What ETF to buy now.

[owl]

I have a bit on money sitting in my broker account at the moment that I would like to invest in an ETF today.

With all the many factors in play at the moment which one would should I look at for a long term investment?

Or should I sit on my hands?

 

[Thor]

NFEMOM
DbxWD
GLPROP

Ebook for further reading - https://platinumwealth.co.za/forum/ebooks.php

 

[Eti1]

Hey owl. A hamster would recommend unit trusts. Out of sight out of mind.

But I would say property or offshore. Or top 40 if you believe SA will rise again in a few years.

 

[owl]

Thx Thor

This is my dilemma:

Like DBXWD but I bought a lot at R14/$ and they have not done well in rand terms. Scared the rand might go to R11/$ the day after I buy more.

GLProp has not done well since it launched. worried about this one

NFEMOM - YES - If You think the correction in the SA stock market is over for now.

 

[Thor]

Depends on your goal/time horizon I suppose.

Ie they have not done well since they launched, you are correct, however they launched a few months ago so the time frame is too small for me rather I look at what is the underlying assets are they good! Yes - I buy more, no - I sell.

^talking about GLPROP there.

 

[owl]

Depends on your goal/time horizon I suppose.

Ie they have not done well since they launched, you are correct, however they launched a few months ago so the time frame is too small for me rather I look at what is the underlying assets are they good! Yes - I buy more, no - I sell.

^talking about GLPROP there.

Yip agree. I am a bit worried about the future profitability of all these mega malls that these companies own with the growth of online shopping. Whats your view?

 

[Thor]

Yip agree. I am a bit worried about the future profitability of all these mega malls that these companies own with the growth of online shopping. Whats your view?

Thought about that too.

But I think the filthy rich will prefer the lavish brick and mortar over online convenience.

 

[Hamster]

NFEMOM

I own it myself, but it is expensive with an effective annual cost of 1.89%. Compare that to NFSWIX, also from ABSA, with an EAC of 0.4%

So you have to ask yourself if NFEMOM's potential performance is really worth the extra 1.5% pa over CTOP50, NFSWIX etc. And what about DIVTRX with similar performance if dividends are reinvested?

Personally, I'm going to swap out that NFEMOM and either push it into house-deposit-to-be 32-day account or CTOP50 or my unit trust. If you look at what AMIB50 is doing it might not be a bad idea to get some exposure there as well.

Given our current situation in RSA and the uncertainty, I'm also buying some NFGOVI on the side.

@owl, how long are you investing this for?

EDIT: Just note that AMIB50 is just as expensive

 

[owl]

I am looking at 5 to 10 years

I just checked the TER of NFEMOM on ETFSA is 0.35%. Is this not correct?

 

[Hamster]

I am looking at 5 to 10 years

I just checked the TER of NFEMOM on ETFSA is 0.35%. Is this not correct?

That's the TER, but not all the costs involved. A regular ETF rebalances once every 3 months, NFEMOM rebalances every month and that underlying trading that is happening costs money (in this case, 1.5%). NFSWIX only costs 0.05% in trading fees.

At least ABSA tells us this, the rest of the ETF fact sheets just shows the TER.

 

[supersunbird]

If it was me:

50% - CORESHARES Top50 (CTOP50)
50% - CORESHARES S&P 500 (CSP500)

 

[Hamster]

I am looking at 5 to 10 years

I just checked the TER of NFEMOM on ETFSA is 0.35%. Is this not correct?

As for your investment, an alternative could be a unit trust like 10x's or Sygnia's. 10x's includes a Vanguard Fund/ETF which gives you offshore exposure. That's a very simple and low cost way to invest for the long term. If you are set on the DIY ETF option, I can only tell you what I would do (have done) but I'm no financial advisor and probably best to go see one

PTXTEN and GLPROP for property
NFGOVI for bonds
NFEMOM and DIVTRX for local exposure
DBXWD for foreign exposure

You could make it even easier and just buy two ETFs (split them 50/50)

MAPPSG - local, bonds and cash
DBXWD - foreign

..or even better
PTXTEN (10%)
GLPROP (10%)
MAPPSG (40%)
DBXWD (40%)

^ those four will cover almost everything there is to cover except commodities like gold etc.

 

[owl]

Thanks you guys. You have given me some good options to consider.

@Hamster: What is the cheapest way to buy unit trusts these days? Is dealing with the providers directly the best way?

 

[Hamster]

Thanks you guys. You have given me some good options to consider.

@Hamster: What is the cheapest way to buy unit trusts these days? Is dealing with the providers directly the best way?

Yeah, but supersunbird is the guy to ask about unit trusts. 10x is the one I'd go for right now, but Sygnia has a Skeleton 70 which a lot of people like.

I make use of Stanlib through an FA. All Star Fund of Funds.

 

[backstreetboy]

Thanks you guys. You have given me some good options to consider.

@Hamster: What is the cheapest way to buy unit trusts these days? Is dealing with the providers directly the best way?

Sygnia

 

[owl]

I can only tell you what I would do (have done) but I'm no financial advisor and probably best to go see one

Who needs a financial advisor if you can get instant advice from birds and rodents

 

[supersunbird]

I was summoned?

Who needs a financial advisor if you can get instant advice from birds and rodents

:crylaugh:

For a UT you either go direct to the provider of the fund (Coronation for example, offers just Coronation funds), then you generally pay no platform fees, just the funds fees. Or thought a LISP (AG, PSG, Sygnia for example), most have their own funds you don't pay platform fee for, and then on other providers UTs that are accessed you do pay platform fees for and of course the fund fees.

Syngia for example has 2 boutiques (for got the names), the simpler one has just their fund and no platform fee, the other boutique gives access to their and other UTs and has a platform fee.