Official Shiny Things thread—Part III

[celtosaxon]

Any opinion on new stashaway china tech etf? kweb? It listed in both US and UK. I dun think it's Irish domiciled thou.

Any other etf with exposure to China tech and not the whole market?

Irish domiciliary only matters when an ETF includes US listed stocks that pay dividends, since Ireland enjoys a 15% withholding tax on US dividends instead of the typical 30%.

If you really want exposure to China tech, you might want to simply buy BAT (Baidu, Alibaba, Tencent) directly on the stock exchange. China tech should only be a minor allocation in your overall portfolio anyway.

High growth tech companies typically pay little or no dividends, so even if you were to buy BAT stocks on the US exchange, withholding tax isn’t going to be an issue.

 

[Perfect1onist]

No. Use Standard Chartered. Saxo got custody fees.

Oh ya right! Thanks for the info! I totally overlooked on this point

 

[cassowary18]

Irish domiciliary only matters when an ETF includes US listed stocks that pay dividends, since Ireland enjoys a 15% withholding tax on US dividends instead of the typical 30%.

If you really want exposure to China tech, you might want to simply buy BAT (Baidu, Alibaba, Tencent) directly on the stock exchange. China tech should only be a minor allocation in your overall portfolio anyway.

High growth tech companies typically pay little or no dividends, so even if you were to buy BAT stocks on the US exchange, withholding tax isn’t going to be an issue.

You'd still want to avoid as far as possible buying US domiciled ETFs because of estate tax.

 

[celtosaxon]

You'd still want to avoid as far as possible buying US domiciled ETFs because of estate tax.

You can hold up to USD 60k before US estate tax kicks in as a non-US person, and BAT stocks should not be a major holding for anyone. You can buy 2 of the 3 on HKEX, or buy all 3 on the US exchange, keeping the estate tax limit in mind.

 

[gladtoknowmore]

To get in on QQQ and also avoid dividend withholding tax, I’ve researched and found EQQQ and CNDX that give comparable returns with QQQ, since they are passively tracking the same index. CNDX seems to be the better of the two with higher fund flow, market cap, smaller spread and fees, it’s also accumulating div. But CNDX has a much smaller market cap and daily volume when compared to IWDA and of course a far cry from QQQ. So... is there any trap about CNDX that I’m missing out before I start to DCA into it for the Long haul?

Planning to hold both IWDA and CDNX in a 6:4 split for the DM part of my portfolio to add a heavier skew to the US, Tech and Bio. Other parts of my portfolio include EIMI, STI and bonds.

Would like to hear your thoughts on this. Thanks!

 

[limster]

To get in on QQQ and also avoid dividend withholding tax, I’ve researched and found EQQQ and CNDX that give comparable returns with QQQ, since they are passively tracking the same index. CNDX seems to be the better of the two with higher fund flow, market cap, smaller spread and fees, it’s also accumulating div. But CNDX has a much smaller market cap and daily volume when compared to IWDA and of course a far cry from QQQ. So... is there any trap about CNDX that I’m missing out before I start to DCA into it for the Long haul?

Planning to hold both IWDA and CDNX in a 6:4 split for the DM part of my portfolio to add a heavier skew to the US, Tech and Bio. Other parts of my portfolio include EIMI, STI and bonds.

Would like to hear your thoughts on this. Thanks!

CNDX only reduces but does not avoid withholding. thats why its AUM is only US$4 billion


NASD avoids withholding completely, I guess its a more popular choice and thats why its AUM is US$32 BILLION

 

[memberregis]

New to investing, how to proceed?

Hi, I'm totally new to investing and would just like to run my plan by you all.

I already have an emergency fund, and about 70k in cash I'm ready to invest. Additionally, I can invest about 3.8k per month.

I have read the 'Rich by Retirement' book, and it suggests ES3:IWDA:MBH. I am in my mid 20s, and I do not mind taking more risk and would like to go with a 50:50 split between ES3:IWDA, eventually adding MBH as I get older.

I am planning to open a Standard Chartered account for buying ES3, and an Interactive Brokers account for buying IWDA. I will then invest 1.9k each month in ES3 and IWDA respectively. As for the 70k lump sum, I will invest that over 4 months, splitting between ES3 and IWDA equally as well.

Now, my questions are:

1) Is my above plan a dumb plan? Please elaborate more in Qn 4.

2) Are the suggestions in 'Rich by Retirement' updated? i.e. ES3 and IWDA are still the way to go?

3) Are there better alternatives to the 2 brokers I've picked?

4) Is there a smarter / better way to do things, especially in this COVID situation? E.g. I heard that I should not invest too heavily into the US now, as the Fed is just propping everything up by having their money printer go brr (no idea of the effects of this, except that there might be inflation). I also heard that I should time the market in the remaining of 2020, that I should sit tight, hold my cash and buy when the market has crashed (I've been told I will know when this happens because it'd be obvious).

Thank you for reading this chunk of text.

 

[highsulphur]

Hi, I'm totally new to investing and would just like to run my plan by you all.

I already have an emergency fund, and about 70k in cash I'm ready to invest. Additionally, I can invest about 3.8k per month.

I have read the 'Rich by Retirement' book, and it suggests ES3:IWDA:MBH. I am in my mid 20s, and I do not mind taking more risk and would like to go with a 50:50 split between ES3:IWDA, eventually adding MBH as I get older.

I am planning to open a Standard Chartered account for buying ES3, and an Interactive Brokers account for buying IWDA. I will then invest 1.9k each month in ES3 and IWDA respectively. As for the 70k lump sum, I will invest that over 4 months, splitting between ES3 and IWDA equally as well.

Now, my questions are:

1) Is my above plan a dumb plan? Please elaborate more in Qn 4.

2) Are the suggestions in 'Rich by Retirement' updated? i.e. ES3 and IWDA are still the way to go?

3) Are there better alternatives to the 2 brokers I've picked?

4) Is there a smarter / better way to do things, especially in this COVID situation? E.g. I heard that I should not invest too heavily into the US now, as the Fed is just propping everything up by having their money printer go brr (no idea of the effects of this, except that there might be inflation). I also heard that I should time the market in the remaining of 2020, that I should sit tight, hold my cash and buy when the market has crashed (I've been told I will know when this happens because it'd be obvious).

Thank you for reading this chunk of text.

Might want to consider fsmone for es3. Once you hit 100k with them, it's fixed 10 commission

 

[RedsYWNA]

Might want to consider fsmone for es3. Once you hit 100k with them, it's fixed 10 commission

For ES3, can also consider RSP investment plan with DBS Invest-saver. I think exp is 0.82% (ie $15.58 for $1,900 monthly) and you get to hit another category in DBS Multiplier, potential 50K to 100k at higher interest rates.

Personally, I dont have much confidence in 4G leadership and SGX long term prospects, so I am skipping ES3 altogether.

 

[cassowary18]

For ES3, can also consider RSP investment plan with DBS Invest-saver. I think exp is 0.82% (ie $15.58 for $1,900 monthly) and you get to hit another category in DBS Multiplier, potential 50K to 100k at higher interest rates.

Personally, I dont have much confidence in 4G leadership and SGX long term prospects, so I am skipping ES3 altogether.

Just a minor correction: DBS Invest Saver only offers G3B, not ES3. They're pretty much the same though.

Alternatively, you could use FSMOne RSP. 0.08% minimum $1. Do the math and see which one makes more sense.

 

[thisislife]

Just a minor correction: DBS Invest Saver only offers G3B, not ES3. They're pretty much the same though.

Alternatively, you could use FSMOne RSP. 0.08% minimum $1. Do the math and see which one makes more sense.

do take note that ES3 cap expense ratio is 0.3%, but G3B current is 0.3%, which might or might not increased

 

[kurtgoh]

since many have asked about doing RSP, i thought it might be good to share some update from FSM.

their spread of ETF had increase to 49 now.

fees are cheap,
for SGX: 1.07
For USD: USD 1.07

those who wanna do IWDA/CSPX, closest is Vanguard Total World Stock Index Fund ETF Shares (NYSE.VT)

they even have China ETF; china and greater china.
i think greater china cover hong kong.
I'm not even keen in China though.

those who wanna do TECH ETF
can consider:
Fidelity® MSCI Information Technology Index ETF (NYSE.FTEC)
and
O'Shares Global Internet Giants ETF (NYSE.OGIG)
OGIG is the new kid on the block, but the yield look promising and it
covers the world Tech.

Can some guru share their thoughts on this 2 TECH ETF.

 

[crystalnox]

since many have asked about doing RSP, i thought it might be good to share some update from FSM.

their spread of ETF had increase to 49 now.

fees are cheap,
for SGX: 1.07
For USD: USD 1.07

those who wanna do IWDA/CSPX, closest is Vanguard Total World Stock Index Fund ETF Shares (NYSE.VT)

they even have China ETF; china and greater china.
i think greater china cover hong kong.
I'm not even keen in China though.

those who wanna do TECH ETF
can consider:
Fidelity® MSCI Information Technology Index ETF (NYSE.FTEC)
and
O'Shares Global Internet Giants ETF (NYSE.OGIG)
OGIG is the new kid on the block, but the yield look promising and it
covers the world Tech.

Can some guru share their thoughts on this 2 TECH ETF.

I believe all 3 of them mentioned are domiciled in the US? Which means 30% tax on dividends and estate tax liable. But VT’s expense ratio only 0.08% which is half that of IWDA.

 

[kurtgoh]

I believe all 3 of them mentioned are domiciled in the US? Which means 30% tax on dividends and estate tax liable. But VT’s expense ratio only 0.08% which is half that of IWDA.

yeah, you are right.

but someone had actually did some maths of the comparision.

Brown24 wrote:
After much consideration, i hv decided to switch my IWDA (SCB) to VT (FSMOne RSP). I'm fully aware of the witholding tax and estate tax issue with US ETF, but the cost saving is quite significant.

As I am investing S$800/mth for IWDA/VT, this is my comparison.

1) SCB forex spread = 0.4%, FSMOne forex spread = 0.25%
2) SCB brokerage fees = $10.7 * 4 (batch 3 mths), FSM brokerage fees = $1.07 * 12
3) IWDA witholding tax = 15%, VT witholding tax = 30%. Assuming dividend at 2% pa, the saving from IWDA is 0.3%. (corrected)
4) IWDA TER = 0.2%, VT TER = 0.09%
5) FSMOne has dividend handling fees of $2.5 per dividend. So its $10 per year of dividend loss.

Based on the above number, I use the spreadsheet created by another forummer, VT annual fees is S$43 (include dividend handling fees) vs IWDA S$96 (didn't include opportunity cost).
However, this comparison only applicable to my case.

 

[Perfect1onist]

I am preparing to start my first investment and I have some questions (I had done my research (as much as possible) but I would like to confirm my thoughts with opinions from people who are more experienced here).
I would like to invest in CSPX and intending to use StanChart Online Trading.

1) Should I use Revolut or Transferwise to change between SGD and USD?
On transumo website (Transferwise vs Revolut), under receiving money, "Revolut has a UK and a Euro account". So meaning i can only send GBP or EUR into Revolut from my brokerage? Hence I cannot take my USD out of my brokerage via Revolut and then change back into SGD?

2) Should I open a foreign currency bank account?
So that I can accumulate USD to use it later when the market is good.
Any bank recommendations for this?

3) When is a good time to change currency? I want to be prepared when the market crashes (if there is a 2nd one. Opinion?)
Assuming that there is going to be a 2nd market crash coming in the future, how will our exchange rate be affect? (Many factors to consider like economy, election, interest rates, print money etc)

Thank you!!

 

[swan02]

I can only comment on Revolut. I think below 9k sgd, the spread is nil. No fees. I experimented with AUD/sgd. Bought AUD via revolut n tt over to my aussie account and was quick and FREE.

But TT my SGD took 5 working days !! I assume they face the same issues as Interactive brokers, where likely they giro the funds. I’m quite certain it has to do with our surnames amongst Chinese Singaporeans where it’s placed at the end.

If u r dealing with much larger sums.. no brainer but open account with IB and transfer wise won’t even come into the picture. u can keep your USD in revolut but would rather buy IBTA via IB and store it there.

I am preparing to start my first investment and I have some questions (I had done my research (as much as possible) but I would like to confirm my thoughts with opinions from people who are more experienced here).
I would like to invest in CSPX and intending to use StanChart Online Trading.

1) Should I use Revolut or Transferwise to change between SGD and USD?
On transumo website (Transferwise vs Revolut), under receiving money, "Revolut has a UK and a Euro account". So meaning i can only send GBP or EUR into Revolut from my brokerage? Hence I cannot take my USD out of my brokerage via Revolut and then change back into SGD?

2) Should I open a foreign currency bank account?
So that I can accumulate USD to use it later when the market is good.
Any bank recommendations for this?

3) When is a good time to change currency? I want to be prepared when the market crashes (if there is a 2nd one. Opinion?)
Assuming that there is going to be a 2nd market crash coming in the future, how will our exchange rate be affect? (Many factors to consider like economy, election, interest rates, print money etc)

Thank you!!

 

[thisislife]

since many have asked about doing RSP, i thought it might be good to share some update from FSM.

their spread of ETF had increase to 49 now.

fees are cheap,
for SGX: 1.07
For USD: USD 1.07

those who wanna do IWDA/CSPX, closest is Vanguard Total World Stock Index Fund ETF Shares (NYSE.VT)

they even have China ETF; china and greater china.
i think greater china cover hong kong.
I'm not even keen in China though.

those who wanna do TECH ETF
can consider:
Fidelity® MSCI Information Technology Index ETF (NYSE.FTEC)
and
O'Shares Global Internet Giants ETF (NYSE.OGIG)
OGIG is the new kid on the block, but the yield look promising and it
covers the world Tech.

Can some guru share their thoughts on this 2 TECH ETF.

VT etf seems to be slow growing compared to other ETF

 

[oAkEn86]

When someone says he activate the warchest when iwda/any etf drop by eg. every 10%, typically what is the price that they are referring to as reference to calculate the drop? The closing price? The Mid pt between 52 high and Low? Etc

 

[greatpacificpatch]

https://www.bloomberg.com/news/arti...?utm_source=google&utm_medium=bd&cmpId=google

Stumbled upon this article mentioning the possibility of hyperinflation. Would Shiny’s strategy work in favour of investors?

 

[sleepingcat]

Hi,
I just opened a FSMOne account... but i heard there are risks of me losing all my portfolio if the company goes bankrupt. Is it safe to use?

I am looking to invest $300-400 into either ES3 or IWDA. Is interactive brokers the only brokerage that have IWDA? Because i dont see it when i try to search for IWDA in FSMOne. Also do i alternate between ES3 and IWDA every month?