The JSE and finance forum for South Africa
General Category => Shares => Topic started by: jaDEB on September 03, 2015, 11:40:16 am
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I is learning about ETF's. Starting today, may buy it on my wife's behalf as she is cashing up part of her pension.
Which ETF's do you have ?
DBX-WORLD
DB X-TRACKERS COL IN WLD DBXWD A140
DBXFT100
DB X-TRACKERS FTSE 100 DBXUK A140
DBX-USA
DB X-TRACKERS COL IN USA DBXUS A140
DBXEURO50
DB X-TRACKERS DJ EU ST 50 DBXEU A140
DBX-JAPAN
DB X-TRACKERS COL IN JAP DBXJP A140
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I have had the DBXUS for a while now and it has served me well. Hands down the best performing ETF of all the ones I am invested in.
P.S. Don't know if you have looked at the fact sheet of the DBXWD but if I remember correctly it's allocated somewhere between 55% and 65% to the US and I think somewhere between another 20%-30% in Europe, the UK and Japan. So if you gonna invest in the DBXWD do not bother investing in the other ones and vice versa.
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Does the Rant / Dollar or Rant / Euro have a influence ?
PS. Thanks for the help :TU:
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There does seem to be some correlation with the price per security rising as the Rand weakens. But then at the same time there is also a correlation between the price per security rising and the index it tracks rising so difficult to say. Best advice I can give you is to download their respective fact sheets as they give charts in there showing the ETF's performance, rand performance vs dollar/euro/pound/yen as well as the performance of the index it is tracking. You can find all the fact sheets here:
DBXEU: https://etf.deutscheawm.com/ZAF/ENG/ETF/ZAE000115937/-/Eurostoxx-50
DBXUK: https://etf.deutscheawm.com/ZAF/ENG/ETF/ZAE000115929/-/FTSE-100
DBXJP: https://etf.deutscheawm.com/ZAF/ENG/ETF/ZAE000115176/-/MSCI-Japan-Index-ETF
DBXUS: https://etf.deutscheawm.com/ZAF/ENG/ETF/ZAE000115192/-/MSCI-USA-Index-ETF
DBXWD: https://etf.deutscheawm.com/ZAF/ENG/ETF/ZAE000115184/-/MSCI-World-Index-ETF
It's in the top right corner.
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Duel listed stocks such as the ones in STXIND gives you a Rand hedge. I will try and find the MoneyWeb article posted yesterday on this.
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With the recent market volatility, I once again realised the value of ETFs over direct shares... One simply cannot outperform the market, all of the time. Especially when investing, rather than trading.
When one is up, another is down... and so it goes - I know, I'm a slow learner...
This was a major driver... 10-year performance of the STXIND vs some popular blue-chips:
https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1441292400000&chddm=1212120&chls=IntervalBasedLine&cmpto=JSE:STXIND;JSE:BTI;JSE:SAB;JSE:SOL&cmptdms=0;0;0;0&q=JSE:MTN&ntsp=0&ei=SC_oVcGQOYuFmAG--o6gCw
Therefore, my focus forward is an ETF-only approach. Cherry picking only when I feel lucky... which is not often.
Right now, I own about 8 direct and 8 ETF counters - almost equally weighted (direct vs ETF) in current market value.
The bulk of the ETF component is the good ol' faithful STX40 dating back to the days when that was virtually the only ETF a layman such as myself knew about. It has done relatively well and I think I'll keep it, but no further money goes there.
Then there's a mixed bag of DBXUS, DBXWD, STXIND, BBET40, PTXTEN, STXDIV etc. A major irritation is the STXRAF (Satrix RAFI) which I bulk-purchased on the very same day as STXIND a couple of years ago - needless to say it has been shamed by most of the others especially INDI, bar STXDIV... I really thought that based on the selection of STXRAF constituents by underlying fundamentals bla bla bla, that it would be a stellar performer, but alas, it hasn't been (yet).
So the plan is to sell out on STXRAF ad STXDIV, move all to DIVTRX which I do not own yet.
Then going forward, invest in equal amounts into DIVTRX, STXIND and DBXWD (or DBXUS - not really sure, impending US rate hikes and other international economic woes coming to mind).
Any reason not to do this? Or different strategies you would follow?
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Don't diversify too much into ETF's as you will throttle your growth. Pick the best long term performers.