Official Shiny Things thread Episode V, The Empire Strikes Back

[ericvincenttoo]

Can I check if I withdraw SGD from ibkr LLC to DBS SGD account, will I be subject to the $10 wire charges? If so, any way to avoid such charges at the bank side?

 

[highsulphur]

Can I check if I withdraw SGD from ibkr LLC to DBS SGD account, will I be subject to the $10 wire charges? If so, any way to avoid such charges at the bank side?

If it's sgd, there won't be any charges if I remember correctly

 

[ericvincenttoo]

If it's sgd, there won't be any charges if I remember correctly

Thanks. That's good to know!

 

[xingua]

Hi @Shiny Things & @BBCWatcher. I just did a rebalancing check for my portfolio and it seems like i am super light on my local stocks component (local (10%) : overseas (45%) : bonds (45%)). I am currently 40+ yo and have some funds ($250k) to deploy. Any idea on what local ETFs that i should consider and from which platform should i execute the DCA? Many thanks in advance!

 

[BBCWatcher]

Hi @Shiny Things & @BBCWatcher. I just did a rebalancing check for my portfolio and it seems like i am super light on my local stocks component (local (10%) : overseas (45%) : bonds (45%)). I am currently 40+ yo and have some funds ($250k) to deploy. Any idea on what local ETFs that i should consider and from which platform should i execute the DCA? Many thanks in advance!

ES3 and G3B are the typical, popular Straits Times Index stock funds. I'm not sure who's offering the lowest commissions at this instant. "Shop around." At least in the past FSMOne was competitive.

 

[highsulphur]

Hi @Shiny Things & @BBCWatcher. I just did a rebalancing check for my portfolio and it seems like i am super light on my local stocks component (local (10%) : overseas (45%) : bonds (45%)). I am currently 40+ yo and have some funds ($250k) to deploy. Any idea on what local ETFs that i should consider and from which platform should i execute the DCA? Many thanks in advance!

I'll offer my 2 cts worth from my personal experience as I'm of similar profile. Late 40s Singaporean. You can consider ES3 as a etf for sg stocks. As expected banks form a big chunk of the etf.

 

[highsulphur]

ES3 and G3B are the typical, popular Straits Times Index stock funds. I'm not sure who's offering the lowest commissions at this instant. "Shop around." At least in the past FSMOne was competitive.

FSMOne is still most competitive for larger transacted amount

 

[Shiny Things]

Hi @Shiny Things & @BBCWatcher. I just did a rebalancing check for my portfolio and it seems like i am super light on my local stocks component (local (10%) : overseas (45%) : bonds (45%)). I am currently 40+ yo and have some funds ($250k) to deploy. Any idea on what local ETFs that i should consider and from which platform should i execute the DCA? Many thanks in advance!

I'd go a little further: I think you're also a little overweight on bonds, and it might be worth taking your allocation to bonds down a bit at the same time that you're investing the extra funds.

In your particular case, yep, the usual answers still apply. FSMOne is the cheapest broker (I personally still love Interactive Brokers, but their learning curve is still a little steeper); and ES3 is a perfectly fine choice for a Singaporean-stocks ETF.

And a fun thing to end with is that the STI is up about 25% over the last year, and it's outperformed the S&P 500 by nearly ten percentage points over that period—or by thirteen percentage points once you take the strengthening SGD into account. Now, this is only one year, and all the usual disclaimers apply, but it's good to see the narrative of "US always outperforms" is being challenged for the first time in a long time.

 

[xingua]

Thanks for all your input.

Actually for the bond component, I’ve included all my CPF balances and some T-bills which will mature within these 2 weeks. If I exclude these balances, the results change to: local (15%) : overseas (67%) : bonds (18%). Does this change the whole picture?

I plan to get some ETFs/ES3 but it seems like the price is pretty high now. So I’m not sure what should I do with the excess funds…

 

[Jirachi]

Can I check if I withdraw SGD from ibkr LLC to DBS SGD account, will I be subject to the $10 wire charges? If so, any way to avoid such charges at the bank side?

No inbound charge

 

[Jirachi]

I'd go a little further: I think you're also a little overweight on bonds, and it might be worth taking your allocation to bonds down a bit at the same time that you're investing the extra funds.

In your particular case, yep, the usual answers still apply. FSMOne is the cheapest broker (I personally still love Interactive Brokers, but their learning curve is still a little steeper); and ES3 is a perfectly fine choice for a Singaporean-stocks ETF.

And a fun thing to end with is that the STI is up about 25% over the last year, and it's outperformed the S&P 500 by nearly ten percentage points over that period—or by thirteen percentage points once you take the strengthening SGD into account. Now, this is only one year, and all the usual disclaimers apply, but it's good to see the narrative of "US always outperforms" is being challenged for the first time in a long time.

It is a good year for almost all stocks outside of the US YTD. But never count out their insane Q4 performance. Liquidity may flow back.

