Official Shiny Things thread—Part III

[BBCWatcher]

but since Bloomberg put up a paywall, CNBC is the best free source of financial news.

Do you need any financial news? What sort of financial news do you want?

Answering my own questions for me, I don't really need much financial news, but I like to stay informed about a very few things, notably whether a financial firm offers a better offer for something I'm already doing. Tax rule changes can also sometimes be interesting.

The reason why I am thinking about allowing interchangeability between ES3 and EIMI is because I question the need to have more SGD oriented play. Most people have bulk of wealth already in SGD and Singapore country risk assets, like their homes, and SGD denominated bonds, CPF etc.
In your opinion would it make sense to split the ES3 allocation 50-50 with EIMI?
For example, if one has a 50-50 allocation between IWDA and ES3, it would now be 50% IWDA, 25% EIMI, 25% ES3.

I think it's too complicated to do that. I'd much rather collapse that recipe down to VWRA and ES3 (or G3B) since VWRA already includes a slug of emerging country-listed stocks. In my view VWRA would be the bigger portion, and by quite a lot, for most of one's investing career.

I recognize the need and purpose of ES3, but it does seem to me that there is over concentration in asset allocation to an index that has only 30 counters. Even at 5% of equity holdings, in a global context, it is an overweight on STI (not that we should't since we plan to retire in SG).

I've posted at length how I feel about the STI stocks, which is basically that "a little" overweighting could have merit for those retiring in Singapore.

 

[razoreigns]

I read there are some bond ETF that has a maturity date. Is there any of those ETF that can be purchase in Singapore?

There are such funds, but not ETFs. They are close ended funds and have no secondary market. Redemption is provided by the fund house subject to break cost.

 

[CarlJung]

There are such funds, but not ETFs. They are close ended funds and have no secondary market. Redemption is provided by the fund house subject to break cost.

Thanks, I'll try to search.. What should I search for? do they have any particular name I should look for?

 

[razoreigns]

Thanks, I'll try to search.. What should I search for? do they have any particular name I should look for?

Typically, they are known as FMPs.

 

[Shiny Things]

Hi ST, BBCW,

Assuming one is invested in IWDA and not VWRA, what do you think of using the ES3 allocation interchangeably with EIMI? I see the past performance of ES3 and EIMI being quite close. That being the case, EIMI would fundamentally provide more diversification compared to ES3 and also provide direct exposure to China. Appreciate your views.

Nope. ES3 and EIMI are not the same thing. You'd lose any protection against increases in Singapore's cost of living, and you'd lose your protection against the SGD strengthening.

 

[Kaypohji]

Hi Shinythings,

How do I see and judge the liquidity of an etf?

What do you think of 3010? It’s available under fsmone RSP hence thinking to go for that instead of the vanguard version

Another thing is it comes in usd and hkd both listed at Hong Kong

Why the need for diff currencies ? Does it matter? I looked at their fund sizes, despite its kinda the same thing, the fund size is different.

 

[Shiny Things]

Hi Shinythings,

How do I see and judge the liquidity of an etf?

"How liquid is an ETF" is one of those things that most investors shouldn't have to think about. If you're ever having to think about liquidity yourself, you've made a bad decision somewhere along the line and you should probably step back.

What do you think of 3010?

Which 3010? Are you talking about the AXJ ETF listed in Hong Kong, the cement company listed in Riyadh, or the resort operator listed in Tokyo...?

Anyway, look, I know what you're talking about. But you're looking for an AXJ equity ETF - my question would be why? Why do you need China and Singapore and Australia, but not Japan (or Europe)?

Another thing is it comes in usd and hkd both listed at Hong Kong

Why the need for diff currencies ? Does it matter?

Fund managers do this as a convenience to people who want to buy the fund without having to convert the currency to buy it. I wouldn't think too much about it; just use whichever currency you have on hand - or, if you don't have any, the USD listing is almost always the right answer.

 

[Kaypohji]

Cause I’m worried about bid ask spread... and I see some other posts they also mentioned about the spread as a concern should they need to close the position.. although I’m holding it for long term but no guarantee if a fund will only get better and if I made the right choice. Should I decide to close the position for whatever reason In the short run, the spread will affect me

3010 doesn’t have Australia.... I’m trying to get exposure to Asia but I can’t find one that will include China, Japan and Australia.

I’m not so interested in sg and hk portion but this etf just happened to not have Australia and Japan but has singapore...

Fsmone RSP only offers the hkd option... that’s why I’m wondering what’s the diff and if it is ok for me to buy the hkd one

"How liquid is an ETF" is one of those things that most investors shouldn't have to think about. If you're ever having to think about liquidity yourself, you've made a bad decision somewhere along the line and you should probably step back.



Which 3010? Are you talking about the AXJ ETF listed in Hong Kong, the cement company listed in Riyadh, or the resort operator listed in Tokyo...?

Anyway, look, I know what you're talking about. But you're looking for an AXJ equity ETF - my question would be why? Why do you need China and Singapore and Australia, but not Japan (or Europe)?


Fund managers do this as a convenience to people who want to buy the fund without having to convert the currency to buy it. I wouldn't think too much about it; just use whichever currency you have on hand - or, if you don't have any, the USD listing is almost always the right answer.

 

[newjersey]

Do you need any financial news? What sort of financial news do you want?

Answering my own questions for me, I don't really need much financial news, but I like to stay informed about a very few things, notably whether a financial firm offers a better offer for something I'm already doing. Tax rule changes can also sometimes be interesting.


I think it's too complicated to do that. I'd much rather collapse that recipe down to VWRA and ES3 (or G3B) since VWRA already includes a slug of emerging country-listed stocks. In my view VWRA would be the bigger portion, and by quite a lot, for most of one's investing career.


