Looking to invest ~$2000 in Vanguard ETF's to hopefully get a higher return than the 2.2% I get from the bank, I was looking at:
I have a SelfWealth account so I can access the $9.50 trades, are these ETF's a good portfolio for decent growth?
Thanks
I've got an account with SelfWealth annoyingly my free trades expired so hoping someone uses my referral code :)
I thought it was only $600 minimum for the first trade, overwise I'll change up amounts.
I think its $600 every time, but i could be wrong.
They also give away free trades on social media but you have to be really quick https://www.facebook.com/selfwealth.com.au
Thanks, I'll keep an eye on it.
I think it's just $600 minimum for your first buy of each company/ETF.
From the look of your ETFs, they should have a fairly low return (government bonds etc). I'd personally be holding equities ETFs.
Correct, Selfwealth requires a minimum of $600 for a new investment. You can buy more of what you already own with <$600.
This has changed according to their website.
Its $500 on limit order and $500 plus a buffer (refer to 2nd link below) on market orders.
https://help.selfwealth.com.au/hc/en-au/articles/36003149669…
https://help.selfwealth.com.au/hc/en-au/articles/36003061431…
Minimum trade (buy) with SelfWealth is $500 for first of that company/etf. No minimum after that. https://help.selfwealth.com.au/hc/en-au/articles/36003149669…
ASX - VDHG and just ignore it for a decade (and cross your fingers)
This seems to be a good idea, should I go all-in on that or split it with something safer
its already a diversified fund
marginally higher management costs, but zero effort for diversification
Its what I do (but not the ETF, their managed fund option due to the ability to drip feed funds in smaller amounts) for my kids 'future savings' account. They get 'x' $ sent to it every month that I dont notice and assume that in a decade or 2's time (assuming my kids don't turn into embarrassments and I disown them) they'll have enough their to have a decent 'leg up' for uni or trade or something (unlikely a house based on the way the house market seems to go)
It depends on your risk profile and when you might need the money. It looks like you have 75% of your allocation in safe assets such as bonds and fixed interest while only 25% in equities. For the amount you wish to invest the best advice will be as SBOB suggests and put in VDHG since it is made up of several equity funds, its well diversified to mitigate any country specific risk and a small allocation to safe assests to tolerate market swings.
So something like 75% VDHG and 25% VGB?
Is there a better option than VGB for safe assets?
I would go all VDHG for the amount you have. There are other bond funds such as VAF but VDHG will allocate 10% of your $2000 to bonds anyway. Again it depends on your individual ability to take on risk and your own research ;)
I'm a bit confused with VDHG options, so there is an ETF version I can buy on the ASX but is there one which I can get directly from Vanguard and there is an option to pay into it monthly?
Correct the retail managed funds allow you to BPay any additional money into the account but for that convenience the management fee is higher at 0.90% and you need a minimum initial investment of $5000. Where as the ETF version you trade on the ASX through your selfwealth account and incur a $9.50 cost per trade however the management fee for the ETF is 0.27%
higher management fee on their managed fund option, but can contribute smaller (~$100+) amounts at any time once account is setup as opposed to the relatively high % cost that would be in buying the ASX version of the ETF due to trading fees
Depends if you plan to regularly add to it, at what sized amounts, and over what time frame.
As I said above, i went the managed option as it allowed for a set and forget monthly small amount purchase, as opposed to needing to save that for 'x' months and make a single ASX ETF buy to offset the fees.
Once their account gets sizeable (eg mid to high 5's +) I may re-asses and sell, pay the CG tax, and re-start it as direct share purchase (havent done the maths)
I invested one ETF from Betashares recently, but its performance was very awful. So I did some research relate to the ETF, and I have to say, I will never buy any ETF anymore. Most of ETF can not beat the market even thought they might only invest to market index, because of the commissions and other fees. I hope you think again before you buy any ETF.
"Any ETF" That's a big call. There must be a lot of people out there in the FIRE community that haven't a clue.
Would you care to be more specific on what ETF you bought, how long you held it for and what the fee rate was? Also, what motivated you to sell?
quality investment advice there :/
Buys index tracking ETF. Is annoyed that performance tracks the index.
That's a new one. Lol.
Government bonds and fixed interest will be a safe place to park your money but where is the growth potential coming from? Plus you pay $9.50 to buy in and $9.50 to leave.
VGB is up near its highs and distributions in the past year have been $1.19 on a $53.80 share. Isn't that 2.2% return? Your $1000 will get you 18 shares. That's hardly worth it. I'm not understanding why you are splitting such a small amount over 3 ETFs.
Is there any reason you are so averse to risk? Do you already have money in riskier investments?
First time investing so wasn't sure what to look for I'm not thinking more towards $2000 in VDHG.
Have you checked your risk tolerance?
https://personal.vanguard.com/us/FundsInvQuestionnaire
Would you label yourself as "Buy & Hold" investor? When will you need the $2k and is it your emergency money?
Have you read and (mostly) understood:
https://www.vanguardinvestments.com.au/retail/ret/investment…
The above isn't a bad thing but can be occasionally volatile and you need to be able to stick with your investment plan.
Personally, I have IVV, VTS, VAP, VESG and VAE as I had specific holes in my portfolio I wanted to fill.
Good luck with it. Don't panic when the poo hits the fan, just buy more.
Nvm, misread what you wrote. Good luck, just spread it around a bit on various vanguard ETFs.
Dear OP
For your precious little $2000 its just not worth it.
And were are you getting 2.2% from a bank prey tell other than a honeymoon rate?
The rate is just from a local building society
Yes and…which one?????
I have ~20% VGB, ~30% VAS and ~50% VGS.
VGB hardly moved with COVID-19 but VAS and VGS took a hit.
I'm in it for the long term - I'm ~15 years away from retirement.
As I get closer I'll move VAS/VGS over to VGB.
If you are young and are just starting out I think you could try all on VAS or VGS. They are "cheap" to buy into now.
NB: my shares are not critical to the situation of my retirement outcome i.e. I can afford the losses
hi experienced investors, may i pick your brains got 6k as investiment, plan to buy incremental parcels in the next two months for set and forget it for 5-7 years ,
would you kindly indoctrinate me where to look for live data of share prices i understand some have delayed forecast?
and which free good platforms to learn about the company their ratios, share,dividends over multi year span for purposes of knowing which are good /undervalued company stocks.etfs? i understand selfwealth is limited in that capacity>.
lastly, do you know which has cheap brokerage fee for buying US shares/etfs etc?
THanks in advance!
Open selfwealth account using a referral link from Ozbargain https://www.ozbargain.com.au/deals/selfwealth.com.au
5 trades free in first month
Although they have a $600 minimum parcel so you will have to revise your dollar amounts slightly
They are CHESS-sponsored, and have very competitive brokerage costs compared to the banks.
Other cost-effective alternative is Commsec pocket but you would have to revise what ETFs you are looking at, they only support 7 https://www.ozbargain.com.au/node/473346