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Old 22-12-2014, 12:02 PM   #25
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yukari_san3's Avatar
Join Date: Feb 2010
Posts: 9,171
Two reasons:

1) For anything other than stocks, you can't easily DIY. Try replicating the contents of the A35 bond ETF by yourself and then call me back. (And don't forget the hefty FX costs if you're trying to buy overseas stocks; the ETF fund manager will get a much better deal than you will.)
2) Constructing it might be cheap - only 0.2% no matter how much you buy! - but it's not easy, and managing the portfolio once you've built it isn't easy either. You need to keep track of index changes; keep track of rebalancing; and if you add some cash to your portfolio, then you need to figure out how much of each individual stock you need to buy to keep it balanced.

Or you can just buy an ETF and pay 0.1-0.5% per year for someone else to handle all of those headaches for you.

thats true.thanks shiny
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