Official Shiny Things thread—Part III

[polar27]

3 - - > 4 fund portfolio

You guys are really awesome!

A lot of good discussions on the 3 fund portfolio.

Understand iwda+eimi has been popular and vwra has been catching on.

Any thoughts of having a 50-50 mix of iwda and vwra, ie. Alternate months dca the same amt into either iwda and vwra, to get the additional exposure to emerging markets and for further diversification? Or is this simply not worth the extra effort /commission charges?

Cheers

 

[cassowary18]

You guys are really awesome!

A lot of good discussions on the 3 fund portfolio.

Understand iwda+eimi has been popular and vwra has been catching on.

Any thoughts of having a 50-50 mix of iwda and vwra, ie. Alternate months dca the same amt into either iwda and vwra, to get the additional exposure to emerging markets and for further diversification? Or is this simply not worth the extra effort /commission charges?

Cheers

Don't think it's worth. Just stick to one.

 

[makav31i]

Don't think it's worth. Just stick to one.

How is it not worth? You will still be buying it manually...If the DCA amount is the same, the commission amount should also be the same...

 

[K2DuoXoXo]

Correct me if i'm wrong, that's because IWDA and VWRA both have a lot of overlapping stocks, with a small EM exposure for the latter.

So if you want that exposure, then just stick to VWRA.

In the event that global markets tank, you'll have 1 basket in the red, instead of 2

How is it not worth? You will still be buying it manually...If the DCA amount is the same, the commission amount should also be the same...

 

[BBCWatcher]

Does anybody know if a Nasdaq listed company but domiciled in Bermuda company declares a dividend, is that dividend subject to US witholding tax?

Yes. Moreover, the stock is subject to U.S. estate tax.

If it's an American Depositary Receipt (ADR) held by a non-U.S. person then neither U.S. tax applies.

Footnote #1: U.S. persons are subject to dividend tax (at progressive rates) but not generally on a withholding basis, so that's an exception.

Footnote #2: These opinions are nonprofessional and based on my understanding. Get a professional opinion, or even two, when merited.

 

[hkchew03]

How is it not worth? You will still be buying it manually...If the DCA amount is the same, the commission amount should also be the same...

Unless you want emerging market weight to be even lesser than in VWRA, why not just take VWRA? Less effort, less comm in most cases.

 

[BBCWatcher]

Unless you want emerging market weight to be even lesser than in VWRA, why not just take VWRA? Less effort, less comm in most cases.

Yes, and VWRA is automatically, continuously market capitalization weighted and reweighted per its index, with no manual rebalancing required between emerging economy and developed economy stock markets.

 

[chopra]

Hi Shiny Things or anyone else. Are we still looking at SDIA (LSEETF) for short term idle USD?

1. There was a sharp drop in Mar. Should we be concerned?
2. The global interest rate is at record low -- is it still wise to park idle cash in bonds? i note that this etf is still climbing despite the low interest rate globally.

 

[limster]

Investment Moats has a post up about Saxo's forex premium:

https://investmentmoats.com/money/saxo-markets-high-currency-conversion-fee/#comments

 

[CWL84]

Investment Moats has a post up about Saxo's forex premium:

https://investmentmoats.com/money/saxo-markets-high-currency-conversion-fee/#comments

Wow, I know saxo is not recommended due to them ripping people off with their fees but that is a whole other level of ripoff.

 

[ftpofmpo]

any possibility that the highest investment grade corporate bonds, besides treasuries, may be facing real negative yield in future with the intervention by fed, resulting in money pouring into equities to obtain higher yield?

 

[cassowary18]

I watch the market everyday, spend about 1-2 hours on it. That is the only way to have a good feel of where the market is going and horn the skill to be able to buy low sell high to get much higher returns than blindly DCA into ETFs.

This has helped me to achieve Financial independence at the age 45 years old.
The ability to control one's emotions is very important. People who are not able to do so when they watch the market everyday are just emotionally too weak to be able to use their mind to control their emotions.

CSB

10char

 

[Perfect1onist]

Hi everyone, I would like to ask if anybody recently transferred money from Revolut to Saxo?
Because I called Saxo hotline today and they said they don't accept 3rd party transfers. However I've read many Singaporean comments on seedly that they managed to do the transfer successfully (early this year). May I have your take on this? Thanks!

 

[Shiny Things]

Hi everyone, I would like to ask if anybody recently transferred money from Revolut to Saxo?

Don't clap emoji use clap emoji Saxo.

True. I was referring to US and SG markets.
Also STI looks on its merry way up despite so many companies currently struggling.

The STI and US markets have performed wildly differently over the last few weeks. The S&P 500 is only a few percentage points below its pre-COVID levels, but despite its recent little pop higher, the STI is still nearly 20% below its pre-COVID levels.

