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Old 13-09-2018, 11:21 AM   #631
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For those of you non-U.S. persons buying (or interested in buying) the popular Blackrock iShares global developed markets stock index fund IWDA, domiciled in Ireland and traded in London, have you looked at Lyxor's equivalent fund LCWD, also quoted/listed in U.S. dollars? LCWD (and its British pound currency sibling LCWL) debuted in February, 2018. LCWD/LCWL is domiciled in Luxembourg which appears to offer the same tax characteristics as Ireland. It's also traded in London, also tracks the same MSCI index, also accumulating, but its major appeal is that it has a much lower 0.12% total expense ratio versus IWDA's 0.20%.

How's the bid-ask spread and trading volume looking? Could LCWD or LCWL offer some better value than IWDA?
oh, thanks for the heads up!

Last edited by Listopad; 13-09-2018 at 11:29 AM..
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Old 13-09-2018, 11:44 AM   #632
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Answering my own question, LCWD/LCWL look like they have too little volume so far. I also checked Paris and Frankfurt, and the volumes there are low, too.

VEVE, Vanguard's non-accumulating global developed markets stock index fund, looks a little better in terms of volume, and it has a 0.18% expense ratio. But I'd definitely like to see more volume.

Supposedly Fidelity introduced some low cost Irish domiciled ETFs, but I cannot find them listed yet. They were announced in April.
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Old 13-09-2018, 01:01 PM   #633
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Recent Minor Adjustments

I've been running the same basic savings/investing "program" for many, many years. Hopefully that'll continue for many years to come. However, I have made a couple minor tweaks to keep the program running according to plan:

1. Broker adjustment. For U.S. persons, Fidelity is currently winning the fund price war with their radically awesome FZROX and FZILX mutual funds. FZROX and FZILX have zero management fees, zero trading fees, zero custody fees, $1 minimum to open, $1 increment, zero cost automatic dividend reinvesting.... zero across the board. That works great for me, so Fidelity is getting the bulk of my monthly savings inflow.

I'm holding all current positions at Schwab for the long-term, and Vanguard is still getting a good portion of monthly inflow.

2. Funding account adjustment. U.S. interest rates have been rising, and that has resulted in some selectively better interest rate offers from U.S. banks and U.S. credit unions. So I've slightly tweaked the funding account arrangement for monthly investments in order to get some better interest.

3. U.S./Ex-U.S. mix adjustment. As we all know, the U.S. stock markets have been on an incredible run since the depths of the Global Financial Crisis nearly 10 years ago. Stock markets outside the United States have generally not done as well over that same period. I like to keep the U.S./ex-U.S. allocation within "reasonable equilibrium." Consequently I've made a little adjustment to the inflow, shifting some of the U.S. stock inflow over to the ex-U.S. stock inflow side. I'll keep an eye on how that goes over the next few months.

What next? "Do nothing" is perfectly fine, but here are some at-the-margin ideas I'm pondering:

a. Over the next few months I'm considering raising my monthly savings amount. When I think a new, higher monthly savings amount is long-term sustainable, I increase that inflow number.

b. A small percentage of my total stock holdings is in individual stocks, and I'm looking for reasonable opportunities to sell some of those individual stocks in favor of broader funds.

c. Supplementary Retirement Scheme (SRS) accounts are not terrific for U.S. persons, but I'm taking another look at whether I should get more interested in SRS.
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Old 13-09-2018, 01:57 PM   #634
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Hi BBCWatcher,

I did a discussion with my mum on the available options and cost. She is leaning towards selling via Computershare Australia though it comes with a much higher fee. It seem like the most direct and simple solution to her.

Thanks for your suggestions and help in this forum!
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Old 13-09-2018, 02:01 PM   #635
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Answering my own question, LCWD/LCWL look like they have too little volume so far. I also checked Paris and Frankfurt, and the volumes there are low, too.

VEVE, Vanguard's non-accumulating global developed markets stock index fund, looks a little better in terms of volume, and it has a 0.18% expense ratio. But I'd definitely like to see more volume.

Supposedly Fidelity introduced some low cost Irish domiciled ETFs, but I cannot find them listed yet. They were announced in April.
Isn't there a market maker that will provide liquidity for the lyxor funds?
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Old 13-09-2018, 03:34 PM   #636
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Isn't there a market maker that will provide liquidity for the lyxor funds?
Probably, but where I can see bid-ask spreads they're still pretty wide.
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Old 13-09-2018, 06:08 PM   #637
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Bid-ask spread is like 33 bp for LCWD vs 3bp for IWDA...
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Old 13-09-2018, 07:40 PM   #638
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Bid-ask spread is like 33 bp for LCWD vs 3bp for IWDA...
So is the current 8 basis points/year ongoing management charge savings worth the wider bid-ask spread? Probably, but I’d still feel more comfortable seeing some better trading volume.
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Old 13-09-2018, 08:43 PM   #639
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I've been running the same basic savings/investing "program" for many, many years. Hopefully that'll continue for many years to come. However, I have made a couple minor tweaks to keep the program running according to plan:

1. Broker adjustment. For U.S. persons, Fidelity is currently winning the fund price war with their radically awesome FZROX and FZILX mutual funds. FZROX and FZILX have zero management fees, zero trading fees, zero custody fees, $1 minimum to open, $1 increment, zero cost automatic dividend reinvesting.... zero across the board. That works great for me, so Fidelity is getting the bulk of my monthly savings inflow.

