Hi All, hope you enjoyed this video! FYI - Betashares have reduced their fees for A200 further to just 0.04%! Also - Don’t forget to get 10 FREE Stocks worth up to $3,300 with Moomoo when sign up and deposit any amount into your account Moomoo - bit.ly/49u0XHY Note: I do receive a small commission if you sign up! This greatly supports me and the channel!
Started my portfolio last year with SCHD, VOO, and VUG after watching one of your videos. In terms of share price, VOO is way up (22.25%) and VUG is waaaaay up (39.62%). Thanks for the education!
Isn't VOO and VUG similar in the sense both are investing in the S&P 500? What is the difference? I thought it is generally advised against to invest in multiple ETFs or Mutual Funds?
There is 55% overlap with the holdings in VOO and VUG. 1 is tech heavy and the other is financials heavy similar, but not the same. VOO tracks the S&P 500; VUG is just focused on large cap growth stocks. VUG is a bit more volatile, but with a higher upside potential. VOO is a bit safer. I’ve never heard anyone advise against multiple ETFs/mutual funds. You just have to be aware of overlap. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
I'm sitting on some significant money ready to toss it into VOO, but I'm kinda hoping that price drops a bit. I know we only want to see the stock rise, but being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Amber Dawn Brummit who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
In recent weeks, investors have become concerned that Nvidia has simply come too far, too fast, and they are wondering whether the hectic pace of AI adoption could continue. Nvidia answered that question with a resounding "yes," but given the stock's parabolic gains, blockbuster results simply weren't enough.I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
‘Grace Adams Cook’ is my FA. Just google the name and you’d find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Thank you for the lead, searched Grace by her full name and at once spotted her consulting page, she seems highly professional having over 22 years of experience. amazing!
It's impossible for someone to become wealthy suddenly. A valuable lesson I've picked up from billionaires is to always invest in a diverse range of securities and to put in background effort, even if we usually just see the final product. I intend to profit from the approximately $200k that I want to put in stocks this year.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Melissa Elise Robinson has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
I'm not a fan of having a large allocation of the ASX and I find most people have home bias. Since Australian market only 3% of the world's overall, it would make more sense to invest 5% or less in the portfolio. I'm not completely against VAS. I'd suggest to increase VAS allocation as you grow older. ASX tends to pay higher dividend which fits really well with FIRE. But if you are 50 years old or younger, put more of your money into VGS. It performs better overall.
Home bias is not a bad thing, it's easier to stay in touch with a local market and sentiment compared to international. Whenever I hear negative comments against the ASX it's always in relation to the S&P500, but the reality is the historical long term average return between the two is only 1-2%.
I agree with you... I have the same investment portfolio VAS+VGS+CASH. It is simpler and I just invest and forget, I'm kind of a person who thinks there are more things to do out there than focusing in one thing, get stuck, and not moving on with life. I just live my life knowing I have investments, and cash to use anytime I want to go or buy something. My aim is very simple, 1 million investments, 1 million savings, that is just enough for me to retire on. Life is short don't make it shorter.
Hi Raymond brilliant video. Im a 33y/o woman just getting into investing. I’ve been trying to do endless research as i know nothing about investing and I am so exhausted. This was very helpful. Thank you
For those who want to avoid Vangaurds or Blackrocks use ETF like A200 (Australian INDEX), IVV for SP500 index, GOLD for physical gold, ETPMAG for physical silver and NDQ for nasdaq tech INDEX. Plus cash either pure or in asset clas that just covers for inflation (bonds or time investment).
@@arisinger4534I’m curious too. From what I’ve read it’s more for the ethical standpoint of not funding these massive institutions and giving them more power.
An excellent breakdown of simplifying investments using index tracking ETFs and cash. Your focus on VAS and VGS for diversified market exposure, coupled with the importance of cash as an asset, really demystifies investing for beginners. The point about low fees and the impact on long-term returns is particularly valuable. How often do you recommend reviewing and rebalancing this simplified portfolio?
Much appreciated mate, investing doesn't have to be complicated at all! Personally, I look at my overall portfolio once a quarter to see which ETF I need to top up in the next few months. Glad to see more aussie finance content creators in the space!
Great video! I choose IVV as I simply wanted only US exposure. I invest in Australian companies simply for dividend income so no need to choose an Aussie etf.
Hi Raymond! Great info! The VAS + VGS combo is very complementary as it allows us to capture both Aussie + global stock market returns. I have a VAS + IVV portfolio but will add VGS soon.
@@raymondla noted, probably by around 70%. My VGS allocation will be primarily to easily track a separate bucket of funds (eg. company bonus/ gift from grandma).
I preffer A200 and IVV (staying away from Vanguard). Plus physical gold GOLD and physical silver ETPMAG. None of that allows you to sell Options around it. Therefore QQQ for example is good.
I go Vas + Ivv and cash, IVV slightly out performs vgs but not by that much. And I’d prefer my portfolio to be in the s&p 500 rather then Europe and Asia also as I don’t know Asia and Europes companies very well nor there economically status. Warren buffet says invest in companies you understand
My question is why bother with the Australian market ETF in the first place? Does being Australian somehow make it a better strategy? Why not all international or S&P 500 instead of ASX based?
