Official Shiny Things thread—Part IV

[sentri]

I have nothing against shiny. I think my point is that everyone has the responsibility to do their own due diligence and think through how they are spending their money. And also that as far as possible, our arguments should be coherent, or just admit that we aren't as principled as we try to say we are.

I think your point agrees with Shiny's point as recapped by limster below? For context, VWRA started in Jul 2019 while the last edition of the book was written in 2017 I think.

To be fair to Shiny, when he wrote the 1st edition of his book, VWRA was not available. I think his current position is that when starting out either IWDA and VWRA are fine.

Shiny himself is not that rigid.. he has said if you want to put, say 5% into overweighting something or even stock picking, go right ahead... just don't ask him to tell you what stock to pick

To quote one of the times Shiny has addressed this:

IWDA and VWRA are both perfectly good, and they'll be pretty close in performance (unless emerging-market stocks suddenly wildly outperform or underperform). Either one is fine, but just pick one.

 

[revhappy]

Is IBKR Singapore account SPIC protected? I check its Singapore webpage but it seems everything mentioned there is for US account.

Also, can IBKR buy HK & China listed stocks?

Got free real time price data?

IBKR Singapore is MAS regulated, just like any other local Singapore broker, I dont think it is SPIC protected.

 

[newjersey]

You poor, confused VHNWI...

let me know when u hit HNWI status, then... maybe you are qualified to respond.

L

 

[FrostWurm]

As for the argument that iwda tracks vwra closely, this is only in terms of performance. There is a 10-15% difference in the companies that they are vested in. To use past performance as an argument that the two will continue to be the same... is rather laughable yes? It is a common sight on investment factsheets that past performance is no indication of future results.

If we accept this argument of past performance, then likewise, we should be prepared to accept other 'past performance' arguments such as how Nasdaq is better than S&P and how US is better than international.

It is rather disingenuous of you to make these statements because I don't think anyone has ever suggested that their performance will be identical. In fact, any right-thinking investor will come to the conclusion that because they track different indices, their performance will inevitably be different.

Now the question then turns to one of "how similar" will their performance be. If we accept your premise that "There is a 10-15% difference in the companies that they are vested in", then it also leads us to the conclusion that the performance of the remaining 85 - 90% of companies will be the same. This is stated in no uncertain terms, because the same company in both indices will obviously have the same performance. There is no surprise that both indices track each other closely, with the only differences being attributable to the companies that are different. Will the 10 - 15% of companies perform so differently that the indices materially diverge? Possible, but very improbable, considering that [10 - 15%] as a ratio of [85 - 90%] is 3:17 at best and 1:9 at worst.

Your argument that "past performance is no indication of future results" is a very bizarre point. In fact, it has absolutely no relation to the issue at hand, because the 85 - 90% of companies in both indices will perform identically, regardless of past performance.

 

[highsulphur]

let me know when u hit HNWI status, then... maybe you are qualified to respond.

L

How much do I need to respond to your posts?

 

[popol]

Greetings! Would like to get help from the community:

How can I get live prices on stocks listed in LSE?

 

[kram62]

Greetings! Would like to get help from the community:

How can I get live prices on stocks listed in LSE?

For those using IBKR, the market data for LSE has fee waived through December 2021.

 

[tesarise]

For those using IBKR, the market data for LSE has fee waived through December 2021.

thanks for the info

 

[crystalnox]

For those using IBKR, the market data for LSE has fee waived through December 2021.

Interesting how it's waived in "select Asian countries" and not for all users.

 

[Kayeesha]

Hi Shiny and everyone,

Would my plan to open an IBKR SG account for my local stocks and bonds whilst maintaining my IBKR LLC account for my overseas stocks be feasible?

Can I link the accounts so that I may easily transfer cash from one entity to the other for rebalancing?

Thanks.

 

[popol]

For those using IBKR, the market data for LSE has fee waived through December 2021.

Thanks. So I can create an account just to see the live prices even though I don't trade with IBKR right?

