Official Shiny Things thread—Part III

[commie_rick]

is COTY a good stock to invest in?

yes i bought at ipo and became a millionaire after sell off

 

[kehyi4]

anyway to find out the earnings before/after tax, to know exactly how much is reinvested? wondering how much shares or fraction of a share are investors given for accumulating, and if it is significant enough to go on accumulation. imagine S&P 500 ETF accumulating.. how long will it take to accumulate to 1 share?

erm, accumulating fund ≠ dividend reinvesting program hor

just to be clear: "accumulating" in this context means the fund's income is accumulated into its own NAV, instead of being distributed as dividends or units. Thus, unitholders do not get additional units, but each unit becomes slightly more valuable as the NAV grows. clear enough?

 

[5408854088]

erm, accumulating fund ≠ dividend reinvesting program hor

just to be clear: "accumulating" in this context means the fund's income is accumulated into its own NAV, instead of being distributed as dividends or units. Thus, unitholders do not get additional units, but each unit becomes slightly more valuable as the NAV grows. clear enough?

clear. but the income will still be subjected to withholding tax, before accumulation into NAV. these numbers will provide information on how much is the gain or loss, and give an idea on how it translates to the market price per share, since NAV performance may differ to market price

 

[cfleee]

How do you get $47.16 for year one with FSM RSP? The fee is 0.08% or minimum US$1.07...For US$800 investment per month your fee is only US$1.07 or US$12.84/year...

Also why are you comparing IWDA against VT when VWRD should be the one used to compare against VT...

Well, I'm just addressing IWDA vs VT since that's the previous posters' comparison -- I guess it's between the most common recommendation of IWDA and the VT that's available through FSMOne RSP. They seem to be comparing purely on cost basis, not performance, and buying IWDA and VWRD via SCB should be same cost right?

My estimate for VT costs on FSMOne RSP is:
- The fees to buy in via RSP are 0.25% forex spread in USD->SGD, and USD 1.07 fee, adds up to about $18.30 (that's the USD 12.84 right?)
- You gain about 0.12% on holdings by paying 0.08% TER instead of 0.20% TER, on the average holdings of of 6x$800 = $4800, about $5.76
- Most recent dividend yield of 2.69% on FTSE Global All Cap index as of 30 April 2020 is about $129.12, you theoretically lose 15% extra to WHT, about $19.37
- Dividend handling fee four times a year, $15.25

18.30 - 5.76 + 19.37 + 15.25 = $47.16 in costs for year one

Does this make sense? I might have missed something.

Hmm, maybe the average holdings should be 6.5x$800 = $5200 instead, so TER savings might be $0.48 higher. And I'm not sure if I'm overestimating the dividend yield.

not sure if it is a good idea to add opportunity cost into the comparison. opportunity cost can go both ways and there are a lot of ambiguity surrounding it. again, past performance may or may not be an indicator of future outcomes. nobody really knows.

That's reasonable, that's why the number is cited separately instead of replacing the number without opportunity cost. It just moves the tipping point earlier I think? Either way, still not a long time before the total holdings-based costs of holding VT outweigh the lower RSP fees.

 

[5408854088]

Well, I'm just addressing IWDA vs VT since that's the previous posters' comparison -- I guess it's between the most common recommendation of IWDA and the VT that's available through FSMOne RSP. They seem to be comparing purely on cost basis, not performance, and buying IWDA and VWRD via SCB should be same cost right?

My estimate for VT costs on FSMOne RSP is:
- The fees to buy in via RSP are 0.25% forex spread in USD->SGD, and USD 1.07 fee, adds up to about $18.30 (that's the USD 12.84 right?)
- You gain about 0.12% on holdings by paying 0.08% TER instead of 0.20% TER, on the average holdings of of 6x$800 = $4800, about $5.76
- Most recent dividend yield of 2.69% on FTSE Global All Cap index as of 30 April 2020 is about $129.12, you theoretically lose 15% extra to WHT, about $19.37
- Dividend handling fee four times a year, $15.25

18.30 - 5.76 + 19.37 + 15.25 = $47.16 in costs for year one

Does this make sense? I might have missed something.