I wouldn't say the STI is "on its merry way up", I'd say people are finally noticing it after ignoring it for months. (Which, incidentally, has been great for diligent investors who want to buy some on the cheap.)

With banks lowering their interest rates for deposit accounts, where should I start putting my extra cash into?

Interest rates everywhere else have been dropping as well. If you're going to need the cash in the next year or two, the bank is still the best place for it.

You guys are really awesome!

Thanks! I'm glad people are getting value from this thread.

Any thoughts of having a 50-50 mix of iwda and vwra, ie. Alternate months dca the same amt into either iwda and vwra, to get the additional exposure to emerging markets and for further diversification? Or is this simply not worth the extra effort /commission charges?

The thing is: IWDA and VWRA are almost identical. 90% of their stocks are the same. If you want "exposure to EM" and "extra diversification", just buy VWRA instead of IWDA; you don't need both.

Hi Shiny Things or anyone else. Are we still looking at SDIA (LSEETF) for short term idle USD?

Yep. SDIA is still a very good option for short-term USD cash. Everything was a bit weird in March because markets were so illiquid, but SDIA is now above its highs and doing its job of ticking along and accumulating interest.

 

[Shiny Things]

any possibility that the highest investment grade corporate bonds, besides treasuries, may be facing real negative yield in future with the intervention by fed, resulting in money pouring into equities to obtain higher yield?

There's a lot going on here, and you're jumping to some conclusions that are, I'll be blunt, wrong.

1) Some corporate bonds already have negative yields.

Microsoft, for example, has a EUR bond maturing in December 2021 that yields about -0.25% (if you're curious, the ISIN is XS1001749107).

2) Bonds having low or negative yields doesn't necessarily mean people don't want to buy them.

For example, the German government literally can't sell enough bonds to keep the market happy, even at yields of -0.5%.

3) Bonds having low or negative yield doesn't have much effect on equities.

There are negative yields at the moment in, off the top of my head, the EU, Switzerland, Sweden, Denmark, and Japan (probably a few others). Bond yields in the US are not negative, but their stockmarket has wildly outperformed the rest of the world.

In short, if you're the sort of investor who's fine owning a corporate bond yielding 0.1 or 0.2%, if that bond's yield drops to zero you won't sell it and buy stock, because the sort of investors who own 0.1%-yielding corporate bonds tend to think stocks are too risky.

 

[polar27]

Sorry to clarify,

If VWRA has 90% of stocks of IWDA and probably 10% of ? EIMI, how to make sense of base price of 1 share?

At closing yesterday:
IWDA 60.02
EIMI 26.77

VWRA 81.20

To replicate VWRA proportions by our self, 9 stocks of IWDA and 1 stock if EIMI = 567 (rounded off).

Know I might be missing something here, but getting IWDA 90%+EIMI 10% by own seems cheaper than buying 9-10 stocks of VWRA?

Tks

 

[cassowary18]

Sorry to clarify,

If VWRA has 90% of stocks of IWDA and probably 10% of ? EIMI, how to make sense of base price of 1 share?

At closing yesterday:
IWDA 60.02
EIMI 26.77

VWRA 81.20

To replicate VWRA proportions by our self, 9 stocks of IWDA and 1 stock if EIMI = 567 (rounded off).

Know I might be missing something here, but getting IWDA 90%+EIMI 10% by own seems cheaper than buying 9-10 stocks of VWRA?

Tks

You can't look at the share price, you'll need to look at the total expense ratio (TER). And the weighted TER for IWDA+EIMI is lower than VWRA, if you want to go that route.

 

[Elmo82]

Firstly,

Benchmark Difference
VWRA use FTSE All-World
while
IWDA use MSCI World
EIMI use MSCI EM

Secondly,

The price is an approximation of the total value of all assets held under the ETF, divided by the number of issued shares.

This means that the percentage holding is different for the two ETFs depending on the issue price and subsequent movements.

 

[kram62]

Hi everyone, I would like to ask if anybody recently transferred money from Revolut to Saxo?
Because I called Saxo hotline today and they said they don't accept 3rd party transfers. However I've read many Singaporean comments on seedly that they managed to do the transfer successfully (early this year). May I have your take on this? Thanks!

It's not only saxo.

Basically all brokers only accept first party transfers.

Revolut or transferwise accounts are usually not counted as first party because they are not really full banks. More of a bank-like transfer and payment service.

 

[CarlJung]

You can't look at the share price, you'll need to look at the total expense ratio (TER). And the weighted TER for IWDA+EIMI is lower than VWRA, if you want to go that route.

Actually SWRD + EIMI is even lower