Official Shiny Things thread Episode V, The Empire Strikes Back

[streetfighter]

Funny joke ;-
Are you a joker?

Hey bro, stop replying to yourself

 

[highsulphur]

If both go up 10%, the ratio doesnt change. But even if lets say IWDA goes up more than EIMI or the other way around. I dont think you should worry so much month by month. Rebalance only once a year, should be good. There is no right or wrong. If you rebalance too often you impede the potential future growth of the outperforming asset. If you dont rebalance at all, you may miss out the opportunity from cashing out of an asset that goes into a bubble and then pops.

Actually what I meant is just diverting my monthly dca to the etf that is lagging. Or I could just start on vwra.

How do the expense ratio of IWDA, EIMI and VWRA compare?

Posted from PCWX using VOG-L29

 

[revhappy]

Actually what I meant is just diverting my monthly dca to the etf that is lagging. Or I could just start on vwra.

How do the expense ratio of IWDA, EIMI and VWRA compare?

Posted from PCWX using VOG-L29

I think we should not divert monthly dca to the etf that is lagging. Imagine, since 2010 to 2020, US did spectacularly well compared to EM. If we overallocated to EM because it was lagging, we would have underperformed. If you are following MSCI world allocation, then if EIMI lags, its weight in the total would reduce, so by right and in keeping with the allocation, you should allocate less to EIMI.

IWDA Exp ratio: 0.2%
EIMI Exp ratio: 0.18%
VWRA Exp ratio: 0.22%

 

[hwckhs]

How do the expense ratio of IWDA, EIMI and VWRA compare?

IWDA: 0.20% ($30B AUM)
EIMI: 0.18% ($19B AUM)
VWRA: 0.22% ($1.8B AUM)
ISAC: 0.20% ($1.7B AUM)

It looks like there is a competition going on between VWRA and ISAC. I hope VWRA/VWRD's TER can drop further (am vested in VWRD).

Btw, how did you end up with the IWDA/EIMI 9:1 combo? Was EIMI a latter add-on?

I notice that when one starts investing, there is the tendency to buy many ETFs/stocks. Over time, one realizes the need to simplify the portfolio. My spouse thinks that my portfolio is too complex, and I already start to think how to simplify it in future. Something to do in 10, 20 years time; not immediately though.

I think we should not divert monthly dca to the etf that is lagging. Imagine, since 2010 to 2020, US did spectacularly well compared to EM. If we overallocated to EM because it was lagging, we would have underperformed. If you are following MSCI world allocation, then if EIMI lags, its weight in the total would reduce, so by right and in keeping with the allocation, you should allocate less to EIMI.

An alternative will be to adjust the DM:EM ratio yearly to track FTSE All World/MSCI ACWI. That involves more work, compared to having VWRA/ISAC.

 

[highsulphur]

IWDA
: 0.20% ($30B AUM)

EIMI
: 0.18% ($19B AUM)

VWRA
: 0.22% ($1.8B AUM)

ISAC
: 0.20% ($1.7B AUM)

It looks like there is a competition going on between VWRA and ISAC. I hope VWRA/VWRD's TER can drop further (am vested in VWRD).

Btw, how did you end up with the IWDA/EIMI 9:1 combo? Was EIMI a latter add-on?

I notice that when one starts investing, there is the tendency to buy many ETFs/stocks. Over time, one realizes the need to simplify the portfolio. My spouse thinks that my portfolio is too complex, and I already start to think how to simplify it in future. Something to do in 10, 20 years time; not immediately though.


An alternative will be to adjust the DM:EM ratio yearly to track FTSE All World/MSCI ACWI. That involves more work, compared to having VWRA/ISAC.

Yes I bought iwda extensively first before adding EIMI later. I was too focused on es3 before and last year I made a conscious decision to invest more on iwda while continuing with es3. But towards the end of 2020, I decided to stop my ES3 altogether and to focus only on overseas equities (I have already a sizeable es3 and I don't wish to add any more).

Posted from PCWX using VOG-L29

 

[zoneguard]

Btw, how did you end up with the IWDA/EIMI 9:1 combo? Was EIMI a latter add-on?

