*Official* Shiny Things club - Part 2

[fmradio]

What’s the ratio for iwda and vwrd then ? Or just 100% into either is better ?

 

[CWL84]

You have to pick one or the other. Both are globally diversified ETFs. Only differences are, IWDA do not hold stocks from emerging markets (eg. China, Taiwan, India) but it accumulates and reinvests the dividends for you. VWRD has emerging markets stocks but it distributes dividends to you.

 

[Johnlinn]

Transfer sgd from dbs/maybank to Interactive Brokerage

Can anyone advise on how to transfer sgd from dbs/maybank to Interactive Brokerage?

I tried to Add other bank receipient', I key in the Account Name, Account ID (which is my interactive broekrage account ID without the 'U'), and choose citibank bank code, but the transfer is unsuccessful.

thanks alot!

 

[hengah_ongah]

Just wondering if it is naive to think that reits with strong sponsor will never collapse?
Ascendas reit, capitaland mall or mapletree reits etc. By the rule of 72, it would take much faster to double my money as compared to investing in an etf of about 3% div yield?

Is it because e reits market has been going strong for so long that people/I have this fallacy that the yield is almost risk free?

 

[CWL84]

Can anyone advise on how to transfer sgd from dbs/maybank to Interactive Brokerage?

I tried to Add other bank receipient', I key in the Account Name, Account ID (which is my interactive broekrage account ID without the 'U'), and choose citibank bank code, but the transfer is unsuccessful.

thanks alot!

Did you initiate a wire deposit transfer from IBKR first? If you did, they will give you the instructions to set up the transfer.

Recipient's bank: Citibank NA, SWIFT code: CITISGSGXXX Recipient's account number is IBKR's citibank account number, not your IBKR account ID. Enter your IBKR account ID(with the U) and your name under the "Comments/Message for recipient".

 

[Calpha K]

ST's recommendation? When your portfolio is 6-digit.

Right, but since stocks tend to go up in the long run, wouldn't I be purchasing them more expensive in the future than if I were to start buying now?

 

[bobobob]

Right, but since stocks tend to go up in the long run, wouldn't I be purchasing them more expensive in the future than if I were to start buying now?

But if you put all your money into buying iwda instead of splitting it between iwda and eimi, you would be buying more iwda.

Iwda will appreciate in price too, so the money you spend on eimi now could have been used to buy more iwda, and you will have to buy that iwda at a more expensive price later on.

 

[fixture]

Hi guys. Have created and funded my IBKR account with 25,000GBP. Have another 10,000GBP ready to transfer as well.

I am under 25 UK passport living in Singapore on a Student's pass. If all goes well my bachelor's course ends early 2020. I would then like to study in the Netherlands or Europe for my master's (1 year). I have several questions.

Interested in buying GBP denominated IWDA + EIMI. Unsure how to most effectively invest this 35,000 sum in order to reduce fees and risk. DCA? 5K per month? Do I even bother with EIMI before accumulating a larger portfolio when I am earning income?

Is there any punishment for holding large sums of cash in your IBKR account? What is considered a large sum?

If I go to live in somewhere like the Netherlands for 1 year to study, I am assuming I will need to update my tax residency and W8BEN form. Does anyone here know what the tax implications would be on my holdings of IWDA and EIMI?

 

[linuskltan]

You have to pick one or the other. Both are globally diversified ETFs. Only differences are, IWDA do not hold stocks from emerging markets (eg. China, Taiwan, India) but it accumulates and reinvests the dividends for you. VWRD has emerging markets stocks but it distributes dividends to you.

There's another option, other accumulating that tracks the MSCI ACWI index, which includes both developed and emerging markets exposure i.e.
1. iShares MSCI ACWI UCITS ETF (ISAC) - Expense ratio 0.60%
2. SPDR MSCI ACWI UCITS ETF (ACWD) - Expense ratio 0.40%
vs
Vanguard FTSE All-World UCITS ETF (VWRD) - Expense ratio 0.25%, distributing

 

[CWL84]

I'm sticking to IWDA but for thanks for that bit of info.

 

[af7680]

Hi
it has been some time since I purchase iwda ... now I want to buy more... but cost seems a bit different. wonder if there has been any changes.
fee usd 27.15 for order value usd 3074.5 - is it correct? thats what scb screen shows.

 

[Shiny Things]

Seems like I need to stop buying es3 and eimi and just buy iwda henceforth.

