*Official* Shiny Things club - Part 2

[happylcw]

Tax saving of 11.5% is one off, but the under performance (due to higher expense ratio) is an annual rate. Any tax advantage will be defeated by the higher expense ratio eventually.

Let's make a simple calculation. You start with 1.115 (11.5% tax saving). Multiply it with 0.99 repeatedly (-1% under-performance every year). The tax advantage will be fully offset on the 11th year. From the 12th year onwards, buying IWDA with cash wins.

P/S: Thanks for bringing up this topic. I shelved the idea of using SRS due to its complexity. After some reading, I plan to make use of it to optimize my tax. I also need to read more on CPF hacks and see if it's something I need to make use of by the end of this tax year.

Thanks hwckhs, I was trying to find a way for SRS investment. Please share here if you found better SRS investment .

 

[chickenessence]

your holdings are the shares, not the hard currency; gbp, usd are just what is used when you trade them; it doesn't matter; iwda can be traded in other currencies beside gbp

What is the IWDA in GBP currency? Can guide me to look into it?

Sure. If the USD tanks, then the value of the shares within IWDA will increase in USD terms. If the US dollar drops by 10%, the value of the shares within IWDA will increase by 10%.

And really, even if a weakening currency did matter, would you really want to bet on the sterling right now? That's the

Do u have any unfinished sentence?
I certainly don't have financial / Forex knowledge.. So do correct me.
I thought the currency will somehow be within certain range. Meaning GBP will bounce back from its current low.
And if currency doesn't matter, why can't I look into GBP currency "IWDA"?

 

[FrostWurm]

What is the IWDA in GBP currency? Can guide me to look into it?

SWDA also on LSE

 

[Shiny Things]

Do u have any unfinished sentence?
I certainly don't have financial / Forex knowledge.. So do correct me.
I thought the currency will somehow be within certain range. Meaning GBP will bounce back from its current low.

Unfortunately there’s no guarantee that will happen. And even if it does, IWDA-in-GBP will drop, so any extra return you get on the valuation currency increasing will go away from the value of IWDA-in-GBP dropping.

And if currency doesn't matter, why can't I look into GBP currency "IWDA"?

Because the currency doesn’t matter, but the costs of converting your money into GBP to buy it in the first place are higher.

To convert your money into USD at Stanchart, you’ll usually pay about half a percent to exchange currency. To convert your money into GBP, you’ll usually pay about one percent. So buying the GBP listing leaves you perpetually half a percent behind.

Trust me on this: SWDA will be worse for you than IWDA. Buy IWDA.

 

[BBCWatcher]

Don't get me started on Atherton. Or Woodside. Or Hillsborough, which incidentally is a lovely bike route if you don't mind dodging Porsche Cayennes by the dozen.

Cayennes? Those are essentially the Ford F-150s of certain neighborhoods. There are some crazy expensive vehicles that you can see out and about in that part of the world (and in a few others). It's particularly amusing to see the owner of such a car fueling it at the self-service pump. Premium, of course.

It's fairly easy to understand why certain well-off inhabitants wonder aloud, in articles such as this one, whether they're failures. Some people are just (mis)wired that way.

I wonder how soon we'll see illegal vigilante attacks against these most expensive vehicles, conceptually similar to splattering red paint on fur coats. A 12 cylinder beast isn't great for the planet, after all.

 

[fantasyrulz]

Hi Shiny Things,

I have less then 500 every month to invest, do you think
i should go for POSB Invest Saver ?

 

[Investnewbie82]

What are the risks of investing in ETFs? Like for eg, if we plan to buy G3B for 20 years, if the fund company cease to exist after 10, is there any protection or guarantee for us?

Thanks!

 

[filofari]

Hi Shiny Things,

I was going to start the POSB plan when I read about IB Lite. Would your current recommendation to use POSB/SCB still stay for amounts under $1k/mth? Thank you.

 

[ftpofmpo]

the singapore currency is pegged to a basket of currencies. given:

1: uncertainty ahead
2: sgx bond etfs are medium to long term
3: bonds are overpriced globally compared to equities

putting our bond allocations into the sgx bond etfs doesn't seem a good choice

what about global short term etfs based on Bloomberg Barclays Global Aggregate Corporate USD 1-3 index, such as the Vanguard USD Corporate 1-3 Bond UCITS ETF listed on lse?

The volume seems low, but it seems a better choice to park our bond allocation in the event we need to do some rebalancing, at least until we reach the next financial cycle.

 

[nyl3v3]

Hi ShinyThings!
I am into the second month of buying IWDA, G3B and MBH. I do have a very silly question (and I am not sure if I can even phrase it correctly). As most of us are investing here into global, local etfs and local bonds, more or less according to your book's recommended ratios, what are we buying for? I need to apologise because i think i sound really dumb here. I am wondering if we are buying all these to beat the ever-increasing inflation? or to be super rich by the time we retire?