Obviously profits as stock value % increase are slightly worse, but when you consider forex fees, currency exchange fees and all sorts of other ‘small fees that add up’ when looking at wall st or nasdaq or really most foreign exchanges, it does heavily cut into your profits depending on who your broker is (presuming u use modern app brokers)
However I doubt that VGS would be suitable for an Australian retiree with his/her SMSF in the pension paying phase, where the retiree needs income to live on. VGS only seems to pay around 2% p.a. on average (sometime slightly above and often below) with ZERO franking.
Great video! Ive JUST started investing and these are the two ETFs i had chosen so this video makes me feel good lol. So you recommend alterating buying one lot each month instead of splitting it each time to minimize fees?
Newbie here. When is a good time to buy these ETFS? As over time they should all go up, is right now as good as any? Or should we not buy at the peak? Thanks for your excellent videos and hope to hear from you.
Hey mate, the best time to invest is now if your finances allow for it! Even if it is at all-time highs the market will continue to go up over the long period.
I’d love to learn more about investing, but I have no idea what you’re talking about. VAS,VGF and ETF’s, it’s like another language, where can I learn more?
@SimonBarrett74 From my understanding. ETF is a type of investment. Index fund, mutual fund, bonds, commodity are also other types of investment. VAS, VGF these are names for pooled of shares for example VAS stand for Vanguard Australia shares, it’s combined top companies in Australia. So when you invest into VAS you don’t invest into just one single company but many companies at once. Generally top 200 or 300 companies. VGF stand for Vanguard MSCI Index International Shares ETF. It’s international shares like apple, facebook, amazon, nestle, Toyota, shell, Coca-Cola etc.
Came across your channel recently and immediately subscribed! My portfolio is mainly A200 and IVV + individual shares. This sounds a lot easier and I’m hoping to sell off my individual shares soon and make my life easier!
That’s a great and very simple to understand video. I have one question regarding investing in VGS- how does the currency conversion works if you have invested as long term in VGS? Thanks
Hey mate came across you recently and have started to watch alot of your videos keep up the great content. Just wondering whats your thoughts on IVV in comparison to VGS would love to know your thoughts about it
Hey mate appreciate the feedback. IVV is focused on the S&P500, whilst VGS gives you exposure to most developed markets excluding Australia. So not really a fair comparison, it just depends on what you personally want exposure to.
@raymondla Thanks for your reply means alot. It's just anorther ETF that keeps coming up i know not exactly same as it only focuses on S&P500 only. Just was interested in seeing your thoughts etc on it as i think your very informative and thorough in your assessment and I know there's alot of overlap between the 2 ETFs.
Hi Raymond, nice video, I have two questions 1) As far as I know VAS is a good option when it comes to dividends but is it worth investing in VAS if let's say someone can only invest between $2-3K a year into VAS? 2) For VGS and IVV, I did some research and I can see IVV outperformed VGS but this wasn't the case in 2023, obviously past performance is not a guarantee for the future but for a long term investment do you think IVV is a better option than VGS when it comes to long term growth ?
Hey mate, I think it's still definitely worth investing even if you only have $2-$3k per year as that is still better than nothing! Like you said you can't really predict performance with with IVV and VGS, but they are technically invest into different markets so aren't actually comparable. A potential different question you can ask yourself is if you want to invest into just the US stock market (IVV) or which you want exposure to other developed markets (VGS)
Your Aussie investment tips are my go-to. Any chance you could share your thoughts on Fuse Minerals in an upcoming video? Would love to hear how it fits into a simple portfolio like the one you've just outlined.
Hi Raymond! Just wondering the rationale behind investing a significantly larger portion into VGS compared to VAS in your sample percentages. Is there a benefit in having more invested in international centred shares compared to Australian ones?
Australia only makes up around 3% of the global share market, whilst the US makes up around ~60%. So that's why it is recommended to be more heavily weighted towards VGS.
Hi Raymond, what exactly do you refer to when you mention cash? Physical notes or just funds in earning interest in personal bank accounts? Thanks in advance
Hey great video. Currently 25 Jul VGS is going crazy up. What do you suggest should we wait till it drop down a bit of still buy while its growing crazy up ??
I'm new to this. I've bought a small amount of VTI and VXUS, is it worth selling up to buy VAS and VGS instead or should I hang on to them for a while?
Great video, and I do like the simplicity of your portfolio (low fees, diversification and well balanced between global/cash/Aus). Questions: why you go for VGS and not S&P500? What about 10% gold?
VGS provides exposure to other developed markets outside of the US, so it's really just more diversification. I've never been a fan of precious metals, just my own opinion though you could easily add it into your portfolio.
Great video! I'm having a hard time deciding between ishares global 100 and VGS ETFs. 100 does have a higher MER but history has shown it has outperformed VGS. What are your thoughts?
Glad you enjoyed the video! Those are both quite different ETFs because the iShares ETF is concentrated into the top 100 equities, so it wouldn't be a fair comparison to compare the performance against one another. Probably a better question to ask yourself is how diversified you want to be? Because iShares Global gives you exposure to ~100 companies whilst VGS gives exposure to ~1400 companies.
Great video , I’m constantly learning new techniques everyday . In my current portfolio I have , vas vgs vae vue, in your opinion 25% in each a good call or . I just want to set and forget
Can I just pick these 3 and never change my portfolio until I finally one day cash out over 30/40 years from now? I just want to buy and hold with a nice portfolio buy and forget
Hi Raymond, thank you for the information. I just decided that I want to start investing into s&p500 but not sure where to start, can you help directing to the website or broker that can help? Thank you
Have a question about etf, is there an extreme situation that after you hold your ETF for 10 years and then no one like to buy it from you when you want to sell it😅😅.