I've posted at length how I feel about the STI stocks, which is basically that "a little" overweighting could have merit for those retiring in Singapore.

you just answered my own question with a yes...
but trying to present it as if it's a no.

sorry, nice try though.

 

[BBCWatcher]

you just answered my own question with a yes...
but trying to present it as if it's a no.

sorry, nice try though.

What are you talking about? I didn’t answer those questions for you at all! I just asked the questions. Then I offered answers for me, which in summary is/are that I only need a little occasional financial news, and CNBC doesn’t provide it. Your mileage may vary, of course.

Are you having a bad day already?

 

[celtosaxon]

What are you talking about? I didn’t answer those questions for you at all! I just asked the questions. Then I offered answers for me, which in summary is/are that I only need a little occasional financial news, and CNBC doesn’t provide it. Your mileage may vary, of course.

Are you having a bad day already?

I agree, financial news has little value and can possibly have negative value to investors - say, to the extent it may derail you from a disciplined investment approach.

Personally, I do like to watch CNBC for entertainment purposes, especially when the market is in free fall like back in March... for
someone with my personality and temperament, it is pure amusement

 

[newjersey]

well, generally, i think financial news has more noise than necessary, yes.

but to totally pigeon-hole away from the general big news in the market, esp regarding financial news is not smart.

like i said, bloomberg used to be free until they set up a paywall.

reuters also have a paywall.

the only one without a paywall that still feeds most financial news is cnbc.

i don't look closely at most articles, but glance through them to get a sense of the current market sentiments.

i am not a short term trader, not swing nor day trader.

but a 5 mins snapshot of what and how everyone is doing in different markets, is not alot of chore.

and sensing opportunities from such opportunities have enriched me before, so i feel it's a mighty good habit to have.

 

[limster]

I agree, financial news has little value and can possibly have negative value to investors - say, to the extent it may derail you from a disciplined investment approach.

Personally, I do like to watch CNBC for entertainment purposes, especially when the market is in free fall like back in March... for
someone with my personality and temperament, it is pure amusement

CNBC is never wrong., They will interview a bull who says market is going up and later interview a bear who says market is going down. Whoever is right, they will call for a followup interview with head line "Expert who predicted the crash/rally says..... "

Unless you are Jim Rogers, in which case you can always be wrong in calling for a crash, but CNBC will still interview you anyway because of the entertainment value.

Probably a lot of investors who scared themselves by reading all the doom and gloom posts in March & April (as opposed to actually checking the facts on economies reopening) getting FOMO as they watch the rally. They may start piling in soon... if that happens maybe a bubble will actually form.

 

[chrisloh65]

The US stock market bubble is already there (not "bubble will actually form"). It is just getting bigger with many people (including the Fed, President Trump, etc) trying to talk up the market and taking actions to support the GARGANTUAN US stock market bubble.

US stock bubble crashing is just a matter of time (unless pig can fly to the sky, then that is another story altogether)!

CNBC is never wrong., They will interview a bull who says market is going up and later interview a bear who says market is going down. Whoever is right, they will call for a followup interview with head line "Expert who predicted the crash/rally says..... "

Unless you are Jim Rogers, in which case you can always be wrong in calling for a crash, but CNBC will still interview you anyway because he is entertaining.

Probably a lot of investors who scared themselves by reading all the doom and gloom posts in March & April (as opposed to actually checking the facts on economies reopening) getting FOMO as they watch the rally. They may start piling in soon... if that happens maybe a bubble will actually form.

 

[Ifritus]

Sorry if this has been asked before, but if I were to switch from SCB to FSMone for my ES3 and MBH trades, do I sell everything on SCB and move it over to FSMone? Or just start a clean slate on FSMone?

 

[crystalnox]

Sorry if this has been asked before, but if I were to switch from SCB to FSMone for my ES3 and MBH trades, do I sell everything on SCB and move it over to FSMone? Or just start a clean slate on FSMone?

Just keep the stuff in SCB since there are no custodian fees anyway? Unless you're trying to qualify for rewards level at FSMone.

 

[BBCWatcher]

but to totally pigeon-hole away from the general big news in the market, esp regarding financial news is not smart.

It works for me. Regardless, if it's genuinely "big" news it won't be secret.

....but a 5 mins snapshot of what and how everyone is doing in different markets, is not alot of chore.

and sensing opportunities from such opportunities have enriched me before, so i feel it's a mighty good habit to have.

OK, so why not pay for Bloomberg's Web site (for example) if it had/has value for you?

 

[cassowary18]

Sorry if this has been asked before, but if I were to switch from SCB to FSMone for my ES3 and MBH trades, do I sell everything on SCB and move it over to FSMone? Or just start a clean slate on FSMone?

Why don't you transfer to CDP then transfer to FSMOne?

 

[DOINK1]

Hi ST and gurus,

Currently I'm vested in G3B / MBH via POSB Invest saver for my local stock and bond ETF for the past 2 years. I would like to switch to FSMone RSP due to cheaper fees. I am also vested in IWDA via SCB.

I have some questions if I switch brokerage

1. Should I continue buying G3B via FSMone?
2. Buy ES3 and stop buying G3B?
3. Buy both ETFs to 50/50 ratio (one a month) for my local stock ETF?

And how do I rebalance annually if i'm buying via RSP cause the selling and buying part takes some time.

 

[ftpofmpo]

Sorry if this has been asked before, but if I were to switch from SCB to FSMone for my ES3 and MBH trades, do I sell everything on SCB and move it over to FSMone? Or just start a clean slate on FSMone?

u might want to consider tiger brokers; no mins