An alternative will be to adjust the DM:EM ratio yearly to track FTSE All World/MSCI ACWI. That involves more work, compared to having VWRA/ISAC.

https://www.hette.ma/marketcap/ Data is computed every month.

IWDA/EIMI 85.9%/14.1% (Relative Weights)
IWDA/EIMI 86.6%/13.4% (IMI Indices Weights)

 

[chrisloh65]

Wonder frosted worm is what kind of worm?

Funny joke ;-
Are you a joker?

 

[zoneguard]

4th edition of ST's book is out - updated for 2021.

 

[loackerc]

Hi Shiny Things, other that ibkr do you know if any other broker that works with sgd base currency? Does E*Trade work?

 

[rejovanation]

hi all,
i am new to investment and would like to seek advice on whether the below strategy is optimal:

age: 32
investment objective: retirement
strategy: passive investing - buy and hold (20 to 30 years)
ETF selected: VWRA, so that I can tap into both developed and emerging markets. this may also be more cost efficient than investing in 2 ETFs (IWDA/SWRD + EIMI)


1. assuming that time in the market is better than timing the market, i plan to invest my initial capital (30K) as a lump sum to avoid further opportunity costs.

2. for subsequent transactions, i plan to DCA 4 to 5K on a quarterly basis (not sure if i have a strong case to DCA on a monthly basis)

3. for the choice of broker, should i opt for SC over IBKR SG, given that i will only reach USD$100K in 6 to 7 years at this rate? kinda tangled in analysis paralysis here, since i’m not sure if it’s worth paying USD$10/month to enjoy the better FX rates in the long run. at the moment, i’m leaning towards SC for the first few years before switching over to IBKR SG, but not sure if i will be allowed to perform this switch in future, or if i should at all (will likely qualify for SC priority banking in another 3 years at that point in time)

on a side note, i don't intend to get STI ETF and will only invest in bonds when i hit late 40s.

 

[yahoosoda]

hi all,
i am new to investment and would like to seek advice on whether the below strategy is optimal:

age: 32
investment objective: retirement
strategy: passive investing - buy and hold (20 to 30 years)
ETF selected: VWRA, so that I can tap into both developed and emerging markets. this may also be more cost efficient than investing in 2 ETFs (IWDA/SWRD + EIMI)


1. assuming that time in the market is better than timing the market, i plan to invest my initial capital (30K) as a lump sum to avoid further opportunity costs.

2. for subsequent transactions, i plan to DCA 4 to 5K on a quarterly basis (not sure if i have a strong case to DCA on a monthly basis)

3. for the choice of broker, should i opt for SC over IBKR SG, given that i will only reach USD$100K in 6 to 7 years at this rate? kinda tangled in analysis paralysis here, since i’m not sure if it’s worth paying USD$10/month to enjoy the better FX rates in the long run. at the moment, i’m leaning towards SC for the first few years before switching over to IBKR SG, but not sure if i will be allowed to perform this switch in future, or if i should at all (will likely qualify for SC priority banking in another 3 years at that point in time)

on a side note, i don't intend to get STI ETF and will only invest in bonds when i hit late 40s.

on this topic, i think i was in similar shoes as well... personally i think going with IBKR now is a better choice because:

1. assuming the forex spread of SC is around 0.5% compared to IBKR market rate, you will be incurring another 0.5% fee when u try to sell your SC stocks

2. At <100k portfolio, IBKR gives the flexibility of buying/rebalancing every month since the 10 USD commission includes your transaction commission as well. Granted that this will change your investment strategy from DCA every quarter to every month, i think its a pretty good choice

3. if u can hit 100k in that 7-8 years outlook that you mention, and you are in the market for 20-30 years, i think it should be good in the long run

just my 2 cents hahas, interested to hear other's thoughts as well.

 

[ExEngineer]

hi all,
i am new to investment and would like to seek advice on whether the below strategy is optimal:

age: 32
investment objective: retirement
strategy: passive investing - buy and hold (20 to 30 years)
ETF selected: VWRA, so that I can tap into both developed and emerging markets. this may also be more cost efficient than investing in 2 ETFs (IWDA/SWRD + EIMI)


1. assuming that time in the market is better than timing the market, i plan to invest my initial capital (30K) as a lump sum to avoid further opportunity costs.

