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Shirou

ETF Assistance

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Not sure if anyone can perhaps guide me in the right direction to see what would be best, I am currently invested in the below ETF's and was wondering should I perhaps remove some funds from some if there are any "Doubles" perhaps?

 

Also, I was thinking to go into Coreshares S&P 500? but don't want to invest in too "much" etf's as most of them have the same companies already on them.

 

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I wouldn't say there are too many duplicates, just looks like a shotgun approach.

 

PTXTEN and GLPROP gives you worldwide property exposure - shap!

SYG4IR and STXNDQ are "niche" funds with very good potential - shap!

 

The Top40 and Quality SA ones are somewhat of a duplication.

 

Global DivTrax is a subset of the S&P 500. MSCI World Already contains a lot of the top US stocks (S&P500) as well. Not saying you should but you could combine all three of those into the MSCI World OR combine those three and the Emerging Markets one into ASHGEQ which contains developed and emerging market shares from around the world.

 

You also may want to consider the cost of rebalancing your portfolio. Unless you have a real need it is probably better to just stop funding some of them and carry on funding just the select few you wish to carry on with. But there are various factors like the amount of funds allocated to the ETF, the TER of those extra ETFs, the transaction costs involved, potential tax implications etc. That said, I've done it a couple of times when I started out and lost a couple of Rand in the short term 😛

 

Disclaimer: Personally I hold the following in two investment accounts:

 

Regular ETF Portfolio

Global Divtrax  (stopped funding in favour of CSP500)

Global Property

S&P 500

 

and

 

TFSA

S&P 500 (stopped funding in favour of MSCI)

MSCI World

Nasdaq 100

 

So I carry duplications myself but in my case I don't think it is worth selling off the one just to move it to the other. I'll take another look at it again the end of the year (or if Trump does something stupid even by his very low standards). You may (or may not, probably not) note that I do not carry any SA shares in either of these, that's because I have an RA, Pension and a bond all heavily exposed to South Africa. I do hold a bit of funds in a Rhodium ETF and a bit of crypto but these are very small amounts, which sucks since Rhodium is up 47% :cry:

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@Bandit Thank you so much for the advice, really helps! as I feel I am currently all over the place and just want to focus on the big ones as I don't have cash to invest in all of them the whole time, so the smaller I can make it which would benefit the most the better I guess, like yours for example, only invested in 3, I have like 10 which my money is split so much, not the best.

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Posted (edited)

@Bandit I've took your advice and sold some of it now and rather combined it to increase my funds on the other, I've made some decent growth on it so the costs was not that much for me as I still made decent profit by selling it, only lost some on the Quality of South Africa (Satrix) one.

 

How does the following look?

 

TFSA:

PropTrax Ten

S&P Global

Nasdaq 100

4th Industrial Rev Global

MSCI World

 

Not sure if I need to get ASHGEQ perhaps somewhere, I know you mentioned S&P 500 best to drop for MSCI World and Nasdaq 100?

Edited by Shirou

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First, just to be clear - I'm not a financial advisor so if you are unsure about any of this stuff you need to ask a pro 😛

 

That said, that TFSA composition looks good depending on the actual % split. You could for example look at it in this way (all thumb sucked values):

 

I want 30% South Africa and 70% offshore.

I want 15% property exposure, 10% niche/fringe investments and 75% regular shares.

 

Therefore:

Property

SA: PTXTEN - 30% of 15% = roughly 5%

Offshore: GLPROP - the rest of 15% = roughly 10%

 

Niche/Fringe

These are all offshore, so 50/50?

STXNDQ: 5%

SYG4IR: 5%

 

Regular

Again all offshore but assuming you had CTOP50 or STXT40 for the sake of the example:

SA: CTOP50 - 30% of 75% = roughly 25%

Offshore: SYGWD - the rest of 75% = roughly 50%

 

So:

PTXTEN  - 5%

GLPROP - 10%

STXNDQ - 5%

SYG4IR - 5%

CTOP50 - 25%

SYGWD - 50%

 

But like I said, completely made up and the SA vs Offshore split may be irrelevant (as in my case). If the amount you are investing is small the above split may attract a lot of fees as well meaning that for the R1000 you are investing it will cost you R20 for two ETFs and R120 for six (again, made up numbers to get the idea across).

 

The only difference ASHGEQ would make to that setup of yours (assuming you replace MSCI World with it) is add emerging market exposure at the expense of some developed world exposure. To put it in very over simplistic terms: ASHGEQ = STXWDM + STXEMG.

 

You could do this though if you wanted a hassle free portfolio that just chugs along:

 

ASHGEQ - 85% 

GLPROP - 15%

 

...and if you wanted to add South Africa:

 

ASHGEQ - 50%

GLPROP - 10%

CTOP50 - 35%

PTXTEN - 5%

 

...and later when you've built up this boring portfolio to a sizeable amount you start adding Nasdaq etc to it.

 

Ideally you want to be in a situation where you put this thing on auto pilot via debit orders and rebalance it once a year (every January for example) and forget it exists for the other 364 days a year.

 

 

 

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Posted (edited)

@Bandit Thanks so much for the advice, no problem at all do understand the no financial advisor :) this is mainly just a thing I play around as well for myself and take advice were I can, other than that I have my Pension Funds who are managed by Financial Advisors, this is mainly just for myself to play around with and to monitor myself.

Edited by Shirou

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