Which ETF? IOZ vs. STW vs. VAS

[qprjames]

Not quite sure if I have put this thread is in the right place?

I'm looking at buying into an ETF. I really just want to track the asx200. I'm not sure whether I should select IOZ or STW or VAS?

I understand there is little difference between the 3. They all follow the asx200, have very similar manegment fee's etc and the returns are almost identical. Out of the three, which would be recommended.

Also, how safe are these ETF's. I assume there is some kind of protection if one of these funds folded, because your money is spread within the asx 200 companies?

I plan to hold this stock for 10-20 years and continually add to the fund each month, by completing simple purchases via comm bank. Initial investment will be 30k and then 1-4K each month.

 

[greggles]

Let's take a look at the one year charts for all of them, including the XJO:

Well, you're right that there doesn't appear to be much of a difference between them, aside from the price and volume. STW seems to be the most popular with more volume traded. Also, it's interesting to look at the low in early October 2017. STW appears to follow the XJO more faithfully, while the others seem to be a little more subject to volatility. This is more noticeable in IOZ in particular, which seems to spike higher and lower at peaks and troughs. This could be influenced by the amount of volume traded perhaps?

Anyone have any other observations?

 

[qprjames]

Let's take a look at the one year charts for all of them, including the XJO:

Well, you're right that there doesn't appear to be much of a difference between them, aside from the price and volume. STW seems to be the most popular with more volume traded. Also, it's interesting to look at the low in early October 2017. STW appears to follow the XJO more faithfully, while the others seem to be a little more subject to volatility. This is more noticeable in IOZ in particular, which seems to spike higher and lower at peaks and troughs. This could be influenced by the amount of volume traded perhaps?

Anyone have any other observations?

Really useful,charts showing the volume traded thanks

In terms of safety, i.e. What if One of these etf funds going belly up. Can that happen and would it affect the money that has been invested??

Also, I've heard one of these funds might offer a ever so slightly higher dividend payout - although I cannot remember which one! (I will in the 32.5% tax band for my share trading as my wage is currently $37,000 per annum. )

 

[qprjames]

Also, just a question. I use commsec. I seem to be able to trade VAS and IOZ with no problem at all. But STW seems to be an issue. If I go to buy STW it won't allow the simple code of STW, and tries to steer me to STW27, STW37, STW47 and STW57. Any idea why this is? Does commsec not allow the purchase of STW shares?

 

[greggles]

In terms of safety, i.e. What if One of these etf funds going belly up. Can that happen and would it affect the money that has been invested??

I suppose it's possible but most probably very unlikely. If in doubt, consider going for the one with the biggest market cap and trading history.

Also, I've heard one of these funds might offer a ever so slightly higher dividend payout - although I cannot remember which one! (I will in the 32.5% tax band for my share trading as my wage is currently $37,000 per annum. )

Not sure about this. You'd have to check the ETF details on their websites. I imagine it probably wouldn't vary too much.

 

[greggles]

Also, just a question. I use commsec. I seem to be able to trade VAS and IOZ with no problem at all. But STW seems to be an issue. If I go to buy STW it won't allow the simple code of STW, and tries to steer me to STW27, STW37, STW47 and STW57. Any idea why this is? Does commsec not allow the purchase of STW shares?

Not sure as I don't use Commsec. Contact Commsec support and ask them. I'm sure they'll be able to help you.

 

[DocK]

I have a CommSec account and have no trouble placing a buy order for STW.

 

[stevo2]

Really useful,charts showing the volume traded thanks

In terms of safety, i.e. What if One of these etf funds going belly up. Can that happen and would it affect the money that has been invested??

Also, I've heard one of these funds might offer a ever so slightly higher dividend payout - although I cannot remember which one! (I will in the 32.5% tax band for my share trading as my wage is currently $37,000 per annum. )

Spread your investment across all 4 if your worried about one going belly up

 

[qprjames]

Spread your investment across all 4 if your worried about one going belly up

I was actually thinking of doing what you have suggested. I wasn't sure if I was being a bit 'over the top'. I also didn't know the chances of one of these big boys (i.e. STW - SPDR) going belly up?

I mean, I have some individual shares in comm bank but I'd never think for a minute they might get in trouble.

 

[IFocus]

Check the spread and depth higher volume should mean smaller spread. You dont want to be jumping over a large spread to enter/exit.

 

[InsvestoBoy]

Anyone have any other observations?

The price won't be identical to the cash index because of fees and tracking error etc.

Also, doesn't VAS track the S&P ASX 300, not XJO (which is ASX 200)?

 

[InsvestoBoy]

1-4K each month.

If you buy every month and assuming the $19.95 brokerage that CommSec charges then you'll be paying $239.4 per annum in brokerage.

If you buy every quarter then you'd only pay $79.8, or 66% less, in brokerage.