The Best Long Term ETFs in 2022
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- Опубликовано: 20 июл 2024
- In this video I’ll run popular “Set and Forget” ETFs like Vanguard’s VDHG and Betashares’ DZZF. I’ll cover some key features and some concerns I have. Have a question about investing? calendly.com/sanjeesen | Sign up to my weekly newsletter: sanjee.substack.com
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Timestamps:
0:00 - Intro
1:45 - Disclaimer
2:01 - Ways to invest
5:11 - Superannuation
6:27 - Reasons for these ETFs
7:11 - The 4 ETFs
14:32 - How to use these ETFs
17:23 - Challenges and concerns
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Useful links:
Australian Government website on personal finances: moneysmart.gov.au
Disclaimer:
The information provided in this video is general in nature only and does not constitute personal financial advice. You should also consider seeking the advice of an investment advisor who holds an Australian financial services (AFS) licence or is a representative of an AFS licensee. Be sure to work with someone who understands your investment objectives and tolerance for risk. Your investment advisor should understand these products, be able to explain whether or how they fit with your objectives, and be willing to monitor your investment alongside you. There are some Amazon Affiliate links above - if you purchase from there, at no additional cost to you, I will earn a small commission for each sale. 
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Yes, i'd be interested in a retirement income potential video of these ETFs, Sanjee. I have a plan to use superannuation in pension mode as a regular income, plus ETFs purchased after a property sale, which I'd cash in a certain percentage of once a year, and just bank that lump sum for use through the following year.
A retirement income video would be great, as would an 'investing for your kids' video. The VDHG sounds like a good option for that, and a comparo table could be good to help people make a decision between that, bonds and an LIC like AFIC (that the Barefoot investor recommends)?!
Great video Sanjee! Love these one stop shop etfs and often tell my friends to research these before dumping money into any stock! Im a vanguard fanboy too!
Certainly some things to think about. Appreciate this video!
For me, it made sense to have a split between VDHG/VGS/VAS/IOZ and a couple of other things that do the same stuff.
No one ever really talks about diversification between managers even if it's the same general product.
I know it's more complicated this way, but for the most part VDHG has a crazy amount of exposure to Australia despite being so diverse.
Thanks very much. Really interesting video. These Vanguard funds would make great bed rocks to any portfolio and you can add other ETFs as you like. I completely agree with your views on "ethical" funds. They are over-priced and I am intrigued by what the definition of "ethical" really is? Banks? Mmm? As you say, if you want to encourage ethical investing, make it cheaper and more different to the mainstream funds.
Excellent points. Thanks.
My grandfather got into one of these just before retirement, someone your age should be in aggressive growth, remember markets in the long term will always go up
Love your videos, thanks mate!
Absolutely brilliant. Great information. Thankyou.
i am about to move my super into a SMSF moving towards the retirement and have a bit more control over were my super money goes . i am still new to the share market so thanks i like what you have to say gives people something to think about 😎
Thanks for such a great vid Sanjee! I've got dhhf, not sure what to get next... any point in getting VGS? or should I look into tech like NDQ and TECH? any recommended ETF suggestions would be great thanks!
Thank you for yet another great video, Sanjee. I completely support your critique on the ethical ETF+ premium. I also don't understand how mining giants such as Rio Tinto can be included under the ethical or sustainability umbrella (see XASX for example).
If you can’t do everything, you may as well do nothing. Is that your point?
Is it not enough to want to quickly and easily ditch coal, oil and gas? You can always nitpick. It actually sounds like a great way to never need to take action.
@@chrislagana6341 Hi Chris, my question is about the methodology used for some ESG ETFs and clarity around how the MER is set.
Please continue making more videos 😊 I am a beginner young investor and it's very hard to find relevant info for Australia so your videos are very helpful thank you 👍
Thanks so much!
Barefoot investor by Scott pape and all books by Ashley Ormond are Australia focussed. Also, Australia has stricter rules for financial education and having a licence. Probably explain why there’s less info for Australia. Good luck
Such a good point on the ethical investing premium. Absolutely unjustified.
Yeah hopefully they change it over time...
It’s maybe a touch unfair to compare them directly. DZZF is more actively managed than the others, which would be the justification for the fees. There are pros and cons to that, for sure, but the justification is at least there.
There are cheaper ways to ethically invest. A couple Vanguard offerings get you there at a low clip, but they aren’t the all-in-one ETFs, so they wouldn’t have belonged in the video.
Punish ethical people, ask them to pay more 😅
A good video. But I’m puzzled by the VDHG vs DHHF analysis. If they’re so similar, why such a big price differential ?
