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ETF -Advice needed

Discussion in 'General Investing Discussion' started by RS Gumby, 24th Jan, 2018.

  1. RS Gumby

    RS Gumby Member

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    Hi Guys
    I'm a newbie to Invest Chat but I've been on Property Chat for a while now.

    I have around 15k in Shares that I'm thinking of selling and investing in ETFs.
    I already have a small exposure with VHY and I'm happy to continue with Vanguard.
    I have a reasonable amount in super which is 60% International Shares and 40% Oz shares.
    Therefore, I reckon I have enough invested in shares.

    The 15k - I'm happy to go a high risk.
    Are there any ETFs in Vanguard which have a DRP?
    Instead of dividend I'd like to invest back into the ETF.

    What is the best way to cut down on brokerage?
    At the moment I have an account with a firm that charges $66 a transaction and since the 15k is made up of 10 stocks this is going to cost me.

    I was looking at transferring over to Bell Direct or CMC for the lower costs

    Any thoughts greatly appreciated

    Cheers
     
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  2. Hodor

    Hodor Well-Known Member

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    Cheap online broker.

    Yes. Check the fact sheets, I believe all Vanguard ones do from what I've seen.

    Sounds like you are planning to add more with ETFs - or are you looking at property/infrastructure/bond ETFs?
     
  3. twisted strategies

    twisted strategies Well-Known Member

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    welcome to InvestChat , RS Gumby

    regarding your avatar , while amusing it is common for those exploring ETFs , and those tiny details considered carefully , can make the pain worth the effort .

    both VHY and VAS have a DRP ( i hold both and participate in the DRP )

    i have not seriously researched the other Vanguard products

    i have on-line accounts with Bell Direct and Commsec

    ( i hold BFG shares .. BFG being the parent group of Bell Direct )

    each platform has it's strengths and flaws neither ( imo) is perfect , but at my level ( no ongoing fees only brokerage and other fees if things stuff up ) i can't expect perfection .

    ** sell the shares and swap to ETFs ***

    gee i am not so sure about that ETFs try to track part of the market ( possibly including to shares you are trying to sell )

    are those shares so bad ( and YES some of them are , but not all of them )

    please note Commsec ( after the 'new client deal ' ) charges $10 brokerage for trades up to $1000 ( except those pesky transfers but that is an ASX charge ... $55 per share-holding last time i needed to do that but check , it may have charged )

    Off market transfer $55 per stock ( from the Bell Direct web-site )

    PLEASE NOTE this applies to ASX listed shares , if your are talking internationally listed shares the game changes big time ( so the previous is null and void )

    careful on that risk , some blue chips ( top 200 listed stocks ) have proven to be extremely risky and some 'growth stocks ' near on suicidal , so you can only guess on some of the 'penny dreadfuls '
     
  4. RS Gumby

    RS Gumby Member

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    Thanks Hodor
    Probably will steer clear of property ETFs as I have a couple of investment properties
    Any that you think are worth looking at?
     
  5. RS Gumby

    RS Gumby Member

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    Thanks for your input Twisted Strategies - was hoping you'd post.
    Reckon i'll go with Bell Direct
    I've got blue chip in BHP,NAB,CSR,Telstra - they are sluggish will probably sell for exposure to ETFs with US or International equities.
    Any you would look at?

    Cheers
     
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  6. Hodor

    Hodor Well-Known Member

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    I avoid smart Beta ETFs in general (like VHY etc) having said that I did purchase some VHY before I had a better think about what it is doing and what are the costs and problems associated. VHY is one of the better one's (IMO) which means I continue to hold and not add. If I purchased a dividend harvesting ETF I would dump it. Long term (20+ years) under-performance vs indexing is almost guaranteed.

    If I am thinking ETFs I am after long term hold-able, simple, domiciled in Australia and lowest cost - indexing fits this mandate. Index ETFs are about as good as it gets for a cheap core portfolio, whether you need more than this is debatable. Accepting the average return (which ironically puts you above average) is a hard pill to swallow.

    This probably means you have different goals and my thoughts above are likely redundant. "Happy to go high risk" is very open to interpretation.
    If I wanted to go high risk in the hope of multi-bagging in a short time-frame ETFs wouldn't be what I looked at.
     
