Author Topic: DIVTRX vs NFEMOM  (Read 6492 times)

Hamster

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DIVTRX vs NFEMOM
« on: September 02, 2016, 11:12:47 am »
OK, so they have vastly different approaches/goals and aren't really comparable, but I read that the NFEMOM's underlying index was changed and apparently it has more down turn protection.

I'm hoping somebody here can tell me more about it because in theory tracking stocks with momentum sounds very good. Problem is that it is rebalanced every month so if something bad starts happening it could be a while before "action" is taken. You're basically buying high and hoping to sell at a higher price just after it starts "crashing". This correct?

Reason is that I'm thinking of converting half my DIVTRX in my TFSA to NFEMOM or maybe replacing the STXIND in my TFSA with it (I actually don't like STXIND that much but I've had it from the start I never wanted to sell...).

Anyway, your thoughts please.

Orca

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Re: DIVTRX vs NFEMOM
« Reply #1 on: September 02, 2016, 11:52:39 am »
Looking at the charts, the NFEMOM is a bit more volatile than DIVTRX and has had larger down swings. Both seem to perform similarly and are equal over a 2 year period. The DIVTRX would pay more in dividends though.
There are so many stocks in NFEMOM that if 1 or 2 of them tank it would make little difference.
I started here with nothing and still have most of it left.

Hamster

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Re: DIVTRX vs NFEMOM
« Reply #2 on: September 02, 2016, 12:22:34 pm »
Their similarity in performance is what intrigued me but I reckon it is just coincidence...coincidence over couple of years though :wtf:

Hamster

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Re: DIVTRX vs NFEMOM
« Reply #3 on: September 02, 2016, 02:41:44 pm »
So I asked about NFEMOM on just one lap and what his thoughts are regarding using it as a base ETF instead of a top40/50 and he seems to like it as well.

I'd just like to get some more info on exactly how it works (more than the basic summary). So if anybody knows where to look I'd really appreciate it.

Hamster

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Re: DIVTRX vs NFEMOM
« Reply #4 on: September 05, 2016, 04:28:31 pm »
OK, so I got some feedback.

Similarity between the two are just coincidence.
Seems that it shortlists top 60 shares based on momentum over last 250 days.
Then selects top 20 based on last 12 months excluding latest month.
Min weighting of 1%
Max weighting of 12%

They also have some other checks to make sure that "spikes" in share prices that makes it look like it has momentum are disregarded etc. Overall, if you're not looking for the dividends from DIVTRX but do want "quality" stock then NFEMOM might be worth a look. I reckon I'll move my CTOP50 to it and be done with the "TOP *" ETFs for a while.

jonb

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Re: DIVTRX vs NFEMOM
« Reply #5 on: September 19, 2016, 04:46:04 pm »
interesting

also been looking at NFEMOM

I use CSEW40 as my main vehicle ... have a bit in STXIND which i will probably phase out at some time

I never did understand the rebalancing on CSEW40 and if there are any charges in the rebalancing

Please let us know if you find out any further info!?

Hamster

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Re: DIVTRX vs NFEMOM
« Reply #6 on: December 02, 2016, 07:39:06 am »
interesting

also been looking at NFEMOM

I use CSEW40 as my main vehicle ... have a bit in STXIND which i will probably phase out at some time

I never did understand the rebalancing on CSEW40 and if there are any charges in the rebalancing

Please let us know if you find out any further info!?

Never liked CSEW40. Some shares deserve a bigger portion in your portfolio when it is a regular index tracker but only up to a certain point. CSTOP50 is great that way.

NFEMOM along with DBXWD are my "main" ETFs in my investment portfolio. Along with a smaller allocation of PTXTEN they form the basis. My TFSA makes use of DIVTRX because it is geared for income.

So I make use of both essentially and they've been doing alright considering the last year's performance as a whole. NFEMOM is great because it is a total returns ETF so very hands off.

