The Financial year is nearly at an end and it’s a great time to rebalance your portfolio.
I like to reassess the ETF’s in my portfolio and rebalance. Two of the tools I like to use to do this quickly and efficiently are:
Vanguard Fund compare:
Investing.com – Chart compare
I’ll also look for independent ETF reviews and new ETF’s.
In this blog, I’ll go through the different sectors and ETF’s I prefer. Before doing so please note:
This is not Financial advice, just an opinion from Investment Tracker. Everyone is in a different financial situation with different financial needs and objectives. Please seek out a professional Financial advisor for advice before buying any ETF’s associated with this blog.
1. VAS (Vanguard)
2. MVW (VanEck)
3. IOZ (Blackrock)
4. QOZ (Betashares)
5. VSO (Vanguard)
Source: Vanguard fund compare
All are really close. VAS comes out in front for me. It has the lowest management fee and is the most trusted financial manager in the world. It’s performing slightly better and has the best diversification to the ASX 300. I like MVW equal to VAS for an equal weight exposure to companies with blue-chip qualities. For exposure to the smaller companies, I like VSO. EX20 and MVS deserve a mention. (quite hard to pick)
ASX Equities – Strategy
Nothing stands out to me here. I think the geared funds can have their place in a portfolio.
1. GEAR (Beta shares)
2. BEAR and BBOZ (Betashares)
I’m not a fan of chasing the ETF’s after a high yield, so that wipes them out.
FAIR looks interesting. (Exposure to the Australian sharemarket in a way that gives effect to environmental, social and ethical considerations)
Global Equities – Broad
1. VGS (Vanguard)
2. QUAL (VanEck)
3. IOO (Blackrock)
4. VEU (Vanguard)
5. VGAD (Vanguard)
Pick of the bunch VGS followed closely by QUAL. VGS has a low management fee at just 0.18% and has exposure to the best 1500 companies in the world. VGS is also an Australian ETF so you won’t get any International taxes. QUAL is very similar but has exposure to 299 holdings and a slightly higher management fee of 0.4%.
Global Equities – Sector & Strategy
Which sector do you like? That’s the great thing about ETF’s. If you feel that a sector will do well, you can access the best companies in it. My top 5:
1. ROBO (ANZ)
2. ETHI (Beta shares)
3. TECH (ANZ)
4. MOAT (VanEck)
5. HACK (Beta shares)
1. IAA (Blackrock)
2. IZZ (Blackrock)
3. VAE (Vanguard)
4. IJP (Blackrock)
I like IAA here. The performance has been great and I like its structure. You get access to 50 of Asia’s biggest companies. VAE looks interesting but excludes Japan. IJP could be the ETF for you if you want Japan exposure or to offset VAE. Note: VGS also already has good exposure to Japan.
1. NDQ (Beta shares)
2. IVV (Blackrock)
3. IJR (Blackrock)
4. IJH (Blackrock)
NDQ takes the chocolates here. I’m a believer in the FANG stocks long term, so this gives me higher exposure to them. IVV looks the best if you want access to the best 500 stocks in the US. IJR looks like a great way to get access to the up and coming equities in the US.
I can’t pick between my two favourites here:
● VGE (Vanguard)
● IEM (Blackrock)
Each has little differences I like. For example, IEM has exposure to Sth Korea. VGE has exposure to more companies and a lower management fee. IEM has a higher exposure in the top 10 companies. I like a 50/50 split between these two.
IEU or VEQ here.
They are very hard to split. Maybe VEQ with the smaller management fee. Note: VGS will give you some exposure to Europe.
1. QPON (Beta shares)
2. FLOT (VanEck)
3. VAF (Vanguard)
4. VIF (Vanguard)
My thoughts are that interest rates will be rising from here, so floating rate bonds QPON and FLOT appeal to me. Otherwise, VIF and VAF look like a great combo.
VAP and MVA are your picks here. Remember VAS and other ASX index funds will already have exposure to the equities in these property ETF’s.
DJRE is the only ETF for exposure to Global property.
If you are bullish on commodities you have a fair bit of choice. For Gold I like:
PMGOLD provides a fully paid call option to one- hundredth of a troy ounce of physical gold. Alternatively GOLD backed by physical gold held by HSBC Bank. For a commodity basket you can get QCB which gives you exposure to precious metals, livestock, energy, industrial metals and agriculture.
I’m starting to feel less is more with ETF’s. There are so many to choose from.
You can now make it super easy and buy one ETF to suit your risk profile:
● VDCO (Conservative)
● VDBA (Balanced)
● VDGR (Growth)
● VDHG (High Growth)
You could then add some niche ETF’s you think will do well.
MY PORTFOLIO (High Growth)
● MVW 15%
● VAS 10%
● VSO 3%
Australia only makes up 2% of the Global market share, so I’m showing home bias here like most Aussies.
● VGS 18%
● NDQ 10%
● IJR 3%
● IAA 5%
● VGE 2.5%
● IEM 2.5%
● ROBO 2.5%
● BOTZ 2.5%
● VAP 5%
● NST 2.5%
● EVN 2.5%
● QPON 6%
I’m currently investing in two gold stocks here instead of gold bullion, chasing performance. (below chart)
Good luck for the next financial year. It feels great to rebalance and set up your new plan.
Rebalancing plays an important part in your portfolio almost forcing you to buy low and sell high. Sticking to your weights takes the emotion out of investing allowing to pull back your winners and accumulate your losers.
References: Vanguard, Investing.com
This is not Financial advice. I’m not a Financial professional. Follow this information at your own risk.