HI SANJEE ,Great video, Can u explain how the fees are taken out from a ETF please
I agree I believe more people would like to be associated with ethical companies, because let’s face it we are all interested in making money for our futures. Ethical has become the latest trend, which means expensive. Conscious shouldn’t worry about expense ( only true if you own one of these ethical companies & need to validate why we need the product/service higher fees).
Simply it’s like going to the grocery store for carrots. One counter a bag costs $2, the Organic bag $5. The organic ones uglier in appearance. Told no nasty chemicals used. Inwardly we think mmm? Is that true?
Information on your videos well thought out & very informative.
🙏🙏🙏
Hey Sanjee, I am new to your channel. Going through wonderful videos and absorbing what I can. All of them are very helpful to shape one's thinking towards investing. In this video you said you're a bit of a vanguard fan. What would be your opinion about managed funds such as VAN0105AU
, VAN3200AU? I find that your focus is especially on ETFs, would you consider these funds inefficient investment vehicles?
Hi Sanjee, newbie to ETFs here. I've bought some VOO and thinking of buying NLY/VAP and after this video thinking of VDHG too. Thoughts?
Can you explain the distribution yield /dividends a bit more? Not quite sure how it works. Can you expected a dividend paid out every quarter/half yearly etc?
Hello again
Are you able to do a video on metals with one of your comparison graphs
Particularly ETPMPM versus PMGOLD and others
Quick question, could you day trade with etf? Is it possible to trade on margin account ?
Hey Sanjee what do you think about his combo? VAS+VGS+DHHF?
Hi Sanjay
I never invest in shares before and came across your videos.
Please let me know how I find the orders of your videos to teach/show the beginner like myself.
Thanks
Hey sanjee, can you please guide me? Whats the best and cheapest(in terms of broker fees) way to invest in s& p 500 etfs from Australia. I would like to be a long term Investor
VAS, VGS and VAP would have you covered if you want to keep things simple…
Yes please do a etf for retirement income
Where did you get the source on the 33% return for VDHG, vanguard themselves quoted 19% for last year
I've got VAS and VGS. Now I'm considering to just have VDHG keeping my portfolio simple. I'd be taking advantage of the full DRP too. Apparently this ETF is good for 'millenials' but I'm in my late 50's and be good for me too. Certainly much better than sticking my money into a useless 'high interest' bank account that's for certain!
@David Squibular I'm sticking with VAS & VGS and not going to change anything. They are both doing very well. I'm salary sacrificing now too which will pay off in the long run.
@Harley D, when you say VDHG is good for millenials, do you think it's a good idea to buy some for my teenagers? I know you pay more tax, but surely you get more capital gains than investment bonds, plus low feels!
@@ellewebmedia probably... The high growth ETFs and the sharemarket in general, is best for long term investing, so it would probably do well for your teenagers.
VGS/VAS ultimately has less fees and is more tax efficient for a very similar, but less diverse product
good video mate
What you think about Vanguard Australia website?
Thanks for the great video. Liked and subbed. I'm a beginner and started investing in a handful of individual Vanguard ETFs. I'm thinking about rolling them all into VDHG for simplicity. You said that there may be an issue if it gets too big and you won't be able to rely on dividends. I have at least another 20 years of work ahead of me. Is this a concern for me? What would you do as you edged closer to retirement age with a fat VDGH fund? Sell down and diversify further?
Read barefoot investor. Learn about 4% rule and where it came from. Growth is more important than dividends. See Roger Montgomery or terry smith to explain this on RUclips. IVV is sp500. If that’s all you invested in, you’d be very happy indeed after 20 years
@@NoRegertsHere thanks, I actually just rolled everything into VDHG and plan on pumping that and super and sorting it out later. Also decided I'll probably keep working for 30 more years in some form or another. No longer in a rush to FIRE.
Hey Sanjee, Whats the difference between VDHG and VAN0111AU "Vanguard High Growth Index Fund". One obviously is an ETF and the other a managed fund, which do you prefer?
Please make a video on VDBA for a income etf
I had VGS, VAF and VAS and switched to VDGR as soon as they came out. I made this decision based on simplicity, but the main questionable point for me is whether or not the higher fees are worth it for a fully automated product.
Ugh as a 25 year old it’s hard to know how much VAS and VGS will grow considering I’ll probs hold them for ages :( scared to jump the gun during a pandemic and at record market heights :(
The market always grows over time, that is the principle of passive investing!
Looking fresh bro
Haha thanks mate!
