Tax or fees for switching to different ETF's in portfolio

[deekay]

Just been looking at the performance of ETF's in my Portfolio in terms of share price and wanted to know is there any tax implication for switching from low performing ETF to another one? Any fees? I use ETFSA and have about 25K in the DBXEU one.

Here is the 6 month share price performance for my ETF's. I want to switch out of the negative performing European ETF and into go into maybe the Satrix Indi or Absa eRafi Indi.

RMBMID - RMB Midcap - 12.79%
DBXUS - DB-x Tracker USA - 5.04%
BBET40 - Bettabeta Equally Weighted Top 40 - 8.59 %
DBXEU - DB-x Tracker (-6.11) %

 

[kdub]

With only 25K switched there shouldn't be any tax implications. Ordinarily there would be CGT implications but since your profit is small (or negative in this case) there won't be any tax levied as there are CGT annual exclusions. Even if it were not capital, since you made a loss on this investment there wouldn't be any tax payable. Shouldn't be any other fees levied by ETFSA as 90% of their fees are included in their administration fee and the only other fees are things like debit order fees or rejection fees.

 

[deekay]

Excellent thanks.

 

[Hendrix]

So you want to sell low (DBXEU) and buy high?
Be careful of STXIND, it's run very hard the last 10years, and won't go up forever, I think it's at a peak.
I would actually be buying more DBXEU, not selling (it's cheap now)

You know the saying "buy low sell high"? You doing the opposite...
But if you nervous and really want to sell, by all means do it, but I would think twice about STXIND and rather look at a RAFI ETF instead

 

[deekay]

So you want to sell low (DBXEU) and buy high?
Be careful of STXIND, it's run very hard the last 10years, and won't go up forever, I think it's at a peak.
I would actually be buying more DBXEU, not selling (it's cheap now)

You know the saying "buy low sell high"? You doing the opposite...
But if you nervous and really want to sell, by all means do it, but I would think twice about STXIND and rather look at a RAFI ETF instead

Sounds like good advice.. only thing is as the 5 year graphs that I have seen show that Satrix Indi has consistently gone up, perhaps it is due to cool down but long term the trend is aggressively up.

I was seriously thinking eRafi for industrials but then saw that there is a performance fee? How do you compare the performance of the rafi indi versus satrix indi.

If its too confusing for me then I try avoid. But it would be nice to see how they compare after fees.

 

[Hendrix]

Don't make a decision based on past performance, try look ahead too.
Remember, before industrials, resources were the darlings of the jse...everything that goes up must come down...

I don't know how much money you have invested in each fund, or how risk averse you are, as this can affect your decision.
But since you using etfsa, I assume you investing via debit order.

If it was my money, I would leave the funds as they are, but cancel the debit order into the fund I have little trust in (DBXEU in your case), and use that money to invest in a fund I have faith in or looks attractive (eRafi INDI in your case)

Investing is an emotional game we play, when things are bad we want out, but when they good we praise ourselves, or kick ourselves for selling too early (you get my point)
I sold 90% of my STXIND last month, I decided to lock in my returns and be happy with the returns so far