Sure, for now. If you are already at retirement age then go for your life. As for me, the ability to minimise taxes just doesn't outweigh the regulatory risk particularly since I got probably about 50+ years until I can 'retire' according to the Government definition by the time I reach that age.
good yield, high growth
- Thread starter Oscar
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Sure, for now. If you are already at retirement age then go for your life. As for me, the ability to minimise taxes just doesn't outweigh the regulatory risk particularly since I got probably about 50+ years until I can 'retire' according to the Government definition by the time I reach that age.
and that is a fair point but your previous comment wasnt.
Hi Oscar / oracle / xactly,
I'm also currently thinking of increasing my exposure through dollar cost averaging into ETF's over the long term (next 10 years). My property portfolio will keep doing it's thing, but would like some share exposure for dividends and diversified capital growth.
I currently own some SPDR S&P/ASX 200 Fund (STW) and was thinking of adding the following:
SPDR MSCI Australia Select High Dividend Yield Fund (SYI), or
Vanguard Australian Shares High Yield ETF (VHY), and
SPDR S&P/ASX 50 Fund (SFY)
What ETF's are people holding?
I'm also currently thinking of increasing my exposure through dollar cost averaging into ETF's over the long term (next 10 years). My property portfolio will keep doing it's thing, but would like some share exposure for dividends and diversified capital growth.
I currently own some SPDR S&P/ASX 200 Fund (STW) and was thinking of adding the following:
SPDR MSCI Australia Select High Dividend Yield Fund (SYI), or
Vanguard Australian Shares High Yield ETF (VHY), and
SPDR S&P/ASX 50 Fund (SFY)
What ETF's are people holding?
Why SPDR S&P/ASX 200 Fund (STW) & the SPDR S&P/ASX 50 Fund (SFY)
No global equities?
Australia represents less than 4% of the worlds stock markets, furthermore the Australian market is dominated by a few sectors such as finance and mining. The top 10 shares also account for apprx 54% of the total market cap of the S&P/ASX 300 Index
Why SPDR S&P/ASX 200 Fund (STW) & the SPDR S&P/ASX 50 Fund (SFY)
No global equities?
Australia represents less than 4% of the worlds stock markets, furthermore the Australian market is dominated by a few sectors such as finance and mining. The top 10 shares also account for apprx 54% of the total market cap of the S&P/ASX 300 Index
Thanks for your comments redwing. A significant component of all indices I mentioned are major financials, so sort of buying the same thing in small variations (but this is good for dividends). However my holding in STW is relatively small so would look at focusing further funds mainly into SYI/VHY (maybe)/SFY and will give further thought to global.
I'd just like to raise a note of caution about ETFs. Some are synthetic, meaning that their underlying holdings don't necessarily match what they track.
The FT Alphaville blog had concerns about these a while back. The risk is that if the fund provider or market blows up then there's less comeback than with a traditional fund.
I do agree with Xactly's sentiments. None of us are as smart as we'd like to think, and there's a lot of evidence that stock markets follow a random walk.
If you're into variations on the theme, some people advocate a 70:30 split between stocks and bonds, topping up the lagging side to maintain the ratio. That's performed pretty well over the past decade or so.
There are also other strategies, such as a High Yield Portfolio, but I suspect that the humble tracker is a better solution.
The FT Alphaville blog had concerns about these a while back. The risk is that if the fund provider or market blows up then there's less comeback than with a traditional fund.
I do agree with Xactly's sentiments. None of us are as smart as we'd like to think, and there's a lot of evidence that stock markets follow a random walk.
If you're into variations on the theme, some people advocate a 70:30 split between stocks and bonds, topping up the lagging side to maintain the ratio. That's performed pretty well over the past decade or so.
There are also other strategies, such as a High Yield Portfolio, but I suspect that the humble tracker is a better solution.