Thanks.

For my case, I am hoping just to beat the ever-increasing inflation in Singapore and maybe like a form of savings to stash some money away.

 

[BBCWatcher]

For my case, I am hoping just to beat the ever-increasing inflation in Singapore and maybe like a form of savings to stash some money away.

I think you mean that inflation is "ever present," right? The inflation rate in Singapore is low and has not been increasing.

 

[happylcw]

Hi Shiny, you mentioned there is a better way than Infinity Global funds to get US exposure in SRS? Could you kindly share that? Based on what I know we cannot buy IWDA in SRS.

 

[haruto]

hi Shiny, i came across this ETF SWRD. very similar to IWDA but with lower expense ratio. what do you think of this ETF?

 

[Clay Pot]

Global ETFs comparison

https://investmentmoats.com/wealth-building-2/etfs-singaporeans-global-equity-exposures/

 

[Melvis99]

Education Savings for Children

Hello. I'm keen to hearing opinions on how to best set aside and grow funds for my children's university education. My wife and I maintain separate investment accounts but we want to jointly contribute to the tuition fund(s) of our two children on a regular basis. I assume that a portfolio of equities and bonds with an appropriate glide path will outperform a high interest savings account or endowment plan over the roughly 18 year period until we boot them out the door, but I'm keen to hear if there is happy medium that blends the growth potential of an investment portfolio with the simplicity of a savings account. I don't recall seeing this discussed in this thread recently, but apologies in advance if I missed it. Thanks.

 

[chickenessence]

SWDA also on LSE

Thanks for the info.

from SWDA on ishare.com, what does this EUR and GBP "hedged" means?

actually i cant find IWDA on ishare.com webpage. Any guide to find it?
Would like to see if there is any info that i can find from the prospectus, factsheet, etc.

i only manage to find IWDA from:
https://www.londonstockexchange.com...Fs/company-summary/IE00B4L5Y983IEUSDEUET.html

Global ETFs comparison

https://investmentmoats.com/wealth-building-2/etfs-singaporeans-global-equity-exposures/

Good info

 

[hwckhs]

actually i cant find IWDA on ishare.com webpage. Any guide to find it?
Would like to see if there is any info that i can find from the prospectus, factsheet, etc.

You were already looking at the correct page - https://www.ishares.com/uk/professi...fund?switchLocale=y&siteEntryPassthrough=true .

Click the "Listing" tab and you can see this fund is listed on LSE as IWDA (USD) and SWDA (GBP). You can read the documents found on this page.

 

[chickenessence]

Unfortunately there’s no guarantee that will happen. And even if it does, IWDA-in-GBP will drop, so any extra return you get on the valuation currency increasing will go away from the value of IWDA-in-GBP dropping.

Because the currency doesn’t matter, but the costs of converting your money into GBP to buy it in the first place are higher.

I simply want to understand more on this currency effect on ETF value and investor's risk to currency.
Hope u don't mind if i keep asking on this as i thought people would want to know what are they investing in.

Bought your book and finish reading it in very short while. Easy to read and very good guide even for someone who is financial illiteracy like me.

Notice u mentioned some currency risk on foreign ETF and bond section (page 34, 90).. but didnt elaborate from there, therefore thought of asking for more detail here.

Anyway, i have invested all 3 funds based on the book

To convert your money into USD at Stanchart, you’ll usually pay about half a percent to exchange currency. To convert your money into GBP, you’ll usually pay about one percent. So buying the GBP listing leaves you perpetually half a percent behind.

still valid if convert currency to GBP using IBKR?

Trust me on this: SWDA will be worse for you than IWDA. Buy IWDA

Noted sir

And even if it does, IWDA-in-GBP will drop, so any extra return you get on the valuation currency increasing will go away from the value of IWDA-in-GBP dropping.

Does this apply to individual stock as well?
Lets say like Microsoft stock price remained, while the time the stock is bought with USD-SGD is 2.000, then weaken to USD-SGD to 1.000.
Is this a loss?

 

[ftpofmpo]

In light of the we work saga, can investors who take part in their late stage funding have any credibility? It's concerning that one of Singapore's swf invested with Softbank in 2018...

 

[ftpofmpo]

hi Shiny, i came across this ETF SWRD. very similar to IWDA but with lower expense ratio. what do you think of this ETF?

Swrd by state street is based on the same index, lower fees but higher spreads due to low trading volume when buying. The savings after holding for many years is very small but you can go ahead and buy. Some prefer a fund with larger aum, trading volume, history and hope fees will drop in future.