Author Topic: Australian Investing Thread  (Read 476785 times)

englyn

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Re: Australian Investing Thread
« Reply #1200 on: August 04, 2015, 08:42:21 PM »
This is what I'm talking about with the problem with VAS only indexing ASX300:

Quote
Bogle is adamant that the discipline of index investing is only effective when using the broadest possible measure of the sharemarket which means not only ignoring the double inverse leveraged ETFs but even the S&P 500 itself.

Another of Bogle’s career achievements was to develop the Vanguard Total Stock Market fund, which takes in not only the S&P 500 but also the Wilshire 4500 (for a grand total of 5000 listed stocks) and is the broadest measure of the US sharemarket available today.

http://www.afrsmartinvestor.com.au/p/specialist-investments/why_jack_bogle_hates_your_etf_BNx51AzguBRlezMSMRNoyI

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Re: Australian Investing Thread
« Reply #1201 on: August 04, 2015, 11:58:45 PM »
This is what I'm talking about with the problem with VAS only indexing ASX300:

Quote
Bogle is adamant that the discipline of index investing is only effective when using the broadest possible measure of the sharemarket which means not only ignoring the double inverse leveraged ETFs but even the S&P 500 itself.

Another of Bogle’s career achievements was to develop the Vanguard Total Stock Market fund, which takes in not only the S&P 500 but also the Wilshire 4500 (for a grand total of 5000 listed stocks) and is the broadest measure of the US sharemarket available today.

http://www.afrsmartinvestor.com.au/p/specialist-investments/why_jack_bogle_hates_your_etf_BNx51AzguBRlezMSMRNoyI

Relative mkt cap should be considered. As US is maybe 15x bigger than Oz. So in this sense ASX300 might be adequate relative to US TSM 5000, it is around the same ratio (perhaps only a bit higher). Just looking at no. of shares in index is misleading if you're talking about share mkt coverage then % of mkt cap would be much more relevant.

I guess that's why Vanguard opted to index based on ASX300 instead of the more common benchmark ASX200.

The issue of ASX concentration is the key concern, and that's just the nature of this market. As you said in previous post, it can be addressed with diversification.

englyn

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Re: Australian Investing Thread
« Reply #1202 on: August 05, 2015, 01:26:28 AM »
Huh. Didn't think of that, and it does make things easier. I'd like some supporting figures on % of market cap covered by the respective indices, but logic says you're probably right. Thanks!

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« Reply #1203 on: August 05, 2015, 02:50:43 AM »
TJEH, I use CMC Stockmarkets and I used their partnership with sharesight to help prepare my tax return this year. The reporting provided got me 90% of the way there, it was definitely helpful.  I still had to muck around in excel to get the VTS and VEU reporting right but that's because of exchange rates and different amounts of withholding tax, etc.

I am happy with CMC, I haven't had any problems but keep in mind that I have very limited funds invested, I follow a buy and hold strategy and haven't use another broker so YMMV.  They have performed well enough to convince me to convert my Issuer
Holdings to Chess with them.

Shaz_Au - I'm leaning towards CMC, so glad to hear you've had a positive experience with them. I'm going for a buy and hold strategy too, aiming to buy each month over the next year or so.

i'm with CMC and they are fine

marty998

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Re: Australian Investing Thread
« Reply #1204 on: August 05, 2015, 03:00:20 AM »
This is what I'm talking about with the problem with VAS only indexing ASX300:

Quote
Bogle is adamant that the discipline of index investing is only effective when using the broadest possible measure of the sharemarket which means not only ignoring the double inverse leveraged ETFs but even the S&P 500 itself.

Another of Bogle’s career achievements was to develop the Vanguard Total Stock Market fund, which takes in not only the S&P 500 but also the Wilshire 4500 (for a grand total of 5000 listed stocks) and is the broadest measure of the US sharemarket available today.

http://www.afrsmartinvestor.com.au/p/specialist-investments/why_jack_bogle_hates_your_etf_BNx51AzguBRlezMSMRNoyI

Relative mkt cap should be considered. As US is maybe 15x bigger than Oz. So in this sense ASX300 might be adequate relative to US TSM 5000, it is around the same ratio (perhaps only a bit higher). Just looking at no. of shares in index is misleading if you're talking about share mkt coverage then % of mkt cap would be much more relevant.