Hey mate totally valid question, but no there wouldn't be a situation where you wouldn't be able to sell. The market cap of VAS itself is $13B meaning that is the total value of all shares in circulation. It is constantly being bought and sold daily so you won't have any issues selling if you need to.
can I ask with VAS shares being around $95 each, how many should you buy to start off? a single girl wage cant buy much LOL and is having say 6 shares worth doing?
I would recommend saving up overtime to let's say at least $1000 before you invest. You don't want to invest in small amounts because you'll be incurring fees every time you do
Forgive my ignorance I am only just getting into the investment game and when you refer to cash is that like a actual stock I had a Quick Look and there is the cash on NASDAQ? Is this what you are referring to?
Hey mate, I think this depends on when you plan to access that money that you're investing. If it's not till retirement, then 100% it should be into your superannuation first (taking into consideration the yearly contributions cap) But if you want more flexibility with your money, then just investing into an ETF would be better.
Yes, I personally contribute the maximum I can each year into my superannuation. It's definitely the most tax efficient way to invest if you don't plan on using your assets until retirement.
Hey Raymond, Speaking of cash...would you consider AAA? The dividend yield is relatively small but it pays dividends every month which is good, while risk is relatively low. Cheers
I’ve read every comment Now the abbreviations and combinations have confused me a little… I was convinced with Raymonds Portfolio but now I’m not so sure 🙏
Hey mate, there is a hedged equivalent of VGS which is VGAD. Although research has been found that over a long period of time currency conversion nets out.
Please talk about VESG too. It's important for those of us who want to live in an ethical and sustainable future when we grow older. No point having money or passing on wealth to future generations if the future is a nightmare. The insane rise in the cost of insurance lately is just one point of evidence that, if we're not aware of where our money is invested in, we will end up paying the price in other ways (let alone the environmental impact).
Hey Raymond, Just came across your video on ETFs. I am looking to invest with Vanguard VAS and VGS. Found your video to be very informative and have subscribed to your channel (will check out your other videos over the coming days). I am just curious whether you are holding the investment with Vanguard under your personal name or some form of trust structure? Please be assured that this will not be considered or taken as advice at my end. Thanks.
@@raymondla Thanks for the prompt response 😊👍. I am thinking of investing under my name too as the set up and compliance costs of a trust is not justifiable at present.
Hey mate there's plenty of options out there - Stake, Pearler, Selfwealth, but I personally use Moomoo. I did a video talking about my reasons why here - ruclips.net/video/rXliZSRek_M/видео.html
Hi Bidisha, glad you found the video useful. Investing in ETFs is a long term investment, for me personally I only plan to see them to fund my retirement.
You can definitely use Stake, not sure what you mean by Vanguard's website as you can't purchase it through that unless you're talking about Vanguard Personal Investor.
Thank you for a great video. I had a question regarding the investor who has their eye on future passive income from dividends, say in 20 years. The dividend yield on the international ETF is much lower than VAS. To transition from wealth accumulation phase to a dividend paying phase will require re balancing which will mean selling of your international stocks, then paying tax, then reinvesting into companies for the dividends. I like the idea of accumulating a position in the ETF that eventually I will take dividend payments from. By amassing a larger position in VAS you can transition from having dividends reinvested to taking them and there is no requirement to trigger a capital gains event. Obviously its a balance between maximising growth in the long term and building the right portfolio from which dividends can be derived. Wonder if you have any thoughts on the right investment vehicles to use with this kind of an investment goal?
Hey there! Another alternative is that as the years go on you simply purchase more of VAS or another dividend focused ETF such as VHY and purchase less of the international focused ETF. This way your portfolio allocation will slowly change and be less international focused and more Australia/Dividend focused.
I get what you are saying about those investments to those that are very risk adverse regarding the stock market. The returns you mentioned are very low compared to investing in blue chip shares that pay dividends and the all important franking credits. ANZ paid a dividend of about 6% which was fully franked so about 8.00% tax free , Fortescue Metals paid a dividend of 12.00% fully franked so close to 15 % after the ATO pay you the tax these companies have already paid back to you. I look at the the distributions these ETF,s pay and it is peanuts compared to what you can earn from blue chip shares which are tax free and normally tax positive. You would probably be better off parking your money in a 2-3 % cash account with your bank rather than what you are recommending!
Hi Raymond , first time investor here would you suggest a one of Purchase and leave it for 10 + years or would you make another purchase when more money comes in ?
Hey Roxanne, I've done a full video talking through the process here ruclips.net/video/mSnR2_jt4DY/видео.html let me know if you have any further questions
AFI is technically a LIC, it could be used as an alternative the only thing is that it is actively managed and you wouldn't be as diversified. As for the international ETFs, they are fine alternatives, as long as you get similar exposure to VGS.
tbh 300 is a bit over diversified and the other 100+ are very small companies that make little difference, you can also go for asx200 IOZ and you would sit with very little difference except you pay less management fees
@@cheyannedelgado5993 The fees I mentioned in the video are the fees relating to the ETFS themselves, this is paid to the funds that manage those ETFs. The platform fees for Stake are essentially the transaction costs to invest. Slightly different, let me know if that makes sense!
