*Official* Shiny Things club - Part 2

[limster]

I just found out that Feb/Mar this year, SPDR launched an 0.12% expense ratio accumulating Ireland-domiciled MSCI World UCITS ETF (LSE: SWRD (USD) / SWLD (GBP)). Current AUM reached USD 315.09 million.

Seems like a cheaper alternative vs iShares's IWDA with 0.20% expense ratio. Worth considering switching to this?

how large is your IWDA holding currently?

 

[linuskltan]

how large is your IWDA holding currently?

Abt SGD 100K, split between SCB Online Trading and Interactive Brokers.

 

[jumboburger]

So as I mentioned below I don't think there's a real need for this - but if you want it, IDP6 on the LSE will do the job.


Mmm... I used to do this (I held a small lump of a midcap ETF as well as my global-equities ETFs), but I decided it wasn't worth the hassle of managing the extra position, and it doesn't really deliver any more returns, because it's such a small slice of your total portfolio. I wouldn't bother.

Thanks! I'll examine IDP6.

I can't seem to find direct info from Vanguard regarding 0A16,0A17 which i found listed on LSE. They appear to be ETFs domiciled in Germany (country code DE), which looking up on the net, the withholding rate appears to be the same as Ireland. 0LOE doesn't seem to be traded.. Appreciate any comments

 

[Shiny Things]

I just found out that Feb/Mar this year, SPDR launched an 0.12% expense ratio accumulating Ireland-domiciled MSCI World UCITS ETF (LSE: SWRD (USD) / SWLD (GBP)). Current AUM reached USD 315.09 million.

I don't think you need to be too hasty to switch. The most likely thing that'll happen is that iShares will cut the expense ratio on IWDA to compete, if SWRD gets big enough.

There's also a few new alternatives popping up in this space (the VWRA fund mentioned below, for starters). Let's wait and see how it settles down.

 

[Shiny Things]

Thanks! I'll examine IDP6.

I can't seem to find direct info from Vanguard regarding 0A16,0A17 which i found listed on LSE. They appear to be ETFs domiciled in Germany (country code DE), which looking up on the net, the withholding rate appears to be the same as Ireland. 0LOE doesn't seem to be traded.. Appreciate any comments

So I'll be totally honest, I can't find those funds on Vanguard's site anywhere, after a quick google. I wouldn't bother.

I'll stick to my original position: you probably don't need an allocation to small-caps. A market-weight allocation is about 1% of your portfolio, which isn't going to make a meaningful difference to your returns. But if you must, IDP6 LN is the way to do it.

 

[chrisloh65]

Great to hear that!
We should support new entrance so that the old ones will be forced to cut their expense ratios to match (otherwise they won't).

I just found out that Feb/Mar this year, SPDR launched an 0.12% expense ratio accumulating Ireland-domiciled MSCI World UCITS ETF (LSE: SWRD (USD) / SWLD (GBP)). Current AUM reached USD 315.09 million.
https://uk.spdrs.com/etf/spdr-msci-world-ucits-etf-SPPW-GY
Seems like a cheaper alternative vs iShares's IWDA with 0.20% expense ratio. Worth considering switching to this?

 

[sumos23]

Thanks all for sharing your thoughts on this lively chat group!
Got a question here... My husband and I are both interested to start investing the global etf on IB. Looking at 3-4k a month. Would y'all recommend separate IB accounts or sharing one account to save on fees?

Also is there a threshold before one gets taxed on total holdings in IB?
Thank u!

 

[limster]

Abt SGD 100K, split between SCB Online Trading and Interactive Brokers.

i think its too much to sell all and switch to a different fund. maybe consdier holding two different funds, one from Vanguard one from iShares.

 

[ftpofmpo]

planning for healthcare treatment

given that healthcare treatments are getting increasingly expensive, especially oncology, how should people plan for it? it seems that 1 in 3 people might get cancer in their life time, and treatments might be more than 6 figures. If cancer is ubiquitous, it doesn't seem a good option to opt for early CI insurance (in singapore's context) which might restrict you to the range of illness or medication, as insurance is meant for lower likelihood events.

 

[JadenQ]

Hi Shiny Things,

Thanks so much for all the advice you have been providing to the forum. I'm new to investing, so I just recently bought your book to begin my journey. I have just finished reading it, but I have a question to ask which wasn't mentioned in your book that I hope you can clarify.

When I tried to sign up for a Standard Chartered Online Trading account, I saw that I had to also create an e$aver account with them and I had to maintain a $1000 minimum average daily balance in that e$aver account.

Taking 7-8% returns p.a., the potential returns on that $1000 would amount to between $7612.25 - $10062.65 in 30 years after compound interest. This actually works out to be an opportunity cost of $18.28~$25 per month over 30 years (taking into account the 0.10% that SCB gives on the $1000).

