Investment Options E.g. ETF, Index Funds

LSpendorSave on 11/03/2022 - 15:37

Hi, I am a newbie and need ideas and information to start my long term investment journey.

VDHG has been mentioned a lot. How does this compare to DHHF? Are they similar? Since VDHG is approx $57 and DHHF is $27, would it be better to purchase the lower priced EFT?

It's important to look at the return, management fees etc but some of these ETFs are very expensive e.g. IVV are $586, VAS $92. What are your thoughts on pricing? How do I select?

If one buys a high growth diversified ETF, does it make sense to later buy other ETFs such as ETHI, FAIR, IOZ, VAS, VGS?

What are examples of low cost index funds (long term investments - 10 years)?

If I purchase ETFs or shares from Stake or Superhero, can I later move these to one of the banks e.g. NABTrade? Or do they stay with Stake until I sell them?

Thanks in advance for your help. :)

Financial Investment

Comments

  • May4th on 11/03/2022 - 15:42

    Google is your friend :)
    https://strongmoneyaustralia.com/dhhf-vdhg-one-fund-portfoli….

    You can move them as long as they are CHESS sponsored (like selfwealth/pearler/and now stake).

    Price is irrelevant

    • w37hsyea on 13/03/2022 - 23:30
      -1

      Anyone can move etfs or stocks. It depends on broker limitations. Only sharesies restricts transfers.

      Don't fkn comment on things you have no idea about.

      • May4th on 14/03/2022 - 15:19
        -1

        non chess sponsored providers like superhero use a custodian model as opposed to individual CHESS. normally no issue moving it around but if they go under or have liquidity issues your shares will become illiquid and thereby has a higher risk. perhaps you should educate yourself before going to war on your kb

          • May4th on 15/03/2022 - 07:45

            @w37hsyea: Just drawing attention to the differece between custodian vs chess for the uninitiated but sure, you tell yourself whatever you need to make yourself feel important, onto the next battle for you, warrior!

  • SBOB on 11/03/2022 - 15:53
    +3

    Since VDHG is approx $57 and DHHF is $27, would it be better to purchase the lower priced EFT?

    Irrelevant as they aren't operating on the same share allocation (total units) for the fund.

    The individual unit price of an ETF can't be compared between funds

    Just DCA VDHG and forget about it

  • rektrading on 11/03/2022 - 15:56

    Spaceship.

    • Jimothy Wongingtons on 11/03/2022 - 16:32

      profuse sweating

      • rektrading on 11/03/2022 - 16:42

        Would you rather have me suggest to OP buy ATH or at the floor?

        Spaceship has taken a 👊 because of the macrotrend. The asymmetric bet from here is guaranteed to be better now than 3M ago as long as the 🌎 doesn't get nuked.

        • May4th on 11/03/2022 - 19:05

          Just buy FANG or NDQ..not a fan of actively managed funds

  • rektrading on 11/03/2022 - 15:58

    Since VDHG is approx $57 and DHHF is $27, would it be better to purchase the lower priced EFT?

    The cheaper one has more 🍟.

  • rektrading on 11/03/2022 - 16:00

    Just DCA FAANG or TANG and forget about it.

  • hotdog85 on 11/03/2022 - 16:42
    +1

    I prefer DHHF over VDHG because it has no bonds

    • May4th on 11/03/2022 - 19:05

      and vdhg more hedged vs non hedged

  • netjock on 11/03/2022 - 16:45

    You should really read into what you are buying and why it is priced differently.

  • Shadowsfury on 11/03/2022 - 17:11
    +1

    VDHG has been mentioned a lot. How does this compare to DHHF? Are they similar? Since VDHG is approx $57 and DHHF is $27, would it be better to purchase the lower priced EFT? they are indeed similar - to the point you should just pick one or the other. As others have said you also can't really pick based off price - that shouldn't come into your consideration when selecting ETFs

    It's important to look at the return, management fees etc but some of these ETFs are very expensive e.g. IVV are $586, VAS $92. What are your thoughts on pricing? How do I select? Returns - don't fall for receny bias - everything goes up and down in cycles that aren't always happening at the same time. Also per above don't pick based off the price of the ETF - as markets/indices move up and down each of the ETFs will also move in the same percentage movements.

    If one buys a high growth diversified ETF, does it make sense to later buy other ETFs such as ETHI, FAIR, IOZ, VAS, VGS? Since you are very new I'd read up a bit on whether to go something like VDHG or a VAS/VGS combo (that passiveinvestingaustralia page that has been linked earlier has an article on it). From there I'd just build this position for a while to learn more, but you shouldn't double up unless you have a good reason. e.g. Most of VDHG is effectively IOZ/VAS/VGS so there is no point in getting those IMO - if you were to branch out it should be for specific reasons like you wanted ethical exposure or to certain sectors. This can come in time so don't go chasing the latest hype sector right when you start investing.

    What are examples of low cost index funds (long term investments - 10 years)? Pretty much any ETF that is market cap-weighted will fall in this category. Anything else is considered smart beta and so may do better or worse than the overall market, whilst also costing more in management fees. This means almost all Vanguard funds are, some at BlackRock, State Street. Betashares and ETFS Securities, VanEck etc mostly do NOT fall in this category - whilst they'll have a few these are firms that focus more on other types of indices/funds

    If I purchase ETFs or shares from Stake or Superhero, can I later move these to one of the banks e.g. NABTrade? Or do they stay with Stake until I sell them? As long as its an Australian broker chances are you can move it around. All the ones you mentioned are fine but a few of the newer players you cannot (like Sharesies, Tiger Brokers)

  • Dorge on 11/03/2022 - 18:03

    Go with the fund with the lowest fees. But i wouldn't bother with a managed fund with anything less than 10k. It's a lazy way to invest, super is already doing this for us.

    Buy shares in one of the big banks to be safe, typically you'll get a 5-10% PA return including dividends. Wait for a 10% drop in the share, buy with a % of your cash, if it drops again use another %. You should be up a good amount after a month or two. Never buy on market, always wait for a nice drop.

    Always keep some to the side for the next world crisis, pandemic, etc when shares drop again.

    • mrvaluepack on 11/03/2022 - 18:10

      My friend says one of the big four banks might not survive the next decade. He works in one of them.

      • Dorge on 12/03/2022 - 10:27

        That's a burden worn by the taxpayer here in Australia.

  • JIMB0 on 11/03/2022 - 19:27
    +2

    I think you have low management fees and low price mixed up.

  • w37hsyea on 13/03/2022 - 23:33

    Low cost etf: ivv and a200

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