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Yes I have been reading a lot and I’m no expert by any means but it seems like the best way to invest for a novice like me! ?
Is it a good time to invest in ETF index funds?
- Thread starter bondog
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I've been attempting to find the source without success but I recall reading something that Jack Bogle was not in favour of ETFs as they encouraged trading and timing of the market. I think he was more inclined to unlisted index funds where the idea was to remove the market from investor emotions. I could be incorrect on those aspects but maybe someone here knows more.
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Was it this Belli?
Jack Bogle never liked ETFs. Here's why
The late Jack Bogle is often taken as the founder of index investing. Many interpret this as meaning Bogle endorsed ETFs, the vast majority of which are in
www.etfstream.com
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Was it this Belli?
Jack Bogle never liked ETFs. Here's why
The late Jack Bogle is often taken as the founder of index investing. Many interpret this as meaning Bogle endorsed ETFs, the vast majority of which are in
Good info see below he says:Was it this Belli?
Jack Bogle never liked ETFs. Here's why
The late Jack Bogle is often taken as the founder of index investing. Many interpret this as meaning Bogle endorsed ETFs, the vast majority of which are in
"But let me be clear. There is nothing wrong with investing in those indexed ETFs that track the broad stock market, just so long as you don't trade them. [emphasis his]"
VDHG is a fund of fund. As you can see it covers a large spectrum of investments and if someone preferred a completely hands off approach it could fit. Vanguard do rebalancing every so often.
As for DUI, I've not placed funds with it, but looking at it, the company deals internally with all the irritating issues (AMIT, CGT, etc) associated with ETFs. On unfranked income it is presently paying the tax and all an investor would receive in documentation is two dividend statements each year. Of course the management of DUI could decide to dispose of the international so there is that risk. And it is only about 20% of assets and some may prefer a higher exposure.
Awesome @Ann. Well done and thanks. You've given me hope whatever I have left of my little grey cells can still operate albeit at a mundane level.
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A key point for any investor is to use an approach they’re able to actually implement.
There’s no point having a perfect strategy “on paper” if human psychological aspects or something practical such as a lack of time (eg because they work during the day) are going to stop them from implementing it in practice.
Personal background will come into that. Someone with a career background in something like engineering or aviation is more likely to be comfortable adhering to a strict rules-based approach founded on math when it comes to investing since that’s familiar territory.
Those with a very different background will likely feel less comfortable speeding toward the proverbial brick wall no matter how many assurances someone gives them that physics and math says it’ll be fine.
Much the same concept with investing. It’s not going to work if someone’s so uncomfortable with the approach that they can’t go through with it.
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I just look at ETFs like any other product available for sale in the market. They have gained a following so there is liquidity. The only difference I can see is you can't set a bid or offer for longer than a day as they are classed as warrants. Other than that as a chartist, I see no difference. I am not sure how a fundamental investor would assess it other than looking at the top 10 basket of stocks. As far as taxation treatment and all that area, I leave that to my very well paid accountant.
wayneL
VIVA LA LIBERTAD, CARAJO!
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...and another good point, well made:
So_Cynical
The Contrarian Averager
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Ah ok noted, you are a completely passive non market participant.
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But probably wrong thread?
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Another way to see those words is to compare an ETF with any other consumer product.
If you want it and it’s on sale at a discounted price well that’s the time to buy.
Even if the price is further discounted next week, at least you haven’t paid full price.
wayneL
VIVA LA LIBERTAD, CARAJO!
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Hmm apologies... I blame heatstroke
Yes largely. Holding only LICs and ETFs I don't feel any real connection with individual companies nor an affinity with the share market in general.
Value Collector
Have courage, and be kind.
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And if you buy $100 of potatoes (or index) each week, some weeks it’s expensive and you get less some weeks it’s cheap and you get more, but the key point is you will accumulate a lot of potatoes over time, eventually enough to feed you in retirement.
My super is 50% VAS and 50% VGS, and I contribute a steady amount every fortnight, I am not attempting to trade or time the market, just steadily accumulating through what ever ups and downs come, it will all balance out, I turn 40 this year, so have 25 years till I will be drawing a wage from my super, off course there will be big drops between now and then, but the at just means I get more potato’s that year.
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I like this ?
Dona Ferentes
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I wouldn't think that's the case. By choosing not to sell , he remains a participant.
Dona Ferentes
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And that sounds like Dollar Cost Averaging
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i agree timing matters ( to me ) , but bondog is also trying to park his money as sensibly as he can , after all is was initially taken out of the super ,
so bondog ( and others in a similar position ) needs that cash working even if just to resist real inflation , because goodness knows if there will be a pension in twenty years time ( i suspect the Government will expect you to survive on your super returns )
so it is a balancing act , luckily the two ETFs selected have a reasonably predictable ( div. ) distribution cycle , so they can be bought in ( roughly ) the next ten weeks , join up in the DRP ( if desired ) and have the train rolling ... or decide to wait longer ( or do something else completely )
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just be ready ( if time permits ) to cancel the order OR move the price lower ( there could be any sort of crazy news overnight ) and a better time ( or deal ) might be possible
good luck
