Buying china A50 ETF

[limster]

lets take 2 hypothetical portfolios (for ease of reference lets just focus on equity for now)

A: 50% MSCI World, 50% STI

B: 40% MSCI World, 40% STI, 20% MSCI Golden Dragon Index (Greater China)

I frankly don't see anything terrible about B over A. My own assessment is that B is better (and you can also back-test China's performance vs STI and MSCI World) but each one has to DYODD.

US markets have had a huge run-up and were positive last 4 out of 5 weeks. surely time to take some money off the table and consider putting it another market?

The important thing about investing is to get started and invest in a disciplined manner with a strategy consistent with your risk profile, or will you be someone who missed the great GFC sale, and then missed the great COVID19 sale, because you spend your time focusing on negative news on CNBC?

Hint: Both A and B will outperform the 'put money in milo tin and wait for the crash' strategy (the market has just crashed and some still waiting for crash???)

 

[celtosaxon]

Why do u choose to follow the proportion and keep it less than 10%?

U r into the theory of diversifying based on world index ??

I’m thinking to have more than 10% like about 50% of my portfolio

Not exactly. I’ve always been overweight in Asia, even though it has put a drag on my returns over the past 20+ years. I’d like to think it will boost my returns for the next 20. One can always dream.

I’m not a fan of European and Japanese equities, and have zero exposure to both. I’ve had over a decade experience with them, but became convinced many years ago that they will continue to underperform into the foreseeable future.

Despite higher valuations and recent volatility in U.S. equities, that has been the single largest driver of my returns, especially over the past decade. I can understand why people are skeptical these days, but many of the world’s largest, most innovative and admired companies are based there.

 

[chrisloh65]

Make sense. For me, I shift my portfolio depending on whether a market is over-valued or under-valued (my way of "re-balancing").
I used to have a very large % in US market bought when they were very cheap (in 2009), but now I have 0% in US market (sold all in 2019).
On the other hand, I have kept my % investment in China steady (never sold any since buying in 2009).
I also have some European stocks, but I have negligible investment in Singapore local stocks.

lets take 2 hypothetical portfolios (for ease of reference lets just focus on equity for now)

A: 50% MSCI World, 50% STI

B: 40% MSCI World, 40% STI, 20% MSCI Golden Dragon Index (Greater China)

I frankly don't see anything terrible about B over A. My own assessment is that B is better (and you can also back-test China's performance vs STI and MSCI World) but each one has to DYODD.

US markets have had a huge run-up and were positive last 4 out of 5 weeks. surely time to take some money off the table and consider putting it another market?

The important thing about investing is to get started and invest in a disciplined manner with a strategy consistent with your risk profile, or will you be someone who missed the great GFC sale, and then missed the great COVID19 sale, because you spend your time focusing on negative news on CNBC?

Hint: Both A and B will outperform the 'put money in milo tin and wait for the crash' strategy (the market has just crashed and some still waiting for crash???)

 

[czhmech]

Hi, is there an ETF for the Greater China market?

lets take 2 hypothetical portfolios (for ease of reference lets just focus on equity for now)

A: 50% MSCI World, 50% STI

B: 40% MSCI World, 40% STI, 20% MSCI Golden Dragon Index (Greater China)

I frankly don't see anything terrible about B over A. My own assessment is that B is better (and you can also back-test China's performance vs STI and MSCI World) but each one has to DYODD.

US markets have had a huge run-up and were positive last 4 out of 5 weeks. surely time to take some money off the table and consider putting it another market?

The important thing about investing is to get started and invest in a disciplined manner with a strategy consistent with your risk profile, or will you be someone who missed the great GFC sale, and then missed the great COVID19 sale, because you spend your time focusing on negative news on CNBC?

Hint: Both A and B will outperform the 'put money in milo tin and wait for the crash' strategy (the market has just crashed and some still waiting for crash???)

 

[Kaypohji]

Which market did u shift your portfolio to ?
Usa is the only market that has high growth and high return

In terms of asset allocation based on market cap, you have to be careful because it means the more over-valued a market is, the higher their market cap and higher weightage you would give it. I personally do the reverse, and avoid over-crowded trades (just like limster), hence I now have 0% exposure to US stock market since US stock market is now a GARGANTUAN bubble!

 

[Kaypohji]

Where to check the traded volume of an etf ?