@@raymondla hi Raymond, it makes perfect sense. Perhaps a video on these different platforms and online brokers would be really good. Either way, thank you for replying to me so fast 👌🏽
I would have thought the world simplest portfolio would be something like VDHG or DHHF - which is very similar to portfolio discussed - but in one etf.
Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?
I'd avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows sign of recovery.
This is why I entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.
My CFA Aileen Gertrude Tippy a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Hey mate, I think it's a great alternative to VGS. Lower management fee and it essentially provides the same exposure, might switch over to it myself instead of VGS.
Hey Shawn, whilst VDHG is a great all-in-one ETF it doesn't give you flexibility in the allocation. You're locked into VDHG's allocation which will always have ~10% allocated towards bonds.
@@raymondla yes, good point. I am just wondering, if you wanted to reduce your exposure to bonds, you could offset that by adding VAS or VGS and vice versa if you wanted to increase your exposure to bonds. However, yes, you can't have 0% bond allocation with VDHG.
Hi All, hope you enjoyed this video! FYI - Betashares have reduced their fees for A200 further to just 0.04%!
Also - Don’t forget to get 10 FREE Stocks worth up to $3,300 with Moomoo when sign up and deposit any amount into your account Moomoo - bit.ly/49u0XHY
Note: I do receive a small commission if you sign up! This greatly supports me and the channel!
Started my portfolio last year with SCHD, VOO, and VUG after watching one of your videos. In terms of share price, VOO is way up (22.25%) and VUG is waaaaay up (39.62%). Thanks for the education!
Isn't VOO and VUG similar in the sense both are investing in the S&P 500? What is the difference? I thought it is generally advised against to invest in multiple ETFs or Mutual Funds?
There is 55% overlap with the holdings in VOO and VUG. 1 is tech heavy and the other is financials heavy similar, but not the same. VOO tracks the S&P 500; VUG is just focused on large cap growth stocks. VUG is a bit more volatile, but with a higher upside potential. VOO is a bit safer. I’ve never heard anyone advise against multiple ETFs/mutual funds. You just have to be aware of overlap. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.
I'm sitting on some significant money ready to toss it into VOO, but I'm kinda hoping that price drops a bit. I know we only want to see the stock rise, but being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Finding financial advisors like Amber Dawn Brummit who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
'Tracy Annette Webb ' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
In recent weeks, investors have become concerned that Nvidia has simply come too far, too fast, and they are wondering whether the hectic pace of AI adoption could continue. Nvidia answered that question with a resounding "yes," but given the stock's parabolic gains, blockbuster results simply weren't enough.I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
‘Grace Adams Cook’ is my FA. Just google the name and you’d find necessary deets. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Thank you for the lead, searched Grace by her full name and at once spotted her consulting page, she seems highly professional having over 22 years of experience. amazing!
It's impossible for someone to become wealthy suddenly. A valuable lesson I've picked up from billionaires is to always invest in a diverse range of securities and to put in background effort, even if we usually just see the final product. I intend to profit from the approximately $200k that I want to put in stocks this year.
It may be a good idea to speak with a financial advisor who can help you develop a portfolio based on your individual goals and risk tolerance.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
I've been considering but haven't been proactive. Can you recommend your advisor? Could really use some assistance.
Melissa Elise Robinson has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
I like the way you talk - peaceful, clear speech, and simple.
Appreciate that feedback!
I know esp the Aussie accent like me.
Agree 100%
We have gone for a 3 fund portfolio including 3 years of cash + Berkshire Hathaway class2 shares . Works
I'm not a fan of having a large allocation of the ASX and I find most people have home bias. Since Australian market only 3% of the world's overall, it would make more sense to invest 5% or less in the portfolio.
I'm not completely against VAS. I'd suggest to increase VAS allocation as you grow older. ASX tends to pay higher dividend which fits really well with FIRE.
But if you are 50 years old or younger, put more of your money into VGS. It performs better overall.
Home bias is not a bad thing, it's easier to stay in touch with a local market and sentiment compared to international. Whenever I hear negative comments against the ASX it's always in relation to the S&P500, but the reality is the historical long term average return between the two is only 1-2%.
I agree with you... I have the same investment portfolio VAS+VGS+CASH. It is simpler and I just invest and forget, I'm kind of a person who thinks there are more things to do out there than focusing in one thing, get stuck, and not moving on with life. I just live my life knowing I have investments, and cash to use anytime I want to go or buy something. My aim is very simple, 1 million investments, 1 million savings, that is just enough for me to retire on. Life is short don't make it shorter.
what website/app do you invest with?
Simple is a no-brainer. Appreciate the explanation of fees and its impact over the years! Great video.
Glad it was helpful!
Raymond this is such a simple, clear and helpful video in a calm and easy way. I really appreciate your guidance :)
Glad it was helpful!
Hi Raymond brilliant video. Im a 33y/o woman just getting into investing. I’ve been trying to do endless research as i know nothing about investing and I am so exhausted. This was very helpful. Thank you
Hi Tina, great that you've started to get into investing! Glad I could be helpful 🙂
Hello Tina I can connect you to my broker
@@kimberlyjones4534 lol, Why introduce a middle man? assuming you're not a pos scammer
@@Fanta.... I don’t know what brought scam into this am just trying to help thank you
For those who want to avoid Vangaurds or Blackrocks use ETF like A200 (Australian INDEX), IVV for SP500 index, GOLD for physical gold, ETPMAG for physical silver and NDQ for nasdaq tech INDEX. Plus cash either pure or in asset clas that just covers for inflation (bonds or time investment).
