Official Shiny Things thread—Part III

[cassowary18]

thanks it seem that VFEA has very low volume.. I'm better off with EIMI to avoid the large bid/ask spread.

For sure. The IWDA/EIMI combo is the most popular so very high liquidity.

 

[RuiQi_91]

Hello, I have some questions to ask before I start my DCA of 2k a month into the IWDA ETF through IB. I have already transferred 2K SGD from my POSB bank account to my IB account following the steps explained here https://forums.hardwarezone.com.sg/...g-my-interactive-brokers-account-5821618.html

My questions:

1) I need to convert SGD to USD through the IBKR mobile app. Do I have to time when to convert this or should I not care at all? Saw terms like forex spread on the threads but have no idea what they all mean.

2) I am to purchase the IWDA (LSEETF) as instructed here https://forums.hardwarezone.com.sg/126129598-post1029.html in USD and not in shares. Do I select stock or CFD? (don't know what this is) And may I know what the Order-Type, Limit Price and Time-In-Force in the screenshot should be? https://imgur.com/9CAp2Fq

 

[Magickiller9]

Hello, I have some questions to ask before I start my DCA of 2k a month into the IWDA ETF through IB. I have already transferred 2K SGD from my POSB bank account to my IB account following the steps explained here https://forums.hardwarezone.com.sg/...g-my-interactive-brokers-account-5821618.html

My questions:

1) I need to convert SGD to USD through the IBKR mobile app. Do I have to time when to convert this or should I not care at all? Saw terms like forex spread on the threads but have no idea what they all mean.

2) I am to purchase the IWDA (LSEETF) as instructed here https://forums.hardwarezone.com.sg/126129598-post1029.html in USD and not in shares. Do I select stock or CFD? (don't know what this is) And may I know what the Order-Type, Limit Price and Time-In-Force in the screenshot should be? https://imgur.com/9CAp2Fq

you can check the usd.sgd price but unless something happens. the price doesn't really matter, plus your amt is relatively small

stock. don't touch cfd.

select shares.

day = if not brought today, will expire.

 

[311290]

Hi ST,

So non of the funds i should be buying even its deducting15% of the taxable i come?

But i have to hold the funds for 10years.

The other tax savings method is life insurance with investment which i should avoid as well.

If not how should i be using the amount to invest roughly 10000thb (500sgd)/month

 

[Shiny Things]

Hi ST,

So non of the funds i should be buying even its deducting15% of the taxable i come?

But i have to hold the funds for 10years.

The other tax savings method is life insurance with investment which i should avoid as well.

If not how should i be using the amount to invest roughly 10000thb (500sgd)/month

You're in a similar situation to me, then.

America has a similar system ("401(k) accounts") where you can direct your pre-tax salary into a set of funds chosen by your employer... and those funds are not necessarily good. Some of them are very high cost; some perpetually underperform; some are both.

One of the funds I own in my 401k is a US large-cap stocks fund that charges about 0.5% per annum and doesn't outperform VOO, which is 94% cheaper... but I have to buy the expensive fund because I can't buy VOO in my 401(k); the account provider just doesn't offer it. I hate it and I wish there was a cheaper option, but there isn't.

In your case, a quick bit of math shows that if the fund fee is above about 1.55%, it'd be better to give up the tax advantage and buy a cheaper fund outside the tax wrapper.

Can you give us the list of funds and their actual fees (not the "up to" fees)? We can pick the least-worst fund for you.

Thanks what about emerging market exposure? Most recommended EIMI but vanguard VWO returns seem better as it exclude South Korea.

I can't seem to find VWO Irish Domiciled etf or is there any?

So, like the chart I posted below: having an EM allocation doesn't make much difference. If you really care about having an allocation to EM, buy VWRA instead of IWDA: VWRA is 10% allocated to emerging markets.

 

[Shiny Things]

) I need to convert SGD to USD through the IBKR mobile app. Do I have to time when to convert this or should I not care at all?

Any time during the week (i.e. not weekends) is fine.

2) I am to purchase the IWDA (LSEETF) as instructed here https://forums.hardwarezone.com.sg/126129598-post1029.html in USD and not in shares. Do I select stock or CFD? (don't know what this is)

Stock.

And may I know what the Order-Type, Limit Price and Time-In-Force in the screenshot should be? https://imgur.com/9CAp2Fq

[/QUOTE]
* Order type: LMT (limit)
* Limit Price: whatever the maximum is that you want to pay. If you put this about 1% above the last price on your screen (or on Google Finance) you'll be fine.
* Time-in-Force: GTC (good 'til cancelled).

 

[CircleRain]

Hi Shiny and Everyone,

I’m trying to figure out how to think about “returns” and “compounding effect” when it comes to ES3, seeing that its price hasn’t really increased through the years.

When one thinks about other ETFs like IWDA or CSPX, I suppose u can say that they grow at say 5-7% on average a year, so your money in that ETF gets compounded at that rate over a long term.

However, for ES3, assuming the price is more or less stagnant over long periods of time, how do we calculate its returns? It gives a 3-4% dividend, but that’s different from the stock price compounding right? So how would you calculate ES3’s return over say 10 years?

Thanks!

 

[RuiQi_91]

Stock.

* Order type: LMT (limit)
* Limit Price: whatever the maximum is that you want to pay. If you put this about 1% above the last price on your screen (or on Google Finance) you'll be fine.
* Time-in-Force: GTC (good 'til cancelled).

Thank you so much! I am glad I asked the question because I was so sure that the day does not matter at all.

