sharetrader
Page 21 of 28 FirstFirst ... 11171819202122232425 ... LastLast
Results 201 to 210 of 276
  1. #201
    Go The Warriors "This Year!"
    Join Date
    Mar 2017
    Location
    Auckland
    Posts
    277

    Default

    Quote Originally Posted by flyer View Post
    Beagle - when you say you invested in TWF, do you just buy a quantity and leave it alone or do you do a regular purchase of more. Same with all those buying into ETF's, do you all do regular contributions. I just had a look at TEM etc, been great over the last 2 years as has TWF. I may get some to compliment my Kiwisaver. Currently hold AIR, ATM, CEN, OCA, SKC and TGH.
    Hi Flyer.. I currently hold Smartshare funds FNZ OZY & USF did a small lump sum in each to start and do small monthly contribution to each... Just treating them as a top up to my kiwisaver and work super schemes..
    Hold THL OCA ARV MCK HLB BLT EVO.. think that's it 😊

  2. #202
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    Quote Originally Posted by Joshuatree View Post
    Found it TWF charge 0.56%
    Vanguard expense ratio 0.11 %, pretty sharp. Unit trusts still around? Investment advisors prob still mourn the good old high fee days plus trailing fees etc.
    Very sharp. People can invest in Vanguard direct and I am sure some do but (from my limited understanding of it, it would appear), then there's the overseas brokerage buying in the U.K. at overseas brokerage rates plus the usual very hefty currency conversion margin and the same very expensive overseas brokerage and currency conversion fees, (assuming you want to convert the funds back to $Kiwi at the end) again when you want to sell. There may also be annual fees from one's broker to hold overseas shares on account in their system. Some I have seen charge an annual fee of 0.5% for this. I understand you can still buy certificated shares in the U.K. which would get around the brokers holding them in trust annual charge but brokerage rates for certificated holdings I have seen are generally around 2% plus add say another 1% for currency conversion so approx. 3% to buy and again to sell, a total of perhaps 6%. I would speculate you'd have to hold for many many years, (about 12 years by my calculation if buying certificated holding direct in Vanguard) to make a direct holding in Vanguard more attractive than simply investing through smartshares. I can't try and predict more than one year ahead let alone 12 where I think things are headed so a certificated holding probably won't work out more efficient for me.

    ETF's are increasing in popularity at the expense of managed funds charging high management fees and often ludicrous performance fees for underperforming the relevant index. I can think of one local fund manager that charges 1.5% annual management fees plus 15% performance fee that has woefully underperformed most of the relevant index's they invest in. I am sure there are many others that can no longer justify their hefty charges.
    Last edited by Beagle; 10-01-2018 at 08:08 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  3. #203
    Senior Member hardt's Avatar
    Join Date
    Apr 2017
    Location
    In a bubble
    Posts
    726

    Default

    Quote Originally Posted by Beagle View Post
    Very sharp. People can invest in Vanguard direct and I am sure some do but (from my limited understanding of it, it would appear), then there's the overseas brokerage buying in the U.K. at overseas brokerage rates plus the usual very hefty currency conversion margin and the same very expensive overseas brokerage and currency conversion fees, (assuming you want to convert the funds back to $Kiwi at the end) again when you want to sell. There may also be annual fees from one's broker to hold overseas shares on account in their system. Some I have seen charge an annual fee of 0.5% for this. I understand you can still buy certificated shares in the U.K. which would get around the brokers holding them in trust annual charge but brokerage rates for certificated holdings I have seen are generally around 2% plus add say another 1% for currency conversion so approx. 3% to buy and again to sell, a total of perhaps 6%. I would speculate you'd have to hold for many many years, (about 12 years by my calculation if buying certificated holding direct in Vanguard) to make a direct holding in Vanguard more attractive than simply investing through smartshares. I can't try and predict more than one year ahead let alone 12 where I think things are headed so a certificated holding probably won't work out more efficient for me.

    ETF's are increasing in popularity at the expense of managed funds charging high management fees and often ludicrous performance fees for underperforming the relevant index. I can think of one local fund manager that charges 1.5% annual management fees plus 15% performance fee that has woefully underperformed most of the relevant index's they invest in. I am sure there are many others that can no longer justify their hefty charges.
    Or you could buy an MSCI ETF that charges a flat 0.24% management fee and nothing else, giving you exposure with barely any premium to the portfolio +1.2% yield or something.

    Buy it with IB/Ameritrade and you get spot prices on the currency exchanged.

    You will find a lot of funds have some product of MSCI as one of their largest holdings.
    Last edited by hardt; 10-01-2018 at 10:47 AM.

  4. #204
    IMO
    Join Date
    Aug 2010
    Location
    Floating Anchor Shoals
    Posts
    9,697

    Default

    Very competitive now hence fees have dropped more. An awful lot of money gone in.
    The Three Largest Players Have A 70% Market Share In $4 Trillion ...

