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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: wire on February 19, 2016, 06:01:31 AM

Title: Non-US investor: Is there a single ticker for a full stocks and bonds portfolio?
Post by: wire on February 19, 2016, 06:01:31 AM
For tax purposes and because of tax rules in my country. It is not tax efficient to, say arrange my stocks and bonds portfolio to 80/20, or 60/40, or according to my age every year. I pay a tax penalty on every gain. If one ticker (I guess an ETF would be the way to go here, as standard ETFs are available all over the world) included the stocks and bonds portion, too, I would be the winner! :)

Is there a market for such an ETF, for non-US investors? How to make one? Difficult?

Oh, and I would invest in the same underlying assets as US folks do. Home country bias is stupid.
Title: Re: Non-US investor: Is there a single ticker for a full stocks and bonds portfolio?
Post by: NoStacheOhio on February 19, 2016, 06:03:33 AM
I think what you're looking for is called a target date fund. Just go into your research tab on whatever platform you use, and you should be able to filter ETFs and mutual funds by category or strategy. There should be a box of target date funds or maybe allocation. Alternately, try using "target" as a keyword search.
Title: Re: Non-US investor: Is there a single ticker for a full stocks and bonds portfolio?
Post by: wire on February 19, 2016, 06:29:11 AM
These were the first hits coming up for 'glide investing' on Google:

http://wealthmanagement.com/retirement-planning/problem-glide-path

https://www.researchaffiliates.com/Our%20Ideas/Insights/Fundamentals/Pages/F_2012_Sep_The_Glidepath_Illusion.aspx

This topic, however, is not about discussing the pros and cons of a target date fund, as compared to fixed allocation. Just give me the other side of the coin: besides the glide path, do I have the option for a fixed allocation in a single ticker? Which, by the way, always made more intuitive sense to me.
Title: Re: Non-US investor: Is there a single ticker for a full stocks and bonds portfolio?
Post by: Doubleh on February 19, 2016, 06:38:55 AM
What country are you in? Vanguard life strategy and target date funds do just this and are available in a number of markets not just usa
Title: Re: Non-US investor: Is there a single ticker for a full stocks and bonds portfolio?
Post by: arebelspy on February 19, 2016, 10:50:27 AM
It is not tax efficient to, say arrange my stocks and bonds portfolio to 80/20, or 60/40, or according to my age every year.

The above advice is good for the last of the options you mention, the shifting yearly AA.

If you want it fixed between those assets (i.e. not changing the ratio yearly), but rebalancing regularly for you, look into Vanguard's Wellington or Wellesley funds.
Title: Re: Non-US investor: Is there a single ticker for a full stocks and bonds portfolio?
Post by: NoStacheOhio on February 19, 2016, 01:09:29 PM
It's important to note that most target date funds are still going to distribute capital gains from assets sold over the course of the year, which is probably treated the same as if you were to do it all yourself for tax purposes.