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Critique my ETF portfolio

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I think this is a really good mix now. Looks well balanced with great potential.

 

I think this year will be an excellent one for STXQUA, STXEMG and INDI25 in particular, so I like the higher percentages that you've allocated to these right now. You could always buy more property in the future when it starts to pick up.

 

I had the same thought on the property front, keep it in the mix with the potential of increasing it in future.

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So, another quick thought.

 

I have some extra funds in my bond and I am contemplating taking out R33k and filling up my wife's TFSA account. I think there is a bit more longterm benefit and I plan to replace the funds I take out of my bond in a relatively short period after Feb.

 

So, this is the split in my account:

Local:

INDI25 - 20%

STXQUA - 20%

PTXTEN - 5%

 

International:

STXWDM - 20%

STXEMG - 20%

SYG4IR - 10%

GLPROP - 5%

 

The idea is to build up something slightly different in the second account which will allow for even more diversification. From some of my old notes I am somewhere here:

 

CTOP50

ASHT40 (or satrix)

PTXTEN

 

ASHGEQ

SYGWD

 

I am looking for some more international ones though. Think the two that I have selected overlap too much. Maybe I should keep ASHGEQ and add STXEMG, even though it is in my portfolio as well I think it is a great ETF.

 

Any thoughts or recommendations?

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Great idea. The market has returned roughly 15% year on year since forever, which is higher than the average bond rate. That, together with the tax savings, in my opinion, topping up your wife's TFIA is the way to go.

 

It's an interesting mix you've chosen there. I think I see what you're trying to do. You've matched the market cap weighted indexes with the equal weight indices to balance growth vs risk. The portfolio you've chosen for your wife is rock solid, and should certainly match the market. I like the way you're thinking with your choices - I haven't actually thought of mixing ETFs up this way before.

 

With the choice between ASHT40 and STX40, ASHT40 is much cheaper than STX40 for the exact same index. The TER for ASHT40 is 0.19% and for STX40 it's 0.45%. That means SATRIX is more than double the costs for the same index! Compounded over 25 years, the difference equates to a lot of money. For this one, ASHT40 beats STX40 hands down. Plus, you already have a lot of SATRIX in your portfolio, and it's always good to balance your brokers too, just in case...

 

To compliment your own portfolio, which already has STXWDM, I'd definitely go for ASHGEQ. ASHGEQ basically tracks the global market 100% and is the most solid of all the global ETFs and will match the global market pretty much 100%, However, to beat the market just a little, and since you already have STXWDM in your portfolio, I think I'd add STXEMG and STX500 (the S&P500 index, which has outperformed the global market for years) to add some extra USA exposure. Since 2015, emerging markets have had better growth than developed markets, with EMs having 4.5% GDP and DMs having only 2.25%. Much of the EMG success is due to China. Some analysts think China won't be able to sustain their growth, but others say China is the way of the future. I think your choice of adding EMG here as well should depend to some extent on how you think China will do.

 

Maybe consider:

 

Local

CTOP50

ASHT40 (NOT satrix in this case)

PTXTEN

 

Global

Some global mix suggestions:

 

Mix 1:

ASHGEQ (Globally balanced + some emerging markets)

STX500 (USA S&P500)

STXEMG (Emerging Markets)

 

Mix 2:

SYGWD (60% USA + some global)

STXEMG (Emerging Markets)

SYGJP (Japan) and/or SYGEU (Euro stocks)

 

Mix 3:

ASHGEQ (Globally balanced + some emerging markets)

SYGWD (60% USA + some global)

SYGJP (Japan) and/or SYGEU (Euro stocks)

 

Mix 4:

Only ASHGEQ, since it really is well balanced.

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There's no point having both ASHT40 and CTOP50 in the same portfolio. CTOP50 contains all of ASHT40 plus 10 extra. You'll be paying duplicate trading costs etc. for the same stuff. Of those, I'd keep CTOP50.

 

You can have more diversification buy adding ASHMID to the mix.

 

Although a bit more different I feel the same about STXWDM and ASHGEQ. Rather pick both STXWDM+STXEMG or just ASHGEQ.

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Today is a perfect example of why CTOP50 is better than STX40.

 

The all-share index gained 0.10% today, but the top 40 index dropped by 0.03%, purely because Naspers dropped 1.41% during the day. 

 

On the other hand, the CTOP50, which has a cap of 10% on any stock, gained 0.28%. Same shares as T40 (+10) but with more equal weightings.

 

With Asian markets faltering in the last few weeks, I'm so glad I have CTOP50!

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Ok so I think I have made up my mind to finish the tax year. As said earlier, my TFSA looks like this:

 

Local:

INDI25 - 20%

STXQUA - 20%

PTXTEN - 5%

 

International:

STXWDM - 20%

STXEMG - 20%

SYG4IR - 10%

GLPROP - 5%

 

In my wife's account the plan is to split it as follows:

 

CTOP50

PTXTEN

STXDIV

 

ASHGEQ

GLODIV (The new Coreshares Global Dividend Aristocrats)

 

The main idea is to diversify this from my own TFSA. I have not decided on percentages yet but it will probably be 50/50. I'd like to get some big chunks into the dividend ETFs in hoping that they will make up in dividends what they might lack in growth. All dividends will be reinvested.

