When the dust starts settling with the financial markets. I’m looking to invest $5k - $10k in something long term.
I like the idea of ETF but the ones I’ve seen seem to focus only focus domestic or international shares etc.
Is there an ETF which focuses on some domestic, some international and some cash?
I saw commonwealth Bank Pocket app, I liked that I can do monthly top ups. But I’m not sure if it’s good.
Generally speaking this should have the highest returns but you will need to keep it in there for the longest time to make gains. Pulling numbers out of my ass but think 10+ years for VDHG, whereas for VAS or VTS maybe 5+ years.
Note this is all Vanguard-based. Have never really looked at any of the other ETFs but Vanguard is very highly recommended and seems solid.
@His_Holiness - Thank you for your recommendation. My research seems to indicate the same thing, now I just have to figure out when the right time to buy is.
Do you buy directly from Vanguard or elsewhere?
@DingoBilly - Just curious why you feel VAS or VTS will be better in the short term?
now I just have to figure out when the right time to buy is
Now. Start dollar-cost averaging.
Do you buy directly from Vanguard or elsewhere
I personally wouldn't be touching conbank in any measure let alone that app. The above suggestion is great from @his_holiness. However long term is subjective and doesn't really mean much. If you want to spread across different zones of financial stability why not buy into a few ETF's/ Index's? Maybe down the track diversify into LIC's or other assets? Good luck
Genuine question: what are commsec and commsec pocket's issues and what platforms are good?
Selfwealth
@His_Holiness - What makes Selfwealth so good?
Offerings are narrow on pocket, fees and fees! Also it's shady org. imho
Following -
I planned to chuck 5k at vas or vdhg. But now not so sure
IMO you can't go wrong doing it now/soon. Once it bottoms out, if it hasn't already, it'll rebound. As others have said it's a long term investment but buying now while it's at a low is the best option.
I put 5k in vasg a week ago. Just do it and forget about. Trying to time the market won't work for 99% of us.
Lmao I bought XRP instead. What a drama that turned out to be!
wow. Know something we don't? Or betting on a future with Ripple?
@onlinepred: Betting on future. But having second thoughts now and will probably withdraw and dump it into ETF like a responsible ozbargainer would..
health care. You can't escape death.
I use Stockspot for my son's account that he deposits his container refund funds into. They have a range of investment choices and allow smaller amounts like the $5-10k you are planning to invest.
https://www.asx.com.au/asx/share-price-research/company/STW With Dollar Cost Averaging (and Dividend reinvesting) works out better in the long run.
Sorry but it's been shown that DCA is only helpful as a risk mitigation tactic - it does not provide any benefit other than that. From studies done on it, it provides better returns 1/3 of the time but presumably as historically markets have always trended up - it provides lesser returns 2/3 of the time. DYOR if you doubt.
Being that the OP is investing for long term due to perceived market being low, putting all in via lump sum and leaving is best tactic for overall return.
And why would any person invest in an ASX200 index fund when you could for lower MER invest in identical product in A200 or even VAS (ASX300 but only 3% total difference so near nothing)?
Putting all funds in an ASX200 fund is pretty reckless as only 2% of global economy and top 10 co's make up around 1/2 the market - so very concentrated & lack of diversity.
FWIW VDHG is by far the best choice - you can 'roll your own' by buying component funds (as it is a 'fund of funds') but marginal benefit and all in one has many pluses. Buy and forget - don't check everyday as you'll just 2nd guess self - markets will be volatile for many months to come and more downs before recovery are certain.
spaceship
VDHG