I guess that's why Vanguard opted to index based on ASX300 instead of the more common benchmark ASX200.

The issue of ASX concentration is the key concern, and that's just the nature of this market. As you said in previous post, it can be addressed with diversification.


Fun facts about the All Ordinaries:

# stocks: 492
Mean market cap: $3,300.81 million
Median market cap: $420.87 million

This implies a total market cap of $1,624 trillion.

This also implies that CBA with a market cap of some $142 billion is larger than the bottom half of the index combined, and quite possibly the bottom 2/3rds.

(Link to S&P data source)
http://au.spindices.com/indices/equity/all-ordinaries
« Last Edit: August 05, 2015, 03:02:16 AM by marty998 »

AustralianMustachio

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Re: Australian Investing Thread
« Reply #1205 on: August 06, 2015, 07:57:27 PM »
...and something else interesting I read recently - when Google reported well this year and it's share price spiked 16% on the day, the amount of market cap added in that single day was greater than that of Telstra

settlement

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Re: Australian Investing Thread
« Reply #1206 on: August 07, 2015, 02:03:09 AM »
Thanks englyn and Steveo for the information. Am now educating myself via bogleheads

marty998

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Re: Australian Investing Thread
« Reply #1207 on: August 07, 2015, 09:20:52 PM »
What a rank awful couple of days on the ASX, or you-beaut-stocks-on-sale-happy-days depending on your point of view.

Bank shares absolutely slaughtered in an orgy of self inflicted capital raising damage. ANZ bit the bullet with $3b, and shafted retail holders in the process.

CBA results to be released on Wednesday will be the next big news this week.

Happy bargain hunting ladies & gentlemen.

Wadiman

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Re: Australian Investing Thread
« Reply #1208 on: August 07, 2015, 09:44:22 PM »
To you fellow aussie stachers -

NAB trading have zero cost for international trades until the end of October. 

https://www.nabtrade.com.au/features/products/international-shares/overview?utm_source=nabtrade%20prospect&utm_medium=masthead&utm_campaign=international%20phase%202%20

The normal brokerage is pretty good too - $15/trade.

Worth considering methinks if after direct international shares.

bigchrisb

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Re: Australian Investing Thread
« Reply #1209 on: August 07, 2015, 10:28:29 PM »

ANZ bit the bullet with $3b, and shafted retail holders in the process.
I've read about the retail shafting a few times now. I struggle to see how they have been shafted though? I bought some more anz on market yesterday for less than the raising. I also have a handy option with the spp if it rallies hard. How have I been shafted? Could understand the feeling if the raising was a long way below current price?

potm

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Re: Australian Investing Thread
« Reply #1210 on: August 07, 2015, 11:43:42 PM »
It usually is below current price, institutions did not expect ANZ to tank so hard though. Sometimes the price rallies in announcement of a CR with a SPP. Small retail investors get a very good deal, free options. Large retail shareholders can get shafted. The SPP is not pro rataed on how much you currently hold. Renouncable rights issues is the fairest way.

Quick tip, always keep one share when you sell out of a stock.

marty998

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Re: Australian Investing Thread
« Reply #1211 on: August 07, 2015, 11:55:05 PM »

ANZ bit the bullet with $3b, and shafted retail holders in the process.
I've read about the retail shafting a few times now. I struggle to see how they have been shafted though? I bought some more anz on market yesterday for less than the raising. I also have a handy option with the spp if it rallies hard. How have I been shafted? Could understand the feeling if the raising was a long way below current price?

I guess you've been shafted because the share price has tanked 10% in the past couple of days and your holdings diluted by not having the opportunity to participate on equal terms as the instos... you're forced into buying on market so as not to be diluted. It's just 'lucky' (for want of a better word) that the price has fallen to the placement price due to the underwhelming 3rd qtr result.