Hey there, may I ask why you might want to avoid these companies? Just asking as I have very little understanding in this space.
@@arisinger4534I’m curious too. From what I’ve read it’s more for the ethical standpoint of not funding these massive institutions and giving them more power.
An excellent breakdown of simplifying investments using index tracking ETFs and cash. Your focus on VAS and VGS for diversified market exposure, coupled with the importance of cash as an asset, really demystifies investing for beginners. The point about low fees and the impact on long-term returns is particularly valuable. How often do you recommend reviewing and rebalancing this simplified portfolio?
Much appreciated mate, investing doesn't have to be complicated at all! Personally, I look at my overall portfolio once a quarter to see which ETF I need to top up in the next few months. Glad to see more aussie finance content creators in the space!
Great video! I choose IVV as I simply wanted only US exposure. I invest in Australian companies simply for dividend income so no need to choose an Aussie etf.
Hi Raymond! Great info! The VAS + VGS combo is very complementary as it allows us to capture both Aussie + global stock market returns.
I have a VAS + IVV portfolio but will add VGS soon.
Thanks for sharing! I think IVV is a solid option, just note that VGS essentially will slightly double dip into what IVV offers!
@@raymondla noted, probably by around 70%.
My VGS allocation will be primarily to easily track a separate bucket of funds (eg. company bonus/ gift from grandma).
@@Dividend.Investor.Channelhey I love this idea
@@bunnobear thank you!
You have an easy method of teaching Raymond Thank You so much for tips and advice
Thanks heaps for reenforcing my thoughts on this 😊
I preffer A200 and IVV (staying away from Vanguard). Plus physical gold GOLD and physical silver ETPMAG. None of that allows you to sell Options around it. Therefore QQQ for example is good.
Great info, made it simple for non financial people :)
A200 and IVV the two ETFs I buy/own. I also own NDQ. The expense ratio is high, but worth it
NDQ has done super solid the so far in the year!
Hi Raymond, nice video. What are your thoughts on DHHF and NDQ?
I go Vas + Ivv and cash, IVV slightly out performs vgs but not by that much. And I’d prefer my portfolio to be in the s&p 500 rather then Europe and Asia also as I don’t know Asia and Europes companies very well nor there economically status. Warren buffet says invest in companies you understand
Hey that's definitely a valid approach, can't go wrong with just investing into the S&P500 🙂
I'm curious, if the ASX only makes up 3% of the market why would you put more than 3% of your saving into the ASX (let alone the top 300 companies)?
My question is why bother with the Australian market ETF in the first place? Does being Australian somehow make it a better strategy? Why not all international or S&P 500 instead of ASX based?
Obviously profits as stock value % increase are slightly worse, but when you consider forex fees, currency exchange fees and all sorts of other ‘small fees that add up’ when looking at wall st or nasdaq or really most foreign exchanges, it does heavily cut into your profits depending on who your broker is (presuming u use modern app brokers)
But we have access to sp500 ETF on asx with 0.04% management fee 🤔
However I doubt that VGS would be suitable for an Australian retiree with his/her SMSF in the pension paying phase, where the retiree needs income to live on. VGS only seems to pay around 2% p.a. on average (sometime slightly above and often below) with ZERO franking.
Great video! Ive JUST started investing and these are the two ETFs i had chosen so this video makes me feel good lol. So you recommend alterating buying one lot each month instead of splitting it each time to minimize fees?
Awesome to see you starting to invest! Yes I would personally just alternate between the two each month in order to minimise brokerage fees 👍
can I ask with these shares being around $95 each, how many should you buy to start off? a single girl wage cant buy much LOL
Great video mate agree with your opinion on having cash
Newbie here. When is a good time to buy these ETFS? As over time they should all go up, is right now as good as any? Or should we not buy at the peak?
Thanks for your excellent videos and hope to hear from you.
Hey mate, the best time to invest is now if your finances allow for it! Even if it is at all-time highs the market will continue to go up over the long period.
@raymondla cheers thank you
I’d love to learn more about investing, but I have no idea what you’re talking about. VAS,VGF and ETF’s, it’s like another language, where can I learn more?
@SimonBarrett74 From my understanding. ETF is a type of investment. Index fund, mutual fund, bonds, commodity are also other types of investment. VAS, VGF these are names for pooled of shares for example VAS stand for Vanguard Australia shares, it’s combined top companies in Australia. So when you invest into VAS you don’t invest into just one single company but many companies at once. Generally top 200 or 300 companies. VGF stand for Vanguard MSCI Index International Shares ETF. It’s international shares like apple, facebook, amazon, nestle, Toyota, shell, Coca-Cola etc.
Came across your channel recently and immediately subscribed! My portfolio is mainly A200 and IVV + individual shares. This sounds a lot easier and I’m hoping to sell off my individual shares soon and make my life easier!
That’s a great and very simple to understand video. I have one question regarding investing in VGS- how does the currency conversion works if you have invested as long term in VGS? Thanks
You are exposed to currency fluctuations with VGS, but studies have found that this impact is largely inconsequential over a long period of time
Hey mate came across you recently and have started to watch alot of your videos keep up the great content. Just wondering whats your thoughts on IVV in comparison to VGS would love to know your thoughts about it
Hey mate appreciate the feedback. IVV is focused on the S&P500, whilst VGS gives you exposure to most developed markets excluding Australia. So not really a fair comparison, it just depends on what you personally want exposure to.