 

[Shiny Things]

Thanks for all your input.

Actually for the bond component, I’ve included all my CPF balances and some T-bills which will mature within these 2 weeks. If I exclude these balances, the results change to: local (15%) : overseas (67%) : bonds (18%). Does this change the whole picture?

I'd include both of those—the CPF and the T-bills—in your "bonds" allocation, because they're both pretty bond-like. It's smart to look at your portfolio holistically, across all your accounts.

I plan to get some ETFs/ES3 but it seems like the price is pretty high now. So I’m not sure what should I do with the excess funds…

ES3 is still a good choice. It's better to start investing than to wait for a pullback that might never come.

If you're worried about pushing all your chips onto the table at the highs, the smart way to get involved is to dollar-cost-average in: split your $250k into six or twelve parts, and invest 1/6th or 1/12th each month. That way, if the price dips you're able to buy more and take advantage of the dip; and if the price keeps chugging higher, you're still invested and you're riding it higher. I know I say this a lot, but dollar-cost-averaging is the absolute best way for folks in your situation to get invested and have the confidence to stay invested.

 

[highsulphur]

I'd include both of those—the CPF and the T-bills—in your "bonds" allocation, because they're both pretty bond-like. It's smart to look at your portfolio holistically, across all your accounts.


ES3 is still a good choice. It's better to start investing than to wait for a pullback that might never come.

If you're worried about pushing all your chips onto the table at the highs, the smart way to get involved is to dollar-cost-average in: split your $250k into six or twelve parts, and invest 1/6th or 1/12th each month. That way, if the price dips you're able to buy more and take advantage of the dip; and if the price keeps chugging higher, you're still invested and you're riding it higher. I know I say this a lot, but dollar-cost-averaging is the absolute best way for folks in your situation to get invested and have the confidence to stay invested.

Indeed. Has been more than 10 years when we share pints and I agree with this philosophy

 

[Shiny Things]

Indeed. Has been more than 10 years when we share pints and I agree with this philosophy

Good lord, has it been that long?! I'm still up for another round next time you're over here.

 

[highsulphur]

Good lord, has it been that long?! I'm still up for another round next time you're over here.

I have actually switched back to an American company again. Who knows? I'll pm you if I do go back again.

 

[hwckhs]

Just a heads up - NikkoAM branded/issued ETFs will have a change of name and/or issuer with effect from 1/9/2025. Don't be surprised when you see this in your CDP/broker statements.

A few ETFs commonly referenced here are affected.

MBH: NIKKOAM SGD IG CORP BOND ETF => AMOVA SGD IG CORP BOND ETF

G3B: NIKKO AM SINGAPORE STI ETF => AMOVA SINGAPORE STI ETF

A35: ABF SPORE BOND INDEX FUND ETF => no change in name (change in issuer only)

Background story: Nikko Asset Management to Rename as Amova Asset Management
(Nothing material changes. Just a change in name.)

 

[highsulphur]

Just a heads up - NikkoAM branded/issued ETFs will have a change of name and/or issuer with effect from 1/9/2025. Don't be surprised when you see this in your CDP/broker statements.

A few ETFs commonly referenced here are affected.

MBH: NIKKOAM SGD IG CORP BOND ETF => AMOVA SGD IG CORP BOND ETF

G3B: NIKKO AM SINGAPORE STI ETF => AMOVA SINGAPORE STI ETF

A35: ABF SPORE BOND INDEX FUND ETF => no change in name (change in issuer only)

Background story: Nikko Asset Management to Rename as Amova Asset Management
(Nothing material changes. Just a change in name.)

thanks for the news

I guess there is no change in ticker

 

[hwckhs]

I guess there is no change in ticker

No change.

 

[highsulphur]

T-bills have already come off alot. Suppose interest rates were to come off further and bond ETFs like A35 and MBH recover back to their recent high, would it be prudent to sell some or all of one's holdings and divert those funds elsewhere? eg low or lower duration bond ETFs

I checked for low duration ETF and came across this. Is it a good alternative to MBH or A35 in view of possible interest rate hikes?

https://www.ishares.com/us/products/239854/ishares-short-maturity-bond-etf#/

 

[Shiny Things]

T-bills have already come off alot. Suppose interest rates were to come off further and bond ETFs like A35 and MBH recover back to their recent high, would it be prudent to sell some or all of one's holdings and divert those funds elsewhere? eg low or lower duration bond ETFs

I checked for low duration ETF and came across this [NEAR]. Is it a good alternative to MBH or A35 in view of possible interest rate hikes?

Mmm - I wouldn't. First thing to note is that NEAR owns USD bonds, so you've got USDSGD FX risk there.

More broadly, though: even if there were a SGD short-term bond ETF, MBH and A35 already own both long- and short-term bonds (just looking at MBH, for example, it owns everything from 2027s out to 2050s). I think they hold a pretty good mix of maturities already, so they're not particularly exposed to a curve flattening or steepening.