Conservative First Time ETF Stock Investment

D-Fog on 26/11/2021 - 15:37

I'm just looking to get better than the "high interest" savings accounts currently being offered by the banks.

Never invested in the stock market before, so think I need a stock brokerage account as well? or do the ETF managed funds look after this?

Approx $10,000 to invest, with $100-200 extra to invest each month. I figure this is good to know when comparing different brokerage rates e.g. 0.1% pa or $/transaction.

Looking at Australia Broad Shares portfolios just to be conservative. Also concerned about there not being enough liquidity when I want to sell, and funds falling over with no govt safety net, so thinking of just go mainstream.

Any recommendations? Or comparison sites where you can filter on all of the above?

Financial

Comments

  • Jimothy Wongingtons on 26/11/2021 - 15:40
    +4

    I think 2 x 5k parcels of vas/vdhg is pretty conservative

    • Cabrinha on 26/11/2021 - 16:14
      +3

      Just go VDHG no need to double dip into VAS unless you want a greater percentage of Aus then what VDHG offers

      • Jimothy Wongingtons on 26/11/2021 - 16:23

        that's what I mean, it's somewhat interchangeable and both should be fine bets, just go with one or the other and just keep throwing 5k chunks at it

    • May4th on 26/11/2021 - 17:37
      +1

      that's a bit ASX heavy as VDHG is already balanced between australian and overseas markets
      either go VDHG 100% or even split between VAS/IVV/VGS

  • netjock on 26/11/2021 - 15:48
    +2

    Looking at Australia Broad Shares portfolios just to be conservative

    Buying Australian index isn't conservative. It is like 1.9% of global share market. Look at our top 20 companies and probably not more than 3 is proper growth tech companies. Half is banks and resources.

    If you want to be well diversified look at VESG. (Vanguard ethically conscious international share Index).

  • onetwothreefour on 26/11/2021 - 15:50
    +1

    Ignoring the 10k if you are only looking to invest $1-200 a month have a look at some of the micro investing companies. A $5 or $10 brokerage fee on $100 through some of the bigger companies will kill the deal.

  • SBOB on 26/11/2021 - 16:06
    +2

    VDHG managed fund (rather than direct ETF on ASX) with initial investment and regular small updates via bpay monthly
    You can do your own maths on the cost-benefit of slightly higher fees via managed fund option v's brokerage fees (and subsequent longer time between buys if you're waiting 6-12 months between parcel buys). For me, the simpler regular bpay option makes it more likely that I wont notice the regular outgoing $ and requires less thought than putting aside funds for less frequent buys.

  • deme on 26/11/2021 - 16:19

    VDHG or VAS+VGS https://pearler.com/ low fees + automation

  • rektrading on 26/11/2021 - 17:28
    -2

    Pick the highest performing fund, single out 3 or 5 of the best performing stonks and dump 1/3 or 1/5 of the capital directly in each stonk. Keep a close eye on them and rebalance every Q if needed. Done.

  • Rako on 26/11/2021 - 17:49

    Wait, better sharemarket buying opportunities are coming banks are already raising interest rates todays falls are a prelude.

    • rektrading on 26/11/2021 - 17:55

      That is Australian banks and the effects are only local. Australian stonks aren't worth getting out of bed.

      Mr President just signed a $1T spending bill. Invest in the market that has be biggest money printer.

      • Rako on 27/11/2021 - 13:19

        Good point, Adrian Tout agrees in todays newsletter

        "For now, stocks remain supported whilst the monetary 'tap' is open (i.e. accommodative rates with additional liquidity each month)"
        https://tradethetape.com.au/blog/

        However he also says this "But when (not if) this equation changes - so does the risk / reward proposition for equities."

  • Rako on 27/11/2021 - 13:26

    "$100-200 extra to invest each month" means the brokerage on those small trades is too expensive. With say SelfWealth at $9.50 per trade there goes 9.5% of your $100.
    It might be better to save up & buy on dips with larger amounts.
    BDW with Selfwealth you are the beneficial owner, some of the cheap brokers use a custodial ownership system, something you might research.

    • dcep on 27/11/2021 - 15:45

      selfwealth has SELF etf , free brokerage to buy at any amount be it 100-200

      • cashless on 27/11/2021 - 18:49

        Yeah, but watch the fees on that ETF

        • dcep on 27/11/2021 - 20:10

          it's not coming out of pocket though

          the management fee is deducted from fund's performance

          you won't notice the fee from any etf , as it's not charged as extra like brokerage

  • cashless on 27/11/2021 - 18:53

    No one has answered OP’s question about broker
    Between now and end of 2021, SelfWealth have zero broker fees (worth $9.50 per trade) if you buy any ETF listed on the ASX.
    Suggest you open an account & trade as much as you like.
    I’d suggest broad, international exposure rather than just AU stocks

  • rektrading on 25/04/2022 - 17:38

    It's 👍 to see that VDHG has been on a 🐌 grind to right since November.

    A further -20% from here is a realistic target.

  • Some Guy on 29/04/2022 - 01:59

    So a good time to buy then.

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