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Tezzarak

Help choosing platform for ETFs

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Hi.

 

Newbie here.

Can anyone recommend a 'good' (credible, established) platform where I can buy ETFs that track the following indexes all in once place (NOT EasyEquities):

 

MSCI World
MSCI Emerging Markets
S&P Global Dividend Aristocrats 
S&P Global Property 40 Index

 

Another quick question : I get conflicting information online if the GLODIV ETF is for dividends paid over 10 or 25 years. (Or are there different types?)

 

Thank you

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I use CoreShares. Limited to only the CoreShare ETFs but they are amongst the best out there so that's not an issue. Only have an ETF portfolio with them though and haven't moved my TFSA there yet but at some stage I might.

 

The difference between them and a platform like EasyEquities is that your trades (buy and sell) aren't instant and takes a couple of business days. So it is not a trading platform (best to stick with EE or ABSA then) but a very good long term investment platform. The pricing is also very good and it becomes cheaper than EE at higher amounts (can't remember what that amount is though).

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Posted (edited)
6 hours ago, Bandit said:

I use CoreShares. Limited to only the CoreShare ETFs but they are amongst the best out there so that's not an issue. Only have an ETF portfolio with them though and haven't moved my TFSA there yet but at some stage I might.

 

The difference between them and a platform like EasyEquities is that your trades (buy and sell) aren't instant and takes a couple of business days. So it is not a trading platform (best to stick with EE or ABSA then) but a very good long term investment platform. The pricing is also very good and it becomes cheaper than EE at higher amounts (can't remember what that amount is though).

 

Thank you for the feedback.

I have looked at Coreshares, and although their offering looks good, unfortunately they do not offer all the ETFs I'm after.

Do you know if a 'ABSA stockbroker'/'etf only' account will give me access to those ETFs that I listed, or is also only limited to ABSA specific ETFs?

 

 

Edited by Tezzarak
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ABSA gives you access to all the ETFs. Their platform is a full on trading platform where you specify the price you'd wish to buy at etc. More control but more involved than EE.

 

 

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On 5/10/2019 at 4:30 PM, Bandit said:

ABSA gives you access to all the ETFs. Their platform is a full on trading platform where you specify the price you'd wish to buy at etc. More control but more involved than EE.

 

 

 

Thank you @Bandit

This is exactly the information I was looking for.

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iTransact.co.za has quite a number of etf listed

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Hi I’m new to ETFs I have opened an EE account. I all-ready have provident fund etc ... with my co via Alexander Forbs . But would like advice on what two solid long term (5years horizon min)ETFs  one should buy and stay with ??? Any advice is appreciated . Thanks Paul 

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Your provident fund has a lot of SA exposure already. So I personally would look at offshore exposure:

 

90% STXWDM - tracks the shares of the developed world (USA, Europe, Japan etc). Solid long term investment unless the world goes to shiaat.

10% STXNDQ - tracks the top 100 Nasdaq shares (Facebook, Google, Microsoft, Uber etc). Potentially very good growth (or terrible).

 

Over 5+ years that should deliver decent returns (DISCLAIMER: I won both).

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I would recommend going for broad-based market exposure - not specialized or sector ETFs.

 

For local exposure, my choice would be any one of the following:

 

Satrix Top 40: STX40 (Pure market-cap top 40 index)

Coreshares Capped Top 50: CTOP50 (Market-cap top 50 index but capped at 10% for any one share)

Coreshares Smart Beta multi-factor: SMART (Smart Beta equally weighted over 6 factors)

 

For offshore, I'd go for either:

 

Satrix World MSCI: STXWDM (Well-diversified global exposure to developed markets)

Ashburton Global 1200: ASHGEQ (Well-diversified global exposure to developed markets with some emerging market exposure as well)

 

I understand why Bandit prefers mostly offshore exposure for people who have pension funds, as pension funds typically only have 30% offshore and 70% local (although most of the Top40 local companies have offshore interests included in their portfolios, so it's actually a bit higher than 30%). Thus, global ETFs provide Rand hedge protection and diversification against a possible collapse of the RSA economy.

 

However, I still personally prefer at least half my money in local ETFs because the high inflation in RSA means higher growth locally than global shares.

If the Rand plummets, offshore shares will shine and strictly South African shares will be largely unaffected.

If the Rand stays okay, then local shares should outshine offshore shares due to the higher growth.

 

If I had to buy only two ETFs, based on what you said in your post, my personal choice would be:

Coreshares SMART or Satrix STX40: 50%

Satrix global STXWDM: 50%

 

Then, when you're ready to go for a third ETF, I'd add some property (a totally different asset class) - either Satrix STXPRO or Coreshares PTXTEN, ultimately aiming for:

Coreshares SMART or Satrix STX40: 40%

Satrix global STXWDM: 40%

Satrix STXPRO or Coreshares PTXTEN: 20%

 

(Disclaimer: Of the ETFs mentioned in this post, I own SMART, ASHGEQ and PTXTEN)

 

 

 

Edited by SaurusDNA

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Regarding the mix between global and local shares, let's look at 1) three scenarios regarding the economy, and 2) your personal circumstances:

 

Scenario 1: SA economy collapses: Offshore will do much better - you should have 100% offshore.

Scenario 2: SA economy grows, but the Rand plummets: You should have a mix of local and offshore shares - offshore to take advantage of the exchange rate, and local shares because these should still outperform offshore shares due to higher growth.

Scenario 3: SA economy grows and Rand does not plummet: Local shares should outperform offshore in every way.

 

Thus, ideally, one should have a mix of local and offshore investments to account for every scenario. That being said, as Bandit has already mentioned, you already  have a provident fund with 70% local and 30% offshore. When deciding on your split, you should take the size of your provident fund and your ETFs into account.

 

To summarize:

If you have a large provident fund, and small ETF investment: Do what Bandit says and put everything into offshore.

If you have a small provident fund (started working for a company late in life) and have a large ETF investment, then go for the 50/50 split of local and offshore.

 

I fall into the latter of these, so my circumstances are different to Bandit's. It's not that we see things differently; it's that our circumstances in life are different.

 

 

 

 

 

Edited by SaurusDNA

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