My ratio for ES3:IWDA:EIMI and 80:17:3

Couple of thoughts:
1) That's a REALLY heavy ratio of Singapore to global stocks. I think Singapore's a screaming buy but even I think that's too much ES3.
2) 3% of EIMI is just not worth it; it's not going to make any appreciable difference to your returns and it's just going to add transaction costs. Buy IWDA with that money instead.

In fact, a 3% allocation to anything in your portfolio is not worth it; the transaction costs will outweigh any benefit you might get. If your portfolio has lots of little 1-5% allocations, you're doing too much.

If I want to retire in Singapore, how should I incorporate singapore ETFs (ES3 and A35) to my portfolio?

In that case, am I right to open IB account for foreign stocks and SCB for sg stocks?

Yep.

Why do we not want exposure to Chinese Tech Stocks?

Because they’re all pretty darn expensive (34x earnings) and priced for perfection. At this point they’re trading on momentum.

Actually, yes the idea is to have exposure to BAT, they are all selling around 52 week low.

You should probably just buy them directly, then: BIDU US, BABA US, 700 HK (Tencent), pub. That’ll save you 70 bps per annum.

Take the ETF KWEB for example, it has
Current Management Fee of 0.68%
Expense Ratio of 0.7%

In this case, is expense ratio just 0.7% or 1.38%?

I’d normally say “the fund’s website is the best bet for this”, but it’s not clear from the website either! The fund’s factsheet says 0.81% with a fee waiver to bring it down to 0.72%, but it also says the fee waivers expired at the end of July. http://kraneshares.com/resources/factsheet/2018_06_30_kweb_factsheet.pdf

So… I honestly don’t know.

(talking about when to buy EIMI) Right, but since stocks tend to go up in the long run, wouldn't I be purchasing them more expensive in the future than if I were to start buying now?

You’re not leaving that money in cash, though. You’re just buying 100% IWDA, instead of 90% IWDA + a tiny allocation to EIMI.

What’s the ratio for iwda and vwrd then ? Or just 100% into either is better ?

IWDA vs VWRD is an either-or, not some of both. The two funds are basically identical, give or take dividends and the tiny allocation to emerging markets. Just pick one. I recommend IWDA because it means you don’t have to deal with little USD dividend cheques floating around.

Hi
it has been some time since I purchase iwda ... now I want to buy more... but cost seems a bit different. wonder if there has been any changes.
fee usd 27.15 for order value usd 3074.5 - is it correct? thats what scb screen shows.

Stanchart incorrectly adds a 0.5% stamp duty to its fee estimates for IWDA. When you get the actual trade confirmation, it should be a lot less, because there’s no stamp duty on IWDA.

Interested in buying GBP denominated IWDA + EIMI. Unsure how to most effectively invest this 35,000 sum in order to reduce fees and risk. DCA? 5K per month?

Will you need this money within a few years’ time, or are you comfortable locking it up until you retire?

Do I even bother with EIMI before accumulating a larger portfolio when I am earning income?

Nope. A proper allocation to EIMI in your portfolio would be about $1500. It’s really not going to make any appreciable difference to your returns. Just put that money into IWDA instead.

Is there any punishment for holding large sums of cash in your IBKR account? What is considered a large sum?

Ahh… yes, if it’s held in a negative-interest-rate currency. Usually they’re nice enough to apply zero interest rates to about the first $100k USD (the exact amounts are 11mio JPY, 100k CHF, 100k EUR, 750k DKK, or 850k SEK), but above those marks, they charge you interest on cash balances in those currencies.

Otherwise, you get paid interest just like any other bank account.

If I go to live in somewhere like the Netherlands for 1 year to study, I am assuming I will need to update my tax residency and W8BEN form. Does anyone here know what the tax implications would be on my holdings of IWDA and EIMI?

I’ll defer to BBCW on this one.

Can anyone advise on how to transfer sgd from dbs/maybank to Interactive Brokerage?

I tried to Add other bank receipient', I key in the Account Name, Account ID (which is my interactive broekrage account ID without the 'U'), and choose citibank bank code, but the transfer is unsuccessful.

thanks alot!

I think you’re doin’ it wrong. The account number at Citibank is not just your IBKR account ID; at least, mine isn’t. Check the details that IBKR gave you when you created the deposit notification.

Firstly, would like to ask whether you would still recommend SC for buying ES3 and A35? Some forummers were recommending DBS vickers cash upfront account due to the 0.12% comm, $10 min while SC is still at 0.2%.

No, I still recommend Stanchart. If you’re doing regular investments, the commission doesn’t make any difference. DBSV charges much higher rates on the sell leg, IIRC.