2. for subsequent transactions, i plan to DCA 4 to 5K on a quarterly basis (not sure if i have a strong case to DCA on a monthly basis)

3. for the choice of broker, should i opt for SC over IBKR SG, given that i will only reach USD$100K in 6 to 7 years at this rate? kinda tangled in analysis paralysis here, since i’m not sure if it’s worth paying USD$10/month to enjoy the better FX rates in the long run. at the moment, i’m leaning towards SC for the first few years before switching over to IBKR SG, but not sure if i will be allowed to perform this switch in future, or if i should at all (will likely qualify for SC priority banking in another 3 years at that point in time)

on a side note, i don't intend to get STI ETF and will only invest in bonds when i hit late 40s.

Just my 2cents....if you like IB and have the sorts of amounts described to invest over the next few years...then the $10/month isn’t worth worrying about.

 

[tangent314]

The last time I calculated based on the SC outgoing transfer fees, it's better to go with IBKR if you are reaching US$100k in less than 7-8 years. Since then I've heard that a couple of people in here were having issues transferring their positions from SC to IBKR, which complicates things a bit more if you are looking to transfer if this hasn't changed. If you expect to reach that sum in 6-7 years, then I would definitely go straight to IBKR.

The US$100k is an awesome target to hit, and I found myself hitting that target way ahead of schedule. It's amazing how much you force yourself to save and invest with this target in mind.

If you go with IBKR you should just DCA every month, since you will be paying US$10/month whether you do it monthly or quarterly.

 

[rejovanation]

The last time I calculated based on the SC outgoing transfer fees, it's better to go with IWDA if you are reaching US$100k in less than 7-8 years. Since then I've heard that a couple of people in here were having issues transferring their positions from SC to IBKR, which complicates things a bit more if you are looking to transfer if this hasn't changed. If you expect to reach that sum in 6-7 years, then I would definitely go straight to IBKR.

The US$100k is an awesome target to hit, and I found myself hitting that target way ahead of schedule. It's amazing how much you force yourself to save and invest with this target in mind.

If you go with IBKR you should just DCA every month, since you will be paying US$10/month whether you do it monthly or quarterly.

point noted! opting for IBKR and investing on a monthly basis without incurring any additional costs (beyond USD$10) would be a compelling point.

anyway, i have also keyed my inputs on cflee's spreadsheet to draw comparison between these 2 brokers. the fees incurred if i were to perform quarterly DCA on SC would be $149.18 + $60 (opportunity cost from withholding money) = $209.18, against monthly DCA on IBKR at $177.54. this would mean that i will be better off to perform monthly DCA on IBKR yea?

 

[24thchromosome]

Gentlemen, does this make sense?

Currently on "ST's standard package" for one of my portfolio:
- 65% equities (VWRA 50% + ES3 50%)
- 35% bond (A35)

i) Planning to switch out ES3 with CSPX since mostly likely not retiring in SG.

ii) Contemplating if I should also switch out A35 to ICBC CSOP FTSE Chinese Govt Bond Index ETF
A35 div yield is around 1.9% while this is around 2.98% (not too sure since they are very new and only give out dividend once)
Credit rating A+ vs AAA doesn't make much of a difference. What are your thought?

iii) While VWRA is already as diversified as can be, I am still inclined to put more weight on US (hence CSPX) and also China. Which of these China specific ETFs has anyone invested in or would you recommend?

• (2801HK)
  iShares Core MSCI China ETF
• (CNYA)
  iShares MSCI China A ETF
• (3188.HK) ChinaAMC CSI 300 Index ETF

Also planning to shift the weightage to a more aggressive allocation despite my age. Given my risk appetite I can stomach over 50% drawdown:
- 80% equities (VWRA 20% + CSPX 30% + china etf 30%)
- 20% an alternative bond etf

Is there any website that can perform backtesting using historical data on these changes? Both etf.com and justetf have their own limitation though.

Thanks a bunch!

 

[cassowary18]

point noted! opting for IBKR and investing on a monthly basis without incurring any additional costs (beyond USD$10) would be a compelling point.

anyway, i have also keyed my inputs on cflee's spreadsheet to draw comparison between these 2 brokers. the fees incurred if i were to perform quarterly DCA on SC would be $149.18 + $60 (opportunity cost from withholding money) = $209.18, against monthly DCA on IBKR at $177.54. this would mean that i will be better off to perform monthly DCA on IBKR yea?

