Thanks for sharing about VWRA and its automated dividend reinvestment i.e. the accumulating aspect. Can you add any colour as to when the manager reinvests dividends, the frequency, the method (fully passive or is there some active component) etc.?
Buying into US ETFs does not track the US economy (whether the equity market actually tracks the economy is another matter). The US ETFs have the biggest global companies. And the US exchanges are the go to exchanges to list for innovative companies no matter where they come from. So, buying into a US market fund is to an extent buying into global innovation and the global economy. You are buying into the future. This is very different from buying into an exchange tracking fund with mature companies where there is a strong focus on dividends e.g. SGX ETF.
SPYL is comparable to other Irish-domiciled S&P 500 ETFs like VUAA/CSPX. SPYL offers a lower expense ratio, but it has a lower AUM and shorter track record since it only listed in October 2023.
Hi Thks for the video! I would like to clarify : Will the vwra % allocation for market cap, country and sector changes, with changes in their performance? Said one day US tech reverses and China overtake although i dun think so..:) 2. What if we hold vwra in dollars terms and it devalue during our retirement years?
1. Yes, the allocation in VWRA will shift over time as the underlying performance of the stocks within the ETF changes. 2. This is a risk whenever you invest in foreign assets. However, the U.S. dollar is a relatively stable currency due to its status as the world's primary reserve currency, backed by the size and strength of the U.S. economy and its financial markets.
Thanks for the great sharing. I am foreign investor, just out of curiosity, so Singaporean can put money into this type of government mandated account and get a return of, currently, 4%. So how the government uses the money? Like investing in some long term government initiated projects or channeling it to sovereign wealth fund like Temasek?
CPF monies are invested by the CPF Board (CPFB) in Special Singapore Government Securities (SSGS). SSGS are issued specially by the Government to CPFB. The proceeds from SSGS are pooled with the rest of the Government’s funds, such as government surplus, and proceeds from land sales. The co-mingled funds are invested by the Government’s fund manager, GIC, for long-term returns. GIC was created in 1981, to invest the Government’s assets for long-term returns. CPF monies are not managed by Temasek, and proceeds from SSGS are also not invested with Temasek. Temasek is a separate company that owns and manages its assets. Hope this gives you more insight! www.cpf.gov.sg/member/infohub/cpf-clarifies/policy-faqs/how-are-cpf-monies-invested
how is VWRA rebalancing? if other country outperform US, will VWRA weighting on that country increase and decrease US? or the weighting of each market is fix?
Can I know why do you recommend VUAA over Voo? I assumed it was because of the 15% withholding tax over VOO’s 30%. However it seems VUAA doesn’t pay out dividends
VUAA is Irish domiciled which lowers your dividend withholding tax and avoids U.S. estate tax. VUAA doesn't distribute a dividend; it is automatically reinvested into the fund. Hope this explains!
You can consider The ABF Singapore Bond Index Fund which invests in Singapore government bonds, and the Nikko AM SGD Investment Grade Corporate Bond ETF which invests in investment-grade Singapore corporate bonds.
Would you do DCA on a monthly, quarterly or annual basis assuming the total amount you invest per year regardless of frequency of injection is the same? If you opt for the less frequent method, would that subject you to risks of investing when the price is higher?
Dollar-cost averaging on a more frequent basis smooths out market volatility better, but you pay more in transaction costs. Quarterly contributions often provide a good balance for many people.
If you can find a low-cost ETF that suits your risk profile and yield target. However, you will need to be mindful of the ETF's domicile due to dividend withholding tax rules.
I think they were in tandem when interest could not go down much lower (& they had to resort to quantitative easing). Now that interest is back up, they can do interest reduction when stocks crash and then you will see the balancing between the long bond increase in price (when Feds cut interest to boost economy) vs the share price coming down
hi guys! on which platform can we buy those ETF you mentioned? and after buying we need to hold for many years and how do we guarantee we can get our money when we retire? o how are we able to tell that the platform we use will still be around when we want to withdraw our money?
StanChart does not charge for share price feed and no custody/platform fee but got per transaction fees and exchange rate earnings from their spread. May work out cheapest if buying dividend shares to hold long term. But it is bare bones platform.
does it make sense if i have been buying iwda for many years, sell and change into vwra? or i should just be continuing iwda, since they are pretty much same thing?
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Thanks for sharing about VWRA and its automated dividend reinvestment i.e. the accumulating aspect.
Can you add any colour as to when the manager reinvests dividends, the frequency, the method (fully passive or is there some active component) etc.?
Buying into US ETFs does not track the US economy (whether the equity market actually tracks the economy is another matter). The US ETFs have the biggest global companies. And the US exchanges are the go to exchanges to list for innovative companies no matter where they come from. So, buying into a US market fund is to an extent buying into global innovation and the global economy. You are buying into the future.
This is very different from buying into an exchange tracking fund with mature companies where there is a strong focus on dividends e.g. SGX ETF.
That is correct. The largest US companies have a global footprint.
Hello! I would like to ask do you guys reccomend SPYL ETF?
SPYL is comparable to other Irish-domiciled S&P 500 ETFs like VUAA/CSPX. SPYL offers a lower expense ratio, but it has a lower AUM and shorter track record since it only listed in October 2023.
@ ah i see! would u reccomend SPYL or CSPX in the long run
How do you retire with S&P500 etf? Start selling it when you retire?
You can progressively sell and move your funds to more conservative assets like bonds and dividend stocks.
