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Bandit

TFSA 2019 - Messing with a good thing...

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So it's that time of the year again. I'm bored and prone to messing around with something that works. Buying a house wrecked my saving powers for a bit now I'm fortunate enough to top up my TFSA for the year. I already missed out on making any contributions last year because of said house and really didn't want a repeat. So with everything back on track I log into EasyEquities to take a good look at what my account is doing.

 

I knew it was doing well but it is still nice to see a portfolio with everything in the green. Just goes to show: like nature conservation, time plus less human contact is about the best thing you can do for your investments.

 

With that being said, let's change things! (I'm an anarchist).

 

Over the last few years I moved everything to offshore ETFs. Considering my house, RA and pension all being very much exposed to SA I think it is a good idea to get maximum offshore exposure with your other investments. Currently it looks like this:

 

  • CSP500 (stopped contributing to it in favour of STXWDM)
  • STXWDM
  • STXNDQ (30%)

 

Knowing very well what I just said about international exposure, I thought about introducing PTXTEN back into the mix. CoreShares will amalgamate this and PTXSPY into a new ETF in the near future (not exactly sure of the date) and the changes they are making looks good to me.

 

There's also the ETF5IT ETF from Stanlib which looks more tech concentrated than STXNDQ and maybe it is worth investing in GLODIV instead of STXWDM (the reason: although not a lot, it does pay some dividends and performance is not that far off the MSCI World). It is not heavy on tech stocks at all but STXNDQ/ETF5IT makes up for that.

 

I can sell everything in my TFSA, start again and come up with something like this:

 

PTXTEN / SA Property - 30%

GLODIV / Offshore - 45%

EFT5IT / Tech - 25%

 

But because I may not want to incur extra cost for selling off (too many) funds in place of others, maybe something like this makes more sense:

 

STXWDM  (freeze it) and start contributing the GLODIV

PTXTEN (in favour of the CSP500 already in there)

STXNDQ (freeze it) and start contributing to EFT5IT

 

 

 

 

....told you it was the silly season :D

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I love my PTXTEN ETF! The dividends are fantastic at 9.4% per annum (currently), and with the new changes, I'm hoping for excellent growth as well.  I wouldn't be surprised in this one gives the best total return of all over the next few years. Plus, it has never been this cheap to invest in property! On top of that, the massive dividends are completely tax free, making this particular ETF one of the best ETFs on the market in terms of tax savings.

 

GLODIV is a really nice ETF too, but i think it is better outside of a TFIA as the foreign dividends are not tax exempt. If it were up to me me, I'd stick with STXWDM.

 

 

 

 

 

 

 

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Yeah, not convinced GLODIV for a TFSA. In fact you raise a good point about the offshore ETFs. All the REITs and dividends that get paid out will be taxed there. So either go for capital growth or local dividend paying funds.

 

PTXTEN is a done deal (I moved the CSP500 to it this morning).


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Your timing is impeccable! PTXTEN usually declares their 3rd quarter dividend on or around 4 October, to be paid out in the middle of the month. So you can expect a nice bonus from the ETF later in the month!  

 

In fact, I've received over R1000 dividends from PTXTEN already in my TFIA this year,. It's a lovely feeling seeing that much money just suddenly appear in your account out of nowhere!

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8 minutes ago, SaurusDNA said:

So you can expect a nice bonus from the ETF later in the month!  

 

Time to reclaim those transaction costs!


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So I ended up doing this:

 

PTXTEN 16%

ETFGRE 18%

STXWDM 41%

ETF5IT 25%

 

 

noidea.png

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3 minutes ago, Bandit said:

So I ended up doing this:

 

PTXTEN 16%

ETFGRE 18%

STXWDM 41%

ETF5IT 25%

 

 

That is an unusual but interesting mix!!!   😃

 

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I've currently got:

 

Inside TFIA:

SMART: 12%

NFEMOM: 12%

STXQUA: 12%

PTXTEN: 24%

ASHGEQ: 20%

STXEMG: 10%

SYG4IR: 10%

 

Outside TFIA:

GLODIV: 33%

GLPROP: 33%

STXNDQ: 33%

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Hey guys,

This thread also got me looking at my tfsa.

 

Would it be advisable to get rid of either my coreshares top50 or satrix divi plus, and use that to invest in ptxten ?

I currently have 11K in each.

Top50 is currently 3.9% down (- R470)

Divi plus is currently 1.2% down (-149)

 

Or would it be better to start from scratch with ptxten ?

 

Thanks.

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Depends on why you want to switch. If you believe in property shares then sure, if it's only because the other's are down then ask why you invested in them in the first place. PTXTEN isn't exactly having a great run.

 

Might better to just leave it as is and start funding an offshore ETF like ASHGEQ (or sell those two and push it all into ASHGEQ and start funding PTXTEN on the side?)

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On 10/10/2019 at 9:16 AM, e4et said:

Would it be advisable to get rid of either my coreshares top50 or satrix divi plus, and use that to invest in ptxten ?

I currently have 11K in each.

Top50 is currently 3.9% down (- R470)

Divi plus is currently 1.2% down (-149)

 

Or would it be better to start from scratch with ptxten ?

 

Thanks.

 

I don't think I'd sell my CTOP50 or STXDIV if I were you. Property is a different asset class and its behaviour is (theoretically) uncorrelated to equities, and ideally you should have both equities and property.

 

If I were you, I'd keep what you have and buy PTXTEN from scratch. Also, like Bandit suggested, you should throw some offshore equities into the mix as well.

 

 

Edited by SaurusDNA
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Happy dividend day! It's not a lot, but there's something magical about money just appearing in your account :D

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Hi guys.

Thank you for taking the time to respond.

 

I also have MCSI US and MCSI World, which are both going strong.

I have started funding ptxten from scratch.

 

Side note, I got  almost R200 from my Top50 this morning 😃

 

Thanks again, appreciate the input.

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I was happily surprised by SMART's distribution. It's the first time SMART has distributed (being a new ETF) and it was way better than I expected at 44c per share.

Edited by SaurusDNA
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55 minutes ago, e4et said:

I also have MCSI US and MCSI World, which are both going strong.

I have started funding ptxten from scratch.

 

I'm maintaining 24% of my TFIA in PTXTEN.

 

Sometimes I feel it might be a bit much and that I should reduce it to 20%, but since the other 76% of my TFIA is all equities, I think it should be okay.

 

 

 

 

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On 10/3/2019 at 12:15 PM, Bandit said:

Well, I missed out on the "big dividends" (holding thumbs for end of the year):

https://www.sharenet.co.za/free/sens/disp_news.phtml?tdate=20191003120600&seq=33&scheme=default

 

R0.11 per share

 

Well, some "big dividends" for PTXTEN came in today - a special final dividend payout up until the date it changed to CSPROP it seems.

 

And this one is substantially larger than last month's payout!    😁

 

 

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