@raymondla Thanks for your reply means alot. It's just anorther ETF that keeps coming up i know not exactly same as it only focuses on S&P500 only. Just was interested in seeing your thoughts etc on it as i think your very informative and thorough in your assessment and I know there's alot of overlap between the 2 ETFs.
Hi Raymond. What do you think of VHY? I can't decide whether to choose VHY or VAS.
It's great if you're focused more on dividends. Essentially it's a question as to whether you want more dividends (VHY) or more capital growth (VAS)
@@raymondla Many thanks for the helpful reply :)
Hi Raymond, nice video, I have two questions 1) As far as I know VAS is a good option when it comes to dividends but is it worth investing in VAS if let's say someone can only invest between $2-3K a year into VAS?
2) For VGS and IVV, I did some research and I can see IVV outperformed VGS but this wasn't the case in 2023, obviously past performance is not a guarantee for the future but for a long term investment do you think IVV is a better option than VGS when it comes to long term growth ?
Hey mate, I think it's still definitely worth investing even if you only have $2-$3k per year as that is still better than nothing! Like you said you can't really predict performance with with IVV and VGS, but they are technically invest into different markets so aren't actually comparable. A potential different question you can ask yourself is if you want to invest into just the US stock market (IVV) or which you want exposure to other developed markets (VGS)
aust stock exchange worth investing in? or just doing it for diversifications sake?
Your Aussie investment tips are my go-to. Any chance you could share your thoughts on Fuse Minerals in an upcoming video? Would love to hear how it fits into a simple portfolio like the one you've just outlined.
it doesn't mate
Hi Raymond! Just wondering the rationale behind investing a significantly larger portion into VGS compared to VAS in your sample percentages. Is there a benefit in having more invested in international centred shares compared to Australian ones?
Australia only makes up around 3% of the global share market, whilst the US makes up around ~60%. So that's why it is recommended to be more heavily weighted towards VGS.
Great breakdown! Adding Cobre could diversify even further. Would love to see it featured in your next video!
Penny dreadful speculative mining stocks are not "diversification", they are lottery tickets.
What happens between your 50s and 65?, I would consider this time towards / transitioning to retirement crucially. Time for a financial advisor?
Hi Raymond, what exactly do you refer to when you mention cash? Physical notes or just funds in earning interest in personal bank accounts?
Thanks in advance
Hey mate, cash in a high interest savings account 👍
Do the top 300 companies change at any time if they were to for example collapse or close down? Thank you
Hey great video. Currently 25 Jul VGS is going crazy up. What do you suggest should we wait till it drop down a bit of still buy while its growing crazy up ??
Hey mate, we never know what the price is going to be tomorrow, it could go up, it could go down so the best time to invest is today 😀
I'm new to this. I've bought a small amount of VTI and VXUS, is it worth selling up to buy VAS and VGS instead or should I hang on to them for a while?
I wouldn't sell the ETFs that you've already bought, but if you want to switch to different ones then you can do that moving forward.
Great video, and I do like the simplicity of your portfolio (low fees, diversification and well balanced between global/cash/Aus).
Questions: why you go for VGS and not S&P500?
What about 10% gold?
VGS provides exposure to other developed markets outside of the US, so it's really just more diversification. I've never been a fan of precious metals, just my own opinion though you could easily add it into your portfolio.
Great video! I'm having a hard time deciding between ishares global 100 and VGS ETFs. 100 does have a higher MER but history has shown it has outperformed VGS. What are your thoughts?
Glad you enjoyed the video! Those are both quite different ETFs because the iShares ETF is concentrated into the top 100 equities, so it wouldn't be a fair comparison to compare the performance against one another. Probably a better question to ask yourself is how diversified you want to be? Because iShares Global gives you exposure to ~100 companies whilst VGS gives exposure to ~1400 companies.
thanks lovely @@raymondla
Great video , I’m constantly learning new techniques everyday . In my current portfolio I have , vas vgs vae vue, in your opinion 25% in each a good call or . I just want to set and forget
Can I just pick these 3 and never change my portfolio until I finally one day cash out over 30/40 years from now? I just want to buy and hold with a nice portfolio buy and forget
Yes that is essentially the strategy with this portfolio and why it's so simple!
Hi Raymond, thank you for the information. I just decided that I want to start investing into s&p500 but not sure where to start, can you help directing to the website or broker that can help? Thank you
Brilliant video Raymond very clearly explained
Glad you enjoyed it
I’m probably leaning at 62 and on a transition to retirement to have more VAS for franking credits
Thanks Raymond for this information.I never knew about.Where do i go about buying these Etf.Can i buy them on CMC or another platform.
CMC isn't bad. If you already have commsec can try commsec pocket too if you want to buy specific etfs they have
I did a breakdown of brokerage platforms you can consider here - ruclips.net/video/zECWORDUMwI/видео.html
Have a question about etf, is there an extreme situation that after you hold your ETF for 10 years and then no one like to buy it from you when you want to sell it😅😅.