NAB's raising earlier in the year probably is the better case study here in what should be done.

Given the slowdown in credit growth and lending restrictions, as well as the forced cap raising which will knock down returns on equity, I just wonder if the best time to buy into bank shares will be in a years time, and the right thing to do now is sit on the sidelines.

« Last Edit: August 07, 2015, 11:57:08 PM by marty998 »

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« Reply #1212 on: August 08, 2015, 12:45:55 AM »
my vanguard dividends (VAS VHY VGS) come in to my bank account as a direct credit from "Chevron Texaco" .


does anyone know why Chevron Texaco pay the dividend?

marty998

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Re: Australian Investing Thread
« Reply #1213 on: August 08, 2015, 06:56:38 AM »
Very odd. I don't know the answer sorry - mine get reinvested...


FFA

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Re: .
« Reply #1214 on: August 09, 2015, 08:30:16 PM »
my vanguard dividends (VAS VHY VGS) come in to my bank account as a direct credit from "Chevron Texaco" .


does anyone know why Chevron Texaco pay the dividend?
it's the stuff conspiracy theories are made of !

my direct credit has no mention of Chev Tex....

rowdy

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Re: Australian Investing Thread
« Reply #1215 on: August 10, 2015, 01:10:47 AM »

FFA

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Re: Australian Investing Thread
« Reply #1216 on: August 10, 2015, 06:07:33 AM »
interesting concept the philanthropic LIC, and good to see some important causes being supported. Personally though i'm not a fan of LIC's, probably will prefer to invest with low cost index etf's, and keep my charity donations separate from the investing...

Shaz_Au

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Re: Australian Investing Thread
« Reply #1217 on: August 11, 2015, 07:49:54 PM »
Someone please reassure me (or tell me I'm a complainy pants) that I did the right thing when I purchased $5K of VAS on the 7/8 at $69.95. The last couple of days the price has continued to dribble down.  I know we aren't meant to try to time the market and $69.95 seemed better than the ~$71 average it has been trading for the last couple of months.  My IPS said that VAS was the one to buy to due to being the furthest from the target allocation. Still it sucks though!

Then I had a quick read of the dual momentum investing thread and that just made me feel worse, according to that strategy I just bought the worst choice!  My other funds VEU, VTS, VAF were all in front, VAS was dead last :(  Damn it!

dungoofed

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Re: Australian Investing Thread
« Reply #1218 on: August 11, 2015, 08:00:08 PM »
Haha Shaz stop refreshing your portfolio, stop reading the news. Your $5k purchase will be fine when considered over the next 10-20 years.

Nothing wrong with rebalancing as a strategy.

Someone please reassure me (or tell me I'm a complainy pants) that I did the right thing when I purchased $5K of VAS on the 7/8 at $69.95. The last couple of days the price has continued to dribble down.  I know we aren't meant to try to time the market and $69.95 seemed better than the ~$71 average it has been trading for the last couple of months.  My IPS said that VAS was the one to buy to due to being the furthest from the target allocation. Still it sucks though!

Then I had a quick read of the dual momentum investing thread and that just made me feel worse, according to that strategy I just bought the worst choice!  My other funds VEU, VTS, VAF were all in front, VAS was dead last :(  Damn it!

FFA

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Re: Australian Investing Thread
« Reply #1219 on: August 12, 2015, 01:22:55 AM »
Someone please reassure me (or tell me I'm a complainy pants) that I did the right thing when I purchased $5K of VAS on the 7/8 at $69.95. The last couple of days the price has continued to dribble down.  I know we aren't meant to try to time the market and $69.95 seemed better than the ~$71 average it has been trading for the last couple of months.  My IPS said that VAS was the one to buy to due to being the furthest from the target allocation. Still it sucks though!

