Our TOP lessons from 10 years of ETF investing in Australia
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- เผยแพร่เมื่อ 6 เม.ย. 2024
- Investing can be simple: in fact, simple is quite often the best approach.
Kate & Owen share what they've learnt during their ETF investing journey in this episode.
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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.
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Thanks team. I am yet to purchase any EFT's, however I recently helped my son to purchase after listen to a recent show. 50% IVV and 50% NDQ. Both up 7% since December 2023. Nice one.
IOZ was my first etf. I paid off my personal loan for my car and started investing those weekly payments.
How much did you invest in every month and for how long? If I may ask.
Kia Ora,
Hey, I started to listen to you guys last month and learned heaps of things about investing, ❤
Thanks, guys educating more people
Great episode!
Thanks guys, great insights. One question, why invest in a bond ETF when its return over 5 years is negative. Would a slightly more aggressive ETF like VAP be a better way to avoid market volatility?
Is there a direct indexing ETF for only stocks that increase in value by 10% per year.
Something I'm yet to understand after owning ETFs for several years now, is why invest in an ETF that returns considerably less than another, purely for the sake of "diversification"? EG, over the last 5 years, STW has returned approx 10.6% pa, IVV 20.8%pa, NDQ 29.6%pa, so why would I invest in VGE (emerging markets) 3.64%pa, ASIA 9.8%pa, etc when they are so low? In fact, why not just own IVV and NDQ?? Even SOL only returns approx 11%pa (all over the last 5 years)
Investments should rarely be based off past performance (particularly short term performance - which 5 years is)...If you felt as though growth stocks such as Nvdia, Tesla etc are bound to keep going up then sure, chuck all your money into IVV and NDQ. But if you felt as though there may be a chance that China's economy may rebound or that Tech stocks aren't going to continuously go up, then you wouldn't want to have all your eggs in the tech/finance basket so to speak (or the USA/Developed markets baskets)
@@lachyfurtado3362 Well put by Lachy; these are long-term investments. Businesses don't all blow up instantaneously, not like coins do spontaneously. It takes a while for businesses to show results, hence their current and past valuations should be small factors when considering their future valuation-instead, look into the fine print.
You could have said the same 2 yrs ago but change ndq with lithium sector.
Why not just invest in lithium, it's the future and has doubled in value..... 2 yrs later the sector has tanked. Lucky you diversified 😉
they can try to do paper or mock trading to start to (need more info) then use the, $100,200,300 method (your level of put money where faith is) and just buy ETFs that covers a broad spectrum of sectors/countries and monitor their ETF 'piggies' then add X funds as see fit so at least one isn't investing to a level that they cant sleep or are more interested in the numbers not falling than going to work and please their big B.
Great video!! Around the 27 minute mark you go through a calculation. Why do you pick compounding annually instead of compounding monthly? I have never known which option is correct to pick.
yes, I'd be interested in knowing that, too
Diversification in ETF, near half your money is allocated to the top 10-20 stocks in most ETF,s and of those 10-20 stocks half are banks and miners , that's not to much diversification
Thank you guys. Quick question, should one have multiple ETFs?
That’s a great question David and one we’d be happy to answer in a Q&A on the shows. The answer, I’m afraid, is ‘it depends’. It depends on what the investor is trying to achieve. That said, I can’t say I’ve seen an investor who has one ETF and is completely comfortable with it. Even if our investors hold a diversified ETF, they often report to us that they hold a few more.
If you follow the link below, scroll down to the button that says “asset allocation”. From there you’ll see the ETFs we currently hold.
invest.rask.com.au/invest-with-us/rask-terra
Are ETFs safe? If I buy A200 what happens if Betashares goes into bankruptcy? My understanding is that Betashares still owns the underlining shares even though it says I have XX units in my brokerage account ?
They won’t go bankrupt but if you are concerned about ownership you can invest with a CHESS sponsored broker.
Invest with a HIN, e.g: stake, CommBank brokers when you sign up have you get a HIN and the shares are then yours
I am new in Australia and I am 39. Which ETF is best to start with? I have seen readymade portfolio from Vanguard and then there is Beta shares platform as well and more platform as well. And, what kind of portfolio will give high returns? I can also start 10K and 500 / month then.
Thank You
Tarun
I’d go for S&P 500 (IVV) first up.
Or IOO
1. NDQ, 2. IVV, 3. VGS in that order. started at the start of the year
What a coincidence! Exactly my portfolio, and also started early this year. Happy with the growth and the dividends I got. Didn’t know it is quite easy. 😊
@@ximenhyper can i ask how you do that do you open 3 different brokers
Does micro investing pay off like raiz ?
I have used Raiz to set aside money for my child, putting $10 per week away for over five years now. I have put some extra money in it from time-to-time and have $4,800 in Raiz now. The bad is that you pay a high monthly fee for such small amounts.
I think most also think they need to knock there mortgage over first ? At least that’s what I been thinking
Your channel is my go-to when I need a pick-me-up. Thank you for that!
Hello, EFT is good in Australia, but we need cash in case of credit card drama which happens and lost wallet problems, so security check and give money.
Amali
Australia
Thanks.
Start building up an emergency fund in a high interest savings account.
Aren’t you doubling up on a lot of stocks with both NDQ and IVV??
Yep! There is significantly overlap between the Nasdaq 100 and S&P500 lists of companies. If an investor wanted more tech exposure, there would be more efficient ways of doing that than holding both NDQ and IVV. Cheers!
Owen Rask
Hi team. So new to this. Such a nubie, I'm at the downside of my working life, Have just sold investment property now want to invest in shares. Help. Laughing is $420k enough...
17:00 so Vdhg?😜
VDHG is the best!!
@@AMRIT3018 Nah DHHF is better
@@Portal100kgJJ how? Why?
RISK: You Do Not own the underlying asset. So if Beta Shares sponsoring this program goes broke, then you Will Lose Everything as you actually own nothing. There is also a cost! So simply look at the shares they are buying and then buy the same. this way you save management fees and you skip any risk, as shite happens. I'm blown away these kids don tell you this.
ETF are ok,,, but i do think its a lazy way to invest
Most of us don’t want to follow the market daily or want to risk putting all our eggs in one basket. Good on you if you (a) have the time and (b) have the risk appetite!
These shows always have the disclaimer seek advice from you financial planner. In my early days of investing it took me a while to realise that these financial planners were legalised con merchants. I trust my own judgement now happy in the knowledge that if I am right or wrong, I didn't get conned.
Fair enough Neville. I know what you’re saying. We’re required to do that disclaimer and we try to make it fun. Kate and I have been ETF investing for a long time and we LOVE that anyone can start building a portfolio from Day O. Thanks for commenting - keep ‘em coming! Owen Rask