ETF ETF portfolio for 24 YO

Discussion in 'Shares & Funds' started by DJSHARK, 18th Jun, 2017.

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  1. DJSHARK

    DJSHARK New Member

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    Hey,

    So I have been doing some research and decided I want to build an ETF portfolio.

    I am only 24 and have a vision of building this u over the next 30 or so years.

    I was looking at some model portfolios all around the net, The first I came u with is this:

    Vanguard Australian Shares Index ETF VAS 35%
    Vanguard Australian Small Companies Index ETF VSO 15%
    Vanguard International ETF VGAD 20%
    Vanguard Australian Property Securities ETF VAP 20%
    Vanguard Australian Fixed Interest ETF VAF 10%

    Then I was looking on iShares, In the aggressive category and I have come to realize that the above is probably a bit conservative for me? Is it?

    I have looked at ETF watch website also and starting to become overwhelmed with choice!
    What is everyone doing with their portfolios?

    I made some adjustments and came up with this: I literally only know enough to be dangerous haha its 50% Aus and 50% Overseas. Although I wonder if I need to change it up a bit

    Vanguard Australian Shares Index ETF https://api.vanguard.com/rs/gre/gls/stable/documents/7639/au VAS 35%
    VanEck Vectors Small Companies Masters ETF MVS - VanEck Vectors Small Companies Masters | Australian Small Companies ETF | Holdings- VanEck Vectors Australia | VanEck Vectors Australia ETFs MVS 15%
    Vanguard International ETF Investment Products VGAD 30%
    Vanguard Emerging markets ETF Investment Products VGE 10%
    Vanguard Euroe Shares ETF Investment Products VEQ 10%

    Thank you and I hope I can provide input on the forum in other ways.
     
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  2. hashkent

    hashkent New Member

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    Are you going to be using a margin loan here or 100% your cash? How much are you starting with? If your starting with $10k or less go 100% on VAS, or AFI, or ARG (1 stock) as brokerage will hurt you.

    I'd say your first Vanguard model portfolio with a bit of leverage would be good since you have a long term view if your looking at $50k+.

    I'm 32 and looking to start a portfolio mostly of ETF's. I'm looking at an equal spit of AFI, VAS, ARG ($10k each), along with some income producing single stocks like WBC, MQG, WES, TLS, WPL, CSL down the track.
     
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  3. DJSHARK

    DJSHARK New Member

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    Oh, I totally forgot to mention it. Well, I was going to start with 10k of cash. Using the self-wealth platform should cost me about $50 per rebalance. Never thought of taking a margin loan out. Would it actually be beneficial after the interests rate?
     
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  4. twisted strategies

    twisted strategies Well-Known Member

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    DJSHARK ,

    welcome ,

    nice question !

    please note Vanguard isn't the only game in town ( i hold VAS VHY and MVB but also hold ETFs from three other sources )

    my buy-in timing will differ from yours so your optimal choices will most likely differ ,

    knowing your limitations is a rare ace to have , use it to study your goals more ( when is a good time to buy each for example )

    since you are looking at 20 years plus ( per holding ) does DRP help you and does franking credits help you ( or not ).

    currently i am biased against a margin loan , but your choice may be different and correct for you .( i am try to keep on-going costs minimal )

    i am not familiar with VAF , but recently QPON caught my eye ( i don't hold yet but am watching and considering , hoping to leverage future rising interest rates ).

    ETFs fall with the NTA of the portfolio so buying in the dips is ( normally ) a better time especially if buying on market ( i prefer on market purchase for flexibility )
     
  5. Hodor

    Hodor Well-Known Member

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    Maybe consider unhedged international (VGS) which is a cheaper product over VGAD.

    I don't see the point in adding 10% euro unless you have specific knowledge about the future, euro is included in VGS/VGAD at market weightings.

    IMO leverage should be avoided.

    Core holdings can be as simple as 50% VAS and 50% VGS diversifying later if you decide you want specific exposure and have more knowledge and funds. IE overweighting small caps in Aus to avoid concentration risk of top 20 using MVS.

    Consider the advantages and disadvantages of rebalancing to maintain asset allocation vs only rebalancing with new funds/inflows.
     
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  6. twisted strategies

    twisted strategies Well-Known Member

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    another fine point ... currency hedged v,. unhedged .

    i prefer the latter ( but that may not suit DJ )

    and am in favour of Hodor's approach of adding new funds in the current best opportunities ( whether existing holdings or new places )

    certainly exit under-performing ETFs ( i exited SLF and IEM when they failed to live up to expectations ... but did make modest profits )

    ( in ETFs ) i started with VAS and VHY and added other ETFs later

    after exiting IEM i have resisted investing in international focused ETFs waiting for the global economy to settle properly ( on a bottom )
     
  7. DJSHARK

    DJSHARK New Member

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    Thanks for the input! I should do some research on hedged vs unhedged. I think to go for a 50/50 VGS/VAS Like Hodor mentioned sounds like a good start. Then as times goes on can add later. Do both of the above have DRP and franking credits. DRP is probably a must have for me.

    Cheers
     
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  8. Hodor

    Hodor Well-Known Member

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    Both offer DRP.

    Franking credits are for companies paying tax in Australia. Hence VGS has zero franking and VAS is mostly franked about 70 to 80% from memory.
     
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