I'm holding all current positions at Schwab for the long-term, and Vanguard is still getting a good portion of monthly inflow.

2. Funding account adjustment. U.S. interest rates have been rising, and that has resulted in some selectively better interest rate offers from U.S. banks and U.S. credit unions. So I've slightly tweaked the funding account arrangement for monthly investments in order to get some better interest.

3. U.S./Ex-U.S. mix adjustment. As we all know, the U.S. stock markets have been on an incredible run since the depths of the Global Financial Crisis nearly 10 years ago. Stock markets outside the United States have generally not done as well over that same period. I like to keep the U.S./ex-U.S. allocation within "reasonable equilibrium." Consequently I've made a little adjustment to the inflow, shifting some of the U.S. stock inflow over to the ex-U.S. stock inflow side. I'll keep an eye on how that goes over the next few months.

What next? "Do nothing" is perfectly fine, but here are some at-the-margin ideas I'm pondering:

a. Over the next few months I'm considering raising my monthly savings amount. When I think a new, higher monthly savings amount is long-term sustainable, I increase that inflow number.

b. A small percentage of my total stock holdings is in individual stocks, and I'm looking for reasonable opportunities to sell some of those individual stocks in favor of broader funds.

c. Supplementary Retirement Scheme (SRS) accounts are not terrific for U.S. persons, but I'm taking another look at whether I should get more interested in SRS.
What you mean by raising monthly savings amount ? Do you mean increasing cash savings or u meant saving more of ur disposable income , & vest in the markets ?
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Old 13-09-2018, 10:11 PM   #640
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What you mean by raising monthly savings amount ? Do you mean increasing cash savings or u meant saving more of ur disposable income , & vest in the markets ?
I have the happy problem of cash that’s piling up a little too quickly, so I’m considering whether I should adjust the “flow valve” such that I’m investing $X more per month within the same long running program.
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Old 14-09-2018, 10:30 AM   #641
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Looking at the recent low price of SG stocks, have I made a mistake of having 90k in my CPF at 26 years old instead of investing in stocks?

Sent from . using GAGT
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Old 14-09-2018, 02:49 PM   #642
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For those of you non-U.S. persons buying (or interested in buying) the popular Blackrock iShares global developed markets stock index fund IWDA, domiciled in Ireland and traded in London, have you looked at Lyxor's equivalent fund LCWD, also quoted/listed in U.S. dollars? LCWD (and its British pound currency sibling LCWL) debuted in February, 2018. LCWD/LCWL is domiciled in Luxembourg which appears to offer the same tax characteristics as Ireland. It's also traded in London, also tracks the same MSCI index, also accumulating, but its major appeal is that it has a much lower 0.12% total expense ratio versus IWDA's 0.20%.

How's the bid-ask spread and trading volume looking? Could LCWD or LCWL offer some better value than IWDA?
I asked this a while ago on Shiny's thread.

No idea about the trade volume. But do Luxembourg and Ireland really have similar tax characteristics?
- http://taxsummaries.pwc.com/ID/Luxem...hholding-taxes suggests that they levy 15% DWT to Singaporeans.
- Not sure how to interpret http://taxsummaries.pwc.com/ID/Luxem...-determination , whether there are capital gains or investment income taxes for us..
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Old 14-09-2018, 03:24 PM   #643
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Hi BBCW,

1) I have recently sold some US stocks USD70K in TD Ameritrade and like to buy US ETFs on this platform.
- Do you have any recommendations on their ETFs please?

2) My FDs about SGD300K is maturing soon. I plan to:
- SGD200k buy ETFs from SCB platform eg IWDA, EIMI.
- top up SGD100k in my OA/SA account. (I am in my early 50s and have low balance in my CPF. House is fully paid).

Please advise. Thanks very much.
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Old 14-09-2018, 03:43 PM   #644
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Looking at the recent low price of SG stocks, have I made a mistake of having 90k in my CPF at 26 years old instead of investing in stocks?
If $60K of that is in your MA and/or SA, you're earning 5% on that money. What's not to like about that?

If the Singapore stock market is now looking "low" to you -- and how do we really know? -- then OK, direct some savings flow into ES3 if you want.

1) I have recently sold some US stocks USD70K in TD Ameritrade and like to buy US ETFs on this platform.
- Do you have any recommendations on their ETFs please?
Are you a U.S. person?

Let's assume you are not. TD Ameritrade doesn't offer any access to non-U.S. markets, and that's a problem since any of the stock funds you could buy in the U.S. markets will be subject to 30% dividend tax withholding rather than the more favorable rate available in other jurisdictions. So you'd probably want a fund that pays low or zero taxable dividends. Bond funds fit that profile, as one example.

Odd question, though. What's your goal?
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Old 14-09-2018, 08:15 PM   #645
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Something I haven't understood:

why are most recommendations about investing in ETFs? Sure the risk profile or time frame of some people would indicate that they can invest in sectoral or other equity funds? I get the bit about funds domiciled in Ireland and Luxembourg.
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