Great content
Hi
Another question
Can you do a video on the effects of the Ukraine war, particularly on Russian investments being taken out of ETFs, eg VGS, VGE, VEQ, VAE and bond ETFs
Thanks
Can you please make a video on investing in ETF vs salary sacrificing and investing in super account (for their %15 tax incentive). Is true that by doing this we are already 15 percent to 20 pecent ahead of ETF interest just because we pay less tax?
Do both
Probably, but you can only access super after 60yo; whereas investing in shares you can sell off whenever. You'd probably want to be able to draw down on your shares before you're 60yo (say 40-59yo depending on your financial circumstances) and then after that, super can take over?
That table @7:47 where is that data from? Is there a website where this comparison can be seen?
Hi Tom, the table is made up from data that can be found directly on each of the ETF websites themselves. A good comparison website is www.etftracker.com.au/holdings.
Have you done anything on US dollar ETFs like USD
Hey Sanjee, thanks for the video.
If you own VGS and VAS, is there still much benefit to getting VDHG? Since >50% of VDHG would make-up essentially what VGS and VAS contain? (Correct me if I'm wrong). Thanks!
Hi mate, what did you opt for? vas/vas? or vdgh?
Hi sanjee
Was wondering how vdhg reinvest the dividend?
Hi Khuong you'll have to set it up through the Share registry for Vanguard.
You should get your CFA Sanjee. :)
Haha you know what...there was a time when I considered it and even registered for it
Do you do all this within a Roth IRA? What are Roth's? And what's the difference between and etc and a dividend? Thanks
@@sanjeesen3408 I can't for some reason...
@@Jasper-ql3te hi Jasper, this is specific to Australia, we don't have Roth iras.
Hi Jasper, as dtp25 aloso said, this is specific to Australia.
Thanks for the video! What are your thoughts on investing through your super rather than outside of your super? I'm very sceptical of super, I have never had any luck with it. Is it worth taking another look for the tax benefits?
Hi Sanjee, as a newbie to investing in ETFs, I still have some confusion about making my first investment. I have watched your other video about VAS+VGS. What are the differences between VDHG and VAS+VGS or are they similar? In this video you mentioned VDHG is not designed for receiving dividend, then are VAS+VGS better in terms of dividend? Are VAS+VGS good for long term investing? I am thinking to invest in EFTs as a way of saving money (maybe 5 years) but then when will be a good time to sell the ETFs? ( as soon as there is capital gain?)
yea
3 year time frame to save in ETF is probably ok. Most I’ve seen say 5 years. So the first 1-2 years into ETFs and leave it, last 2-3 years, maybe better to save cash.
Capital gains tax will then be half because you owned the ETFs for longer than 12 months. Any of the gains are taxed at half your normal tax rate, statistically that would be 32.5%, divided by 2 is around 16%. So if you invested 10k for 2 years and it grew to 12k, you’d have to pay tax on 2k.. about $320 tax. Leaving you with $11680.
Barefoot investor is a great book and he also has a newsletter that had a breakdown of the way he invests in 3 ETFs. Essentially it was IVV (sp500 US businesses), VAS and all world ex US.
Looks much better with short hair :)
Thanks so much!
The premium for ethical investments was found to be unethical...
Haha - hopefully they'll bring it down soon
I stated my EFT investment 3 months ago VDHG … what other vanguard EFT would be a good to pair with this one keen to add one more in my portfolio
VAP
Agree VAP. It includes Australian Property securities that aren’t normally in the others
I think parts of VAP are already covered in VAS?
Sorry but couldn’t help but notice in the first minute you said “you’re thinking about using these products” . That’s a little worrying to hear
I went with the straight forward Betashares A200, fantastic for dividends
Yeah it’s also got quite a low fee which makes it attractive
.
U look upset
r u ok???
This week there was a big drop in the US and asx lasting from Tuesday through to Thursday. Maybe he was affected. I have VDHG and I initially lost 7k stabilising at a 4.5k loss for the week. Scared the crap out of me mid week.I'm still currently in the red. Hopefully next week it will rise again. Investing for a min 10 to 15 year term.
@Elliott Thanks. I appreciate your reassuring comments. Unfortunately, I have no more spare money to invest. Hopefully if they pay a similar dividend (2.00) like they did last month I will re invest that into the fund. I am semi retired, new to investing and didn't need this to happen so soon after putting a lump sum into the fund. The US announcement on Monday of a 4% rise in inflation had spooked investors here and there which led to this chaos. Hopefully things will settle down next week.
I want to get a Asia etf but what one best? Betashares Asia technology asia
Ishares asia 50 iaa
Pm capital Asian opportunities paf
Vanguard Asia etf vae
Cheers