Secondly, for IWDA, if I were to put 40% of my portfolio which would be SGD60k into it, should I use SC or IB? I know I would be incurring a monthly fee since my account is less than 100k but I'm currently 22 so I should only need to pay USD 3 for the monthly fee until I'm 25?

Use IBKR. You’re doing pretty well for a 22-year-old!

Is it a good idea to backtest ETF strategies based on Sharpe ratio and Sortino Ratio? Then choose the strategy with the highest ratio mixed with investing fundamental reasoning?

Not really, no. Leave that sort of thing to people who have all their time to spend on investing and re-testing their theories.

(Also it’s super easy to game the Sharpe ratio! Option-selling strategies have stratospheric Sharpe ratios because they have low vol and steady returns, but when they blow up, they cause Long-Term-Capital-Management-grade explosions.)

 

[peipei1]

US markets still down since Thursday, no reprieval in sight, i feel the impetus to buy stocks at these prices are lessening, big funds are taking profits to prepare for a slower 2019? If a big news, bigger than Trumps tweet take place this quarter, a big drop will result?

I see a saw tooth pattern with IWDA this year and this continues until trade war with China die down? Up 3% down 2.5% every month or thereof. It is not a good time to lump sum or DCA at fixed dates.

 

[311290]

Hi ST,

As SCB has wider spread & taking account in the sales commission. im just investing in IWDA.

May i know if future how should i be selling off my IWDA for my retirement.

Thank you

 

[havetheveryfun]

US markets still down since Thursday, no reprieval in sight, i feel the impetus to buy stocks at these prices are lessening, big funds are taking profits to prepare for a slower 2019? If a big news, bigger than Trumps tweet take place this quarter, a big drop will result?

I see a saw tooth pattern with IWDA this year and this continues until trade war with China die down? Up 3% down 2.5% every month or thereof. It is not a good time to lump sum or DCA at fixed dates.

down but still VERY HIGH dude

even if dow drops back to 23000, it is still HIGH

 

[BBCWatcher]

If I go to live in somewhere like the Netherlands for 1 year to study, I am assuming I will need to update my tax residency and W8BEN form. Does anyone here know what the tax implications would be on my holdings of IWDA and EIMI?

Yes, you would file a new IRS W-8BEN to reflect your new tax residence. For those particular funds, nothing should change in terms of what the broker does. But you're still obliged to update your W-8BEN information (or to file a W-9 if you become a U.S. person).

Of course, when you move to a new country you become subject to that country's tax and financial reporting requirements on your worldwide income and assets. So whatever the Dutch tax and reporting rules are (in your example), you'd follow those.

 

[limster]

i would say go and get professional tax advice.

if you are a student with student immigration status, you are not necessarily a tax resident of that country.

For example, if you are a Singaporean but studying in UK for a 1-2 yr masters with UK address and your immigration status is student, this site seems to suggest you are not a tax resident.

https://www.taxguideforstudents.org...students/do-international-students-pay-uk-tax

 

[MrHighlander]

I just checked out the Ishares CNYA etf - the net assets currently under CNYA is now a paltry ~ 16MM USD with only 600K shares outstanding. It brings to mind whether this ETF may just close down. Pretty scary.

For the 2828 ETF traded on the HK exchange, am I right to say that the dividends are paid in HKD (and not RMB, as some have mentioned is not uncommon for HK listed ETFs)? It seems so when I checked out the Hang Seng page.

On a separate but related note, am looking for a way to buy into the current weakness in the China stock market through ETF. Anyone has any suggestions ?

 

[mattzakh]

Thanks ST!

Some follow-up questions:

1. I notice that the 110-age portion is mainly applicable to someone without big expenses in the near future. How should I invest if I'm planning for a wedding in a few years, and maybe a downpayment for home next?
2. Is there a recommended bank account to fund IB account? Is DBS ok? (perhaps there're fees to fund and withdraw from IB account)
3. In total, I'll have an IB account for global stocks, a SCB account for local stocks, and a DBS + CDP account to buy SSB. Sounds good?

 

[revhappy]

i would say go and get professional tax advice.

if you are a student with student immigration status, you are not necessarily a tax resident of that country.

For example, if you are a Singaporean but studying in UK for a 1-2 yr masters with UK address and your immigration status is student, this site seems to suggest you are not a tax resident.

https://www.taxguideforstudents.org...students/do-international-students-pay-uk-tax

After living in SG, I hate countries that tax capital gains. Already so many complications whether to buy/sell/hold. Who wants to think about taxation amidst all this.

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