So my question is, is this a fair consideration to be including into your fees and cost when choosing a broker? Why or why not? If yes, then is it significant enough that it gives MBKE an edge over SCB for either the small-time investor (<$1000/month) or the bigger investor (>=$1000/month)?

Hope to gain some insights on this from you as a newbie. Thanks!

Edit: On a side note, assuming one has a lump sum of $100k USD, would it be better to funnel it all into IB ASAP to get the monthly fee waiver or DCA?

 

[scenenick]

I have a similar question. I have been accumulating IWDA. Is it worth selling to switch to VWRA?

Hi, im new to investing but very interested in VWRA. Where is the best place to buy and how much should the minimum amount be to make use of the fee most efficiently?

I heard about Saxo, SCB and Interactive Brokers but i'm not really sure which is best and what should my minimum amount be to make use of the fee well.

I prefer to DCA semi-annually or yearly into VWRA since i'm putting my money into robo-advisors/reits as well.

 

[isaacsayshi]

Hi BBC,

I was thinking my spouse could actually withdraw the money into our bank account in the event i passed on rathering than waited months for the assets to be distributed.

Or a living will be better? I should just fund into my personal ibkr account, and do a living will.

She does have emergency funds and a regular job.

Thanks for your answer! Didn't know i could actually linked account

That may not be a great reason for a joint account, but OK. It is a great reason for life and disability income insurance, for a living will, and for an emergency reserve fund that your spouse holds.

This question came up before linked accounts if you both wish.

Hi BeefJerky,

Thanks for your advice, maybe i should try to nudge her into POSB STI etf first. Investing into ibkr would be difficult initially as she have not much interest yet as it requires a steps. Maybe a lesser evil is to invest via MoneyOwl or Endowus whereby it be automatical. Cheers

 

[tangent314]

I don't think you need to be too hasty to switch. The most likely thing that'll happen is that iShares will cut the expense ratio on IWDA to compete, if SWRD gets big enough.

There's also a few new alternatives popping up in this space (the VWRA fund mentioned below, for starters). Let's wait and see how it settles down.

Also mentioned before is LCWD by Lyxor, 0.12% and accumulating, whereas SWRD is distributing

(click "i am a professional investor" to view)
https://www.lyxoretf.co.uk/en/insti...-msci-world-dr-ucits-etf-acc/lu1781541179/eur

 

[BBCWatcher]

I was thinking my spouse could actually withdraw the money into our bank account in the event i passed on rathering than waited months for the assets to be distributed.

Why would she want the assets liquidated and distributed that quickly?

Remember what this is for: long-term investing, to support future decades of happy retirement, yours and hers. Why would she be liquidating her retirement nest egg any time soon? If you don’t have enough disability income or life insurance, that might be a reason.

I’m not necessarily objecting to a joint account, as long as you’re aware of potential estate tax implications. I’m mostly just trying to point out that it probably doesn’t accomplish what you think it might.

 

[bobobob]

And maintaining the "110 minus your age" rule is the right move, as well. That way, when you retire, you're mostly in low-risk bonds, and if there's another market crash, your portfolio will stay relatively stable.

Should the 110-age formula be tinkered with if we have a healthy CPF account that we are not counting as our bond component?

 

[highsulphur]

Should the 110-age formula be tinkered with if we have a healthy CPF account that we are not counting as our bond component?

Then why not just count cpf as your bond

 

[kehyi4]

... whereas SWRD is distributing ...

erm, SWRD is accumulating: https://uk.spdrs.com/en/professional/etf/spdr-msci-world-ucits-etf-SPPW-GY

 

[oxygenoxy]

That's why you look at the spread of the ETF and the liquidity of the underlying stocks for the liquidity of the ETF, instead of the volume.

Volume of the underlying stocks don't matter if there isn't any market makers doing creates and redeems to arbitrage the etf price back to the underlying stocks price. Although it does correlate with how easy it is for the market maker to arbitrage the price.

Sent from OnePlus ONEPLUS A6000 using GAGT

 

[raidorz]

Anybody know if you can view you net liquidation value in USD when your base currency is in SGD?

Also, does IB deduct the monthly activity fee from USD or SGD (base) balance? Thank you!

 

[BBCWatcher]

Anybody know if you can view you net liquidation value in USD when your base currency is in SGD?

Worst case you could take the SGD net liquidation value and divide/multiply by the current exchange rate.

Also, does IB deduct the monthly activity fee from USD or SGD (base) balance? Thank you!

I think it's from spare U.S. dollars if available, otherwise from the base currency if available (automatically converted), otherwise from some other currency if available (automatically converted). It's something like that.