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General Category => Shares => Topic started by: indexer on December 02, 2015, 02:39:45 pm

Title: Replace individual shares with ETF's?
Post by: indexer on December 02, 2015, 02:39:45 pm
Hi everybody

As part of moving investments to low cost index funds I took over the portfolio that a "wealth manager" managed for me. The admin and brokerage costs were insane.

What should I do now?

1. Do I just keep it as is for the long term.
2. Sell specific shares and move to ETF's?
3. Sell all these individual shares and replace with ETF's? (I'll probably replace with DIXTRX and INDI as ETF alternatives.)


+------------------------------------+
|Symbol|Last price|Portfolio %|Gain %|
+------------------------------------+
|AGL   |8598,00   |2,39       |-69,83|
|BGA   |15740,00  |5,82       |5,91  |
|CCO   |9560,00   |8,84       |54,47 |
|CFR   |10803,00  |8,99       |3,46  |
|GLN   |2000,00   |1,85       |-69,60|
|ITU   |7016,00   |6,49       |31,53 |
|KIO   |4272,00   |0,79       |-87,72|
|MDC   |11030,00  |6,63       |43,64 |
|MMI   |2315,00   |6,42       |-11,44|
|MTN   |14817,00  |3,43       |-34,15|
|NPN   |210616,00 |9,74       |77,25 |
|NTC   |3443,00   |3,18       |-14,18|
|OML   |4512,00   |8,35       |22,68 |
|SAB   |87400,00  |8,08       |42,84 |
|SHF   |8550,00   |7,91       |17,45 |
|SOL   |40072,00  |5,56       |-27,46|
|WHL   |9955,00   |5,52       |23,68 |
+------------------------------------+
Title: Re: Replace individual shares with ETF's?
Post by: Nivek on December 02, 2015, 03:22:14 pm
 ???

If the brokerage bothered you, how did you feel about some of the losses. Didn't he know how to operate a stop loss?
Title: Re: Replace individual shares with ETF's?
Post by: Mr_Dividend on December 02, 2015, 03:58:00 pm
Don't rush to do anything and keep in mind any taxes and/or tax breaks (R30K CGT allowance). Personally I would start slowly backing out of the resources and buy your ETF's. But I would keep a fair amount of those stocks - NPN, CCO, ITU, MDC, MMI, OML, SAB, SHF, WHL and probably SOL. Sold my MTN - but basically because I felt the dividend was threatened - if you happy with not getting a divi for a year  might be worth keeping them. But don't just sell the lot - there some good shares in there.
Title: Re: Replace individual shares with ETF's?
Post by: gcr on December 02, 2015, 04:24:04 pm
Don't rush to do anything and keep in mind any taxes and/or tax breaks (R30K CGT allowance). Personally I would start slowly backing out of the resources and buy your ETF's. But I would keep a fair amount of those stocks - NPN, CCO, ITU, MDC, MMI, OML, SAB, SHF, WHL and probably SOL. Sold my MTN - but basically because I felt the dividend was threatened - if you happy with not getting a divi for a year  might be worth keeping them. But don't just sell the lot - there some good shares in there.
Agree - don't rush in and sell. You can also down the road look at some that you are likely to sustain a loss use them to your advantage for tax purposes - so look to selling after this tax year (Feb 2016)
Title: Re: Replace individual shares with ETF's?
Post by: BussoV6 on December 02, 2015, 04:33:28 pm
Over what time period is that performance?

Some of the resources are shares I am looking to buy in the next 2-6 months.
Title: Re: Replace individual shares with ETF's?
Post by: indexer on December 02, 2015, 04:48:10 pm
Thanks Mr_Dividend and gcr.

@BussoV6, that has been over roughly 24 months.
Title: Re: Replace individual shares with ETF's?
Post by: erwintwr on December 03, 2015, 04:57:04 pm
Hi everybody

As part of moving investments to low cost index funds I took over the portfolio that a "wealth manager" managed for me. The admin and brokerage costs were insane.

What should I do now?

1. Do I just keep it as is for the long term.
2. Sell specific shares and move to ETF's?
3. Sell all these individual shares and replace with ETF's? (I'll probably replace with DIXTRX and INDI as ETF alternatives.)


+------------------------------------+
|Symbol|Last price|Portfolio %|Gain %|
+------------------------------------+
|AGL   |8598,00   |2,39       |-69,83|
|BGA   |15740,00  |5,82       |5,91  |
|CCO   |9560,00   |8,84       |54,47 |
|CFR   |10803,00  |8,99       |3,46  |
|GLN   |2000,00   |1,85       |-69,60|
|ITU   |7016,00   |6,49       |31,53 |
|KIO   |4272,00   |0,79       |-87,72|
|MDC   |11030,00  |6,63       |43,64 |
|MMI   |2315,00   |6,42       |-11,44|
|MTN   |14817,00  |3,43       |-34,15|
|NPN   |210616,00 |9,74       |77,25 |
|NTC   |3443,00   |3,18       |-14,18|
|OML   |4512,00   |8,35       |22,68 |
|SAB   |87400,00  |8,08       |42,84 |
|SHF   |8550,00   |7,91       |17,45 |
|SOL   |40072,00  |5,56       |-27,46|
|WHL   |9955,00   |5,52       |23,68 |
+------------------------------------+




Lots of losses in that list.


If you are adding to the portfolio (monthly for the last 2 years, i would say just adding new contributions to an ETF should be ok.


If the initial investment was very large, i would think option 2 ( eg sell shares with gains, or shares with losses that doesn't look like they will recover.)