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Messages - JohnnyH

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61
Off topic / Re: Retirement annuity - what's the consensus?
« on: December 08, 2015, 07:26:33 am »
Morning All

Strive, hope you don't mind me hijacking your thread, but the RA question has been haunting me for a long time as well.

Have any of you guys had a look at the offering from ETFSA-RA (attached)? Its just a bunch of ETFs, with a few familiar faces in there as well, DIVTRX, DBXWD, etc. Granted the current weightings are quite low, but still. I feel with this, I can see exactly what they hold etc.

The other main thing I like is the cost, 0.85% all in ( I think vat still needs to be added though, so could be a max of 0.97%.
If I compare this with my current RA cost of, wait for it, 3.2%!!!  :mad: I feel like I am already winning.

I do like the idea of having at least some of my money in a RA, but currently my contribution is sitting at 12%, the rest going to equities.

Comments guys?

62
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: December 07, 2015, 08:21:15 am »
Quote from: Samurai on December 06, 2015, 02:29:25 pm
What is the last day to trade to qualify for the December dividend?

LDT is 23 Dec. Payments probably somewhere mid-Jan or so.

63
Off topic / Live chat
« on: November 30, 2015, 03:48:34 pm »
@jaDEB CML is trading ex div today, I am assuming this has had an effect

64
Shares / Re: ABSA's world trader accounts are now live
« on: November 18, 2015, 11:15:59 am »
Jis that 20$ minimum is going to be a killer (for me). I was hoping to invest ~R10k (~700$) pm direct offshore, but that would mean my minimum cost is something like 2.5-3%!! Hectic

It looks like their cost structure is almost identical to the STD Bank WebTrader account.

Ai.

65
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: November 12, 2015, 03:19:14 pm »
Quote from: Ron on November 12, 2015, 01:55:44 pm
Satrix have introduced a unit trust that looks quite interesting -

The Quality Index Fund tracks the S&P SA Quality index which aims to capture the stock performance of high quality South Africa companies based on 1. Future profitability 2. Integrity of their earnings 3. Financial robustness.
Shares that are deemed to show a good quality score based on certain financial ratios such as ROE, ROA, GP, Accrual Ratios, Changes in CF and accruals. These are ranked and the top quintile is included in the index.

Simon Brown recommends the BBET equal-weighted ETF (top 40 shares) as a core holding - he then selects satellite "awesome", hold-forever stocks and niche ETFs like PROPTX10 to outperform the top40 index. JohnnyH, have you considered DBXWD? It's almost 60% USA, maybe 30% Europe & the rest developed economies. Or subscribe to Astoria IPO next week (a portfolio of worldwide stocks managed by Anchor; but with a TER of 1.6% expensive for some)!

I guess negative sentiments about Div Aristocrats will come out when it's underperforming, nevertheless I preferred the look of it with just the 25-odd stocks. If only the 5-year period were extended to exclude those horrible cyclical mining companies! But I like the ETF's quality bias & that you're being paid a dividend to be patient.

Hi Ron

Thanks for your recommendation. I have considered the DBXWD yes, but in the end I decided to rather split it equally between DBXEU & US. I like the US better, but I am thinking (hopefully) that over the next 30 years, I would like exposure to both regions almost equally.

I like the idea Astoria very very much and I will be watching it closely. The fees, yes, its high...but I think it would still be worth it if it grows at 20-25% pa.

DIVTRX, for me, also a 30+ year time horizon, so I am not too concerned with the current holdings, but it probably would have been much better it stayed with the ~25 stocks it had initially. Dividend yield is quite nice though. I am quite curios to see what the div will be for the last quarter of the year.

66
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: November 12, 2015, 09:57:55 am »
Quote from: Patrick on November 12, 2015, 09:47:57 am
It's my core ETF JohhnyH. At the moment I'm about 40% DIVTRX, 30% STXIND and 30% FOORD equity. Once my 3 year holding period for FOORD expires early next year, unless I can somehow buy something international without paying massive fees, that 30% will also go into DIVTRX.

My thinking is this:
I need an ETF that is well diversified, with reasonable costs as my core. The STXIND is out, with it holding 19%+ in both SAB and NPN. And if SAB leaves, then the NPN holding will rise to close on 23%. I'm not comfortable with that. The STX40 is out for similar reasons, as is the DIVIND. I won't hold the DBX trackers, I just can't pay those fees, plus have you seen the spreads on offer. I also looked at the RMB midcap, which had relatively good performance for some time, but it also had fee and spread issues for me.

The DIVTRX on the other hand is well diversified, At worst you end up with 5% per share, currently it's under 3% per share, across a number of sectors. The costs are relatively low at 0.39%, and the spread is also reasonably small now, around 8c.

Then of course we all want decent performance. DIVTRX has done relatively well in the past, but with a "smart beta" etf, you're looking more at the methodology. DIVTRX is based on the S&P dividends aristocrats index. In SA this means all companies that have held or increased dividends in 5 years. This is turn is based on the S&P 500 dividends aristocrats model, which modeled on the successful strategy employed by a number of successful dividend investors.

