Author Topic: Which index fund to choose?  (Read 855 times)

Jesper

  • 5 O'Clock Shadow
  • *
  • Posts: 33
  • Location: Denmark
Which index fund to choose?
« on: September 12, 2017, 11:30:01 AM »
Hi Guys,

Long story short, I went to a meeting with our work pension adviser today. In Denmark we can either choose to 1. have them invest our work pension at high yearly costs.. Or choose a passive fund ourselves. However the choice is limited.

Luckily there is a few Vanguard funds on the list (I hope thats still what people are using?), but as this is pretty new to me, I am not sure which to choose. Our "free funds" has a tax burden that makes international funds too expensive, so they are invested in national funds instead. However this burden isn't applied to work pension.

The list is on the link below - Vanguard in the bottom. My apologies for the list being partly in Danish, but you should be able to see the names of the funds.

https://lt.morningstar.com/jkqc7vx4rs/fundquickrank/default.aspx?CustomAttributes1=AP


Oil Patch Adams

  • 5 O'Clock Shadow
  • *
  • Posts: 86
Re: Which index fund to choose?
« Reply #1 on: September 13, 2017, 12:05:15 PM »
the last one

Radagast

  • Pencil Stache
  • ****
  • Posts: 664
  • Location: West of the Mountains, East of the Sea
Re: Which index fund to choose?
« Reply #2 on: September 13, 2017, 07:22:44 PM »
The Vanguard Global Stock Index is the obvious choice. Use a mixture of the Small Cap Global Index and maybe Emerging Markets Index if you desire more risk, and European or Danish bond funds if you desire less. After that it can get needlessly complicated fast.

Something like the 2065 fund might also be good but I can't tell if it has a high expense ratio. Be sure any funds you use have low expenses, less than 0,20% per year if possible. I think I understand "kickback" is the standard expense ratio but I can't tell for example if "AOP" is also an expense.

I can read more Danish than I expected.

DavidAnnArbor

  • Handlebar Stache
  • *****
  • Posts: 1333
  • Age: 52
  • Location: Ann Arbor, Michigan
Re: Which index fund to choose?
« Reply #3 on: September 13, 2017, 09:55:56 PM »
It looks to me that Kickback is the expense ratio of these funds?

In that case Sparinvest INDEX DJSI World KL is pretty good because it is an internationally diversified global large cap index fund.

Then I agree to add some Vanguard Small Cap Global and Vanguard Emerging Markets.

Jesper

  • 5 O'Clock Shadow
  • *
  • Posts: 33
  • Location: Denmark
Re: Which index fund to choose?
« Reply #4 on: September 17, 2017, 06:39:33 AM »
Thanks for the responses - and yeah Danish isn't that bad too read ;)

I will do a mix of the Vanguard ones. Kickback is the "yield" or what you may call it. The "ŇOP" is the yearly cost percentage, all costs included.