That said - I've moved to investing in unit trusts every month and halted my regular ETF investments. Multimanager unit trusts (Stanlib) gives me great diversification and access to stuff ETFs don't offer, but before I get stoned to death my main reason for switching was to get my investments and their performance out of my daily life. It consumed me and was way too easy to succumb to knee-jerk reactions.

So, I now live a more stress-free life, will probably cash out my investment ETFs and either pay off my car or move all of it to my unit trusts and the only downside is that I'll probably drink slightly less fancy wine than the ETF guys come retirement.

TFSA stays ETFs though :p

Patrick

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Re: DIVTRX vs NFEMOM
« Reply #7 on: December 02, 2016, 08:04:56 am »
before I get stoned to death my main reason for switching was to get my investments and their performance out of my daily life. It consumed me and was way too easy to succumb to knee-jerk reactions.

So, I now live a more stress-free life

Actually I felt the same after I moved to VWRD, the whole world ETF. I sleep much easier knowing I'm invested in everything, so it doesn't matter what this economy does, or whether I'm in the right sectors or not, or if the rand completely tanks. It really is quite peaceful!

Just out of interest, what sort of fees are you paying?

Hamster

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Re: DIVTRX vs NFEMOM
« Reply #8 on: December 02, 2016, 09:15:00 am »
No transaction, performance or upfront fees as far as I am aware (to be honest I don't really know exactly) but still probably a higher TER than any ETF out there. My fin advisor mentioned something about a reduced rate negotiated with them but I don't have exact numbers.   :LHST:  :whistle:

I get liquidity, no brokerage fees etc. per transaction and it is funded by via a debit order... that's all that counts

Hamster

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Re: DIVTRX vs NFEMOM
« Reply #9 on: December 07, 2016, 07:19:09 am »
@Patrick - my unit trust and RA costs are classified as B1 and not A so I get a slightly better rate.

jonb

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Re: DIVTRX vs NFEMOM
« Reply #10 on: January 31, 2017, 10:30:03 pm »
@Hamster

did you ever get rid of STXIND and move in NFEMOM?

seems a stronger place to be VS DIVTRX moving forward?

RayRay

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Re: DIVTRX vs NFEMOM
« Reply #11 on: February 01, 2017, 08:02:54 am »
@Hamster

did you ever get rid of STXIND and move in NFEMOM?

seems a stronger place to be VS DIVTRX moving forward?
Jon, may I ask for your reasoning RE this statement? Just curious, I have not looked at them in a while.

Hamster

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Re: DIVTRX vs NFEMOM
« Reply #12 on: February 01, 2017, 02:51:32 pm »
@Hamster

did you ever get rid of STXIND and move in NFEMOM?

seems a stronger place to be VS DIVTRX moving forward?

Outside of my TFSA my local equities are mostly NFEMOM. Still have STXIND in my TFSA, waiting for 7000...

jonb

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Re: DIVTRX vs NFEMOM
« Reply #13 on: February 13, 2017, 12:51:15 pm »
@Hamster

did you ever get rid of STXIND and move in NFEMOM?

seems a stronger place to be VS DIVTRX moving forward?
Jon, may I ask for your reasoning RE this statement? Just curious, I have not looked at them in a while.

purely because of the high NPN allowance in STXIND , NFEMOM and DIVTRX were looking more interesting and "fair" to me,  basically Naspers wobbles ( or rather tencent wobbles )  and the entire index hurts

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Re: DIVTRX vs NFEMOM
« Reply #14 on: February 13, 2017, 01:27:21 pm »
@Hamster

did you ever get rid of STXIND and move in NFEMOM?

seems a stronger place to be VS DIVTRX moving forward?
Jon, may I ask for your reasoning RE this statement? Just curious, I have not looked at them in a while.

purely because of the high NPN allowance in STXIND , NFEMOM and DIVTRX were looking more interesting and "fair" to me,  basically Naspers wobbles ( or rather tencent wobbles )  and the entire index hurts

I am waiting for STXIND to hit 7000 then I willl sell it and go for DIVTRAX or NFEMOM will make the decision and reasoning when STXIND pushes closer to 6950
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