advice on TFSA

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#22
EasyEquities gives you the most options
CoreShares is a more likeable company but you only have access to their ETFs which are amongst the best.

What @jmam said - buy ASHGEQ (which is almost everything in the whole world).

Or CSP500 if you want to track the S&P500 which is more specific/volatile.
Or STXNDQ if you want to track the Nasdaq 100 which is even more specific and volatile.
Or CTOP50 if you want to invest in South African companies.
looking at possibly the following
  1. sygnia MSCI USA or World
  2. satrix Indi
  3. Pru enhanced Prop Tracker
  4. new funds S&P GIVI
  5. Ashburton Global 1200 as recommended
  6. Coreshares S&P 500 as recommended
 

SauRoNZA

Honorary Master
Joined
Jul 6, 2010
Messages
32,395
#23
looking at possibly the following
  1. sygnia MSCI USA or World
  2. satrix Indi
  3. Pru enhanced Prop Tracker
  4. new funds S&P GIVI
  5. Ashburton Global 1200 as recommended
  6. Coreshares S&P 500 as recommended
3 . Coreshares Proptrax 10 is another option.
 

Hamster

Resident Rodent
Joined
Aug 22, 2006
Messages
30,730
#24
looking at possibly the following
  1. sygnia MSCI USA or World
  2. satrix Indi
  3. Pru enhanced Prop Tracker
  4. new funds S&P GIVI
  5. Ashburton Global 1200 as recommended
  6. Coreshares S&P 500 as recommended
Why buy MSCI World and Global 1200?
Why buy MSCI USA and S&P500?
They are borderline competing products so pick one or the other.

And why buy both a world and a USA tracker? Why not just buy MSCI World (STXWDM) which includes over 50% USA already?

Satrix Indi - industrials only. 2000-2010 resources were the best performing, 2011- now it's industrials. If you want SA exposure that is less complicated: CTOP50. Includes the 50 biggest on the JSE and caps exposure to 10% (or close to it).

Newfunds GIVI - which one? GIVI is a whole range (ABSA's versions of top 50, industrial, resources and financials).

Look at this. From top to bottom (equity, property, dividends) each section becomes more involved/specialised and each have either local (South Africa) and foreign/offshore exposure.

Foreign Equity:
MSCI World (STXWDM)

Local Equity:
JSE Top 50 (CTOP50)

Foreign Property:
Coreshares Global Property (GLPROP)

Local Property:
Coreshares Proptrax Ten (PTXTEN)

Foreign Dividends:
Coreshares Global Dividends (GLODIV)

Local Dividends:
Satrix Divi (STXDIV) - predicts good dividend payers
Coreshares Dividend Aristocrats (DIVTRX) - uses past data

Then you can specialise those even more buy targeting industrials, financials, resources etc. What you want to do is buy and forget and not fiddle with it (in other words, get border or frustrated after three months and buy/sell other ETFs or funds). So rather do something like this and adjust the weighting depending on how much faith you have in South Africa. Remember, you house, pension, ra, money markets etc. are all heavily exposed to South Africa already:

STXWDM: 70%
CTOP50: 30%

There - covered all over the world.
 

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#25
Why buy MSCI World and Global 1200?
Why buy MSCI USA and S&P500?
They are borderline competing products so pick one or the other.

And why buy both a world and a USA tracker? Why not just buy MSCI World (STXWDM) which includes over 50% USA already?

Satrix Indi - industrials only. 2000-2010 resources were the best performing, 2011- now it's industrials. If you want SA exposure that is less complicated: CTOP50. Includes the 50 biggest on the JSE and caps exposure to 10% (or close to it).

Newfunds GIVI - which one? GIVI is a whole range (ABSA's versions of top 50, industrial, resources and financials).

Look at this. From top to bottom (equity, property, dividends) each section becomes more involved/specialised and each have either local (South Africa) and foreign/offshore exposure.