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I've just had a look how my ETFs fared during the market crash of the past two weeks. We have been on an extended bull run for quite some time now and this sudden volatility and crash has made me re-assess my portfolio, as I now have some evidence of what happens in down market as well as an up market.

 

My ETF portfolio from best to worst performance:

 

Satrix Quality SA Port        (STXQUA)    + 2.11 %

CORESHARESTOP50         (CTOP50)    - 4.05 %

Satrix MSCI EMG Markets   (STXEMG)    - 4.12 %

Ashburton Gbl 1200Eq      (ASHGEQ)    - 6.43 %

Satrix INDI Portfolio           (STXIND)    - 8.57 %

CoreShares Global Prop     (GLPROP)    - 10.63 %

Sygnia Itrix 4Ind Rev Gb   (SYG4IR)    - 11.84 %

 

My thoughts on the results:

 

STXQUA was the top performer in the crashing market and the only one that stayed green. Although this is not strictly a high dividend ETF, dividend yield are used to determine the quality of the companies in the ETF, so it's kind of a hybrid. But the performance in this rout has confirmed the theory of the importance of a high dividend yield ETF as part of a balanced portfolio as a bear-market hedge and convinced me it is a crucial part in my TFIA portfolio. I shall therefore be adding STXDIV as well over the next few months.

 

Globally, emerging markets performed better than developed markets, even in the crash. Its ability to outperform developed markets in both bull and bear markets has convinced me that I was wise to have equal holdings in both ASHGEQ and STXEMG. I'll carry on buying these two in equal proportions.

 

STXIND: Just as Bandit has always warned about Market Cap distribution, a 16% drop in Naspers has totally hammered this ETF, which is comprised of roughly 40% Naspers. This is a perfect example of the dangers of both market-cap-distributed and industry-specific ETFs. That being said, it has been the top performer over 10 years, so I won't sell it, but I think I'll keep it capped at 10% of my portfolio.

 

SYG4IR: Yeah, yeah, what can I say? I knew this would be a gamble, and so far my pile of chips is way down.  Should I sell out or go all-in? The trouble with this one is that I think the rewards will be seen in the very far distant future (maybe 10 years), so it's a massive risk to keep buying this one for 10 years. If I'm wrong, I've wasted 10% of my TFIA, but if I'm right, my pile of chips will become mountains of chips. Tough call...

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Your STXQUA may have stayed green, mine was pretty red. It recovered a bit today (over 3%) so not sure when you checked.

 

It's still -2.5% for me. TFSA took a real hammering and easily lost 7-8% in total before today.

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Hi guys

 

Recently just started with this. I submitted an order for the following:

 

Please tell me what you think about this.

 

 

GLPROP about 15%

NFEMOM about 35%

SYGWD about 50%

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Hi guys

 

Recently just started with this. I submitted an order for the following:

 

Please tell me what you think about this.

 

 

GLPROP about 15%

NFEMOM about 35%

SYGWD about 50%

 

My biggest critique is that you're only looking at developed markets and not emerging markets, which have been outperforming developed market for years in terms of growth.

 

I'd want to add at least 15% emerging markets on the offshore mix. So maybe:

 

GLPROP about 15%

NFEMOM about 35% (Although I personally prefer CTOP50)

SYGWD about 35%

STXEMG 15% (May boost your offshore growth a little)

 

Otherwise, it's a good mix!

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I'd suggest SYGP instead of GLPROP - lower TER and the average spread has been quite a bit lower

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Hi All

 

 

 

Bit late to the party, but would like some critique of my portfolio. Currently as follows:

 

 

 

PTXTEN 10%

 

GLPROP 10%

 

CTOP50 30%

 

STXEMG 10%

 

STXWDM 40%

 

 

 

Thinking of adding some STXQUA for more local exposure.

 

 

Thoughts?

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I'd definitely add some STXQUA. It's had a bit of a rough year, particularly because of TBS and AVI, but the plus side is that it's cheap at the moment.

 

In a bearish market, high dividend stocks almost always outperform momentum stocks, and STXQUA is full of high dividend companies, so if the fears of recession come true, the STXQUA should shine. Plus, it's got SLM, TRU and CML as major components, and these three are set to skyrocket, in my opinion.

 

I've got 11% of my ETF portfolio in STXQUA, and despite its recent slide, it's still my favourite ETF due to its amazing fundamentals. If I were you, I'd definitely go 10% STXQUA, and take that percentage from STXWDM or CTOP50 depending on how much local/offshore exposure you want.

 

I'd keep your GLPROP, PTXTEM and STXEMG percentages exactly as is for now. These are being slaughtered at the moment, but if you're in it for the long haul, these should outperform the market average substantially.

 

The only other change I might suggest is buying some GLODIV (take the percentage from STXWDM) to balance the global quality/value ETF (GLODIV) against your momentum ETF (STXWDM). In a bullish global market, STXWDM should excel, but if the market goes bearish, GLODIV should do much better.

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Awesome, thanks so much for the advice Saurus, I'll definitely consider those tweaks

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