Tax-free savings: ETF choices

[wir]

I've started earning, and I want to max out my tax free savings.

It's been suggested to me that in the long term (15+ years), an aggressive ETF is not a bad option.

I'm not 100% sure where to start with ETFs though, some scanning on the forum shows some people recommending STXWDM and CTOP50, would a 50/50 split between these 2 be a reasonable start?

I don't want to fuss too much about this, but I'm also wary of bundles and such, due to fees.

 

[mr_norris]

I was / am in the same boat. I have done a ton of research and I ended up being confused. So what I've done is not advice, it's just something I've done:

* Ashburton 1200: 35%
* Sygnia Global Prop: 10%
* Satrix Nasdaq 100: 5%
* Coreshares Top 50: 35%
* Satrix property: 15%

The idea was a 50 / 50 split between local and international, with a 35 / 15 split between equities and property. I feel like I have an overlap with Nasdaq and the Ashburton 1200 which I need to look into. I have also read this which makes me question why I went Ashburton when the other one is cheaper and really no better, aside from Ashburton having greater exposure.

Dividends I HODL (if it isn't much) and eventually end up reinvesting wherever it came from once I have decided it's a big enough amount to justify the fees.

There doesn't seem to be a general answer to these things. Some people fancy a one ETF rules them all sort of thing.

I just don't know enough.

 

[Hamster]

Before the complicated answers start: yes, STXWDM and CTOP50 are good choices (I own them both) and a 50/50 split is also good enough.

 

[SauRoNZA]

20% - PTXTEN
40% - CSEW40
40% - SYGWD

Done.

 

[Hamster]

CSEW40

*spits*

Some shares deserve more weight than others. CTOP50 caps them from being too big.

Which is cheaper between SYGWD and STXWDM these days?

 

[jman]

*spits*

Some shares deserve more weight than others. CTOP50 caps them from being too big.

Which is cheaper between SYGWD and STXWDM these days?

STXWDM still cheaper. The Sygnia S&P500 though is super cheap at .16%

 

[Hamster]

STXWDM still cheaper. The Sygnia S&P500 though is super cheap at .16%

At these low costs I wonder what the real impact is. In my mind your choice of platform is more significant.

 

[jman]

At these low costs I wonder what the real impact is. In my mind your choice of platform is more significant.

Sure, splitting hairs. And use easyequities

 

[Hamster]

Sure, splitting hairs. And use easyequities

I actually prefer CoreShare's platform although my TFSA is still on EE. Suppose that's a topic for a different thread though

 

[Thor]

Some ideas perhaps: https://platinumwealth.co.za/forum/topic/1028-tfia-local-vs-foreign-etfs-ideal-split/

 

[Magnum]

Ok now where Can I go sign up? Easy Equities looks like a teen dating site gone Wrong! Somewhere else?

 

[Hamster]

Ok now where Can I go sign up? Easy Equities looks like a teen dating site gone Wrong! Somewhere else?

https://coreshares.co.za/

BUT you'll only have access to CoreShares ETFs (theirs is the best anyway ) and your transaction will take a couple of days to execute (similar to unit trust platforms).

It's definitely geared more towards long term investing (setup a debit order and let it run on auto pilot).

EE (Candy crush investment saga) will give you access to all the ETFs and allow you to instantly buy and sell if that is important to you (trading basically, in which case ABSA ETF Only is abetter option).

 

[Anthro]

Mate recommended https://www.satrixnow.co.za/
Which I have now signed up for, FNB also has Sharesaver

 

[Hamster]

Mate recommended https://www.satrixnow.co.za/
Which I have now signed up for, FNB also has Sharesaver

Satrix Now is EE running on Satrix and only allowing you access to Datrix ETFs. Might as well sign up with EE.

FNB Sharesaver only does the Top40 and MidCap though and there's no real international exposure. If you sign up with EE and buy 80% ASHT40 and 20% ASHMID you'll achieve the same thing.

 

[Anthro]

Thanks for that ^

 

[Hamster]

And while we're at it, since it always comes up, Liberty Stash is basically any of the top 40 ETFs but you fund it with spare change because you cannot commit to a regular debit order/monthly investment.

 

[backstreetboy]

And while we're at it, since it always comes up, Liberty Stash is basically any of the top 40 ETFs but you fund it with spare change because you cannot commit to a regular debit order/monthly investment.

Since the Google sms changes they've changed it to automatic daily stashing capped at R100.

 

[Hamster]

Since the Google sms changes they've changed it to automatic daily stashing capped at R100.

Some progress then. Oh, I did read about some feature they have where if the sun shines more money is invested. Now that's innovation

 

[zerocool2009]

Mate recommended https://www.satrixnow.co.za/
Which I have now signed up for, FNB also has Sharesaver

I have a FNB TFSA (Share Saver) from the start. Roughly R110 000.

The pro's is : (take note IS) -> You buy with cheap broker fees on the 1st trading day of the month.

The con's are: 1) A monthly fee going off
2) When you close or move the account, you are being hit with a BIG admin fee

A pity the JSE has dropped about 3000 points (I wanted to move, but cant now, as I will lose to much out)

 

[zerocool2009]

Another idea if you are not looking at shares, go for a fixed deposit (that is what I am actually looking at now).

A few firms offer just under 10%, so shop around.