Hey mate totally valid question, but no there wouldn't be a situation where you wouldn't be able to sell. The market cap of VAS itself is $13B meaning that is the total value of all shares in circulation. It is constantly being bought and sold daily so you won't have any issues selling if you need to.
can I ask with VAS shares being around $95 each, how many should you buy to start off? a single girl wage cant buy much LOL and is having say 6 shares worth doing?
I would recommend saving up overtime to let's say at least $1000 before you invest. You don't want to invest in small amounts because you'll be incurring fees every time you do
Forgive my ignorance I am only just getting into the investment game and when you refer to cash is that like a actual stock I had a Quick Look and there is the cash on NASDAQ? Is this what you are referring to?
Hey mate, it quite literally means cash in your bank, ideally in a high interest savings account!
@@raymondla thanks mate appreciate it
Hey Raymond, I love your videos. Is it better to Salary sacrifice in a good Super OR invest in long term EFT like Vanguard?
Hey mate, I think this depends on when you plan to access that money that you're investing. If it's not till retirement, then 100% it should be into your superannuation first (taking into consideration the yearly contributions cap) But if you want more flexibility with your money, then just investing into an ETF would be better.
I’m 38 I’m 30 percent index div and 35 Aussie and 35 percent international
Do you max super contributions first then put anything more into a seperate vanguard fund? Or just keep popping into vanguard fund?
Yes, I personally contribute the maximum I can each year into my superannuation. It's definitely the most tax efficient way to invest if you don't plan on using your assets until retirement.
@@raymondla thanks
i have VAS and VGS however index fund rather than ETF. Is it the same?
Hey what's the best platform for this portfolio?
Any brokerage platform works, I personally use Stake but you could also use other well known platforms such as Pearler, Selfwealth or CommSec!
Where to invest
Which brokerage is the best
Hey Raymond, Speaking of cash...would you consider AAA? The dividend yield is relatively small but it pays dividends every month which is good, while risk is relatively low. Cheers
Is there a reason you’d throw cash into AAA, when the return is less than 5%?
(Given that bank savings accounts can be over 5%?)
I’ve read every comment
Now the abbreviations and combinations have confused me a little… I was convinced with Raymonds Portfolio but now I’m not so sure 🙏
This video was exactly what I was looking for. Thank you!
Glad you found it useful!
Me too 🙏
Hi Raymond, great video. Is there a way to optimise the portfolio to reduce the currency risk as most of the portfolio will be in Australian dollars.
Hey mate, there is a hedged equivalent of VGS which is VGAD. Although research has been found that over a long period of time currency conversion nets out.
@@raymondla Thank you Raymond
I would have also added extra super contributions.
Please talk about VESG too. It's important for those of us who want to live in an ethical and sustainable future when we grow older. No point having money or passing on wealth to future generations if the future is a nightmare.
The insane rise in the cost of insurance lately is just one point of evidence that, if we're not aware of where our money is invested in, we will end up paying the price in other ways (let alone the environmental impact).
how can i set up like small amounts say 20 per day for vas or vgs isnt vanguard minium 200 ,,,,what broker to use would be best
Hey Raymond,
Just came across your video on ETFs. I am looking to invest with Vanguard VAS and VGS. Found your video to be very informative and have subscribed to your channel (will check out your other videos over the coming days).
I am just curious whether you are holding the investment with Vanguard under your personal name or some form of trust structure? Please be assured that this will not be considered or taken as advice at my end.
Thanks.
Glad it was helpful! I personally just invest under my own name, it's not worthwhile for me at the moment to set up a trust yet.
@@raymondla Thanks for the prompt response 😊👍. I am thinking of investing under my name too as the set up and compliance costs of a trust is not justifiable at present.
On which platform can I buy I can buy VAS and other ETFS
Hey mate there's plenty of options out there - Stake, Pearler, Selfwealth, but I personally use Moomoo. I did a video talking about my reasons why here - ruclips.net/video/rXliZSRek_M/видео.html
My ETF portfolio holds VAS - VGS - VAE, good balance of the world!
VAE is definitely a good option to include into the portfolio for more exposure into Asia!
@@raymondlaI use IEM Because vgs and IEM follow MSCI
@@pritpalsingh6483 IEM follows the MSCI Emerging Markets index, very different index and a much higher management fee
I am very new to investment. I have found this video to be very informative. I had one question how do I determine when to sell my EFT.
Hi Bidisha, glad you found the video useful. Investing in ETFs is a long term investment, for me personally I only plan to see them to fund my retirement.
@@raymondla I might suggest selling them now and investing in blue chip stocks that pay proper dividends and amazing ATO credits too.
Can i buy ETFs from Stake or should I buy directly from Vanguard website?
You can definitely use Stake, not sure what you mean by Vanguard's website as you can't purchase it through that unless you're talking about Vanguard Personal Investor.
I have VAS and VDGH. Should I just hold VDHG and cash?
It is an overlap of exposure, so you don't technically need VAS if you already hold VDHG.
Thank you for a great video.
I had a question regarding the investor who has their eye on future passive income from dividends, say in 20 years. The dividend yield on the international ETF is much lower than VAS. To transition from wealth accumulation phase to a dividend paying phase will require re balancing which will mean selling of your international stocks, then paying tax, then reinvesting into companies for the dividends.