As you can see, since 1990 it's either tracked the 500, or beaten the 500, apart for some anomoly in the early 2000's. And it most likely paid higher dividends in the process. As always past performance may not be future performance, but for me, I'm quite comfortable with the strategy. If a company does badly and cuts their dividend, they'll be out in no more than 6 months. I like this as it's a potentially fast filter, and I don't have to pay capital gains for dumping the bad share. So for now, I'll keep sticking my money into it, and keep hoping for decent growth while paying above average dividends.

I may change this in future if a better product comes around, but so far there's nothing I'd rather invest in. If anyone has a pointer as to what to look at I'd love to hear it.

Hi Patrick

Thank you for taking the time to post such a comprehensive reply. I appreciate it!

It will be interesting over time to see what makes the DIVTRX "cut" as time goes by!

Thanks
J

67
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: November 11, 2015, 07:14:03 pm »
Quote from: Patrick on November 11, 2015, 06:37:28 pm
I'm waiting to see what absa offers in terms of offshore investing instead of the DBX trackers. I just can't pay those free for an etf that should be less that half that price.

I really wouldn't mind investing directly offshore. But I really wish there was an easy way to transfer money to an offshore account, like something you do via internet banking. It seems like a mission to go to the bank & request a currency conversion & transfer.

Anyway, could I ask you for your opinion om my question stated above on DTRX being a core ETF please  :)

Thanks
J

68
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: November 11, 2015, 05:33:39 pm »
Quote from: Mr_Dividend on November 11, 2015, 04:39:22 pm
Personally, if I was going to have a ETF type portfolio and I was not worried about dividends, I would have 20 -25% in DBXUS. Just so I can smile when the rand tanks.

I plan on doing just that Mr D. However, I thought I would split it equally between DBXUS & DBXEU. Combined, that would give me a total of 30% "offshore" in my portfolio.

69
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: November 11, 2015, 02:20:15 pm »
Quote from: Patrick on November 10, 2015, 10:14:53 am
Quote from: JohnnyH on November 10, 2015, 08:25:22 am
Patrick, do you maybe know why it has grown to 40+ shares?
To qualify to be in the index, the company must have 5 years of not decreasing a dividend. Any company that has done this is included, and equally weighted. Last year there were only 24 qualifiers, this year there are 44. If for some reason the economy tanks and there aren't 20 qualifiers, then the criteria will be relaxed until there are 20.

Thanks for the reply Patrick.

I have another more general question for everyone. Currently DIVTRX is the core ETF of my portfolio & makes up ~40% of the value. I am planning to add more with money from a unit trust that I sold recently which would make it ~50%.

So the question I guess is, am I wrong to put that big a part of my portfolio in the DIVTRX specifically?

Other current holding is:
PTXTEN : ~17%
DBXUS  : ~ 8%
STXIND : ~6%      ( I know this one has been epic to date as well, but I feel a little uncomfortable with the high NPN/MTN/SAB weighting in it )

Rest is split over a few shares.

If I look through the list of shares in the DIVTRX, except for a few, I like all of them and I feel that it mostly holds good solid companies.

So yeah, I plan to keep on using it as my core ETF, but I would like some more opinions before I add more.

Thanks all!
J

70
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: November 10, 2015, 08:25:22 am »
Patrick, do you maybe know why it has grown to 40+ shares?

71
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: October 29, 2015, 12:25:44 pm »
Thanks Patrick, will do so!

72
Off topic / Live chat
« on: October 29, 2015, 12:24:50 pm »
Resources & Gold falling off a cliff again today...

73
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: October 28, 2015, 07:54:38 pm »
Hi All

I am looking to move money from a unit trust to a mix of DIVTRX & possibly PTXTEN ( 80/20 split ), but with my broker, Easy Equities, it looks like a bit of a mission to buy 150k of an ETF in one go. Usually I can only get R4500 per buy, but can do so seemingly endlessly. It also makes no difference to the total cost if 1 do 1 transaction of 150k or 30 of ~5k each. I just don't feel like doing it 30 times haha.

Has anyone made some bigger than 10-20k buys on DIVTRX specifically on EE before? If you have, I would like to know what the process was.

Thanks
J

74
Off topic / Live chat
« on: October 23, 2015, 01:56:42 pm »
A nice green day, all over the world is seems! DJ Futures indicating another 0.93% up today :)

75
Shares / Re: CoreShares Dividend Aristocrats ETF/S&P SA Dividends Aristocrat
« on: October 16, 2015, 11:03:45 am »
Quote from: Patrick on October 16, 2015, 09:46:52 am
I see coreshares is finally listing their fund breakdown on the website. Here's the 30 September breakdown for DIVTRX:

Share Code    Share Name    Weight
ASR    ASSORE LIMITED     1.99
LEW    LEWIS GROUP LTD     1.97
AFE    A E C I LIMITED     1.93
MSM    MASSMART HOLDINGS     1.78
AGL    ANGLO AMERICAN PLC     1.63
ARI    AFRICAN RAINBOW MINE     1.58

I wonder of the above listed shares will still be in the DIVTRX after the next rebalancing. I don't follow all of them closely, but pretty sure at least some of those resource shares have decreased dividends during the last year/few months. Lewis & Mass Mart also not doing too well..?

If I am not mistaken, they will then be replaced?

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