*Official* Shiny Things club - Part 2

[kehyi4]

It is not a meh. You cannot compare VWRA's TER to IWDA's. They are not apple to apple, because VWRA contains EM exposure (and IWDA doesn't). EM exposure has higher costs.

Vanguard is usually cheaper than iShares.

DM only
iShares MSCI World, Acc (IWDA): 0.20% TER
Vanguard FTSE Developed World, Dist (VDEV): 0.18% TER (lower cost)

DM+EM
iShares MSCI ACWI, Acc (ACWI): 0.32% TER
Vanguard FTSE All World, Acc/Dist (VWRA/VWRD): 0.25% TER (lower cost)

On the other hand:
90% IWDA + 10% EIMI is approx equal to VWRD/VWRA (based on approx weighting of their respective indices)

However, the weighted TER is : 90%(0.20%) + 10%(0.18%) = 0.198%

IWDA+EIMI gives a roughly 0.05% TER advantage over VWRD/VWRA ...

I think Vanguard is being slightly greedy with VWRD/VWRA; they can afford to go lower

 

[doody_]

I just use SCB all the way for convenience, to avoid handling multiple vendors. I don't think there's much difference. Doing >SGD1000 in IWDA monthly.

 

[tangent314]

If you are doing S$1000 per month you are paying US$17.27 per month in commission compared to US$10 with IBKR. It gets even worse when you reach US$100k AUM and pay only US$3.70 per month with IBKR.

 

[JuniorLion]

On the other hand:
90% IWDA + 10% EIMI is approx equal to VWRD/VWRA (based on approx weighting of their respective indices)

However, the weighted TER is : 90%(0.20%) + 10%(0.18%) = 0.198%

IWDA+EIMI gives a roughly 0.05% TER advantage over VWRD/VWRA ...

I think Vanguard is being slightly greedy with VWRD/VWRA; they can afford to go lower

Definitely iShares all the way.

 

[wannabelazy]

Hi ST and other experts, I'm sure you've heard of the FIRE movement. The assumption is that once you hit 25x (and correspondingly, a 4% annual withdrawal rate) of your projected annual expenses, you can pretty much quit your day job and retire.

Do you think such a portfolio target provides enough growth to last for the duration of one's retirement assuming one sticks to the planned withdrawal rate if retirement is say, in one's 40s or even 30s? (Assume RbR portfolio allocation and adjustments for life)

 

[decibel.]

If you are doing S$1000 per month you are paying US$17.27 per month in commission compared to US$10 with IBKR. It gets even worse when you reach US$100k AUM and pay only US$3.70 per month with IBKR.

What's IBKR ? If I plan to do 3K every six months is SCB better

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[decibel.]

What apps you all use to keep track of portfolio in Android?

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[wannabelazy]

What apps you all use to keep track of portfolio in Android?

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My Stocks Portfolio. For me it's quite good.

 

[lawrencedr]

hey guys, I have done the math for IB and SC and tbh the best advice is either are ok except if doing >1000 monthly.
You just have to invest, quit sweating the small sums, and not trade frequently with either broker.
I personally picked IB cause of the spread, the Lloyd and FDIC coverage, and being able to hit 100k AUM in 7 years.

 

[doody_]

hey guys, I have done the math for IB and SC and tbh the best advice is either are ok except if doing >1000 monthly.
You just have to invest, quit sweating the small sums, and not trade frequently with either broker.
I personally picked IB cause of the spread, the Lloyd and FDIC coverage, and being able to hit 100k AUM in 7 years.

And how much is the difference for >1000 a month? Based on my previous check it's about 1% more for SCB vs IB.

 

[kram62]

My Stocks Portfolio. For me it's quite good.

Also using that one and quite happy with it.

 

[tangent314]

What's IBKR ? If I plan to do 3K every six months is SCB better

IBKR = Interactive Brokers
Yes, 3k every 6 months you should probably go with SCB.

And how much is the difference for >1000 a month? Based on my previous check it's about 1% more for SCB vs IB.

For anything monthly, IBKR is always better because the fees will be US$10 (assuming less than US$16k per month), whereas with SCB it will be US$10.70 + 0.9% (assuming less than US$4k per month).

 

[hwckhs]

Negative Interest Rate Environment?

Hi everyone. If you have been DCA'ing into a bond ETF, have you thought about what to do if bond yield turns negative?

Bond yield is already negative in Japan and Europe, and people are saying the current US interest rate is low and does not have much room to cut to deal with a recession.

A Bloomberg article that explains better than I do.

I'm not trying to speculate whether SG/US interest rate will go negative, or when it will be. It may or may not happen. My question is really about our strategy.

If we enter a negative bond yield environment:

• do we continue DCA'ing into negative yielding bond?
• or should we do differently?

 

[decibel.]

My Stocks Portfolio. For me it's quite good.

Is that the beta one? The My Stock Portfolio Widget?

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[ftpofmpo]

do the local etf providers self index or pay the index providers?

 

[tangent314]

do the local etf providers self index or pay the index providers?

There is a subscription fee to use the index. On the ETF factsheet, the fund will declare that they track an index in the Objectives, and the index is usually named under "Benchmark index"

 

[ftpofmpo]

There is a subscription fee to use the index. On the ETF factsheet, the fund will declare that they track an index in the Objectives, and the index is usually named under "Benchmark index"

any idea how much are the sti index's subscription fee?

 

[tangent314]

No idea. There's a good chance it is in the fund annual report, you can go take a look if you like.

 

[hwckhs]

any idea how much are the sti index's subscription fee?

Page 6 of the annual report:

As agreed between the Manager and the Trustee, the total combined management fees, trustee fees and other recurring expenses for the Fund are currently set at 0.3% per annum of its net asset value.

Page 13 (expenses) shows that it is part of management fee.

I think no need to dig too much into these info. Just pay attention to the Total Expense Ratio (TER) should be sufficient.

 

[IronMac]

Also using that one and quite happy with it.

Same here. I would pay for the Premium version but I can't see to find the link on it.