Then I had a quick read of the dual momentum investing thread and that just made me feel worse, according to that strategy I just bought the worst choice!  My other funds VEU, VTS, VAF were all in front, VAS was dead last :(  Damn it!
buddy, if it makes u feel any better, I bought on the same day at around the same price (a somewhat bigger amount too...). for me it's the right thing to do, because i'm following my plan.

there's a buffett quote where he says it's funny how people are happy when market's up and upset when market's down, yet most are net buyers of shares (including the future). So actually, unless you've FIRE'd and are fully invested in the market, you are probably short of equities and can allow yourself to be happy when the market falls.... Or, just ignore market noise as dungoofed says and remember these are long term investments :)

marty998

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Re: Australian Investing Thread
« Reply #1220 on: August 12, 2015, 02:17:12 AM »
And watch for more falls when CBA comes out of its trading halt.

I'm getting hammered on my index funds too... VHY down to $61.18.

Funny thing is I saw this coming... I rebalanced my super away from equities and into fixed interest last month and have held onto my early July gains of 3%. Perfect market timing!

Unfortunately did not do the same with my direct share holdings :(

Won't be getting my hands on a material amount of investable cash now until December. I think it's poor form to hope for markets to stay down but I really wish VAS and VHY could say at their current levels for another 6-12 months at least.

______________

On the subject of individual stocks, I cannot believe how much ANZ has been smashed. Trading at under $30 with current earnings is slightly ridiculous... almost being priced for another GFC...

FFA

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Re: Australian Investing Thread
« Reply #1221 on: August 12, 2015, 02:49:46 AM »
may be a good buying opportunity, or a more reasonable entry point to the banks anyway. prices were getting a bit too lofty / carried away... now they are being punished for making their business/balance sheet more robust.

re: anz, was always my least favoured of the big 4 banks (nab too I guess, but at least nab was priced accordingly). anz, I never really bought into their asia strategy.

AustralianMustachio

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Re: Australian Investing Thread
« Reply #1222 on: August 12, 2015, 05:51:23 AM »
If we're thinking as early retirees or semi retirees, then surely we must be concerned primarily with income than capital gains. In this regard, the market going down just means it has improved it's dividend yield. And we have a chance, if we have any spare cash, to buy the growing income stream at a more favourable rate.

Of course thinking this way is far, far simpler said than done

Shaz_Au

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Re: Australian Investing Thread
« Reply #1223 on: August 12, 2015, 05:59:54 PM »
Just a quick note to say thanks to all!  I'll try to stop refreshing that portfolio and I will just stick with the plan.  Bloody buyers remorse shouldn't apply to investing.

bigchrisb

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Re: Australian Investing Thread
« Reply #1224 on: August 12, 2015, 09:29:00 PM »
Be happy Shaz - you will never get the timing perfect!  The fact is has dropped a bit further means your next investment will be even better value, and secure a larger future income stream!

I'm about to put another $10k into VAS for my own portfolio.

settlement

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Re: Australian Investing Thread
« Reply #1225 on: August 14, 2015, 03:38:41 AM »
So englyn what does your total portfolio look like?

I like the three fund portfolio for Americans - international bonds, international stock and domestic stock. I would like an Australian equivalent that approaches emulating this.

I like the Vanguard lifestrategy except the management costs seem too high to be honest

domin8s

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Re: Australian Investing Thread
« Reply #1226 on: August 17, 2015, 10:21:20 PM »
Hi, new to the thread,

28y
1 child,
1 investment property
60K to invest.

@ Settlement, I would like a Australian approach also, if anyone can shed some light on this ?

What are people thoughts on stockspot.com.au ? as investment tool ?

Regards, Jason

englyn

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Re: Australian Investing Thread
« Reply #1227 on: August 17, 2015, 10:31:16 PM »
Urgh, don't look at my portfolio, I'm a very long way from having a target asset allocation planned out, and I'm buying what seems good value at the time, provided I do want it in my eventual portfolio, to avoid analysis paralysis while I plan.

