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.
Hi financesmiths! Been reading your blog for a while now, and since I’m new to investing in general and starting to look at emerging markets as well, I wanted to ask: do you have an opinion on the different types of global ETFs? In particular, I see you have picked Vanguard, but I heard quite a bit about IWDA (developed) and EIMI (developing) listed on the LSE in USD. I read that they are better as they reinvest dividends so I don’t get small bits of non-SGD lying around (I don’t have a multicurrency account). Thought I might ask your opinion if you have any, thanks!
Hi JY, that’s good to hear and I hope you find the blog useful. Yes, there are a few major providers of global ETFs and i reckon there are differences in management fees and holdings of these ETFs. Honestly, I chose Vanguard because I’m a fan of its founder – John C. Bogle. Not sure whether you have heard of the Bogleheads 3-fund portfolio but that’s what made me switch to index investing.
Since I have robo-advisor accounts that already reinvest dividends, I prefer the cash dividend payout from the Vanguard ETFs. You can do some research online on the differences between Vanguard and iShares ETFs as there should be comparison articles and forum commentaries on them. All the best!
You should concentrate your firepower into robo-advisors if that is what you do currently. 🙂
I’m starting to divert more cash funds into the robo-advisor accounts but will probably raise my contributions further only when there’s market dips and crashes. Thanks for the advice anyway!