Hello all, I am looking for people’s thoughts on a good mix of ETFs for a portfolio moving forward over the next 5 years or so.
I currently have been buying VAS but was thinking of adding another ETF for more diversity. I was originally looking at NDQ but moving forward in the current environment of increasing interest rates and how hard tech has been falling I am not so sure any more.
Basically just looking to add something that might help ‘outperform’ a bit more that is niche… I was looking at the FOOD and FUEL ETFs due to prices rising from supply issues perhaps.
Any thoughts? And do you own any niche ETFs? Thanks!
i am not a fan of those ‘niche’ ETFs, they feel like a marketing scam to take management fees imo
most people I’ve seen just bundle VAS + VGS for a good mix of diversified exposure & low mgmt fees
I think these ‘themed’ ETFs are great for beginners/investing in an industry as a whole. I suppose the lines become blurred with buzzwords like meme-stocks & ‘ethical’ investing.
Thanks, I mostly want to try and pick something like FOOD to see if I can outperform the Australian index but I could not be bothered picking individual stocks.
I checked and the management fees on that ETF don’t seem too high (0.57%) for the chance to maybe outperform. But it looks a little low volume might be the only thing.
I’m just curious. These look like Vanguard Australian ETFs. Do you have access to Vanguard US ETFs? I think they are far more diversified, liquid and inexpensive. Do you consider currency fluctuations an issue?
I am mostly looking at domestically domiciled (Australian) ETFs to make things less painful at tax time. Is there any major issue around doing that do you think?
I have been investing in US markets since about 1965, and I know them quite well. But I am totally ignorant about the situation in Australia, and I would be of no help there. I recently stumbled on to Sharesight while looking for a place to track US portfolios. I gather it is almost entirely Australian, but I did not know that initially. I originally tried to initiate conversations under the Topic “Beat the Benchmark”, but I got little response. I may continue to track one portfolio on Sharesight, but it appears my interests do not coincide very well with the typical Sharesight user because I invest in US markets. Thanks for responding, and feel free to stay in contact if you feel it is helpful.
Thanks Lew, pretty sure a lot of Americans use Sharesight & I know people use it to track US stocks as well so no worries
Sounds like you might be in Australia Slider 77.
Im a Kiwi so different tax rules here maybe. We don’t have capital gains but if the foreign holding gets big enough we have to recognise each year a deemed dividend around the 5% of value level. Once we do that we ignore actual dividends.
For us Kiwis a total personal holding of under $50,000 in foreign stocks (not Aust Stocks which have wrinkles for us) can be very good.
No deemed dividends based on capital (FIF) and you only recognise income from actual dividends.
A bunch of BRK with no dividends is pretty good. Its a fair enough proxy for an S&P500.
So if you are a kiwi this is worth serious consideration!
Thanks, yes BRK is always appealing and I would happily put my money there if only Buffet was a decade or so younger!
I still think its share price will tank for a long time if/when he passes away regardless of how well they have his ‘succession plan’ set up at the company
I think I also just want to stay with Australian shares to make things less complicated for tax time
I’m pretty sure that you will find a list of Australian ETF’s via a Google search, - or simply ask your Australian broker to provide you with a list. As for a sector which will “slightly out-perform”, it’s a bit of gamble. The market changes over-time, and the sectors which do better vary from one year to the next. Last year’s winners are sometimes next year’s losers - although there is no rule.
As a starting point I would include the following:
For Global coverage
A Global ETF - e.g. covering the MSCI World Equity Index (Note that this will likely contain around 50% US stocks).
An ETF focussing on global small or mid-caps
At ETF focussing of Global Real Estate companies
For Australian Coverage
An Australian ETF covering the ASX index
For Thematic Coverage
An Emerging Markets ETF
A global Healthcare ETF
Thanks - yes I have been thinking of going Australia-centric just due to the belief that it looks like we might do well over the next decade or so due to how commodities-heavy our index is.
So will probably just end up with an Aussie index ETF like VAS to keep things simple
I have set up a tracking portfolio to try and beat the S&P500 using the Sector ETFs that comprise that Index. I will try to provide access to the portfolio if someone is interested in following that effort.
Hi Lew, I am an Italian based in Tokyo, and I mostly invest in the US markets: primarily ETFs, bonds (not at the moment), and few stock picks.
As I am not sure where I will be spending the later part of my life, currency fluctuation is rather important to me.
I ended up on Sharesight because I find it very helpful in tracking the performance of my portfolio, including currency gains/losses and performance in different currencies.
I am curious of where you are located and your own concerns with currency fluctuation. Maybe there are tips we can share.
Good to meet you TokyoGio. I reside in the US (Alabama), and I don’t really have currency concerns. I do have statistical models that attempt to predict foreign currency movements in US dollars. I mainly use a basket of currencies (traded under the symbol UUP in the US) to diversify my portfolios. I discovered Sharesight searching the web for places to track portfolios. I have recently set up one portfolio (for free and to share) at Sharesight. You can find out more about me and my interests under the “Beat the Benchmark” Topic. Thank you for your interest, and future conversations are welcome.