Hmm, maybe the average holdings should be 6.5x$800 = $5200 instead, so TER savings might be $0.48 higher. And I'm not sure if I'm overestimating the dividend yield.



That's reasonable, that's why the number is cited separately instead of replacing the number without opportunity cost. It just moves the tipping point earlier I think? Either way, still not a long time before the total holdings-based costs of holding VT outweigh the lower RSP fees.

one solution would be for FSMOne to introduce RSP for SWRD, IWDA, VWRA/VWRD, ACWD, EIMI, etc

 

[thisislife]

yes i bought at ipo and became a millionaire after sell off

nice, must be quite a worthwhile of shares you bought

 

[makav31i]

Well, I'm just addressing IWDA vs VT since that's the previous posters' comparison -- I guess it's between the most common recommendation of IWDA and the VT that's available through FSMOne RSP. They seem to be comparing purely on cost basis, not performance, and buying IWDA and VWRD via SCB should be same cost right?

My estimate for VT costs on FSMOne RSP is:
- The fees to buy in via RSP are 0.25% forex spread in USD->SGD, and USD 1.07 fee, adds up to about $18.30 (that's the USD 12.84 right?)
- You gain about 0.12% on holdings by paying 0.08% TER instead of 0.20% TER, on the average holdings of of 6x$800 = $4800, about $5.76
- Most recent dividend yield of 2.69% on FTSE Global All Cap index as of 30 April 2020 is about $129.12, you theoretically lose 15% extra to WHT, about $19.37
- Dividend handling fee four times a year, $15.25

18.30 - 5.76 + 19.37 + 15.25 = $47.16 in costs for year one

Does this make sense? I might have missed something.

Hmm, maybe the average holdings should be 6.5x$800 = $5200 instead, so TER savings might be $0.48 higher. And I'm not sure if I'm overestimating the dividend yield.



That's reasonable, that's why the number is cited separately instead of replacing the number without opportunity cost. It just moves the tipping point earlier I think? Either way, still not a long time before the total holdings-based costs of holding VT outweigh the lower RSP fees.

VWRD got a higher expense ratio than IWDA at 0.22% vs 0.2%...Other than you willing to pay extra for trading fees to buy IWDA + EIMI, VWRD which is distributing or even VWRA is a close comparison to VT...

One thing that is not mentioned is that if you purchase VWRD you have to buy a full share, whereas if you buy with VT using FSM RSP, it fully utilize every single cent and you could be buying fractions of a share...So if you buy VWRD, your might have uninvested amount that have to wait for the following month to be utilized..

For dividends, it is 1% or minimum US$2.50 or capped at US$25...If your dividends is below $2.50, you won't be getting any and you don't need to top up...

 

[makav31i]

one solution would be for FSMOne to introduce RSP for SWRD, IWDA, VWRA/VWRD, ACWD, EIMI, etc

I:m still waiting for them to introduce LSE and to compare the trading fees...They mentioned that they will be bringing LSE but no date was given...If they added LSE and added the ETF there for RSP, it would be more convenient and cheaper than IB or SCB...

 

[MaoZeDuo]

Hi, have a question on buying VT via FSMone rsp. Tried converting $1 from SGD to USD cash account in fsmone and the rate was 1.4285713. When will the 0.25% FX spread kick in?

Well, I'm just addressing IWDA vs VT since that's the previous posters' comparison -- I guess it's between the most common recommendation of IWDA and the VT that's available through FSMOne RSP. They seem to be comparing purely on cost basis, not performance, and buying IWDA and VWRD via SCB should be same cost right?

