Official Shiny Things thread—Part III

[powerfulhorse]

Looks about right to me, Tiered 0.05% for 12,000 EUR is 6 EUR + misc. exchange and clearing fees.
Most of us here aren't buying >$3k worth of stocks at one time so we only consider the min. fee in our discussions.

sorry bout stupid questions but just confirming the following questions:

1. I'd have to change the default 'fixed' pricing to 'tiered' pricing on my accounts mgt page;

2. the maximum amount per trade shouldn't exceed USD$3,000 so as to keep the commission at its minimum of USD$10 per month; and

3. what should be the maximum no. of trades per month so as to keep the commission at its minimum of USD$10 per month?

Thanks to all experts again.

 

[spvnnn]

Could someone explain why the "standard" advice is to do 50/50 between STI and a global ETF like IWDA? STI seems to have had an inconsistent performance over the past few decades compared to SNP500/IWDA. Is the main reason to protect against forex shocks? Would it be wise to weight more heavily into IWDA for more consistent returns? (e.g. 70/30)

 

[archon75]

Under Fed Reserve Low Rate and Low Growth model, investment is best targeted at key critical industrial that is essential to badic needs / future growth eg telecom that control good quality asset and weapon makers

 

[RedsYWNA]

Could someone explain why the "standard" advice is to do 50/50 between STI and a global ETF like IWDA? STI seems to have had an inconsistent performance over the past few decades compared to SNP500/IWDA. Is the main reason to protect against forex shocks? Would it be wise to weight more heavily into IWDA for more consistent returns? (e.g. 70/30)

I think the original theory was to hedge against your home country's stock market doing exceptionally well, and to hedge currency risks.

I feel MAS current policy (not sure if will change in future), is already hedging currency risks for us. On home country's stock market booming, my take is that its unlikely now or in the future, esp with easy access to global stock trading.

So I will allocate a higher percentage to world markets, but still have sg bonds to hedge.

 

[celtosaxon]

Could someone explain why the "standard" advice is to do 50/50 between STI and a global ETF like IWDA? STI seems to have had an inconsistent performance over the past few decades compared to SNP500/IWDA. Is the main reason to protect against forex shocks? Would it be wise to weight more heavily into IWDA for more consistent returns? (e.g. 70/30)

I’m not sure who claims that it is standard advice, but weighting half of your equity portfolio on 0.4% of the world’s market capitalization will result in more than 100x overweight position.

Forex is not a good reason to overweight Singapore stocks, because SGD is pegged (managed within a band) to a trade weighted basket of foreign currencies.

If you have currency concerns, rather than overweighting STI you could simply adjust your geo-mix to more closely match Singapore’s largest trading partners.

 

[zoneguard]

I’m not sure who claims that it is standard advice, but weighting half of your equity portfolio on 0.4% of the world’s market capitalization will result in more than 100x overweight position.

Forex is not a good reason to overweight Singapore stocks, because SGD is pegged to a trade weighted basket of foreign currencies.

Shiny Things wrote it in his book and was asked on a few occasions if he has changed his position and he said no. This is one of those issues he and BBCW are not in agreement.

If you have currency concerns, rather than overweighting STI you could simply adjust your geo-mix to more closely match Singapore’s largest trading partners.

How do you propose to do this? Any example ETFs?

 

[celtosaxon]

How do you propose to do this? Any example ETFs?

Yes, you could use country specific or region specific ETFs.

Not for currency reasons, but I do have positions in AAXJ and AIA (S&P Asia 50) traded in the US, but there are similar ones to this, like IDFF on LSE.

I believe that in the long run, major currencies tend to revert back to the mean, so if you are dollar cost averaging and investing for the long run, forex risk should not be your biggest concern, especially if you are maxing out CPF and maybe SRS as you get closer to retirement.

 

[swan02]

How come I can’t get IDFF in IB ?

looks like I have to get 2801 instead.

Any argument against ?

Not for currency reasons, but I do have positions in AAXJ and AIA (S&P Asia 50) traded in the US, but there are similar ones to this, like IDFF on LSE.

 

[celtosaxon]

How come I can’t get IDFF in IB ?

looks like I have to get 2801 instead.

Any argument against ?

That is a China specific ETF and trades in Hong Kong. If you want China specific exposure, that might be a possibility. I don’t know what the bid-ask spread is like on this one, but it looks like the expense ratio of 0.2% is reasonable.