I have a lot of VAS and ARG and some VEU and VTS. A bit of ALI for sector diversification and a couple of individual stocks in very small amounts that I'm looking for a good reason to incur brokerage selling.
« Last Edit: August 17, 2015, 10:38:58 PM by englyn »

AustralianMustachio

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Re: Australian Investing Thread
« Reply #1228 on: August 17, 2015, 11:04:32 PM »
Hi, new to the thread,

28y
1 child,
1 investment property
60K to invest.

@ Settlement, I would like a Australian approach also, if anyone can shed some light on this ?

What are people thoughts on stockspot.com.au ? as investment tool ?

Regards, Jason

Welcome Jason. Both points been discussed in this thread already

settlement

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Re: Australian Investing Thread
« Reply #1229 on: August 18, 2015, 12:20:53 AM »
Urgh, don't look at my portfolio, I'm a very long way from having a target asset allocation planned out, and I'm buying what seems good value at the time, provided I do want it in my eventual portfolio, to avoid analysis paralysis while I plan.

I have a lot of VAS and ARG and some VEU and VTS. A bit of ALI for sector diversification and a couple of individual stocks in very small amounts that I'm looking for a good reason to incur brokerage selling.

I see. Most Australians seem to invest with vanguard?

englyn

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Re: Australian Investing Thread
« Reply #1230 on: August 18, 2015, 01:09:06 AM »
Seems so. There's some discussion of other index funds eg iShares earlier in this thread. Can't remember exactly why I decided Vanguard instead, likely lower expense ratios or just longer established.

Maybe I should mention that I'm unlikely to buy any other shares (with possible exception of a bond fund further down the track), just to rebalance among what I've got once I decide on % of Aus Shares / Intnl Shares / Bonds (??) / Cash

Trouble

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Re: Australian Investing Thread
« Reply #1231 on: August 18, 2015, 01:30:25 AM »
Hello :)
I'm joining this thread.

31 yo with 2 kids and a husband
$30k-ish in shares
$60k-ish in a 2.?% savings account
Plan to buy a house in less than 3 years

Confused with all the acronyms and investing jargon but trying to learn.
Somewhat frozen with indecision, it was much easier when the choice was "put it in the offset account"

dungoofed

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Re: Australian Investing Thread
« Reply #1232 on: August 18, 2015, 01:46:01 AM »
Seems like there is an influx of new users to this thread in recent weeks - good to see some new blood, and welcome!

And yes, it's worth going through the entire thread. Also superannuationfreak's blog, BigChrisb's journal and a few others.

FFA

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Re: Australian Investing Thread
« Reply #1233 on: August 18, 2015, 02:24:29 AM »
I see. Most Australians seem to invest with vanguard?

The traditional oz index is State Street (code STW). But fees are relatively high, and it's fast losing share to vanguard for that reason. Although STW is still quite good for liquidity. Ishares is another competitive option by the worlds largest fund manager, Blackrock. Around the MMM board vanguard is quite popular, as a typical investing strategy is the index approach popularised by Bogle (Vanguard founder).
« Last Edit: August 18, 2015, 02:29:50 AM by FFA »

FFA

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Re: Australian Investing Thread
« Reply #1234 on: August 18, 2015, 02:28:16 AM »
$60k-ish in a 2.?% savings account
Plan to buy a house in less than 3 years
Somewhat frozen with indecision, it was much easier when the choice was "put it in the offset account"
Trouble, I suggest you shop for a better savings account. You can achieve mid 3%. the Oz share market must be tempting with the current correction giving a nice entry point (4 to 4.5% yields plus some franking). However if you need the cash in 3 years it maybe too short a timeframe for shares (generally 5 or 7+ years is advised) - you need to weigh this up and decide .

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Re: Australian Investing Thread
« Reply #1235 on: August 18, 2015, 04:26:09 AM »
I am currently deciding between VAS and IOZ. Or should I buy both? Hmm.

settlement

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Re: Australian Investing Thread
« Reply #1236 on: August 18, 2015, 04:44:00 AM »
I see. Most Australians seem to invest with vanguard?

