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Topics - Ejectzero

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Shares / Collateral Loan Program Options
« on: December 07, 2021, 11:12:25 am »
Hi All,

I'm looking for collateral loan programs, where I can take a loan off of my share portfolio.  The portfolio would just be a world ETF, the collateral will be used to make more money actively.
You can made 24% APY on USD denominated stablecoin liquidity farming and autostaking - this is the low risk option the bulk of this loan would feed into. 

I know PSG has Scriptfin: http://download.psg.co.za/files/wealth/forms/PSG-Scriptfin-Product-rules.pdf
It allows you to borrow upto 30% - but ideally with STXWDM instead of JSE 40 - at prime. 

Does any of the other banks offer this kind of facility?  I'd ideally want one with a lower barrier of entry.  Else I guess I need to get my credit card limit increased xD

Ez

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Shares / COVID Investment strategy
« on: May 06, 2020, 11:06:39 am »
Hello World,

Thought I'd share my thinking around investing in this turbulent time. 

I invest a fixed portion of my salary every month into discretionary accounts after I 1) maxed my RA (monthly basis) and 2) made provision for short term cash requirements. 

I then look at my overall portfolio (no property) and allocate roughly 50:50 offshore:local.  My approach is lacking in that I do not take the money abroad into a more stable currency, rather I buy foreign currency denominated ETFs.  I also consider for instance any ZAR denominated investment as 100% local, even though a portion would be held offshore due to global companies. 

For global I'd usually buy ~90% STXWDM and 10% STXEMG, but given the rand's dire state, I opted to buy SYGUK instead - the SYGUK if GBP denominated, and has a high TER, but given the GBPs low performance relative to the USD - I am exploiting some relative discount by buying SYGUK instead of SYGUS for instance. 

Do you agree or is this all a rubbish thinking? 

On the local portion I am of opinion that REITs are incredibly undervalued.  S&P's market inteliigence seems to agree in their analyst sentiment sections for the top 5 holdings in STXPRO/CSPROP. 

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Shares / ETF buy/sell spread awareness
« on: February 20, 2017, 10:27:48 am »
I've conducted an informal experiment today and thought it interesting enough to share here.

I hold an ETF-only portfolio on EE in four diverse ETFs.  I save remaining money distributed evenly in these monthly.  I considered broadening my portfolio to contain more ETFs but wanted to first see the difference in brokerage commissions.

I used the demo account and bought 4 R1000 ETFs and compared the buy and sell costs with 1 R4000 ETF.  I bought everything (4X R1000 + 1X R4000) and then sold it immediately and repeated this exercise twice.  For good measure I bought and sold a third R4000 ETF.  ETFs were chosen at random. 

In terms of brokerage costs alone I saved a marginal R0.36 (0.01%) by only buying and selling one specific ETF compared to 4 different ones.  However, The buy and sell spreads made a startling difference:  On average I lost R38.46 (1.0%) more to the buy-sell spread when selling the four small ETFs (hence the repetition of the experiment - to consolidate this). 

One ETF: MAPPSG's R1000 investment was sold at only R650 and was removed from above calculations.

The take-home for me is:  Less, but better ETFs are key.  From now on I will evaluate and ETFs' buy-sell spreads in the demo account before considering its purchase.  This is why I would never day trade! 

I'd love to see somebody with an ABSA account replicate this perhaps?  I can provide raw data if required.  What are your experiences/ strategies for your passive investing accounts?

EZ


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