Switching from VOO to CSPX | I sold ALL my S&P500 ETF
ฝัง
- เผยแพร่เมื่อ 28 มิ.ย. 2024
- Everyone has their own investment choices and this is solely mine. This is not to be taken as investment advice. I sold all my positions in VOO the S&P500 I started investing into in November 2022. I did the switch as I've decided to increase the amount I was dollar cost averaging in monthly and considering the costs and exchange rates it is now worth it to start on CSPX.
My prior investments into VOO on Syfe Trade didn't cost me any amount. Watch this video here • I started investing in...
I started with $150/200 a month on Syfe Trade (2 Free Trades a month) ➡️ www.syfe.com/invite/demi
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This is so useful. Thanks for sharing and keep making videos like this! :)
Kudos. Very interesting information. Who knew being domiciled in Ireland would have have such a benefit. I look forward to seeing how everything turns out in the end.
wanted to get into Malaysia stocks can use IBKR? is that a good platform with reasonable fees and exchange rate?
Thank you for the video! Was wondering if you could do a video on how to use your notion template? Thanks!
So grateful for your content, helps so much to understand investing and IBKR platform. Do you mind me asking if you were able to purchase bulk would you, or is it more cost effective to just setup reaccuring monthly purchases? many thanks in advance :)
Cost wise one bulk purchase will be more cost effective if you’re comparing with recurring monthly purchases! I’m Dollar Cost Averaging the lump sum :)
Have you explored FSM doing RSP into VUAA? There’s no fee as VUAA is in FSM ETF RSP list and you can even choose to RSP up to 4 times a month. However, the exchange rate might not be as good as IKBR. You can also do recurring cash top up to your FSM which suits the hands-off approach that you are looking for.
Thank you for you video. I have also made a mistake of the pricing tier. Thanks to you , I choose the right option now.
But I have a question? Why choose CSPX after selling the VOO? It is known that VOO has lower risk than SCPX in my opinon. Could you provide your thinking behind the decision. Thank you so much.
Dividend withholding taxes and estate taxes because VOO is domiciled in the US. Largely now due to the fact that I increased my monthly investment to USD$800 a month.
@@DemiZhuang Thank you for you answer. I am going to do some research of CSPX.
@@maomaoyawhy do you say that VOO has lower risk? Both VOO and CSPX are tracking the same index.
Nice work on the Take profit.
You go Girl
Very detailed. Thank you for the video!
Thank you for your video! I was wondering why you chose VOO over VUAA/CSPX
why not buying CSPX on syfe?
I think recurring transfer in sgd, still have to manually convert to usd for the recurring buy of stock to succeed
Nope, not in my experience.
If u just utilize the free trade per month from CMC Invest, would it still be cheaper on Ibkr (even though it would be manual and forex is higher on CMC)?
Hi Demi, is it true that for recurring fractional shares buy for cspx on ibkr cannot use tiered pricing, have to use fixed pricing if buying recurring fractional shares?
Nope, it can be done.
I have been following you for awhile but till now i’m still unsure on how to do my own investments. Any suggestions on how to start it other than using robo? Or any books/websites i could go on to learn more on investments?
Thank you for the content & sharing. Can you share your view on SPYL which is also Ireland-domiciled, accumulating & have a 0.03% expense ratio as compared to CSPX. Thanks
the per unit price is too low. you will pay a extra due to per shares bid spread ratio
Hi..great video. Understand that you plan to invest USD800 mthly into CSPX. Im assuming that you will probably transfer slighly over S$1k. Just wondering how much S$ you transfer to do your monthly DCA. The excess will probably reside in interactive broker......correct??
Any thoughts on SPYL on IBKR? Seems like IBKR dont offer on LSE but on EBS. And due to the fx rates...per trade commission is 1% of trade value which si around 4USD.
Thank you so much for teaching the pricing tier :( I didnt know that was an option
May I ask what are your thoughts on SPYL, it has a lower expense ratio
Thank you and have a nice day!
Lower liquidity, higher spread. I saw this before choosing to do what I did.
@@DemiZhuang Thank you!!
The commision from ibkr for about 150 usd of cspx is approximately 1.80. It bumped up the average price of the cspx I bought. Will accumulating thru DCA be wise if the commission keeps stacking up?
My own journey, before this I used Syfe Trade cus same like you I only did $150 a month. It’s not worth it to pay fees.
@@DemiZhuang so the comission is 0.05% or minimum 1GBP?
a qn i faced when deciding: buying voo on moomoo offers 0 fee, however ibkr always has a fee. does lower withholding tax offset the fee?
thanks in advance
It really depends on how much you put in monthly. Anywhere below USD800 I’d say go with VOO or other ETFs of your choice.