My estimate for VT costs on FSMOne RSP is:
- The fees to buy in via RSP are 0.25% forex spread in USD->SGD, and USD 1.07 fee, adds up to about $18.30 (that's the USD 12.84 right?)
- You gain about 0.12% on holdings by paying 0.08% TER instead of 0.20% TER, on the average holdings of of 6x$800 = $4800, about $5.76
- Most recent dividend yield of 2.69% on FTSE Global All Cap index as of 30 April 2020 is about $129.12, you theoretically lose 15% extra to WHT, about $19.37
- Dividend handling fee four times a year, $15.25

18.30 - 5.76 + 19.37 + 15.25 = $47.16 in costs for year one

Does this make sense? I might have missed something.

Hmm, maybe the average holdings should be 6.5x$800 = $5200 instead, so TER savings might be $0.48 higher. And I'm not sure if I'm overestimating the dividend yield.



That's reasonable, that's why the number is cited separately instead of replacing the number without opportunity cost. It just moves the tipping point earlier I think? Either way, still not a long time before the total holdings-based costs of holding VT outweigh the lower RSP fees.

 

[5408854088]

I:m still waiting for them to introduce LSE and to compare the trading fees...They mentioned that they will be bringing LSE but no date was given...If they added LSE and added the ETF there for RSP, it would be more convenient and cheaper than IB or SCB...

can't wait

 

[crystalnox]

Hi, have a question on buying VT via FSMone rsp. Tried converting $1 from SGD to USD cash account in fsmone and the rate was 1.4285713. When will the 0.25% FX spread kick in?

It's already priced in, the current rate as of now is $1.42490 at xe.com.
Versus your 1.4285713 quote, that's a 0.25% spread.

As a comparison, SCB is currently quoting 1.41719, which is a 0.54% spread.
And IB is showing 1.42505, which is (slightly) even better than xe.com.

 

[iceblendedchoc]

I:m still waiting for them to introduce LSE and to compare the trading fees...They mentioned that they will be bringing LSE but no date was given...If they added LSE and added the ETF there for RSP, it would be more convenient and cheaper than IB or SCB...

Are FSMOne FX conversion as good as IB? Said for a conversion of 200k sgd each time ?

 

[assiak71]

I:m still waiting for them to introduce LSE and to compare the trading fees...They mentioned that they will be bringing LSE but no date was given...If they added LSE and added the ETF there for RSP, it would be more convenient and cheaper than IB or SCB...

Everyone please pester fsmone to support LSE

 

[makav31i]

Are FSMOne FX conversion as good as IB? Said for a conversion of 200k sgd each time ?

IB is still better for FX conversion...

 

[MaoZeDuo]

Many thanks

It's already priced in, the current rate as of now is $1.42490 at xe.com.
Versus your 1.4285713 quote, that's a 0.25% spread.

As a comparison, SCB is currently quoting 1.41719, which is a 0.54% spread.
And IB is showing 1.42505, which is (slightly) even better than xe.com.

 

[iceblendedchoc]

IB is still better for FX conversion...

thanks makav31i

 

[decibel.]

yes i bought at ipo and became a millionaire after sell off

How to buy US IPO as Singaporean? That's possible?

Sent from HUAWEI VOG-L29 using GAGT

 

[culepico]

How to buy US IPO as Singaporean? That's possible?

Sent from HUAWEI VOG-L29 using GAGT

That was a sarcastic remark. The share price of COTY now is much lower than that during the IPO lol. This thread is not meant for individual stock picks.

 

[thisislife]

How to buy US IPO as Singaporean? That's possible?

Sent from HUAWEI VOG-L29 using GAGT

haha, check the chart of coty from the day it IPO, you see it drop like bird sh!t

that being said, coty acquire kyle jenner a while back, so it might have a few pump before it's time to dump

 

[commie_rick]

How to buy US IPO as Singaporean? That's possible?

Sent from HUAWEI VOG-L29 using GAGT

sorry i thought this was edmw