The traditional oz index is State Street (code STW). But fees are relatively high, and it's fast losing share to vanguard for that reason. Although STW is still quite good for liquidity. Ishares is another competitive option by the worlds largest fund manager, Blackrock. Around the MMM board vanguard is quite popular, as a typical investing strategy is the index approach popularised by Bogle (Vanguard founder).

And the typical Australian portfolio looking something like:

VAS (30%)
VGS (30%)
Government bond / high interest account (40%)

?

potm

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Re: Australian Investing Thread
« Reply #1237 on: August 18, 2015, 04:56:47 AM »
I am currently deciding between VAS and IOZ. Or should I buy both? Hmm.

VAS is asx 300 while IOZ is asx 200, although it doesn't make that much of a difference. VAS mer is slightly cheaper than IOZ and seems to be more liquid.

There's no reason to buy both.

marty998

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Re: Australian Investing Thread
« Reply #1238 on: August 18, 2015, 04:59:38 AM »
Somewhat frozen with indecision, it was much easier when the choice was "put it in the offset account"

Thats not necessarily a bad idea. We're a funny country. The richest people on earth and by far and away the most pessimistic.

Sometimes I think the market simply goes looking for a reason to go down. China, US, Greece, Russia, Brazil...

Somewhere in the world there is bad economic news on any given day, and the ASX looks at that and goes down in sympathy.

marty998

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Re: Australian Investing Thread
« Reply #1239 on: August 18, 2015, 05:04:01 AM »
I see. Most Australians seem to invest with vanguard?

The traditional oz index is State Street (code STW). But fees are relatively high, and it's fast losing share to vanguard for that reason. Although STW is still quite good for liquidity. Ishares is another competitive option by the worlds largest fund manager, Blackrock. Around the MMM board vanguard is quite popular, as a typical investing strategy is the index approach popularised by Bogle (Vanguard founder).

And the typical Australian portfolio looking something like:

VAS (30%)
VGS (30%)
Government bond / high interest account (40%)

?

Typical Aussie portfolio is House, Government Age Pension, Cash, CBA, BHP, MPL, TLS, WOW, QAN, IAG, AMP.

Most people haven't a clue how to go about buying a bond portfolio.

settlement

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Re: Australian Investing Thread
« Reply #1240 on: August 18, 2015, 05:39:51 AM »
I don't know what most of those acronyms mean but I meant typical aussie boglehead!

FFA

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Re: Australian Investing Thread
« Reply #1241 on: August 18, 2015, 05:40:51 AM »
I am currently deciding between VAS and IOZ. Or should I buy both? Hmm.

VAS is asx 300 while IOZ is asx 200, although it doesn't make that much of a difference. VAS mer is slightly cheaper than IOZ and seems to be more liquid.

There's no reason to buy both.
well, funny u should say that, I actually buy both.... my main reason is a bit paranoid, but as I'm concentrating a large chunk of my wealth in vanguard, I just wanted to diversify a bit in case the unthinkable happens and there is some kind of scandal / compliance problem / rogue trader / etc. As I said it is surely paranoid but then again i'm sure most Madoff investors never saw that coming either.... I also figured there might be some optimisation if ever needing to sell, along the lines of capital gains harvesting concept (not actually part of the plan though, which is to hold forever). Finally, as a relative newbie to etf's I wanted to compare them on portfolio turnover, franking levels, distributions, etc. Of course you can compare without investing, but in my experience you keep a keener eye on it when you have money down. The recent IOZ distribution was huge and nearly 80% capital gains, so they had massive portfolio churn in 2q'15 (perhaps rebalancing sales when the ASX peaked in april?) whereas VAS did not. I am still tempted to call iShares and ask for some explanation on this, if I ever get around to it.

So... perhaps there are some reasons, although not necessarily rational / good ones !
« Last Edit: August 18, 2015, 05:42:40 AM by FFA »

marty998

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Re: Australian Investing Thread
« Reply #1242 on: August 18, 2015, 05:44:26 AM »
I don't know what most of those acronyms mean but I meant typical aussie boglehead!

