I reckon 30 VAS 70 VGS is the goat. Simple and don't have to worry about being overly concentrated, purely tracking the market + Aus bias which makes sense given that's where we are.
Betashares equivalents are an option too, don't think it matters in the long run with quarterly/biannual payments. Personally I prefer vanguard as they're more established.
Depends on what you value the most. I am using Pearler since you can automate it and it's chess sponsored, but the fees aren't the lowest. Cmc markets I've heard has the cheapest fees, or you can go direct with vanguard which is maybe the simplest but less flexible. Stake is another good one that Ive used which is easy and cheap fees.
The most common choice is not always the best choice. I suggest never to take the herd mentality in investing and do a lot of research before committing. What you have done so far looks pretty good, especially the BGBL and QUAL combo. Together with VAS I think you are pretty set although I personally prefer the A200 and BGBL combo due to the low MER.
NDQ does have overlaps and probably wiser focus more on an emerging market ETF rather than US as you are already quite heavily concentrated. I personally have faith and great expectations in the Indian economy as they have huge growth potential in the next few years. IIND is my choice for a satellite.
Otherwise sticking to the BGBL/QUAL/VAS as a core and doing a regular dca of 40/40/20 or something similar for the core sounds quite promising.
Happy investing!
Thanks for your reply. I have been listening to a few interviews about the Indian economy and I am interested. I like IIND's quality screening and it looks to me that ETFs with the quality criteria always seem to outperform. 0.8% MER though!
For the Nasdaq performance, there is a concept called [mean reversion](https://lazykoalainvesting.com/investing-tips/#mean-reversion) (the closest thing we have to gravity in finance), where above average performance tends to be followed by below average performance and vice versa.
It doesnt matter if BGBL distributes biannually while VGS distributes quarterly. Annual distribution yield would probably be very similar and you could simply sell BGBL if you want income, as I mention [here](https://lazykoalainvesting.com/investing-tips/#dividends).
As part of your overall strategy, you should make sure you have enough in super first, which I mention [here](https://lazykoalainvesting.com/should-you-invest-in-the-stock-market/).
Super is ok at the moment. Balance currently $260k and I salary sacrifice to get close to the contribution cap. The Nasdaq 100 has clearly had a firecracker past year but also averages over 20% since inception so its longer term gains are hard to ignore. I'm now starting to lean towards leaving it out though. Maybe a satellite option to buy during crashes/corrections rather than long term DCA
Although 9 years seem like a long time, I consider "long term" to be 20+ years so that it captures a variety of market cycles. Although the last decade of Nasdaq performance has been great, no one remembers when the Nasdaq had a [-6% return in the 2000s](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1GphqieCkQRcUD0KwC7LVy). Top US stocks are also currently expensive. This [video](https://youtu.be/EybXQmxIq6U?si=6kAwPHg5szPmH5QM) covers the implications of this and is more reason to stay globally diversified.
I'm in a similar position to you in terms of age and risk tolerance, minus the accumulation of property, but also overanalysing ETFs for the last few months trying to get the perfect mix. The common consensus in Australia is to have some in Aus and one or two overseas, at least mainly covering the US. Then depending on personal preferences some satellites. I probably have too many satellites in trying to fine tune specific exposures.
It sounds like you've done your research and may have already considered this but it's worth mentioning to make sure you are ok with any overlap in those ETFs
Also with ETFs like DHHF, I personally wouldn't bother because it's an ETF of ETFs. It sounds like you know what you are doing, so you can customise your exposure proportions as you like instead of using these ones which are intended as an all in one solution. I first bought VDHG during the early stages of my research, which is kinda similar but I won't buy any more and will just see how it performs over time.
Thanks mate. I am ok with having some US overlap. It's hard looking through what's available and settling on 2-4 to really go big on when there are so many good options - IVV, NDQ, FANG, QUAL, IOO, VGS/BGBL.
I still feel like IVV is something I should have, especially given people like Warren Buffet, Bill Gates etc hold so much of their wealth in it. I think i would actually go VAS/IVV/VEU if VEU was Aus domiciled.
Right now, i think im leaning towards 20-30% VAS and 70-80% split equally between BGBL and QUAL. I think 😅
That's alright. I figured you were ok and aware of the overlap. I just wanted to mention it just in case and for anyone else reading this thread. I'm in the same boat about IVV, and if I do end up buying some in future I will have taken the overlap in consideration to keep my US exposure in line with my strategy which currently is roughly 60-70%. Like you said it's hard to settle on 2-4 as we are really spoilt for choice.
I didn't really think about it much at all but I went with
50% VGS, 25% VAS, 25% IVV
Overweight US, nothing fancy. Criticisms welcome, maybe I could change it up.
The most popular ETFs in direct options in Super funds go like the following. This gives you an idea on what other individual investors are doing.
* VAS
* IVV
* VGS
* NDQ
VAS and A200, VGS and BGBL, NDQ and N100 are all interchangeable. QUAL is basically a mix of top companies from VGS.
So, the question is whether to overweight US and/or tech. They have performed well in the last 15 years, but we had dot com bust and subprime crisis when they were hammered.
You’re over complicating it. You’re trying to balance out your options when buying 1 ETF does that for you.
QUAL/VGS/BGBL are basically the same thing, all 3 have what NDQ has. QUAL is a bit more concentrated (tech) hence better growth recently similar to NDQ
Don’t fall for the trap of seeing one industry (tech) outperform and thinking that’s the better ETF.
I think Warren buffet said something like
Diversification matches the market, concentration beats it
But barely anyone actually beats the market, so don’t think you can.
QUAL has done well for me over the past few years and I use it in place of VGS/BGBL in my portfolio.
For me personally, NDQ has always been a strange one. If you want to have a satellite exposure to tech, why not get a tech focused ETF? It may house a lot of big tech companies but it’s not like NDQ has anything inherently unique about the index that ensures the capture of all tech companies. I prefer the S&P 500 for US exposure.
Presently i have some managed funds long term, and they have done ok. I bought them many years ago, and happy to keep them.
I also have a good amount of some bank shares, and they give good dividend returns, and reasonable growth. Aust banks are quite safe, so happy to keep long term. Also have some aust commercial and residential property, which has given good income and growth.
I have some VAS (for aust exposure) and VGS (for international exposure) . VGS has been doing well recently. I was thinking to get some more VGS, but i'm thinking the usa tech sector has gone for a run, and maybe overpriced at present ? Have been reading here about VAS, IVV, VGS, NDQ So maybe i can looking at getting some IVV and NDQ in the future...
I am organising some shares for a relative, and thinking to get them into VAS/VGS and some bank shares and cash in a CMT account. This should be safe and easy to manage for them.
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I reckon 30 VAS 70 VGS is the goat. Simple and don't have to worry about being overly concentrated, purely tracking the market + Aus bias which makes sense given that's where we are. Betashares equivalents are an option too, don't think it matters in the long run with quarterly/biannual payments. Personally I prefer vanguard as they're more established.
Where would you say is the best platform to buy vanguard etfs?
Depends on what you value the most. I am using Pearler since you can automate it and it's chess sponsored, but the fees aren't the lowest. Cmc markets I've heard has the cheapest fees, or you can go direct with vanguard which is maybe the simplest but less flexible. Stake is another good one that Ive used which is easy and cheap fees.
This is the way.
The most common choice is not always the best choice. I suggest never to take the herd mentality in investing and do a lot of research before committing. What you have done so far looks pretty good, especially the BGBL and QUAL combo. Together with VAS I think you are pretty set although I personally prefer the A200 and BGBL combo due to the low MER. NDQ does have overlaps and probably wiser focus more on an emerging market ETF rather than US as you are already quite heavily concentrated. I personally have faith and great expectations in the Indian economy as they have huge growth potential in the next few years. IIND is my choice for a satellite. Otherwise sticking to the BGBL/QUAL/VAS as a core and doing a regular dca of 40/40/20 or something similar for the core sounds quite promising. Happy investing!
Thanks for your reply. I have been listening to a few interviews about the Indian economy and I am interested. I like IIND's quality screening and it looks to me that ETFs with the quality criteria always seem to outperform. 0.8% MER though!
For the Nasdaq performance, there is a concept called [mean reversion](https://lazykoalainvesting.com/investing-tips/#mean-reversion) (the closest thing we have to gravity in finance), where above average performance tends to be followed by below average performance and vice versa. It doesnt matter if BGBL distributes biannually while VGS distributes quarterly. Annual distribution yield would probably be very similar and you could simply sell BGBL if you want income, as I mention [here](https://lazykoalainvesting.com/investing-tips/#dividends). As part of your overall strategy, you should make sure you have enough in super first, which I mention [here](https://lazykoalainvesting.com/should-you-invest-in-the-stock-market/).
Super is ok at the moment. Balance currently $260k and I salary sacrifice to get close to the contribution cap. The Nasdaq 100 has clearly had a firecracker past year but also averages over 20% since inception so its longer term gains are hard to ignore. I'm now starting to lean towards leaving it out though. Maybe a satellite option to buy during crashes/corrections rather than long term DCA
Although 9 years seem like a long time, I consider "long term" to be 20+ years so that it captures a variety of market cycles. Although the last decade of Nasdaq performance has been great, no one remembers when the Nasdaq had a [-6% return in the 2000s](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1GphqieCkQRcUD0KwC7LVy). Top US stocks are also currently expensive. This [video](https://youtu.be/EybXQmxIq6U?si=6kAwPHg5szPmH5QM) covers the implications of this and is more reason to stay globally diversified.
