Vanguard Index Funds

kev98 on 28/07/2019 - 18:26

Hi all,

Hoping to get a bit of advice regarding index fund accounts. I am currently in my mid-20s & am looking at opening a Vanguard account for long term savings - something I can put $50 a week into which I do not plan on accessing for a very long period of time.

From what I can tell if I want to make regular contributions I am better off investing directly with Vanguard as opposed to buying shares in them on the ASX.

I am torn between the following funds at the moment:

  • Vanguard Index Australian Shares Fund (VAN0010AU)
  • Vanguard Diversified Growth Index Fund (VAN0014AU)
  • Vanguard Diversified High Growth Index Fund (VAN0015AU)

While the Australian shares fund has performed the best out of the 3, I do not want to put all my eggs in one basket so figured a bit of international exposure wouldn't be a bad thing.

Do any other members have experience with these accounts / have any advice? I am not set on Vanguard just know they have a good name for themselves and are probably the most popular of the funds.

Thanks!

Financial

Comments

  • CyberMurning on 28/07/2019 - 18:58
    -1

    yes agree always diversified.
    this is just example:
    domestic, international, income generators, less risky assets (25% each)

  • GoldenDragon888 on 28/07/2019 - 19:06
    +7

    Try https://www.reddit.com/r/AusFinance/ as OzBargain forums is really for car accidents, getting out of things and troll posts combining them all.

    I would suggest reading https://www.internaxx.com/expat-investor/smart-investing/how…

    I think for what you want to do an all in one fund would be ideal. You don’t have work out what ratio of those funds you listed you would like to put your money into you let the index decide.

    I have several vanguard etfs and now wish to transfer to one of their all in one funds like the article suggests. I can’t do it at the moment as I would realise too much capital gains and lose FTB from the government.

    • Kenb0 on 29/07/2019 - 00:38

      How does transferring from several ETFs to one of the all in one funds affect your FTB? The capital gains part I get, but I don't see the relevance on ftb

      • GoldenDragon888 on 29/07/2019 - 05:48

        I meant transfer as in transfer my stake by selling my current etfs and then buy an all in one etf.

        • Kenb0 on 29/07/2019 - 14:11

          yeah that part I got, but I still don't get how that affects your FTB. How is that affected by you selling your current etfs and then buying an all in one ETF? You said you would lose FTB from the government if you did that, my question is how and why?

          • GoldenDragon888 on 29/07/2019 - 14:59

            @Kenb0: Because I would make lots of money in the form a capital gains, disqualifying me for family tax benefit.

            • Kenb0 on 29/07/2019 - 18:46

              @GoldenDragon888: Ah I see. I thought the FTB means testing only included normal PAYG income, didn't realise it also included investment income. Fair enough then

  • toristo on 28/07/2019 - 20:46

    Noting the $50 a week thing, Vanguard sounds good direct.

    As a separate though, check out Commbank's new app Pocket - I just installed it today but lets you buy into a couple of ETFs (not Vanguard) at $2 a hit. Not worth it for $50, but if you bulked a few weeks together, might be alright.

    • kev98 on 28/07/2019 - 21:09
      +1

      I would probably set aside $50 per week but transfer monthly. Thanks will have a look at that

  • silenthillrocks on 29/07/2019 - 10:22

    Don't need to invest every week. Can save up and invest quarterly to save on brokerage fees.

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