  5. #205
    Senior Member
    Join Date
    Jan 2004
    Location
    Christchurch, , France.
    Posts
    1,247

    Default

    I'm too old for the Kiwisaver lark and probably wouldn't do it anyway due to natural arrogance and self confidence. I remember surrendering my Govt Super to buy a decent car while everyone tut-tutted but now in retirement I have a decent car (different one), decent house, a flat, a decent income and decent assets so, yah boo sux.
    And no, I'm not diversified into insignificant mediocrity. I have a big holding of one income stock, the same as Craic (but maybe I should diversify that into some smaller holdings of electricity stocks) and a big holding of a growth stock (no, I'm not telling you because you fellas would only jump into it and ruin the price when I want to buy some more :-) . I keep reading the field to see if there are any other growth stocks yet that tick my boxes but nothing yet....

  6. #206
    Member
    Join Date
    Mar 2017
    Posts
    112

    Default

    I've recently become a big fan of passive investment, although the majority of my current investments are individual stocks. Although, I own several US stocks I wouldn't buy Vanguard directly on the US market because of fees etc that Beagle mentions. Of the small amount of passive ETF's I do hold most are invested through investnow (but also have kiwisaver in Simplicity which is a passive tracker fund as well). Investnow is fee-free so my preference is to get whatever I need through this portal first and if I can't then through a broker.

    I'm hoping for high returns from the EUF.NZ fund over the next year or so, as the US economy slows down and the europeans ramp up.

    I currently only have about 5% (~$50k) of my investment portfolio in passive funds through investnow - MDZ.NZ, FNZ.NZ, TWF.NZ, EUF.NZ and Vanguard International Select Shares. They don't have NZB.NZ (Smartshares NZ Bonds) so I invested in those directly through Smartshares.

    I have a large inheritance coming out later this year that I'll be splitting between EUF.NZ, FNZ.NZ and TWF.NZ. That should bring my passive investments up to my target of about 30% of my total portfolio.

  7. #207
    Member
    Join Date
    Apr 2015
    Location
    Napier
    Posts
    132

    Default

    Quote Originally Posted by Beagle View Post
    I'm looking at buying a quantity and leaving it alone, (but may add more from time to time) but if you go onto www.smartshares.co.nz they have options for regular monthly contributions which could suit some people in terms of dollar cost averaging their investment over time. I really think the left wing green coalition with Winston Peter's...the grand social experiment if you like, is going to sap business confidence this year and could stifle economic growth a bit so I am looking at repositioning some of my portfolio into overseas funds. TEM had had great performance but the portfolio manager has just resigned so unsure about who will be appointed so some caution there is warranted and they are stock pickers too so the skills of the new portfolio manager will affect future returns and emerging markets make up just 9% of the global market so this fund is higher risk than TWF. TWF are an ETF so just track the world index but with over 9,000 shares is a very easy way in $N.Z. dollars to invest in a very very broad range of stocks from all regions. You can buy on market or invest direct through the smartshares website. Note, if you invest direct with smartshares, their next monthly allocation for want of a better word is 22 January and your application and funds need to be with them by then. They then allocate new units based on the net asset value at the end of the month, (January). One off $30 fee for first investment, thereafter nil. If you want to participate in this global rally before the end of this month you need to buy the units on market.
    Thanks Beagle, I started an investment in TWF under Smart Shares this afternoon.
    Very straightforward process & only took a few minutes.

    Made a small deposit & set up a small monthly contribution.

    I will leave it to do its own thing as this will be my funeral cover.

    Hope it grows over many years.

  8. #208
    Member
    Join Date
    Oct 2011
    Posts
    36

    Default

    One thing to be aware of with these Smartshares ETFs is that they are Listed PIEs. As they are companies, that means they are subject to the FIF regime and must use the FDR method to pay tax on 5% of the opening value of the underlying investments irrespective of the performance over the year. The CV method is not available for companies.

    This is not an issue when markets are rising strongly as has been in the recent past, but when there is a flat or down year, the company (and therefore the holder) will have to pay this tax regardless. If you held the ETF outside of Smartshares, or use a unit trust like Vanguard Select through Investnow, you have the option of using the CV method for your FIF calculation reducing or eliminating the tax in those years.

    Smartshares keep things simple, but there is a cost to pay. Probably not significant for smaller amounts.

  9. #209
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    Quote Originally Posted by morphs View Post
    One thing to be aware of with these Smartshares ETFs is that they are Listed PIEs. As they are companies, that means they are subject to the FIF regime and must use the FDR method to pay tax on 5% of the opening value of the underlying investments irrespective of the performance over the year. The CV method is not available for companies.

    This is not an issue when markets are rising strongly as has been in the recent past, but when there is a flat or down year, the company (and therefore the holder) will have to pay this tax regardless. If you held the ETF outside of Smartshares, or use a unit trust like Vanguard Select through Investnow, you have the option of using the CV method for your FIF calculation reducing or eliminating the tax in those years.

    Smartshares keep things simple, but there is a cost to pay. Probably not significant for smaller amounts.
    Makes things really simple for investors though which is what a LOT of people want.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  10. #210
    Member
    Join Date
    Sep 2007
    Posts
    400

    Default

    I buy vanguard ETFs on the australian stock exchange, fees are much lower than smartshares ETFs.
    I too like to keep things simple but there is a real cost for this in NZ.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •