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Long term investment strategy according to John Bogle

Discussion in 'Medium/Long Term Investing' started by JonhyRico, May 6, 2016.

  1. JonhyRico

    JonhyRico

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    I am seriously considering building a long term investment wallet based on two ETFs or even mutual funds. One all market equity ETF and one ETF with short to medium term bonds according to my age (70% stocks, 30% bonds).

    Being new to Australia I do not know which ETFs (or funds) I have available for me that would allow me to do that in the most efficient manner, taking taxes and fees into consideration.

    Are we able to buy ETFs that "protect" against currency fluctuations?
     
  2. DeepState

    DeepState Multi-Strategy, Quant and Fundamental

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    You are able to access the world markets from Australia. So, if you wanted, you can buy pretty much any one which is still available.

    If you only want to invest via ASX listed ones: http://www.asx.com.au/products/etf/managed-funds-etp-product-list.htm

    Some of these offer hedged overseas equities and bond exposures. These remove much of the impact from currency fluctuations.

    Index replication strategies offer lowest cost and tax drag. The underlying strategies are readily available from the relevant shareholder website.

    All the best with crafting an appropriate savings plan.
     
  3. Newbunymo

    Newbunymo

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    It should be more of S&P 500 vs Nsdaq. I have started investing in the foreign stocks for long term, but confused how to decide about the long term investment.
     
  4. JonhyRico

    JonhyRico

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    Its been two years since my opening post and I am happy to report that I absolutely love my ETF wallet:
    35% VAS
    35% VGS
    30% VAF

    Sure, some of those have been much better than others, but over the long run I like the fact that I am at least moderately diversified.

    I reinforce this wallet once a year, every year with the same amount. That costs me 33$ (11$ per ETF on CMC Markets).


    Question: Would it be an advantage to replace these ETFs with VDGR?

    I would be getting even more diversification and even some currency protection on the International portion and I would be paying only 11$ a year in trading commission. However, the management fee would be slightly higher (0.27% vs. VAS 0.14%, VGS 0.18%, VAF 0.20%).
     
  5. JonhyRico

    JonhyRico

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    Up.
     
  6. kid hustlr

    kid hustlr

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    Johnny,

    Hard to talk as we can't give financial advice.

    I'm not across the detail of vdgr but conceptually I don't think the difference would be huge.

    So long as:

    -you have broad based exposure
    - are investing regularly and sticking to your plan

    Nit picking which etf you use probably won't make a huge difference.
     
    JonhyRico likes this.
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