Just a quick update here. After setting up our robo-advisor accounts and standing instructions to transfer funds into them weekly, I started to realise it was pointless maintaining a separate portfolio of 6 x Vanguard LSE-listed ETFs on our Stan Chart Online Equity Trading Platform. A reader pointed this out to me a while ago about incurring high transactions costs when it comes to buying and selling these Vanguard LSE-listed ETFs. Plus they overlap with each other and our robo-advisor accounts.
I took advantage of the recent run-up in equity markets to sell all of our small 6 x Vanguard LSE-listed ETFs holdings for another round of restructuring.
Sale proceeds: S$2,000
Profit amount: S$100
Profit percentage: 5%
I keep trying to simplify our portfolio but continue to over-complicate matters by not sticking to one strategy. If you remembered from my past posts, I have done this once before i.e. selling our entire 12 x Vanguard LSE-listed ETFs holdings and ended up building a simpler 6 x Vanguard LSE-listed ETFs portfolio. Now, I’m doing the same thing but simplifying it into a 2 x Vanguard LSE-listed ETFs portfolio.
Vanguard FTSE All-World High Dividend Yield UCITS ETF (LSE: VHYD)
Vanguard FTSE Emerging Markets UCITS ETF (LSE: VDEM)
My wife will hold the LSE: VHYD since she’s mostly Value-Cost Averaging (VCA) and Dollar-Cost Averaging (DCA) on Singapore Equity and Bond ETFs. Would be good for her to have the global equity component (strong focus on developed markets) and increase the dividend yield on her portfolio. I will hold the LSE: VDEM since I mostly DCA on Singapore Equity and REIT ETFs. It’s also useful for me to have the global equity component but with a strong focus on developing markets instead to reduce the overlap.
I’m still making a number of mistakes with my portfolio construction as I switch to an ETF investing strategy. The bull market is providing me with an opportunity to fix them since I can still exit positions with profits. I’m hoping to firm up my approach and stop changing my mind by the time the next bear market comes around. It would be a much tougher and harsher learning environment if I get this careless.