They're ASX stock codes - Commonwealth Bank, BHP Billion, Medibank, Telstra, Woolworths, Qantas, Insurance Australia Group (NRMA/CGU Insurance) & AMP.

Otherwise known as the "mum's and dad's" portfolio - stocks you buy just because they're big companies (BHP, Woolworths) or you've got them from demutualisations (AMP, IAG) or Government sales (CBA, Qantas, Telstra, Medibank).


potm

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Re: Australian Investing Thread
« Reply #1243 on: August 18, 2015, 05:51:01 AM »
Performance of the etf provider can have an impact but it is quite small. The etf has to be maintained to match the index and as stocks in the index change vanguard or ishares have to change the etf to match. They can't just magically wave a wand and make it happen though, stocks will need to be bought and sold. How well they do this will affect the returns of the ETF. From what I've seen vanguard appear to perform better, I haven't looked into it too closely.

I can't think of a situation where having both will help you CGT wise, if anything having only one will be better. You are allowed to select which shares are sold to minimise your tax.

limeandpepper

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Re: Australian Investing Thread
« Reply #1244 on: August 18, 2015, 07:55:45 AM »
VAS is asx 300 while IOZ is asx 200, although it doesn't make that much of a difference. VAS mer is slightly cheaper than IOZ and seems to be more liquid.

There's no reason to buy both.

Yeah it seems superfluous to buy both, I just have a hard time making a decision. Thanks for the input! :)

FFA

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Re: Australian Investing Thread
« Reply #1245 on: August 18, 2015, 05:12:56 PM »
yes agree they're basically the same, can pick one or other.

there was some reference to index theory (maybe a page or two earlier in this thread) which suggests it works better when the index covers the total market. if you subscribe to this, then obviously asx300 is preferable. personally i'm not so sure, I think the main point of indexing is consistency and low cost. how the asx 201-300 performs versus the asx200 is anyone's guess!

in my case, while I have both it's not for any solid reason. although also I don't think it really costs me anything as I still invest in the same clip size (so no extra brokerage). maybe 5 mins extra /yr at tax time in admin. I certainly wouldn't hold both if it meant investing in smaller lots and increasing brokerage %
« Last Edit: August 18, 2015, 05:25:45 PM by FFA »

FFA

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Re: Australian Investing Thread
« Reply #1246 on: August 20, 2015, 06:16:45 AM »
Yes I can see the value, but IMO stocks, especially banks and resources, have got a little further to go.*

I can see XJO heading towards 5000 before it goes back towards 6000. One of these days one of my 1000s of predictions will come true.

DYOR

* Should clarify that the reason for this view is that credit growth is not what it once was and the banks margins will come under increasing further pressure.

Regarding resources, it's obvious, prices are down, and staying down.

just reading back through, some quite good warning calls by Marty back in may /june !!

AustralianMustachio

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Re: Australian Investing Thread
« Reply #1247 on: August 20, 2015, 07:42:49 AM »
Just to play devils advocate though... :p

We've had one very flat year on the ASX, I see the markets picking up and the index heading back towards 6000 by 31 Dec 2015, driven by the banks, who will continue to churn out record bumper profits.

 I guess that's why they say market timing is hard. (Just being cheeky and responding to FFA, not having a crack at you marty!)

On the other hand, if the ASX goes up to 6000 by the end of the year, then Marty wins the expert market timing award!

FFA

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Re: Australian Investing Thread
« Reply #1248 on: August 20, 2015, 04:55:08 PM »
the first prediction was already (very nearly) reached by mar/apr'15 and then he turned bearish. but let's not give marty a big head just yet, I think he was calling for a 20% fall in May, which still has a bit to go...

bigchrisb

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Re: Australian Investing Thread
« Reply #1249 on: August 20, 2015, 06:24:04 PM »
Yep, its certainly been volatile the last little while!  Better value than it was - I'm chipping some cash into the markets at the moment.  Bought $10k of VAS at $66.55.