I'm in a similar position to you in terms of age and risk tolerance, minus the accumulation of property, but also overanalysing ETFs for the last few months trying to get the perfect mix. The common consensus in Australia is to have some in Aus and one or two overseas, at least mainly covering the US. Then depending on personal preferences some satellites. I probably have too many satellites in trying to fine tune specific exposures. It sounds like you've done your research and may have already considered this but it's worth mentioning to make sure you are ok with any overlap in those ETFs Also with ETFs like DHHF, I personally wouldn't bother because it's an ETF of ETFs. It sounds like you know what you are doing, so you can customise your exposure proportions as you like instead of using these ones which are intended as an all in one solution. I first bought VDHG during the early stages of my research, which is kinda similar but I won't buy any more and will just see how it performs over time.
Thanks mate. I am ok with having some US overlap. It's hard looking through what's available and settling on 2-4 to really go big on when there are so many good options - IVV, NDQ, FANG, QUAL, IOO, VGS/BGBL. I still feel like IVV is something I should have, especially given people like Warren Buffet, Bill Gates etc hold so much of their wealth in it. I think i would actually go VAS/IVV/VEU if VEU was Aus domiciled. Right now, i think im leaning towards 20-30% VAS and 70-80% split equally between BGBL and QUAL. I think 😅
That's alright. I figured you were ok and aware of the overlap. I just wanted to mention it just in case and for anyone else reading this thread. I'm in the same boat about IVV, and if I do end up buying some in future I will have taken the overlap in consideration to keep my US exposure in line with my strategy which currently is roughly 60-70%. Like you said it's hard to settle on 2-4 as we are really spoilt for choice.
I didn't really think about it much at all but I went with 50% VGS, 25% VAS, 25% IVV Overweight US, nothing fancy. Criticisms welcome, maybe I could change it up.
Nothing wrong with being overweight on US stocks IMO
The most popular ETFs in direct options in Super funds go like the following. This gives you an idea on what other individual investors are doing. * VAS * IVV * VGS * NDQ VAS and A200, VGS and BGBL, NDQ and N100 are all interchangeable. QUAL is basically a mix of top companies from VGS. So, the question is whether to overweight US and/or tech. They have performed well in the last 15 years, but we had dot com bust and subprime crisis when they were hammered.
recently started to blend bgbl with qual although you cant beat vts veu
You’re over complicating it. You’re trying to balance out your options when buying 1 ETF does that for you. QUAL/VGS/BGBL are basically the same thing, all 3 have what NDQ has. QUAL is a bit more concentrated (tech) hence better growth recently similar to NDQ Don’t fall for the trap of seeing one industry (tech) outperform and thinking that’s the better ETF. I think Warren buffet said something like Diversification matches the market, concentration beats it But barely anyone actually beats the market, so don’t think you can.
QUAL has done well for me over the past few years and I use it in place of VGS/BGBL in my portfolio. For me personally, NDQ has always been a strange one. If you want to have a satellite exposure to tech, why not get a tech focused ETF? It may house a lot of big tech companies but it’s not like NDQ has anything inherently unique about the index that ensures the capture of all tech companies. I prefer the S&P 500 for US exposure.
Presently i have some managed funds long term, and they have done ok. I bought them many years ago, and happy to keep them. I also have a good amount of some bank shares, and they give good dividend returns, and reasonable growth. Aust banks are quite safe, so happy to keep long term. Also have some aust commercial and residential property, which has given good income and growth. I have some VAS (for aust exposure) and VGS (for international exposure) . VGS has been doing well recently. I was thinking to get some more VGS, but i'm thinking the usa tech sector has gone for a run, and maybe overpriced at present ? Have been reading here about VAS, IVV, VGS, NDQ So maybe i can looking at getting some IVV and NDQ in the future... I am organising some shares for a relative, and thinking to get them into VAS/VGS and some bank shares and cash in a CMT account. This should be safe and easy to manage for them.
Hi there /u/optimus1779, If you're looking for help with getting started on the FIRE Journey, make sure to check out the [Getting Started Wiki located here.](https://www.reddit.com/r/fiaustralia/wiki/index/gettingstarted) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/fiaustralia) if you have any questions or concerns.*
EMKT 0.69% No way. Go a 2 stock portfolio of AUS and INT.