I follow u open up cmc invest. Now they have free trade every month… ibkr got commission… any reason why u choose ibkr? Beside the fx rate ? Fractional share is not my consideration cos I want to buy 2 share monthly. In my case, do u think I Shd continue on cmc invest to take advantage on the free trade? Or is it more worth to use ibkr?
My own choice if i was in your shoes, can continue on cmc. Not advice haha
Ty. Ok then I just use cmc invest.
Hi, I am new to investing and have not used IBKR before, with regards to the payment reference number is that the number provided by IBKR or the broker account set up with the bank? Previously, i used syfe and stashaway which only required like topup by paynow i believe rather than a broker account so Im a bit confused
it's the reference number shown in your account when you get the instructions to send money into your account. each user has a unique reference number.
@@DemiZhuang ok thanks!
Great sharing! Love the step-by-step illustration on IBKR. I personally find the UX painful as well and hence not on IBKR.
may i know what platform are you using now? I am on IBKR but still not that comfortable with the interface. hoping to get something like eTrade functionality (eTrade not operating in my region)
Hi Demi!
Wanted to hear about your thoughts of SPYL vs CSPX on IBKR. I noted that SPYL is cheaper overall, but lower liquidity.
Well snce you are going to DCA into SP500 equivalent you should have taken the chance to take profit from CMC and diversify into other areas with tactical tilts (say a small portion into HY bonds or sector based ETF or geographic (non-us etf) esp with the US market being rich in valuations. Since you wont DCA into those position you portfolio will still naturally tend towards US large cap but at least this is a good chance to rebalance.
Sorry, was ibkr unable to buy cspx fractionally back then?
I bought one whole Stock of VOO since Sep 2022 monthly and it currently holds at 31.48% profit.
What is the best amount to DCA to minimise the cost in IBKR?
$0
@@user-qz9vw9hm4d meh 0
hello, i understand that from your video you mentioned that you are increasing the amt you're investing into S&P 500 which is why you're swapping over to CSPX from VOO. if i were to only invest 200-400/month, would you suggest sticking to VOO over CSPX?
yes I'd still pick VOO over CSPX for low amounts.
@@DemiZhuang why is that exactly? is it due to IBKR's higher trading fee as compared to syfe's 2x free trades & CSPX's higher expense ratio?
for small amount keep buying in voo. once reach 3k. sell all. buy immediately the same amount back in cspx. this way you save a lot of commissions
Hello, thank you for the video. I really find it a struggle to navigate IBKR. Also, do you calculate the EXACT amount of SGD to deposit for 800 USD? Or you deposit an ESTIMATED amount of SGD based on the exchange rate? The OCD in me prefers IBKR to wipe out whatever SGD I have set aside for recurring 🤡
I know what you mean 😂 i also felt that way. I do recurring $1.1K
@@DemiZhuang Inner voice: "Just pay higher fees for your OCD and better navigation" 🤡
Anyway, thank you so much. I really appreciate it 🙏
@@DemiZhuang may i confirm it will be SGD $1.1k = USD $800?
@@captainhook4583 this depends on the SGD/USD exchange rate for the day of transaction! Currently it is 1.36SGD/USD, so 1100SGD = 809USD. While this is higher than the USD $800 with an excess USD $9 or S$12.20 (unconverted), remember we still have commission fees to pay on IBKR and some of these fees would be deducted from the liquid cash balances remaining in your IBKR amount. Hope this helps!
What your opinion on SPLG vs CSPX?
If liquidity is not an issue (retirement), isn't it better if you top up SRS and invest in S&P500 equivalent using Endowus? Can get some income tax savings too and no estate tax. 0% withholding tax if u get the ishare fund.
That’s exactly what I’m doing. My SRS is also in that iShares fund but I’m wondering if the Amundi Prime fund is better or not in performance. What do you think?
@ahsiong88 I can't say with certainty but over the long term...both Amundi and Ishare should be the same. But Amundi has 30% withholding tax vs Ishares 0%. (If I am not wrong).
I just went through these 2 funds on Endowus website. Only a short history to compare these 2 funds. For both 1 year and YTD, the Amundi Prime USA fund performs slightly better than the iShares US index fund.
@@jinwooo2724I just went over the 2 funds data in Endowus website. Not a long history to compare them but for both 1 year and YTD performance, the Amundi Prime is slightly better than iShares US fund. Still considering whether to switch over to Amundi or not because of the nickering fear of counterparty risk for synthetic fund. Anyway my OA is invested in Amundi and my SRS is in iShares.
Does ibkr charges $2 for currency conversion? If so it would not be worth it
I didn’t incur this!
This is a very useful video, thanks
Is there an equivalent of SCHD tho?
Hi Demi, what about Tiger Brokers? Was that platform part of the consideration?
