ETF -Advice needed

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

 

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?

 

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 '

 

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?

 

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

 

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.

 

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

 

How long before Sash comes over?

 

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 )

 

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

 

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

 

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

 

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

 

BlackRock restructures US-domiciled ETFs

BlackRock restructures US-domiciled ETFs

the info here might help on US tax obligations