*Official* Shiny Things club - Part 2

[Shiny Things]

What are your thoughts on OCBC's roboinvester?

Sounds like DCA is possible too?

OCBC's robo-investor is bonkers. Aside from the fact that it charges 0.9%, it expects you to choose from a lineup of twenty-something thematic funds. It doesn't try to measure your risk tolerance, set you on a glide path, or anything like that. It's bad.

I don't love that the BCIP has a $5/month minimum fee, either. If they could cut that to $2-3 a month, it'd be the perfect option for even the smallest investor.

 

[IAmZTX]

can anyone advise whether i should invest on STI ETF (ES3) or Nikko AM (G3B)?

If i invest on STI ETF, what could be the better brokerage account right now?? Small investor here

I am deciding between DBS Vickers (Shares on CDP) vs FSMOne (Custodian) - Low management fees


Cash upfront

DBS Vickers - $10, management fee - 0.12%
FSMOne - $10, management fee - 0.08%

 

[decibel.]

Yeah, because a market-weight allocation to small-caps is going to be tiny, like 1-2% of your portfolio. An allocation that small is just going to run up transaction costs without making any real difference to your returns. Small-caps aren't really worth bothering with.



What's with the random allocation to Lion Reit/SGX? Why bother?



The two are basically the same. It doesn't matter.



Mate, Donny Two Scoops has been trying to start a trade war with China basically since he got into office. "Because trade war" is not a reason to sell US stocks; in fact, if you're actually investing for a longer time horizon (more than a few years), it's a reason to buy stocks.



Bonds. "bonds" are the asset class; "ETFs" are just a vehicle to invest in different asset classes.

Thanks for replying bro. Because I look at Sgx it's quite stable and lion reits I just thought maybe can diversify and hold direct shares too on top of g3b

Sent from Samsung SM-G920I using GAGT

 

[BBCWatcher]

Because I look at Sgx it's quite stable....

You’re talking about stock shares of the SGX itself (the exchange)? The SGX’s ongoing business woes are well documented and reported. If you think the SGX (the exchange operator) is undervalued as an enterprise, I suppose you could take a fly on it, but...huh?

ES3 and G3B already include the SGX (trading symbol S68), so buying more S68 individually would constitute overweighting the exchange operator, beyond already overweighting Singapore listed stocks. That’s...brave, I’d say.

 

[tangent314]

can anyone advise whether i should invest on STI ETF (ES3) or Nikko AM (G3B)?

If i invest on STI ETF, what could be the better brokerage account right now?? Small investor here

I am deciding between DBS Vickers (Shares on CDP) vs FSMOne (Custodian) - Low management fees

Cash upfront
DBS Vickers - $10, management fee - 0.12%
FSMOne - $10, management fee - 0.08%

ES3 used to be preferred because the TER was lower than G3B. It looks like G3B's TER has been dropped to match ES3's 0.30% now, so it probably doesn't matter so much now.

The price charged by DBSV and FSM are commissions, not management fees, and $10 is the minimum commission. Note that with DBSV you will sell your shares at normal rates instead of cash upfront rates.

 

[IAmZTX]

ES3 used to be preferred because the TER was lower than G3B. It looks like G3B's TER has been dropped to match ES3's 0.30% now, so it probably doesn't matter so much now.

The price charged by DBSV and FSM are commissions, not management fees, and $10 is the minimum commission. Note that with DBSV you will sell your shares at normal rates instead of cash upfront rates.

Oh I see, I only can invest about 500 per month due to loans..seems like fsmone have a better rates now as compared to scb. Anyone tried fsmone before?

 

[tangent314]

If you are investing $500 per month then it would be better go use POSB Invest Saver or OCBC BCIP instead.

 

[RoLanTo]

hi experts..

previously the recommended approach is 50% sti etf + 50% IWDA.. may i know if this still stays?

i heard about MBH in recent posts.. not v sure how this will affect my allocation.. please advise.

currently using SC trading platform

Thanks

 

[littleredboy]

Bonds. "bonds" are the asset class; "ETFs" are just a vehicle to invest in different asset classes.

I read that bonds are generally inverse of stocks; when stocks go down, bonds most of the time goes up. My mindblocked brain doesn't understand how does bonds etf fit in this theory

Or could this be the reason why bonds etfs are so beneficial for defensive investors?

 

[ChinoGirl]

If you are investing $500 per month then it would be better go use POSB Invest Saver or OCBC BCIP instead.

Is it tedious to rebalance since both OCBC and posb will buy in odd lots due to small amount used for investment?

 

[IAmZTX]

If you are investing $500 per month then it would be better go use POSB Invest Saver or OCBC BCIP instead.