 

[geekroute]

Thanks. So I can create an account just to see the live prices even though I don't trade with IBKR right?

Just go to investing . Com for live prices

 

[popol]

Hello friends. I would like to get your advice.

I am currently using StanChart to buy a 3-Fund Portfolio (IWDA, ES3 and MBH). I buy around $1,500 every month. That means I buy one counter roughly once every 3 months except when I do rebalancing.

For local stocks, there are Regular Savings Plans for which the fees are lower compared to buying using a broker. These RSP buy the counter every month. How can we do rebalancing with this kind of setup?

Thanks

 

[beefjerky]

Hello friends. I would like to get your advice.

I am currently using StanChart to buy a 3-Fund Portfolio (IWDA, ES3 and MBH). I buy around $1,500 every month. That means I buy one counter roughly once every 3 months except when I do rebalancing.

For local stocks, there are Regular Savings Plans for which the fees are lower compared to buying using a broker. These RSP buy the counter every month. How can we do rebalancing with this kind of setup?

Thanks

use posb rsp for $500 ES3 and $500 MBH, 0.82% comm = 8.20
standchart - iwda ~ $10 usd?
pay about 10 sgd more per month for more accurate tracking i guess.

If you willing to switch to SG IB, then easier, the comm should meet the min monthly comm for all 3

 

[Kayeesha]

Hi Shiny,

Whilst researching China ETFs, I came across CXSE. It seems to be less popular than MCHI despite its lower expense ratio and better past performance over the last 5 years. Maybe the reason is because it is less diversified as it tracks non-SOE Chinese stocks. However, Investopedia lists it amongst its “Best China ETFs for Q12021” and the fund manager has made a convincing case for it.

What’s your view on it?

Thanks.

 

[popol]

use posb rsp for $500 ES3 and $500 MBH, 0.82% comm = 8.20
standchart - iwda ~ $10 usd?
pay about 10 sgd more per month for more accurate tracking i guess.

If you willing to switch to SG IB, then easier, the comm should meet the min monthly comm for all 3

When I buy manually and I need to rebalance, I will sell the counter that is doing well or buy more of the laggard counter to makeup the gap. How will I be able to rebalance when the RSP keeps buying every month?

 

[twinklingstars]

Hi everyone, I currently DCA $500 every month into syfe reit+ and stashaway (USD-denominated and US-listed ETFs). I plan to invest $2500 every month starting next month (I have already put aside $100K for my emergency funds), what other investment options do I have for the remaining $1500? Thank you!

 

[Shiny Things]

Is IBKR Singapore account SPIC protected? I check its Singapore webpage but it seems everything mentioned there is for US account.

Also, can IBKR buy HK & China listed stocks?

Got free real time price data?

Hey mate - look, I know your nickname is “street fighter”, but this thread isn’t the place to fight. If you want to argue about the credit quality of the Chinese banks, start a thread in SSI. (Heck, I’d even come in there and join you.)

In answer to your questions:

1) Probably not;
2) Yes (Chinese stocks through the HK-Shanghai and HK-Shenzhen links);
3) For some exchanges, yes. Which one are you looking for?

What? No it doesn't.

SG is listed as 0.36% of FTSE developed markets.
MSCI similarly classifies SG as a Developed Market.

D’oh - you’re right, I are dumb.

I should’ve been more precise: global investors tend to lump Singapore in with Asian emerging markets, rather than treating it like a developed market of its own.

As for the argument that iwda tracks vwra closely, this is only in terms of performance. There is a 10-15% difference in the companies that they are vested in. To use past performance as an argument that the two will continue to be the same... is rather laughable yes? It is a common sight on investment factsheets that past performance is no indication of future results.

Someone mentioned this upthread, but the reason I recommended IWDA over VWRA was simply that VWRA didn’t exist when I wrote the last edition of the book - VWRA launched in mid-2019. I think VWRA’s a great product, and it’s definitely competitive with IWDA.

