I also STI Index like G3B have lower return compare with the actual STi index
it is like 2 to 3% only
The only difference between G3B/ES3's returns, and the STI-plus-dividends index, is the 0.3-ish-percent-per-year management fee.
Thanks! How do the currency conversion costs compare between those brokers?
Stanchart typically takes about 0.5% on a SGD-to-USD conversion, and another half a percent on the return leg. IB's spreads are basically zero.
Hi Guys,
May i ask if anyone knows how does IB fx rate compared to Transferwise? Anyone tried before? Thank you.
Transferwise is typically good, but IB is better.
i was searching for other Ireland domiciled ETFs and noticed VUSD (Vanguard S&P 500 UCITS ETF).
How does this compare to IWDA? seems like holdings are very similar but VUSD has a much lower mgmt fee and expense ratio.
They're different things. VUSD only owns US stocks; IWDA holds stocks from all across the world.
You don't want VUSD, because you're giving up on the diversification benefits of owning European, Japanese, Australian, etc etc etc stocks.
Thanks again for the clarification
it puzzles me as to why Singaporeans invest in those overseas/US-listed ETFs with that 30% withholding tax.
is there any recommended source for identifying the UK-listed equivalent of US-listed ETFs?
also, what's your thoughts on robo-advisors?
1) Me too. I think it's just that people don't realise the DWT hit exists, because divs in Singapore are almost always tax-free, and the assumption is that that's the same everywhere else.
2) Not really. The only good way is to go to the websites for Vanguard UK, iShares UK, and State Street UK, and hunt for it yourself.
3) Roboadvisors are generally a very good thing! They make it a lot easier to "set and forget" your investments, which is the right way to do it; and they handle all the rebalancing and everything for you. My problem with Singaporean roboadvisors is that they never get it quite right: either their fees are too high, or they use US-listed ETFs for no clear reason, or they get something else wrong. I keep saying this, but if any enterprising person wants to start a
good roboadvisor, call me and I'll consult for you.
Hi Shiny Things, thanks for the reply. Was looking forward to that reply.
Is it a good idea in general to lend securities? Say on interactive brokers, lending my IWDA. What are the risks involved for that extra interest (which is quite very tasty btw)
The only risk is that the borrower blows up (very rare) and they can't return the shares (even rarer). If that happens, though, you have security, because the borrower has to give you cash collateral equal to about 102% of the loan... so if they blow up, you get to keep the cash instead.
Understood!
Will buying US ETFs and then going stock yield enhancement earn me more than buying an equivalent overseas ETF with 15% DWT?
Uhh... almost certainly not, because your stocks aren't going to be loaned out all the time, or even most of the time.
For comparison: I make about 0.2% a year on stock loan across my whole portfolio, and I'm deliberately picking ETFs to maximise my stock loan revenue. The DWT discount on an Irish ETF paying 2%/yr in divs is worth 0.3%.
1) You have advised me to sell some of my SG stock and buy global stock.
May I know what is the "ideal" allocation for the stocks?
2) I am confuse between the 2.
Right now, I have been trying to set aside a portion of my salary for savings and another portion for investment.
I have read it somewhere that one should have an estimated 6month equivalent of expense as emergency fund.
If that is the case, does anything above 6 month count as emergency or can they be used as retirement fund?
I was planning to use it as a retirement fund.
Does it seem too little for an emergency fund or is my concept not advisable and ideal?
3) What is MBH?
1) If you're planning to retire in Singapore, I think the right balance is 50-50 between Singapore stocks and global stocks; that gives you plenty of diversification without taking too much risk of the SGD strengthening against you.
2) Anything above six months' expenses, you can chuck into your retirement fund. You don't need, or want, to keep too much in cash.
3) MBH is an exchange-traded fund that owns Singapore-dollar-denominated corporate bonds. It's a relatively safe bond investment, that gives you more yield than Singapore government bonds, and is easy to buy and sell.
What do you think of this strategy?
Say i have 30k USD. Split 90% 10% IWDA and EIMI purchase through LSE.
First I will do a lumpsome of 10k
Then I will DCA 2k every month, buying IWDA and EIMI alternately( to balance the ratio ) to save on the transaction fees.
It's "lump sum". I'm not a prescriptivist but even I have limits.
Anyway, I think that's a bit too slow - you're spreading your purchases over almost a year. I'd do, say, $5k a month over six months; five months IWDA, one month EIMI. Don't think too hard about it.