Just to clarify on the second quoted part, you mean to say that I should put it about 1% above 53.63 https://imgur.com/9CAp2Fq because it shows C53.63? Google and Yahoo finance shows the numbers without the letter C and I am still learning what C (previous close?), open, high, low, etc. stands for since they all show different numbers.

 

[kram62]

Thank you so much! I am glad I asked the question because I was so sure that the day does not matter at all.

Just to clarify on the second quoted part, you mean to say that I should put it about 1% above 53.63 https://imgur.com/9CAp2Fq because it shows C53.63? Google and Yahoo finance shows the numbers without the letter C and I am still learning what C (previous close?), open, high, low, etc. stands for since they all show different numbers.

This is because the London market is closed now. Try to buy when the market is open instead.

(because the price might jump significantly between previous close and the open price on the next day)

See https://www.tradinghours.com/exchanges/lse/trading-hours for the time of opening.

 

[pylpoh]

Remember to keep some spare USD every month. If the balance is not enough to minus the activity fees, they will auto sell away your share. Happened to me last month; 1 share of iwda sold. If you have sgd inside, they auto exchange to USD and deduct from there.

Hi ST,

So non of the funds i should be buying even its deducting15% of the taxable i come?

But i have to hold the funds for 10years.

The other tax savings method is life insurance with investment which i should avoid as well.

If not how should i be using the amount to invest roughly 10000thb (500sgd)/month

 

[beefjerky]

Thank you so much! I am glad I asked the question because I was so sure that the day does not matter at all.

Just to clarify on the second quoted part, you mean to say that I should put it about 1% above 53.63 https://imgur.com/9CAp2Fq because it shows C53.63? Google and Yahoo finance shows the numbers without the letter C and I am still learning what C (previous close?), open, high, low, etc. stands for since they all show different numbers.

https://www.worldtimezone.com/markets24.php
Check here whether LSE is opened or closed. It doesn't matter what limit price you put thats why its fine to put slightly abv the current price cause IB will give you the best available price. Eg. you put limit buy price at 54.2, current ask price is 53.1, you will still get it at 53.1

 

[tangent314]

However, for ES3, assuming the price is more or less stagnant over long periods of time, how do we calculate its returns? It gives a 3-4% dividend, but that’s different from the stock price compounding right? So how would you calculate ES3’s return over say 10 years?

If you look at the fund fact sheet's performance numbers, these always assumes that dividends are reinvested. You can try to calculate annualized returns using XIRR too, and you will find you will get the same results as the reinvestment assumption.


Obviously if you leave your dividends sitting in a 0.05% interest bank account, you won't get the same results.

 

[RedsYWNA]

1 thing I cant figure out is why VOO has a higher dividend yield than VUSD, even after accounting for the 15% tax differential.

Is it because of timing differences in their dividend declarations? Anybody can advise?

 

[RuiQi_91]

https://www.worldtimezone.com/markets24.php
Check here whether LSE is opened or closed. It doesn't matter what limit price you put thats why its fine to put slightly abv the current price cause IB will give you the best available price. Eg. you put limit buy price at 54.2, current ask price is 53.1, you will still get it at 53.1

Thank you. Does it matter if I buy it when it is opened or closed? I can just make the purchase right now (when it is closed), right?

 

[RuiQi_91]

Sorry for the repeated questions. I really don't know how to use the IBKR. I am trying to purchase the IWDA LSEETF but receive this message. https://imgur.com/a/d9J7ZoF. Why does it say that I have other pending orders?

I clicked on the notification bell sign -> pending items but did not see anything. I hope I have not made any mistakes that cost money. There should be a complete pictorial guide for newbies like me. Feel like I'm doing things blindly.

EDIT: After spending some time on google I found out that it takes several days for my sgd to usd conversion to be "settled"? Is that why IBKR says I have 2792 USD worth of settled cash? Only after the settlement is complete am I then allowed to purchase the IWDA LSEETF ?

 

[kram62]

Thank you. Does it matter if I buy it when it is opened or closed? I can just make the purchase right now (when it is closed), right?

You can place an order if the market is closed but it won't be processed. better to only order during market opening hours.

 

[kram62]

Sorry for the repeated questions. I really don't know how to use the IBKR. I am trying to purchase the IWDA LSEETF but receive this message. https://imgur.com/a/d9J7ZoF. Why does it say that I have other pending orders?

I clicked on the notification bell sign -> pending items but did not see anything. I hope I have not made any mistakes that cost money. There should be a complete pictorial guide for newbies like me. Feel like I'm doing things blindly.

This is not where to look for orders. In the main menu, select orders and trades. Not really hard to find. Orders means before it's bought, trades means after the transaction is done. Pending orders will be there.

 

[kram62]

But from the message it seems you are trying to use all your USD cash to buy in a market order. As I already explained earlier this won't work because for market order IBKR requires some more money in case the price increases suddenly when the order is processed.

So what you should do is use a limit order. Then the requested extra cash security margin will be much smaller.

And don't try to use up all your USD, better to leave a bit for the monthly fee (like 50 USD).

 

[kram62]

By the way, I believe that the message saying "and other pending orders" doesn't necessarily mean that you have other pending orders though (I think its just a standard message)

But it doesn't hurt to double check in the order and trades menu if there are other open orders.

 

[pylpoh]

By the way, I believe that the message saying "and other pending orders" doesn't necessarily mean that you have other pending orders though (I think its just a standard message)

But it doesn't hurt to double check in the order and trades menu if there are other open orders.

Sometimes the trade and order is delayed. Mine went missing for 10-15minutes. I recieveed the same message when I attempted to make the same order .After that I found out that the order went through.