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  7. RS Gumby

    RS Gumby Member

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    Probably got a bit excited by saying high risk
    Your post above that makes more sense to me
    I have a small holding in VHY and I'm happy with it that's why I'm going down the ETF route

    Cheers
     
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  8. RS Gumby

    RS Gumby Member

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    How long before Sash comes over?
     
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  9. twisted strategies

    twisted strategies Well-Known Member

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    i took on the 'smart Beta ' ETFs because i NEEDED quick growth

    i hold SYI , IHD , VHY and HVST ( all are DRPed )

    not officially smart Beta ( in theory index plays ) are VAS , MVB , and QFN ( VAS and QRN are DRPed as well )

    PLEASE NOTE i use ETFs as an insurance device ( against my bad stock-picking decisions )

    collectively they are around 10% of my total holdings ( including BEAR , BBOZ and BBOZ which are bets the market might fall heavily )

    timing of buying is key for me , ( i may easily buy something different again if the opportunity looks right )

    although i don't make a big deal of it ( on InvestChat ) i am more heavily exposed to LICs and REITs than ETFs and hold a couple of legacy interest-bearing securities as well .

    ( if i liquidated my total assets .. my physical properties would probably double or triple the equities holdings , depending on how lucky i am on the selling prices )

    'multi-baggers' are normally stocks but WAX ( a LIC ) MGR ( a REIT ) have also 'multi-bagged in about 5 years .

    most of my 'multi-baggers ' have been a complete surprise ( so i almost forgot to rescue the investment cash when they spiked )

    so i consider myself very lucky in the share market .. i bought BTT ( @ $2.30 ) MQG ( @ $26.76 ) and TPM ( @ at $1.40 )

    i HOPED MQG would have gained 50% about now ( say around $40.20 ) i never thought it would double that 'dream price since 2011 .

    BHP in about 3 years should start to get a move on say above $50 ( but no guarantees, they might have changed management by then ).

    NAB i don't have a high opinion of , but other members might have better things to say about it
    ( i do not hold NAB or CBA directly .. but via LICs and ETFs )

    TLS i bought TLS in the recent dips ( i went for TPM and the NZ telcos in preference )

    TLS has some chance of being fair risk v. reward , it has some serious work to do ( reduce debt and restructure it's business ) history is against it but as a high risk speccie , TLS might not be so bad a play .

    CSR i inherited , the family bought in when this still refined sugar ( and ONLY refined sugar )

    could CSR do another demerger ( as it did with Rinker which was a huge windfall for share-holders )

    i added extra CSR in 2012 ( @ $1.70 and again @ $1.25) this has been stealth multi-bagger for me ... always seems to look 'unexciting ' but i am glad i have stayed loyal .


    international ETFs ... i bought and sold ( at a modest profit ) IEM , i can never seem to get the outcome i want with international ETFs ( maybe if i can buy some in the next global melt-down )
     
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  10. twisted strategies

    twisted strategies Well-Known Member

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    IF there is a market meltdown ( Australian or Global )

    high on the priority list is VLC , ILC , SFY and MVW ( obviously prices available at the time will help me decide which i will buy and when )

    NEXT i will look at the international offerings stuff like MNRS and the more popular ones
     
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  11. RS Gumby

    RS Gumby Member

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    Thanks Twisted - plenty of food for thought
    I'm bullish about International ETFs, like a couple of the Vanguards.
    Changing over to Bell Direct this morning

    Cheers
     
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  12. tony66

    tony66 New Member

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    Hi I am new here and wonder whether one has to pay US taxes if you buy US company shares through ETF?
     
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  13. twisted strategies

    twisted strategies Well-Known Member

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    tony66,

    please don't take this as gospel but ETFs domiciled in the US ( like BBUS ) demand a FACTA declaration .

    i think i posted a ( possibly ) helpful article here but can relocate it on the web ( so far )

    sorry i will keep looking though

    cheers
     
  14. twisted strategies

    twisted strategies Well-Known Member

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    BlackRock restructures US-domiciled ETFs

    BlackRock restructures US-domiciled ETFs

    the info here might help on US tax obligations