Looks like there are a few broader Asia ETFs traded in HK as well, like 3010 and 3085, but not sure how liquid they are. Probably more liquid than the ones that trade on SGX.

 

[JadenQ]

You don’t want to. The Vanguard funds are great for US investors, but they’re not really appropriate for Singaporean investors.

Oh but you previously mentioned that since it was inadvisable for me to invest into IWDA/VWRA now (as I would be relocating to the US for work in a couple of months time, spanning a couple of years) that I should pick a Vanguard Retirement fund that matches my date when I think I'm going to retire to invest into with my lump sum in SG now.

If not appropriate for my circumstance, what should I put my lump sum into now? Or just wait till I reach the US and then convert that lump sum into USD to put into a Vanguard Retirement fund?

 

[celtosaxon]

Oh but you previously mentioned that since it was inadvisable for me to invest into IWDA/VWRA now (as I would be relocating to the US for work in a couple of months time, spanning a couple of years) that I should pick a Vanguard Retirement fund that matches my date when I think I'm going to retire to invest into with my lump sum in SG now.

If not appropriate for my circumstance, what should I put my lump sum into now? Or just wait till I reach the US and then convert that lump sum into USD to put into a Vanguard Retirement fund?

I already mentioned VT

 

[BBCWatcher]

JadenQ, I cannot remember off hand: what's your planned/expected U.S. visa type?

 

[yhugseh]

Does anyone else have trouble finding the snapshot button on IBKR? I can't seem to find it anywhere. It does not appear when I order, there is nothing to refresh.

 

[hwckhs]

Does anyone else have trouble finding the snapshot button on IBKR? I can't seem to find it anywhere. It does not appear when I order, there is nothing to refresh.

Checked this?

Btw, do you have live market data? If you do, the snapshot button will not appear for counters in that market.

 

[yhugseh]

Checked this?

Btw, do you have live market data? If you do, the snapshot button will not appear for counters in that market.

Yeah I checked that but in the client portal under the bid/ask price there isn't that button for snapshot. And I don't think I have live market data, the prices are all delayed.

 

[hysteriakx]

sorry for hijacking.... since we're talking about ibkr and live market data, has anyone thought of switching to TD ameritrade? i have less than 100k usd at ibkr and mainly trade iron condors. monthly comm > 10usd but i havent signed up for live market data. i understand that the options market data cost ard 20 usd + 10 + for the stock data and unsure if those can be offset by monthly commissions. i much much prefer TD ameritrade platform though. any thoughts on switching?

 

[limster]

sorry for hijacking.... since we're talking about ibkr and live market data, has anyone thought of switching to TD ameritrade? i have less than 100k usd at ibkr and mainly trade iron condors. monthly comm > 10usd but i havent signed up for live market data. i understand that the options market data cost ard 20 usd + 10 + for the stock data and unsure if those can be offset by monthly commissions. i much much prefer TD ameritrade platform though. any thoughts on switching?

if you are profitable trader it doesn't matter right? one nights profit can pay for several years of data.

 

[JadenQ]

I already mentioned VT

I assume you mean the VT ETF? In a previous post I asked whether I can (or should) invest into this via IBKR SG as I wasn't too sure.

JadenQ, I cannot remember off hand: what's your planned/expected U.S. visa type?

H-1B1

 

[SGRevolution]

hi guys i am keen to buy vanguard value etf
https://investor.vanguard.com/etf/profile/VTV
did a search on standard chartered trading and saw that it is on the ASE(american stock exchange)
will buying this etf on this stock exchange have alot of tax?
seems like not much talk on this exchange here, mostly about LSE

 

[BBCWatcher]

H-1B1

I was afraid you'd say that.

OK, I think the basic, threshold question is whether it's reasonably possible to be subject to U.S. tax and financial reporting rules on worldwide income and assets while on a H-1B1 visa for a planned 2 year stint. And I think the fair answer to that question is "Yes, it's reasonably possible." You might be able to wiggle out of U.S. tax residence in certain circumstances, but even so I think you ought to plan as if you'll be fully subject to U.S. tax and financial reporting obligations. And you could always fall in love with an American.

Now, if your employer is "tax equalizing" you, and providing tax preparation assistance, that'd be nice. Then you'll still want to learn, at a basic level anyway, what's going on and how the numbers work, but you probably don't have to do anything in particular to reorient your financial life prior to stepping foot in the U.S. Otherwise, it'd be prudent to adopt a "U.S. posture" prior to stepping foot in the U.S.

If you're going to the U.S. specifically to teach, special exceptions may apply.