi guys,

I'm fairly new to ETFs and was wondering what current portfolios everyone is going with at the moment.

I am currently 25, independent, working full time and saved a bit looking to spend around 10k on ETFs. The only debt I've got is HECS.

I've done a bit of research and have come up with the following in order to be very diversified and capture most markets:

  • 35% VTS US Total Market Index
  • 35% VAS S&P/ASX 300 Index
  • 10% VGE FTSE Emerging Markets All Cap China Inclusion Index
  • 10% VAE FTSE Asia Pacific ex Japan Australia & New Zealand
  • 10% VEU FTSE All-World ex US

What do you guys reckon? Is this a good strategy or too complicated and should be simplified?

Financial Investment

Comments

  • abb on 21/03/2019 - 11:59
    +1

    Most likely too complex, there's a lot of overlap between VEU, VAE, VGE. (Standard disclaimer: it depends, I'm not qualified, yadda yadda)

    I'd likely go for VAS/VGS (or just VDHG) if I were starting from scratch.

    Disclosure: the author holds VAS, VTS, VEU

    • beaver2233 on 21/03/2019 - 12:12

      This. Also less ETFs = less fees.

  • djones145 on 21/03/2019 - 12:43
    -1

    any advice I general advice and not personal advice tailored to ur situation

    please see a financial advisor to more details, (best one with fees for service!)

    and remeber past performance is not an indication of future performance

    and join an industry super fund

    lol

    got find a financial advisor, maybe one with ur super or bank, try to get the first one free, listen to wat they have to say and make a decision from there
    really depends on ur situation, age, savings, expenses, got a family, job, lots of things

    • stephentran on 21/03/2019 - 12:45

      Thanks for the advice, I've updated the post with more information.

    • Diji1 on 21/03/2019 - 13:11
      +1

      Almost all financial advisors are there to remove your money instead of earn you as much as possible.

      But if you want to absolutely guarantee that this is what your financial advisor does go to one that works for a bank.

      I feel like 90 of Australian's are brainwashed about banks presumably because they watch mainstream news and nothing else. They carry out large scale criminal operations according to the Banking Royal Commission so if you think they have any ethics you are a fool. And we know what happens to a fool and their money …

    • blimpyboy on 21/03/2019 - 15:01

      Don't waste your time (or money!) with financial advisers.

      Fee-for-service advisers who operate in the low net worth market have only minimal training and can therefore offer minimal insights; certainly not enough to recommend which ETF to buy.

  • nfr on 21/03/2019 - 12:46

    So you want 35% US, 35% in Australia, and 30% rest of the world, not complicated.

  • FiDad on 21/03/2019 - 13:09

    I buy VAS & VGS nowadays and got some IVV before i started buying VGS

  • [Deactivated] on 21/03/2019 - 14:08

    What are your fees, roughly?

  • Mentallysick on 21/03/2019 - 14:09
    -5

    Donot get vanguard. I have been holding since last year and it hasnt gain yet

    • blimpyboy on 21/03/2019 - 15:07
      +2

      If you're looking for something which gives a 100% guaranteed return, then investing in the stock market (ETFs or otherwise) is probably not for you.

    • Kenb0 on 21/03/2019 - 15:12
      +1

      do you actually understand what you've bought and holding? Because that statement kinda implies that you have no idea what you've gotten involved with.

  • rgr on 21/03/2019 - 14:54

    what are your brokerage fees? 10k across 5 funds isn't that much, 10k on one then 10k on the others. don't spread out the money too much, it's not cost effective unless brokerage is $0

  • blimpyboy on 21/03/2019 - 15:07

    Assuming you've decided to get Vanguard funds, Vanguard already offers a way to diversify across multiple of its funds. Go take a look at their "diversified" range, e.g. VDHG.

    Also, if you're looking to invest in ETFs then it sounds like you already understand the importance of even a fraction of a percent in returns. So then keep your trading costs low: $10k and split across 5 funds, would result in entry brokerage fees of around $100: That's an immediate loss of 1%, before we even factor in spread costs and exit costs. That's another good reason to stick with just a single ETF for now.

    • stephentran on 21/03/2019 - 15:58

      I've only decided on Vanguard as I sees it's one of the more popular choices. Do you have any other ETFs in mind similar to the ones I've listed?

  • Adredocto on 21/03/2019 - 15:10
    +1

    VAS and VGS. Keep it simple especially with a smaller balance.

    Gets you international exposure, heavy weighting to US companies (which are largest in world and really global) and AUS domiciled so makes tax time easy - my tax will prefill for you.

    Check out jlcollins stock series if you need a plain English introduction to ETFs.

  • stephentran on 21/03/2019 - 22:20

    Thanks for your replies guys, the less the better for now until I know what I'm doing or if I am confident diversifying a bit more.

    After some more research I have decided to go with this a more simple approach:
    - 40% A200
    - 40% VTS
    - 20% VEU

    Are they any advantages or disadvantages between choosing A200 over VAS other than except one has a lower MER?

    • chanhoz on 25/03/2019 - 07:46

      I would replace VTS with IVV: same fee, Australia domicile.

  • afah0447 on 24/03/2019 - 11:40

    Where is VGS??? You're overthinking it with your selection.

    You only need two at max with ETFs.

    • stephentran on 24/03/2019 - 14:15

      How about VAS 40% VGS 40% VGE 20% I'm concerned I'll be losing out on emerging markets and Asia.

      Or even VAS 50% VGS 40% VGE 10%?

      Is there any benefit from going with VAS rather than A200?

  • Homr on 25/03/2019 - 12:56

    With majority of ETFS at peaks and lot of noise around global economy slow down, don't you think its bad time to invest?? Have you had a look at Bears ETFS? Like BBOZ and BBUS where it bets against the index funds?

    I just bought $5K BBUS and $5K BBOZ as I think the market will be bearish for the next month or so with the global sell offs

    Disclaimer: Invest responsibly and DYOR :)

  • MurphysLaw on 10/05/2019 - 13:25

    Went thought the comments and I'm quite new to investing, I would like to know why VTS is not recommended ? it seems to have a pretty good return with lower management fee.

    • A M on 16/05/2019 - 05:21
      +1

      VTS is US-Domiciled, as compared to say IVV which is AUS-Domiciled.

      Not across all of the implications, but at the very least it makes things a little more complex from a tax POV.

      Given its performance and MER, a little complexity is probably acceptable to most.

  • Joey4 on 14/05/2019 - 20:52

    Morningstar have some great ETF model portfolios. You need to be a member but theres a free trial so they are able to be viewed for free.
    https://www.morningstar.com.au/ETFs/PortfolioGuide

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