Official Shiny Things thread Episode V, The Empire Strikes Back

[highsulphur]

Hello. I am currently using Interactive Brokers LLC to purchase the IWDA ETF and POSB Invest Saver for the A35 and STI ETF but would like to start using IBKR for the latter. I read long ago in this thread that I need to use IBKR SG in order to purchase SG ETFs. I was wondering if this is still recommended.

I am also unsure on how to perform this change and so was hoping someone could advise. Lastly, will I be able to continue purchasing IWDA/VWRA ETFs with the SG account?

You can open IB sg separately. Yes you can buy iwda etc on IB sg

 

[revhappy]

Has anyone considered NTSX ETF? It is 90/60 allocation to S&P500/7 yr treasury bonds. So basically leveraging 60/40 by 1.5x.

Apparently it is more capital efficient. Instead of using 150k for example, you can use only 100k and get the effect of 150k worth of 60/40.

Now that bond are providing a decent yield, NTSX could be a good replacement for S&P500

 

[BBCWatcher]

NTSX is a U.S. domiciled fund, so there are tax disadvantages for non-U.S. persons living in Singapore.

 

[DevilPlate]

Hmm I am thinking of TLT for short term 1-2yr potential capital gain.

personally overseas dividend not attractive after taxation.

 

[BBCWatcher]

Hmm I am thinking of TLT for short term 1-2yr potential capital gain.
personally overseas dividend not attractive after taxation.

Again, TLT is a U.S. domiciled fund. If you’re a U.S. person or can take advantage of a tax treaty, OK, fair enough. But if you’re a non-U.S. person in Singapore then wouldn’t you choose Irish domiciled/London listed IDTL or DTLA if you want to place this sort of bet?

 

[RuiQi_91]

You can open IB sg separately. Yes you can buy iwda etc on IB sg

Thank you. I would like to have only 1 account in order to keep things convenient and simple. Other than losing SIPC protection, there are no notable cons to having an IB SG account right?

 

[highsulphur]

Thank you. I would like to have only 1 account in order to keep things convenient and simple. Other than losing SIPC protection, there are no notable cons to having an IB SG account right?

I am not sure. I kept the IBKR and didn't use it for sg stocks.

 

[BBCWatcher]

Thank you. I would like to have only 1 account in order to keep things convenient and simple. Other than losing SIPC protection, there are no notable cons to having an IB SG account right?

There’s a short list of other cons, or potential cons. As examples, at last report IB Singapore accounts cannot be joint, commissions and fees are subject to GST (i.e. higher), margin interest rates are higher, and fewer inbound currencies/deposit countries are available. Of course the primary (perhaps only) disadvantage with an IB U.S. account is that residents of Singapore cannot use it to trade SGX-listed securities.

I think the IB U.S. accounts are slightly better on balance, if you have a choice, but they’re both good.

 

[revhappy]

Just curious, people who have been doing DCA into MBH, are you guys doing any major rebalancing to buy the current cheap levels?

High yield accounts are offering 5% although there isnt much visibility of these high rates staying beyond 4 months.

So what do we do? Lock in or wait it out. Decisions, decisions

 

[DevilPlate]

Just curious, people who have been doing DCA into MBH, are you guys doing any major rebalancing to buy the current cheap levels?

High yield accounts are offering 5% although there isnt much visibility of these high rates staying beyond 4 months.

So what do we do? Lock in or wait it out. Decisions, decisions

lets decide after Fed meeting tonight

 

[BBCWatcher]

lets decide after Fed meeting tonight

And then wait for the next one? And the next one? And the one after that?

MBH is a long-term (conservative) vehicle, not a short-term one. So if this vehicle makes sense, go for it, now. Start up your dollar cost averaging today!

 

[DevilPlate]

And then wait for the next one? And the next one? And the one after that?

MBH is a long-term (conservative) vehicle, not a short-term one. So if this vehicle makes sense, go for it, now. Start up your dollar cost averaging today!

DCA work very well over a long period of time and a good strategy for young graduates building up savings/wealth.

however, it is not applicable for me. some may suggest splitting up funds over 12 months period but imo it may not help much lol.

im also waiting for 10yr SGS bonds (Jan 2023) in the meantime.

 

[revhappy]

And then wait for the next one? And the next one? And the one after that?

MBH is a long-term (conservative) vehicle, not a short-term one. So if this vehicle makes sense, go for it, now. Start up your dollar cost averaging today!

I have bad memories of how MBH behaved in 2020 Mar, right when we wanted to sell it and buy stocks, this thing crashed.

Then again this year when stocks crashed, this dog of an instrument crashed with it.

My comment was mainly a pulse check to see how the DCA guys here are doing. Don't think anyone really wants to talk about it, lol.

 

[DevilPlate]

I have bad memories of how MBH behaved in 2020 Mar, right when we wanted to sell it and buy stocks, this thing crashed.

Then again this year when stocks crashed, this dog of an instrument crashed with it.

My comment was mainly a pulse check to see how the DCA guys here are doing. Don't think anyone really wants to talk about it, lol.

In theory it should behave like TLT etf but sadly it didn’t. Even A35 went down together with the market crash in 2020.

 

[BBCWatcher]

Why is that a problem if you’re buying? Aren’t discounts good for buyers?

I don’t complain when both apples and milk are on sale at Fairprice.

 

[revhappy]

Why is that a problem if you’re buying? Aren’t discounts good for buyers?

I don’t complain when both apples and milk are on sale at Fairprice.

If you read bogleheads, many people have abandoned bonds allocation altogether. They are debating, if bonds also fall as much as equities might as well hold 100% equities. There are others who are saying they are replacing their bond allocation with stable value funds.

I am pretty sure people here too have the same views.

 

[BBCWatcher]

If you read bogleheads, many people have abandoned bonds allocation altogether. They are debating, if bonds also fall as much as equities might as well hold 100% equities. There are others who are saying they are replacing their bond allocation with stable value funds.

That doesn’t mean they’re correct. Bonds and stocks aren’t always negatively correlated. We already knew that, and that wasn’t and isn’t a problem.

Again, what’s wrong with a double discount? How’s that a bad thing? Seems like a good thing!

 

[bagyidaw]

what is the experts here opinion on buy&hold vs rebalance strategy?
Rebalance could be either calendar based or weight.

 

[highsulphur]

what is the experts here opinion on buy&hold vs rebalance strategy?
Rebalance could be either calendar based or weight.

I admit I don't rebalance as I'm constantly buying. I have just been buying equity ETFs for the last 2 years. This year has been painful but I'm hoping it's the right decision in 10 years time when I retire

 

[revhappy]

I am going to run a DCA experiment for the next 1yr.
I have 100k SGD in high yield savings account.
I plan to do weekly DCA for 50 weeks.
DCA amount 1k each split into the below 2 funds with Endowus

• Dimensional Global Core Equity Fund
• UOB United SGD Fund

So in 50 weeks I would have deployed 50k each in the above funds.

This is the 1st time ever I am attempting a systematic DCA.