Hi Shiny and everyone,

Would my plan to open an IBKR SG account for my local stocks and bonds whilst maintaining my IBKR LLC account for my overseas stocks be feasible?

Uh... I don’t think this is necessary. It’ll just be a huge pain in the behind; just use the IBKR SG account for everything.

Can I link the accounts so that I may easily transfer cash from one entity to the other for rebalancing?

I’m pretty sure you can’t do this.

hi ST, with interest rates so low, is it a concern that banks would have more bad loans when interest rates hike due to massive borrowing?

Depends on the bank, I guess. You’re asking whether banks have properly underwritten their loans, and that’s not really something I have a view on.

as us treasuries yields rise, should we expect mbh prices to fall?

Well, first thing, US treasury yields aren’t really rising? Give or take a few twitches, US 10s have bounced around between 0.6% and 0.8% ever since March.

That said... generally, yes, if US treasury yields went up, MBH’s price would go down... just like the price of A35, and the price of Singapore government bonds, and the price of any other bond in USD or in a currency that’s linked to the US dollar. This isn’t an MBH-specific thing.

Hi, grateful if the laojiaos in the forum could assist me with rebalancing my portfolio.

i have a 40-40-20 portfolio (nikko AM sti etf / IWDA / ABF bond). its november and i intend to rebalance my portfolio. based on the abovementioned ratios, i have an excess of around S$600 for Nikko AM STI etf and IWDA each.

[...]
In short, can i achieve rebalancing by not selling what i have in excess, but buying more of what i am short of?

Sure. If you only have a small excess of something, there’s no need to run up extra transaction costs with rebalancing. (“Small” depends on the size of your portfolio, but you’re right that $600 isn’t worth fussing about.)

Hello friends. I would like to get your advice.

[...]For local stocks, there are Regular Savings Plans for which the fees are lower compared to buying using a broker. These RSP buy the counter every month. How can we do rebalancing with this kind of setup?

Not very easily, unfortunately.

That’s the one downside of the RSPs - it’s very tricky to rebalance with them. In the past I used to say “oh yeah, just go in each month and change the fund that you direct your investment to!”, but that’s a huge pain in the butt.

Hi Shiny,

Whilst researching China ETFs, I came across CXSE. It seems to be less popular than MCHI despite its lower expense ratio and better past performance over the last 5 years. Maybe the reason is because it is less diversified as it tracks non-SOE Chinese stocks.

Hmm. SOEs are a huge part of the Chinese economy though. This seems like an extremely niche play, and if people come to me asking “how can I get Chinese equity exposure”, leaving out a big chunk of the market doesn’t seem like exactly what they want.

Also, don’t be led astray by the fund manager’s marketing. That’s literally just advertising for the fund... and creative-enough marketers can make a case for just about anything.

 

[Shiny Things]

Hi everyone, I currently DCA $500 every month into syfe reit+ and stashaway (USD-denominated and US-listed ETFs). I plan to invest $2500 every month starting next month (I have already put aside $100K for my emergency funds), what other investment options do I have for the remaining $1500? Thank you!

I mean, I wouldn’t use Syfe and Stashaway. They just pile you into US ETFs, which aren’t the right answer for Singaporean investors, because of the withholding tax on the dividends. (Also, they mean you’re loading up on excess country risk in the USA.)

That said, the standard three-fund portfolio would work fine for your $1500/month.

 

[cassowary18]

When I buy manually and I need to rebalance, I will sell the counter that is doing well or buy more of the laggard counter to makeup the gap. How will I be able to rebalance when the RSP keeps buying every month?

Not very easily, unfortunately.

That’s the one downside of the RSPs - it’s very tricky to rebalance with them. In the past I used to say “oh yeah, just go in each month and change the fund that you direct your investment to!”, but that’s a huge pain in the butt.

The trick is to continue buying the same amount every month and vary your BUY contribution amount during your twice-yearly rebalancing, remembering to change the contribution amount back to your regular amount the month after.