Official Shiny Things thread—Part III

[crystalnox]

Very nice.
Can you share how you're able to accumulate 100k at the age of 28? So other forumers can learn from u.

It’s not too difficult if you fit the bill: Single staying with parents, have no major expenses or debts, earn the average degree holder wage and save 75% of income. Better still if no need do NS.

 

[yellownova]

Hi all, would like your views on why IWDA (+EIMI) is preferred over VWRA?

The expense ratios for them are IWDA 0.2, EIMI 0.18, VWRA 0.22.

Wouldn't VWRA be better? Or, if the argument is no. Why and how? Is it because the liquidity of the ETF as often mentioned in some other threads. But how is it measured and compared against expense ratio?

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[cassowary18]

Hi all, would like your views on why IWDA (+EIMI) is preferred over VWRA?

The expense ratios for them are IWDA 0.2, EIMI 0.18, VWRA 0.22.

Wouldn't VWRA be better? Or, if the argument is no. Why and how? Is it because the liquidity of the ETF as often mentioned in some other threads. But how is it measured and compared against expense ratio?

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VWRA was only launched recently. Before that there was VWRD, which was distributing, so it wasn't as ideal as IWDA. Hence ST's recommendation for IWDA over VWRA. He may change it in the upcoming edition of his book, idk.

 

[Wishdom]

Hi all, would like your views on why IWDA (+EIMI) is preferred over VWRA?

The expense ratios for them are IWDA 0.2, EIMI 0.18, VWRA 0.22.

Wouldn't VWRA be better? Or, if the argument is no. Why and how? Is it because the liquidity of the ETF as often mentioned in some other threads. But how is it measured and compared against expense ratio?

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You mentioned that Vwra has a higher expense ratio than the other 2. So why is vwra better?

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[apriliasiao]

The expense ratios for them are IWDA 0.2, EIMI 0.18, VWRA 0.22.

Wouldn't VWRA be better?

scratch head... r u taking 0.2 + 0.18 = 0.38

 

[BBCWatcher]

VWRA currently has a slightly higher expense ratio than either IWDA and EIMI. In exchange you get a lower commission (one trade instead of two) and automatic rebalancing between the developed and emerging economy stock markets. I think that’s a fair trade.

If you care more about the expense ratio, then you might want VHVE or LCWD instead of IWDA. VHVE and LCWD are down at 0.12%.

 

[yellownova]

Thanks all for the responses.

Not concerned about the expense. Just wanted to learn how to choose between the ETFs and why.

VWRA currently has a slightly higher expense ratio than either IWDA and EIMI. In exchange you get a lower commission (one trade instead of two) and automatic rebalancing between the developed and emerging economy stock markets. I think that’s a fair trade.

If you care more about the expense ratio, then you might want VHVE or LCWD instead of IWDA. VHVE and LCWD are down at 0.12%.

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[aYu82]

Hi, may i know why VWRD is more expensive than VWRA since the former is distributing?

 

[cassowary18]

Hi, may i know why VWRD is more expensive than VWRA since the former is distributing?

They have the same expense ratio? 0.22%

 

[hwckhs]

Hi, may i know why VWRD is more expensive than VWRA since the former is distributing?

VWRD and VWRA are different share classes of the same fund (Vanguard FTSE All-World UCITS ETF). They have different quantity of assets and number of shares, resulting in different NAV per share. For ETFs, all you care about is that the price needs to track the NAV per share.

Check page 60 of this report and you can see the actual accounting of different share classes.

VWRD: https://www.vanguardinvestor.co.uk/...n=equityglobal_ftseallworlducitsetf_fund_link
NAV per share on 9/9/2020: $94.27
Closing price on 9/9/2020: $94.51

VWRA: https://americas.vanguard.com/insti...erview?portId=9679&assetCode=EQUITY##overview
NAV per share on 9/9/2020: $88.16
Closing price on 9/9/2020: $88.16

As you can see, both ETFs track their respective NAV per share closely.

 

[Newride]

Hi can anyone advise me if there is estate tax on irish domiciled etfs like snp500?
If yes, what if brokerage account is joint names. Thanks!

 

[BBCWatcher]

Hi can anyone advise me if there is estate tax on irish domiciled etfs like snp500?

There is no U.S. estate tax on bona fide Irish domiciled funds unless the fund is (was) held, jointly or separately, by a U.S. person who dies, in which case U.S. estate tax may apply. Some other jurisdiction may levy estate, inheritance, wealth, gift, income, and/or other taxes depending on the holder’s situation.

The U.S. has an inheritance tax that applies in rare situations involving a heir that is a U.S. person and a decedent who is (was) an ex-U.S. person.

As always, get a professional opinion if you need one.

 

[Wishdom]

I have close to 100k worth of vwrd now at the age of 28.

At this stage, I feel very comfortable with my financial position and I wish to take on more risk for greater potential returns.

What are some sensible long term options that I can take?

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Is it possible to sell covered calls/puts on vwrd?

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[smoothtalker]

It’s not too difficult if you fit the bill: Single staying with parents, have no major expenses or debts, earn the average degree holder wage and save 75% of income. Better still if no need do NS.

True that. first job after uni was slightly above median and took me 2.5 years to reach 100k. need a lot of discipline though.. but still lagging behind my peers in high finance. Their income in PE or IB is 2x mine now.

 

[zoneguard]

Is it possible to sell covered calls/puts on vwrd?

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Somebody asked ST before for IWDA and his answer is No. LSE don't have options on these UCITS ETFs.

 

[swan02]

Anyone has an opinion on equal weighted s&p 500 ?

 

[moolala]

Somebody asked ST before for IWDA and his answer is No. LSE don't have options on these UCITS ETFs.

just buy SPY better

no options is like losing income

 

[Wishdom]

just buy SPY better

no options is like losing income

Isn't that listed on nyse? Not very tax efficenct right?

How do you personally make money off options?

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[celtosaxon]

Isn't that listed on nyse? Not very tax efficenct right?

SPY is listed on SGX also, symbol: S27.

The only tax inefficiency for a non-US holder during their lifetime would be the 30% withholding tax on the quarterly dividend payments. The annual dividend yield is currently 1.64%, so you would see 1.15% instead... about a half percent loss. But the TER is only 0.09%, so adding a half percent to that - still better than most unit trusts available here. Note that any increase on the share price (capital gains) realized by a non-US holder are 100% tax free.

If you would like more efficient S&P 500 exposure, CSPX listed on the London Stock Exchange is probably the ETF you want. The TER is only 0.07% and the dividend withholding tax is 15% instead of 30% due to tax treaty, or about a quarter percent annually. Investing in London also avoids potential US estate tax issues for your heirs.

 

[livingcharsiew]

Is it possible to sell covered calls/puts on vwrd?

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switch to acwi
use good after time order to avoid dividends and repurchase
sell monthlies