I like the idea of accumulating a position in the ETF that eventually I will take dividend payments from. By amassing a larger position in VAS you can transition from having dividends reinvested to taking them and there is no requirement to trigger a capital gains event. Obviously its a balance between maximising growth in the long term and building the right portfolio from which dividends can be derived. Wonder if you have any thoughts on the right investment vehicles to use with this kind of an investment goal?
Hey there! Another alternative is that as the years go on you simply purchase more of VAS or another dividend focused ETF such as VHY and purchase less of the international focused ETF. This way your portfolio allocation will slowly change and be less international focused and more Australia/Dividend focused.
How about IOZ and IHD ( Black rock product similar to Vangaurd)- Can u pls make a review video on this- thanks in advance!
I get what you are saying about those investments to those that are very risk adverse regarding the stock market. The returns you mentioned are very low compared to investing in blue chip shares that pay dividends and the all important franking credits. ANZ paid a dividend of about 6% which was fully franked so about 8.00% tax free , Fortescue Metals paid a dividend of 12.00% fully franked so close to 15 % after the ATO pay you the tax these companies have already paid back to you.
I look at the the distributions these ETF,s pay and it is peanuts compared to what you can earn from blue chip shares which are tax free and normally tax positive.
You would probably be better off parking your money in a 2-3 % cash account with your bank rather than what you are recommending!
Hello Raymond. Do you know if I can buy these ETFs through any of the major Super funds? Thanks kindly.
Hey mate, you can if you go via the index investing route which most industry superfunds have.
@@raymondla thanks kindly
Mate am totally new . Does these three come in ETF
VAS and VGS are both ETFs
American big etf has lower fees, 0,03%, 0,05%.
Does not worth to invest on them from an us broker that allows australian to invest ?
An alternative to VGS could be a combination of IVV and VEU.
What do you think of computershares as the registry for those ETFs? Having to pay for my yearly tax statement seems backwards?
Unfortunately not much choice when it comes to which registry the ETFs are set up with.
Hi Raymond , first time investor here would you suggest a one of Purchase and leave it for 10 + years or would you make another purchase when more money comes in ?
Hey mate, you definitely should continue to invest over time as long as you can afford to.
Hey Raymond, how would I go about buying ETF?
Hey Roxanne, I've done a full video talking through the process here ruclips.net/video/mSnR2_jt4DY/видео.html let me know if you have any further questions
Excellent advice very well presented.
Appreciate that feedback!
do you like a small amount of nasdaq 100 to take advantage of the ai boom?
Whilst you can if you wanted to be more concentrated into NASDAQ, VGS already will be invested into all top 100 companies in the NASDAQ.
Great video and breakdown mate
12 outta 10, great video, so helpful
Hi, what about AFI for aus etf and VOO, VTI, QQQ, SCHD as international etfs?
Thanks
AFI is technically a LIC, it could be used as an alternative the only thing is that it is actively managed and you wouldn't be as diversified. As for the international ETFs, they are fine alternatives, as long as you get similar exposure to VGS.
VGS vs VGAD? Hedged to avoid currency fluctuations?
Studies have shown that currency fluctuations over the long term have negligible effects which is why I don't personally invest into them.
What about a mortgage? Aren’t we just better off clearing that first?
At the 9:10 mark you say the difference in fees is 0.15% but it’s actually 0.25%
tbh 300 is a bit over diversified and the other 100+ are very small companies that make little difference, you can also go for asx200 IOZ and you would sit with very little difference except you pay less management fees
What platforms do you recommend for getting into ETFS with the lowest fees on fortnightly investments?
I'd recommend Stake personally, it's $3 per trade and has a good mobile app / UI. Check it out here - bit.ly/3x2tiBu
@@raymondla ah no worries, is this the fees u were talking about in the video?
@@cheyannedelgado5993 The fees I mentioned in the video are the fees relating to the ETFS themselves, this is paid to the funds that manage those ETFs. The platform fees for Stake are essentially the transaction costs to invest. Slightly different, let me know if that makes sense!
@@raymondla hi Raymond, it makes perfect sense. Perhaps a video on these different platforms and online brokers would be really good. Either way, thank you for replying to me so fast 👌🏽
awesome video Raymond, hope you are making more
More to come!
I would have thought the world simplest portfolio would be something like VDHG or DHHF - which is very similar to portfolio discussed - but in one etf.
Yeah, I have something called VDHG and chill.
Just got to follow the market trend
By cash do you mean savings? Or physical cold hard cash?
Hey mate, I meant money in a high-interest savings account or in your off-set if you have a mortgage.
Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?
I'd avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows sign of recovery.
This is why I entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.
My CFA Aileen Gertrude Tippy a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
when is the time to sell the etf?
Ideally when you're retired and are no longer earning an income
What are your thoughts on BGBL from Betashares in place of VGS?
Hey mate, I think it's a great alternative to VGS. Lower management fee and it essentially provides the same exposure, might switch over to it myself instead of VGS.
What about VDHG as a replacement of VAS + VGS ?
Hey Shawn, whilst VDHG is a great all-in-one ETF it doesn't give you flexibility in the allocation. You're locked into VDHG's allocation which will always have ~10% allocated towards bonds.
@@raymondla yes, good point. I am just wondering, if you wanted to reduce your exposure to bonds, you could offset that by adding VAS or VGS and vice versa if you wanted to increase your exposure to bonds. However, yes, you can't have 0% bond allocation with VDHG.
A200+VGS+ Cash in your mortgage offset accounts
If you have a mortgage then definitely park it in there!