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STW vs Vanguard Aust Shares

Discussion in 'Exchange Traded Funds (ETF)' started by niggles, 6th Oct, 2008.

  1. niggles

    niggles New Member

    Joined:
    6th Oct, 2008
    Posts:
    2
    Location:
    Canberra, ACT
    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
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Sydney, NSW
  3. niggles

    niggles New Member

    Joined:
    6th Oct, 2008
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    Location:
    Canberra, ACT
    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????)
     
  4. willy1111

    willy1111 Well-Known Member

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    5th Jul, 2006
    Posts:
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    Location:
    Melbourne
    Niggles,

    You should be able to check STW's previous dividends and franking credits from your brokers website.
     
  5. Tim

    Tim Well-Known Member

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    27th Jun, 2006
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    Location:
    Lismore NSW
    STW franked rate is 25% according to Commsec


    VALUECompanyAll OrdsSector[​IMG]P/E ratio--10.709.24P/B ratio--1.250.81P/E Growth ratio--1.313.30









    INCOMECompanyAll OrdsSector[​IMG]Dividend yield8.0%6.6%6.7%Franking25.3%Tax adjusted dividend yield4.9%4.8%5.0%Dividend stability99.0%93.9%98.2%