My concern is the very low liquidity with 3169.
You just look at the traded volumes now: 3169 = 58k
2822 = 4868k.

The spread you are paying for 2822 is going to be much lower buying 2822 than 3169, and also easier to sell at good price when you want to get out.

Obviously 3169 benefit is lower fee, but I prefer 2822 (despite higher fee).

 

[chrisloh65]

Shifted some to bonds and the rest FDs.

On USA market, there is no more high growth and high return with the gargantuan over-price USA stock market! All those so called high growth are already priced in, so no more high return. Furthermore, the assumed high growth may not materialize, setting these stocks for possible crash in future (example if US-China decouples).
Better wait for better opportunity!

Which market did u shift your portfolio to ?
Usa is the only market that has high growth and high return

 

[chrisloh65]

Can use Yahoo Finance, example:

https://sg.finance.yahoo.com/quote/2822.HK

Where to check the traded volume of an etf ?

 

[Kaypohji]

Thanks for your help and insights!

Is inverse etf a good idea ? Which bond etf is recommended ?

Can use Yahoo Finance, example:

https://sg.finance.yahoo.com/quote/2822.HK

 

[chrisloh65]

Not sure about inverse etf as never played before.

What currency bond etf you are looking at?

Thanks for your help and insights!

Is inverse etf a good idea ? Which bond etf is recommended ?

 

[Kaypohji]

I’m hoping to find one that consists of the global developed market. If it’s a global bond etf, currency wouldn’t matter ? Cause it consists a lot of currency. I am not sure if there’s such thing

If I have to pick a country, I’m thinking usd... I read that feds had bought some bonds etf last month... and I think USA companies for corporate bonds r safer... or even treasury bills. But I believe Uk or Australia etc r good too. But not developing countries.

Any insights? I am not familiar with bonds but would like to get some to form my porfolio. But I’m not interested in sg ones

And I’m seeing japan, Germany etc have negative bond yield ???

Not sure about inverse etf as never played before.

What currency bond etf you are looking at?

 

[chrisloh65]

No point buying Global bonds because those from Japan and Germany has negative bond yields, so dragging down the overall yield.

USD-traded bonds, you can go for IBTA (Gov) or SDIA (Corp) listed in London.
But USD bonds are experiencing declining yields as well, so I foresee future is likely to be bleak. Anyway, buy bonds just for short-term, don't leave there long-term because your money will keep depreciating in value over the long term.

I’m hoping to find one that consists of the global developed market. If it’s a global bond etf, currency wouldn’t matter ? Cause it consists a lot of currency. I am not sure if there’s such thing

If I have to pick a country, I’m thinking usd... I read that feds had bought some bonds etf last month... and I think USA companies for corporate bonds r safer... or even treasury bills. But I believe Uk or Australia etc r good too. But not developing countries.

Any insights? I am not familiar with bonds but would like to get some to form my porfolio. But I’m not interested in sg ones

And I’m seeing japan, Germany etc have negative bond yield ???

 

[czhmech]

Anybody holding ishares MSCI all country Asia ex japan ETF??

Would this be a good replacement for EIMI?

 

[Kaypohji]

let me compare the details further and update u when I have the time...

Would this be a good replacement for EIMI?

 

[celtosaxon]

Would this be a good replacement for EIMI?

You might want to consider London listed IDFF, based on MSCI All Country Far East Ex-Japan Index (or IFFI if you prefer the accumulating version).

The main difference versus AC Asia Ex-Japan is India is not included in the Far East.

Note that this index includes some exposure to Singapore, so you may need to consider that if you have other Singapore exposure.

 

[Shiny Things]

I’m hoping to find one that consists of the global developed market. If it’s a global bond etf, currency wouldn’t matter ? Cause it consists a lot of currency. I am not sure if there’s such thing [...]

And I’m seeing japan, Germany etc have negative bond yield ???

I don't think foreign-currency bonds are a particularly good idea. Yields are low (as you noticed - you'd be buying negative-yielding bonds from Europe, Switzerland, Japan, etc etc); and you have a whole lot of FX risk. If the SGD appreciates against other currencies, you'll lose money on this bet.

 

[xinheli]

About China ETF

I find for the same index "MSCI China NR", we have
MCHI in US
2801 in HK
LG9 in SGX
Almost the same full-size and same Expense Ratio.

So which one is good?

Also Singaporean need pay 30% tax for MCHI dividend?

Thanks.