TFSA Portfolio

SauRoNZA

SauRoNZA

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So I've started up a TFSA account for my daughter which I'm managing myself.

Of course I want to diversify this as much as possible, while also keeping it as simple as possible.

Therefore I want to stick to 4-6 ETF's and rotate between them every month while I'm still only investing small amounts and maybe later when maxing out I can buy little chunks of each, so ultimately 5 would be ideal as I then put R500 into each.

So far I've only put money into...

DBX World
CoreShares PropTrax Ten

So that's Property and International covered I reckon. Now I need probably a resources based option and then maybe a dividends specific option?

Essentially the thread is to ask which 5 ETF's would you choose to cover your portfolio to chug along for the next twenty years? Or maybe even simpler...which 5 have you got in your own, keeping in mind this is a "stand alone" investment for my daughter and my own other investments are irrelevant to it.
 
That's a lot of ETFs and you may end up with a lot of duplicates.

If you stick to DBXWD, CTOP50, PTXTEN and DIVTRX you should be pretty much covered.

Why bother with resources or industrials or any specific sector (except property)? The Top 50 contains something like 80% of all the value in the JSE and by nature will auto adjust its holdings to favour whichever sectors are doing well.

DBXWD - offshore
CTOP50 - broad diversification, stocks limited to 10% weighting
PTXTEN - property + dividends etc
DIVTRX - dividend focussed but due to the way it selects it's holdings they tend to be "quality" stocks (imo of course) and give you very good growth (so far)..also equally weighted which is a plus.

EDIT: I have DBXWD, DIVTRX and STXIND in my TFSA. STXIND I selected over CTOP50 since I have it in another portfolio and STXIND's history suggests it can achieve better growth. If I had a do over I would've stuck with just DBXWD and DIVTRX in my TFSA and maybe moved my property ETF there too to get an extra tax saving on those dividends.
 
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Yeah I realise there would be some overlap.

Sort of why I'm asking the question so it remains a minimum.

Your listing above is pretty much EXACTLY what I had in mind so I'm glad my logic was sound as that's the only reason I'm really asking.
 
I currently do PTXTEN and CTOP50

For this year next year I'll do DIVTRX and DBXWD

The I'll do ptxten and CTOP50 again and then I'll do div and wd

I'll do that till I reach the 500k and then let it be.

So 16 years of switching between 4 ETFs 2 at a time.

Is my stragedy
 
So we are pretty much all in agreement then it seems.

I think I'll stick to the four then as it leaves some room for future expansion anyway.

You reckon dodge resources based ETF's? Or simply a case of enough of those included in the others?
 
I'd forget about them. They are cheap atm though (look at STXRES over the last 5/10 years), so if you are feeling lucky you can take a gamble and potentially score big.

Like you say, some are already covered by these ETFs.
 
I went a bit wider than 3-4 etfs in my tfsa. Basically tried to build a balanced unit trust type exposure fund. Yes some overlap but...for example I went with both satrix divi and coreshares divi because they use different methods and I have no idea which is best.

GIVRES has done seriously well this year while indi has struggled. So maybe there is value in picking sector specific etfs. Big maybe though.
 
St Eti1 said:
I went a bit wider than 3-4 etfs in my tfsa. Basically tried to build a balanced unit trust type exposure fund. Yes some overlap but...for example I went with both satrix divi and coreshares divi because they use different methods and I have no idea which is best.

GIVRES has done seriously well this year while indi has struggled. So maybe there is value in picking sector specific etfs. Big maybe though.
Click to expand...

Satrix uses a failed methodology. Coreshares is the better one of the two.

That's the short answer :P
 
St Eti1 said:
Ha ha okay. But I cannot eat that without sauce
Click to expand...

I'll go see if I can find the webinar I'm sure someone else also has links to this, both nerina and Simon has spoken about this a couple of times.
 
Yeah I have to admit I have a personal (emotional) dislike for SATRIX now.

I'll avoid them if I can out of principle.
 
supersunbird said:
Well, they no really hating on it, but the downside of smart beta products weren't highlighted, but then again, no one highlights the downside for their products.
Click to expand...

That Moneyweb article says it all - it's another form of diversification/risk management. There is no holy grail strategy and/or index fund (or unit trust, whatever). It's the combination of the well selected ones that make a good portfolio.
 
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