Official Shiny Things thread—Part III

[hwckhs]

Haha, success. Finally managed to snag a domain I've been after for literally years.

Congrats!

Just curious. Did you manage to buy it because it expired, or did you buy from the previous owner?

 

[swan02]

Thanks, but I’m trying to balance out my portfolio which is now heavy with value stocks and reits and wish to have a specific allocation to tech stocks which I’m incredibly low in.

So what are the recommended and popular global tech etfs ?

Um. Kinda depends what you want—global tech? US tech? Just a generic Nasdaq-composite ETF (which is not just tech! Nasdaq ETFs are only about 48% tech)...

Either way, if you actually want a tech-sector tilt, the go-to is IUIT, listed in London. Though be aware that you're absolutely chasing performance here, and if tech stops being trendy like it did from about 2000-2007 you're going to be in for some pain.

 

[FrostWurm]

What are the purely recommended technology etfs ?

QQQ (kidding)

 

[Calpha K]

Your picture's not rendering for me. Can you stick it on Imgur or something?

I don't see any "stop" anywhere.

https://imgur.com/a/f7s8m0V

 

[gladtoknowmore]

What about the QQQ equivalent in London - CNDX, for Long hold along with IWDA?

Thanks, but I’m trying to balance out my portfolio which is now heavy with value stocks and reits and wish to have a specific allocation to tech stocks which I’m incredibly low in.

So what are the recommended and popular global tech etfs ?

 

[Shiny Things]

What about the QQQ equivalent in London - CNDX, for Long hold along with IWDA?

Like I mentioned upthread, CNDX is heavy-tech (like 48%), but it's not entirely tech. If you want pure tech exposure, IUIT is the right answer.

 

[Shiny Things]

I don't see any "stop" anywhere.

What options are there under "Order Type"?

 

[sylves]

Like I mentioned upthread, CNDX is heavy-tech (like 48%), but it's not entirely tech. If you want pure tech exposure, IUIT is the right answer.

What do you think about ROM then? I feel it track very closely to NASDAQ movement

 

[Sinja89]

So I've purchased some stock on IBKR, USD.SGD commission 2.79, IWDA commission 5.
2.79+5= 7.79 USD

Monthly minimum commission is $10.
That means IBKR will automatically deduct 2.21 from my cash account?

 

[CWL84]

So I've purchased some stock on IBKR, USD.SGD commission 2.79, IWDA commission 5.
2.79+5= 7.79 USD

Monthly minimum commission is $10.
That means IBKR will automatically deduct 2.21 from my cash account?

That's right. The fee will be deducted during the first week of the following month but you won't be charged any monthly inactivity fee for the first three months.

 

[Shiny Things]

What do you think about ROM then? I feel it track very closely to NASDAQ movement

ROM is a 2x-leveraged ETF that tracks the Dow Jones Technology index. It's not a Nasdaq ETF.

Like any other leveraged or inverse ETF, ROM is only for day-trading. Leveraged and inverse ETFs always go to zero over time, because of a thing called volatility decay.

The easy way of explaining volatility decay is:

If the underlying index goes down 5% on day 1, then up 5.25% on day 2, it's flat. But a 2x ETF on the same index will go down 10% on day 1, then up 10.5% on day 2—and it'll end up down 0.5%, even though the index is unchanged.

And that happens every day—so you'll repeat that decay 250 times every year, whether the market goes up or down, by a little or a lot. Half a percent every two days is a bit of an extreme example, but if the ETF decays that much every day, then in a year's time, the index would be flat but the ETF would be down forty-seven percent.

This is not a "probably" thing, it's a "definitely" thing. It's an immutable law of math; it happens because these ETFs promise a multiple of the daily return of the index. It's such a well-known thing that at one time, people were able to make pretty decent money by shorting 2x leveraged ETFs and their corresponding 2x-short ETFs and just going to the pub. And this is why you never, ever, ever hold leveraged or inverse ETFs for any period longer than a day.