Foreign Equity:
MSCI World (STXWDM)

Local Equity:
JSE Top 50 (CTOP50)

Foreign Property:
Coreshares Global Property (GLPROP)

Local Property:
Coreshares Proptrax Ten (PTXTEN)

Foreign Dividends:
Coreshares Global Dividends (GLODIV)

Local Dividends:
Satrix Divi (STXDIV) - predicts good dividend payers
Coreshares Dividend Aristocrats (DIVTRX) - uses past data

Then you can specialise those even more buy targeting industrials, financials, resources etc. What you want to do is buy and forget and not fiddle with it (in other words, get border or frustrated after three months and buy/sell other ETFs or funds). So rather do something like this and adjust the weighting depending on how much faith you have in South Africa. Remember, you house, pension, ra, money markets etc. are all heavily exposed to South Africa already:

STXWDM: 70%
CTOP50: 30%

There - covered all over the world.
i wasnt going to buy all of them , was just narrowing down the options
are all these available through Easy Equities as i didnt see some of them on there
 

Hamster

Resident Rodent
Joined
Aug 22, 2006
Messages
30,730
#26
i wasnt going to buy all of them , was just narrowing down the options
are all these available through Easy Equities as i didnt see some of them on there
Read that wrong, my bad.

All those should be available but might not be in a TFSA account.
 

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#27

jman

Expert Member
Joined
May 9, 2014
Messages
2,266
#28

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#29
so i registered with Easyequities but its only showing USD account
is this because im foreign national?
should i rather try with Sygnia?
 

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#30
ok spoke to EE
cant do so with a Foreign passport
they dont have license for TFSA unless SA

any other suggestions?
 
Joined
Aug 8, 2018
Messages
1,299
#31
AFAIK, the TFSA account is only available to SA citizens. It's not just Easy Equities, no one else would allow you to open one either.

Also, financial advice from random strangers on the internet is likely to be worth exactly what you paid for it. You need to do your own homework. The inputs so far can point you where to start looking, but this is a journey you have to take for yourself.
 

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#32
thats funny ..one of my friends an adviser at PPS said they allow foreign nationals to open TFSA so that doesnt go with what you just said
 
Joined
Aug 8, 2018
Messages
1,299
#33
thats funny ..one of my friends an adviser at PPS said they allow foreign nationals to open TFSA so that doesnt go with what you just said
I stand under correction but that was the way that I understood it. The legislation was introduced to give South Africans an incentive to save more, as we have a very weak culture of savings in general.
 

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#34
i eventually went with a number of ETFs and will now monitor how they perform

what are your thoughts on ETNs?
 

Hamster

Resident Rodent
Joined
Aug 22, 2006
Messages
30,730
#35
what are your thoughts on ETNs?
ETF: issuer goes bankrupt, I lose nothing
ETN: issuer goes bankrupt, I potentially lose everything

Think of an ETF as you owning the underlying shares and an ETN as the issuer promising you that they owe you an amount that you can cash out at some stage.
 

newby_investor

Expert Member
Joined
Aug 8, 2018
Messages
1,299
#36
ETF: issuer goes bankrupt, I lose nothing
ETN: issuer goes bankrupt, I potentially lose everything

Think of an ETF as you owning the underlying shares and an ETN as the issuer promising you that they owe you an amount that you can cash out at some stage.
+1.

The chances of the issuer going bankrupt are fairly low, so the main risk with ETNs in my mind is the asset they're tracking.

AFAIK though, ETNs are not available in TFSAs. Not all ETFs are either, there are rules about diversification so only a subset of the JSE ETFs are available in a TFSA.
 

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#37
ETF: issuer goes bankrupt, I lose nothing
ETN: issuer goes bankrupt, I potentially lose everything

Think of an ETF as you owning the underlying shares and an ETN as the issuer promising you that they owe you an amount that you can cash out at some stage.
so would a good process be to utilise ETFs for long term strategy and ETNs for maybe short term and if they grow "cash out"???
 

maqsmaqs

Active Member
Joined
Aug 13, 2017
Messages
92
#38
+1.

The chances of the issuer going bankrupt are fairly low, so the main risk with ETNs in my mind is the asset they're tracking.

AFAIK though, ETNs are not available in TFSAs. Not all ETFs are either, there are rules about diversification so only a subset of the JSE ETFs are available in a TFSA.
i built the TFSA using EE ETFs
the ETNs i just purchased outside the TFSA
 

newby_investor

Expert Member
Joined
Aug 8, 2018
Messages
1,299
#39
so would a good process be to utilise ETFs for long term strategy and ETNs for maybe short term and if they grow "cash out"???
You can do that if you want to. Just be aware that if you do it frequently, then SARS will likely hit you with income tax. The general rule of thumb is that you need to hold the asset for 3 years or so before it qualifies as capital gains. Not universally applied, you'll be able to sell out sooner once or twice without consequence if you want to, but if you do it regularly you could be classified as receiving income from trading and then that will be taxed at your nominal rate.
 
Top