@@TheFifthPersonChannelis there a world etf with dividend returns and not re-invested into the etf? Like SPY5?
Hi
Thks for the video!
I would like to clarify :
Will the vwra % allocation for market cap, country and sector changes, with changes in their performance? Said one day US tech reverses and China overtake although i dun think so..:)
2. What if we hold vwra in dollars terms and it devalue during our retirement years?
1. Yes, the allocation in VWRA will shift over time as the underlying performance of the stocks within the ETF changes.
2. This is a risk whenever you invest in foreign assets. However, the U.S. dollar is a relatively stable currency due to its status as the world's primary reserve currency, backed by the size and strength of the U.S. economy and its financial markets.
Very helpful. Thanks! More power to you guys
Thank you! Glad it was helpful!
Love the show. Thank for knowledge😄
Thanks for watching!
Thanks for sharing! Thinking where to start after many years break from investments.
You can do it!
@@TheFifthPersonChannel Thank you for encouragement!
Thanks for the great sharing. I am foreign investor, just out of curiosity, so Singaporean can put money into this type of government mandated account and get a return of, currently, 4%. So how the government uses the money? Like investing in some long term government initiated projects or channeling it to sovereign wealth fund like Temasek?
CPF monies are invested by the CPF Board (CPFB) in Special Singapore Government Securities (SSGS). SSGS are issued specially by the Government to CPFB. The proceeds from SSGS are pooled with the rest of the Government’s funds, such as government surplus, and proceeds from land sales. The co-mingled funds are invested by the Government’s fund manager, GIC, for long-term returns. GIC was created in 1981, to invest the Government’s assets for long-term returns.
CPF monies are not managed by Temasek, and proceeds from SSGS are also not invested with Temasek. Temasek is a separate company that owns and manages its assets.
Hope this gives you more insight!
www.cpf.gov.sg/member/infohub/cpf-clarifies/policy-faqs/how-are-cpf-monies-invested
how is VWRA rebalancing? if other country outperform US, will VWRA weighting on that country increase and decrease US? or the weighting of each market is fix?
The VWRA is tracks the FTSE All-World Index which is reviewed/rebalanced every six months
Can I know why do you recommend VUAA over Voo? I assumed it was because of the 15% withholding tax over VOO’s 30%. However it seems VUAA doesn’t pay out dividends
VUAA is Irish domiciled which lowers your dividend withholding tax and avoids U.S. estate tax. VUAA doesn't distribute a dividend; it is automatically reinvested into the fund. Hope this explains!
@@TheFifthPersonChannelokay understand it now thank you!
Hi Guys, if we want to buy a Singapore Bond ETF, which one do you prefer? Are there many bond etfs in Singapore market? Thanks.
You can consider The ABF Singapore Bond Index Fund which invests in Singapore government bonds, and the Nikko AM SGD Investment Grade Corporate Bond ETF which invests in investment-grade Singapore corporate bonds.
Would you do DCA on a monthly, quarterly or annual basis assuming the total amount you invest per year regardless of frequency of injection is the same? If you opt for the less frequent method, would that subject you to risks of investing when the price is higher?
Dollar-cost averaging on a more frequent basis smooths out market volatility better, but you pay more in transaction costs. Quarterly contributions often provide a good balance for many people.
Insightful content... thanks
Hi guys how about buying nifty 50? Can you guys talk about this stock. Worth buying?
is ETF strategy good for dividend income?
If you can find a low-cost ETF that suits your risk profile and yield target. However, you will need to be mindful of the ETF's domicile due to dividend withholding tax rules.
What platform should singaporeans use to buy into VWRA ? Could u recommend a few pls?
Interactive Brokers, Saxo Markets
CMC?
Would you recommend investing into an actively managed fund?
If the fees are reasonable and you believe the fund manager will outperform the market.
Any real life examples of individuals who successfully retire with a three fund portfolio?
www.reddit.com/r/Bogleheads/comments/16ao4lf/i_would_love_to_hear_from_people_who_actually/
SPY & VOO ?
All in buy us etf, how about the estate tax?😢
We highlighted Irish-domiciled ETFs like CPSX and VWRA which avoid US estate tax.
60/40:Share/Bond is obsolete going into the future as bond and share prices are moving in tandem these days.
I think they were in tandem when interest could not go down much lower (& they had to resort to quantitative easing). Now that interest is back up, they can do interest reduction when stocks crash and then you will see the balancing between the long bond increase in price (when Feds cut interest to boost economy) vs the share price coming down
hi guys! on which platform can we buy those ETF you mentioned? and after buying we need to hold for many years and how do we guarantee we can get our money when we retire? o how are we able to tell that the platform we use will still be around when we want to withdraw our money?
Interactive Brokers, Saxo Markets
Which brokerage you guys use to invest in Ireland domicile ETFs?
Interactive Brokers, Saxo Markets. Many Irish-domiciled ETFs are listed on the London Stock Exchange.
StanChart does not charge for share price feed and no custody/platform fee but got per transaction fees and exchange rate earnings from their spread. May work out cheapest if buying dividend shares to hold long term. But it is bare bones platform.
does it make sense if i have been buying iwda for many years, sell and change into vwra? or i should just be continuing iwda, since they are pretty much same thing?
They are very similar, with the primary difference being that IWDA does not include emerging markets. Both ETFs have a majority weighting in the US.
Good one
Thanks Kyith!
Nice 0.04% . Wow thats low 😱
Usa stock “manipulated” 😂