Don't forget that you can also buy your SG ETFs on IBKR now.

 

[orangbulu]

Don't forget that you can also buy your SG ETFs on IBKR now.

Other than buying SGX listed equities, is there a reason to switch from IBKR LLC to SG? I already hit the 100K USD requirement to avoid the activity fee.

 

[peipei1]

Other than buying SGX listed equities, is there a reason to switch from IBKR LLC to SG? I already hit the 100K USD requirement to avoid the activity fee.

It is better to stick with IBKR LLC!
Hit me up if anyone needs a IBKR LLC referral

 

[BBCWatcher]

Gentlemen, does this make sense?

No.

Currently on "ST's standard package" for one of my portfolio:
- 65% equities (VWRA 50% + ES3 50%)
- 35% bond (A35)

i) Planning to switch out ES3 with CSPX since mostly likely not retiring in SG.

OK, but are you planning to retire in the United States? If not, if you have no clue where you'll retire, and if "no clue" is actually a viable plan, then just reallocate into VWRA.

ii) Contemplating if I should also switch out A35 to ICBC CSOP FTSE Chinese Govt Bond Index ETF
A35 div yield is around 1.9% while this is around 2.98% (not too sure since they are very new and only give out dividend once)
Credit rating A+ vs AAA doesn't make much of a difference. What are your thought?

First of all, I prefer MBH if you want a long-term Singapore dollar bond fund, and assuming you're not a U.S. person. However, if "no clue" is really your retirement destination, then you might prefer an international bond fund such as CRPA. The specific ETF you describe is basically a punt on China's currency more than anything. With the possible exception of planned retirement in mainland China, you should steer well clear of that particular ETF.

iii) While VWRA is already as diversified as can be, I am still inclined to put more weight on US (hence CSPX) and also China. Which of these China specific ETFs has anyone invested in or would you recommend?

Please, no, just don't. Let the global index work its magic, and it will. You really, really don't have to second guess the global index, except when you want to overweight a particular retirement destination, albeit increasingly imperfectly. You're just adding cost when you do that, and you're probably going to be wrong -- or at least most unlikely to be much more right than the global index will be.

Too many in your parents' or grandparents' generation made this mistake with "JAPAN!" Friends don't let friends overweight any geography's stock markets without good cause, and "I think CHINA is great" isn't good cause. I'll say it before and I'll say it again: currently the world's most valuable and successful Chinese company is...Apple. And I'm not really joking.

As for easing into a more aggressive posture (from 65-35 to 80-20) in terms of your stocks-bonds mix, I have no objection as long as you're more than 10 years away from retirement.

 

[streetfighter]

Invest more in where the growth is make sense to me. I sold all my US stocks last year & bought into China ETF, so far up more than CSPX.

Gentlemen, does this make sense?

Currently on "ST's standard package" for one of my portfolio:
- 65% equities (VWRA 50% + ES3 50%)
- 35% bond (A35)

i) Planning to switch out ES3 with CSPX since mostly likely not retiring in SG.

ii) Contemplating if I should also switch out A35 to ICBC CSOP FTSE Chinese Govt Bond Index ETF
A35 div yield is around 1.9% while this is around 2.98% (not too sure since they are very new and only give out dividend once)
Credit rating A+ vs AAA doesn't make much of a difference. What are your thought?

iii) While VWRA is already as diversified as can be, I am still inclined to put more weight on US (hence CSPX) and also China. Which of these China specific ETFs has anyone invested in or would you recommend?

• (2801HK)
  iShares Core MSCI China ETF
• (CNYA)
  iShares MSCI China A ETF
• (3188.HK) ChinaAMC CSI 300 Index ETF

Also planning to shift the weightage to a more aggressive allocation despite my age. Given my risk appetite I can stomach over 50% drawdown:
- 80% equities (VWRA 20% + CSPX 30% + china etf 30%)
- 20% an alternative bond etf

Is there any website that can perform backtesting using historical data on these changes? Both etf.com and justetf have their own limitation though.

Thanks a bunch!