A bit confused on this part. If next time i can invest more $$.. what is the approach?? Sell everything at invest saver and moved to SCB??

 

[tangent314]

I read that bonds are generally inverse of stocks; when stocks go down, bonds most of the time goes up. My mindblocked brain doesn't understand how does bonds etf fit in this theory

Or could this be the reason why bonds etfs are so beneficial for defensive investors?

This is not completely true. When equities goes down, bond prices goes down too, increasing the yields to match the rising risk. However when equities goes down too much, the feds still step in to reduce interest rates and this will cause bond prices to rise to match the decrease in yield. Which of course causes equities to go back up again.

Is it tedious to rebalance since both OCBC and posb will buy in odd lots due to small amount used for investment?

Odd lots makes rebalancing easier. Remember when you rebalance you rebalance by the value not by the number of lots.

A bit confused on this part. If next time i can invest more $$.. what is the approach?? Sell everything at invest saver and moved to SCB??

If you are moving to SCB there's no point selling, just cancel the RSP and leave what you already have in there. If you are moving to IBKR it may make sense to sell and move to help you reach the US$100k target quicker.

 

[edwardhjt]

Good news all,
Ocbc bcip now offer nikko corporate bond MBH and lion phillip s reit etf

Nice! Now...to take the $10 fee of transferring them out of SCB since MBH was the only reason I had an account with them

 

[ChinoGirl]

Nice! Now...to take the $10 fee of transferring them out of SCB since MBH was the only reason I had an account with them

Hi, investing into MBH is more economical for OCBC BCIP compared to SCB now?

 

[ChinoGirl]

How do we do a lump sum (eg from year end bonus) into platforms like OCBC BCIP and PSOB invest savers? I have asked the OCBC lady over the counter today and she said I will have to change it manually via Internet banking. Does this mean that immediately (following bank's deduction date), after deduction of the lump sum from OCBC savings account, I will have to quickly change it back to the DCA amount?

 

[Wonderer haha]

How do we do a lump sum (eg from year end bonus) into platforms like OCBC BCIP and PSOB invest savers? I have asked the OCBC lady over the counter today and she said I will have to change it manually via Internet banking. Does this mean that immediately (following bank's deduction date), after deduction of the lump sum from OCBC savings account, I will have to quickly change it back to the DCA amount?

Refer to the FAQs part for purchase/selling/cancelling the plan

https://www.ocbc.com/personal-banking/investments/bcip-faqs.pdf

 

[decibel.]

You’re talking about stock shares of the SGX itself (the exchange)? The SGX’s ongoing business woes are well documented and reported. If you think the SGX (the exchange operator) is undervalued as an enterprise, I suppose you could take a fly on it, but...huh?

ES3 and G3B already include the SGX (trading symbol S68), so buying more S68 individually would constitute overweighting the exchange operator, beyond already overweighting Singapore listed stocks. That’s...brave, I’d say.

Thanks bro. I didn't know sgx is not a good choice. How about lion reits? Is it recommended to increase the weight of it by investing separately?

Sent from Samsung SM-G920I using GAGT

 

[BBCWatcher]

How about lion reits? Is it recommended to increase the weight of it by investing separately?

I don't think so, no. ES3 (or G3B) already contains significant exposure to the real estate sector in and near Singapore, and of course your own home would be that, too (real estate).

 

[blue_denim24]

OCBC new offering on nikko corporate bond MBH

finally after MAYBANK stop their RSP

Enjoy S$20 cashback when you invest in 1 or more counters for 3 consecutive months.
T&Cs apply. Promotion valid from 7 Jan to 30 Jun 2019.

I selected 100 dollars and it shows me monthly fee as 5 dollars. its quite costly!

 

[Shiny Things]

hi experts..

previously the recommended approach is 50% sti etf + 50% IWDA.. may i know if this still stays?

i heard about MBH in recent posts.. not v sure how this will affect my allocation.. please advise.

MBH is a bond ETF; it counts as your bond allocation. The STI ETF (ES3 or G3B) and IWDA are stock ETFs.

I read that bonds are generally inverse of stocks; when stocks go down, bonds most of the time goes up. My mindblocked brain doesn't understand how does bonds etf fit in this theory

Again: Bonds, or stocks, are the thing you actually have exposure to. ETFs are just a vehicle to buy those bonds or stocks in a more convenient way.

Bond ETFs = bonds.

can anyone advise whether i should invest on STI ETF (ES3) or Nikko AM (G3B)?

Either is fine.

I am deciding between DBS Vickers (Shares on CDP) vs FSMOne (Custodian) - Low management fees

None of the above. You'll find POSB IS, or OCBC BCIP, are both a lot cheaper.