Also, on top of everything, ROM pays dividends. And because it's listed in the USA, you'll pay withholding tax on those dividends - 30% of all of it goes straight to the taxman. Not great, Bob.

If you want exposure to the Nasdaq Composite, buy CNDX LN.
If you want exposure to technology stocks specifically, buy IUIT LN.
If you want to punt tech stocks intraday, buy XLK on margin and don't hold it over an ex-div date.

 

[kram62]

So I've purchased some stock on IBKR, USD.SGD commission 2.79, IWDA commission 5.
2.79+5= 7.79 USD

Monthly minimum commission is $10.
That means IBKR will automatically deduct 2.21 from my cash account?

Just a correction, USD.SGD commission is USD 2. The 2.79 you see is expressed in SGD (right side of USD.SGD).

And for buying IWDA, you can lower the commission by changing to tiered pricing instead of fixed pricing. Then the commission is about USD 1.91 instead of USD 5 for typical small investment sums.

Exact cut off where fixed is better is for orders above about 9k-10k usd if I remember the previous discussions correctly.

 

[loveboon]

Hi Shiny,

Syfe just launched the Equity100 portfolio (https://www.syfe.com/equity100) today. May I know what are your thoughts on it?

 

[MichealScott]

So I've purchased some stock on IBKR, USD.SGD commission 2.79, IWDA commission 5.
2.79+5= 7.79 USD

Monthly minimum commission is $10.
That means IBKR will automatically deduct 2.21 from my cash account?

Also, if i am not wrong, the 2.21 will be in SGD. So make sure you have SGD in your account. I changed all my cash into USD and when is time to pay the min. fees, IBKR automatically changed my USD into SGD to pay for it.

 

[BBCWatcher]

Also, if i am not wrong, the 2.21 will be in SGD. So make sure you have SGD in your account. I changed all my cash into USD and when is time to pay the min. fees, IBKR automatically changed my USD into SGD to pay for it.

It depends on your base currency selection. You can change your base currency from Singapore dollars to U.S. dollars (or vice versa) if you wish.

 

[Lost_Found]

Hi Shiny,

Syfe just launched the Equity100 portfolio (https://www.syfe.com/equity100) today. May I know what are your thoughts on it?

Interested to know Shiny's thoughts on this as well

Sent from Samsung SM-G973F using GAGT

 

[swan02]

Regarding nasdaq 100, I can only find CNX1 LSE which cost like 45k usd per share and CSNDX EBS which is SIX Swiss exchange In IB. I can’t find the CNDX.L

Between the two, I would pick the domicile EBS ? Will I still enjoy same tax implications with LSE domicile ?

Like I mentioned upthread, CNDX is heavy-tech (like 48%), but it's not entirely tech. If you want pure tech exposure, IUIT is the right answer.

 

[swan02]

My observations tells me that tech and reit stocks are doing very well thanks to a low interest rate environment.

Tech stocks has an added benefit that they can borrow cheaply to grow even quicker which reits can as well. BUT tech stocks will also do well when interest rate rises due to having an abundance of cashflow, whereas reits would be killed.

So it looks like tech has plenty of advantage on both sides of the fence. Only problem is it’s supposedly high valuations but is it really high ? It hasn’t even reached the stratospheric proportions as in the year 2000.

Hence a narrow split of similar proportions between Tech, Biotech, financials and reits is all I need for a decent diversified portfolio for the future ?

Any critiques ?

 

[gladtoknowmore]

CNDX.L is around USD560 a share now, listed on LSE, domiciled in Ireland

Regarding nasdaq 100, I can only find CNX1 LSE which cost like 45k usd per share and CSNDX EBS which is Netherlands ? In IB.

Between the two, I would pick the domicile EBS ? Will I still enjoy same tax implications with LSE domicile ?

 

[swan02]

How come via IB it doesn’t pop out that option ?

Something to do with my trading permission ?

CNDX.L is around USD560 a share now, listed on LSE, domiciled in Ireland