Hi, Sorry if this has been covered before, a search turned up nothing obvious. First time poster so be gentle My question is about After Tax Returns of STW vs Vanguard Aust Shares SSgA has the following Summary http://www.spdr.com.au/fund_doc/fund_doc_20080229_174304/DetailedSummary.pdf which shows the STW Detailed performance analysis, which for FY2008 (ie June08 + December 07) shows a total distribution of $3.47203 per Share of which $1.60634 is Capital Gains [but doesn't show whether the Capital Gains is discounted by 50% (ie held for more than a year) or non discounted) Vanguard has the closest equivalent of Income distributions | Investor index funds | Vanguard for Vanguard Index Australian Shares Funds by doesn't give as detailed a breakup of the Income as SSgA has anyone done an income comparison between holding STW as opposed to holding the Vanguard Fund? Is their much of a difference between the Holdings churn of STW vs Vanguard? [I know vanguard holds an indicative sample of the ASX200, does this lower the churn and therefore end up with less distributed Capital Gains vs STW??) If you look at the 5 year annual return between STW and Vanguard there is only a couple of 1/100s of a percent difference in Total Return. But the breakup of the income distributions and franking credits is vague. Can anyone comment on the above? At the moment I'm buying $10k worth of STW ($19.95 brokerage) every time the ASX200 drops below 4700 and plan to hold for 10+ years [so just want to make sure that there are no income distribution gotchas - although I'm buying for growth] Sorry for the long post Nigel
Hi Nigel, I think this is sort of what you are looking for Income growth viasf | Investor index funds | Vanguard There is a better rate of return as a PDF, I'll speak to a colleague today to find the info your after. Cheers, Dan
Thanks for that link, It's interesting that Vanguard are saying the franking percentage is around 50%, But on page 2 of the SPDR link I posted above, its saying their Franking Percentage is around 0.5% (surely they must have stuffed the formatting and they actually mean approx 50% as well????)
Niggles, You should be able to check STW's previous dividends and franking credits from your brokers website.
STW franked rate is 25% according to Commsec VALUECompanyAll OrdsSectorP/E ratio--10.709.24P/B ratio--1.250.81P/E Growth ratio--1.313.30 INCOMECompanyAll OrdsSectorDividend yield8.0%6.6%6.7%Franking25.3%Tax adjusted dividend yield4.9%4.8%5.0%Dividend stability99.0%93.9%98.2%