Investment
Investing In ETFs
Identifying good ETFs (Joshua Giersch, Rich By Retirement)
Good ETFs satisfy the following conditions:
- Low fees (<0.3% per annum)
- Plenty of assets in the fund (above $100 million)
- “Cash” or “physical”, not “synthetic”
- This is because if the counterparty collapses, the synthetic ETF will start tracking the bunch of miscellaneous stocks
Portfolio Composition
General recommendations
- Invest in ETFs, not single stocks (Investing In ETFs)
- Invest “110 minus your age” into stocks, and the rest into bonds
- For the stock component, half should be in local-stock ETF and half
in global stock ETF
- Global stock ETF is inherently more volatile, affected by currency
- The bond component should be entirely local
Good ETFs
- SPDR Straits Times Index ETF: ES3
- big, liquid, 0.3% expense ratio
- MBH, Nikko Asset Management SGD Investment-Grade Corporate Bond ETF
- IWDA, the iShares Core MSCI World ETF
- invests in every developed market in the world, 0.2% expense ratio