CSPX is only offered on a few brokers, tiger isn’t one of them. Mentioned about platform choosing in the video.
That's gotta hurt losing 4% on the money conversion. But better now then later when you grow your portfolio even more
There is actually no need to convert usd to sgd to usd and suffer conversion losses. You could simply transfer out in usd to a multi currency account (e.g DBS), then transfer the same USD into IBKR.
hi demi! did u just use the currency converter in SYFE to convert from SGD to USD?
Yup
Why did you change dollars to different currency, sent it to IBKR and then changed it to dollars again when buying the shares?
there's a charge if i send USD in and out of my bank. wasn't worth it when i calculated.
@@DemiZhuang I am using Revolut for this. Keeping different currencies there and sending money to/from broker.
Aren’t there cheaper alternatives from Investco and SPDR?
I started out doing RSP on an Irish domiciled ETF using FSM (ifast), however i chose VUAA in this case.
Yeah that’s what I’m doing too. Though I wish they can have more ETF on their ETF RSP list such as CSPX, SPYL, etc. but VUAA is good enough though. I also RSP into IUIT.
Actually if you want 0% dividend tax you cam invest in synthetic ETFs. Though it comes with it's own set of risks like counter party risks. HOwever, usually the counter parties are very large banks which have low risk of failing.
Can you list out a S&P 500 synthetic ETF? I’ll like to find out more. Thanks. The only one I know now is a Blackrock fund in Endowus but it’s not an ETF.
@@ahsiong88 Check for SPXS and I500
@@ahsiong88 Hi you can look for SPXS and I500
Syfe doesn't allow withdrawal in USD?
allows but receiving and transferring USD both ways has fees
Think one thing you may or may not realize is that when you are 40 looking back, that decision to wait and decide when to invest that profit may look silly given how much capital you would deal with then.
It may be less effort to just invest now because most that choose to wait will either agonize over whether a 3% fall, or a 5% fall is large enough. And when it never comes, you end up either just investing at a higher price, or wait more.
You would be adding more capital to it through the RSP program and this may end up similar.
Ultimately, what you have to contend with whether you should buy-and-hold, or have a valuation allocation layer in your investment decision making in the future when your capital reaches $200,000 for example. Those decisions will be more impactful than the sum you have now.
doestn this mean ur compound interest is reset?
Any particular reason why CSPX and not VUAA?
VUAA has a lesser trading volume and a greater spread. Makes it a bit harder in terms of limit orders and you may lose a few dollars
@@phantommarine29but if you are just doing DCA then maybe the different in volume and spread might not impact much in the long term?
Did you have to pay any taxes on the profit for selling VOO?
madam spyl lower expense ratio also ireland domicile 😊
👍
Why did you choose CSPX and not VUSA? I personally have VUSA. It has a better return over a decade and pays out the dividends. I have two ETF’s manly. VUSA and VUTY. I buy it with a 90% VUSA and 10% VUTY. Just like warren buffet advices. I prefer to get dividends pay out because when stocks are low I will use my dividends to buy VUSA and when bonds are low I focus more on bonds VUTY. This way life is easy and flexible. I will ad 2 more ETF’s VEMT for bonds and one more for stocks not sure which yet. Like a developed euro etf. I’m from the Netherlands and with Ireland based etf we pay 0% dividend tax. How is life going in Japan. I’m looking so forward to visiting Japan.
Maybe not so straightforward to compare CSPX and VUSA as they are denominated in different currencies. Over the long term their performance looks quite similar but I’m not sure what is the currency effect. A more direct comparison will be between VUSA and VUAG. Both are in GBP but VUAG reinvest its dividends. Over the long run, VUAG performs much better.
What lol?
VOO is in $, CSPX too. VUSA are £ that’s for starters. Vusa is distributing and CSPX is accumulating, you don’t compare two different entities to each other like that. From the three Vusa is the youngest, two of the rest have longer track record lol. Add currency volatility and you’re losing. Learn your facts before you post dumb shit
Technically if you didn’t sell VOO you’re also deployed. Don’t need to time the market and just put it in the market. A red in IBKR does not mean a red in your portfolio. You’re still green from VOO.
bit of trick in the title, you imply you sold all your sp500 etf which u didnt.
S&P 500 is going to 7,000
You sure you don’t wanna ride it all the way up?
I don’t think I’ll switch from voo. Don’t wanna think of it
You do you!! 👍🏻 as long as you’re good w it, no one can tell you otherwise!!
cspx FTW
Why don't you stick with SYFE though? 2 free trades per month.
No cspx in syfe trade but in syfe wealth. U have to pay extra mgt fees. Not worth
Do you need an ibkr referral? 😊
Fk no
@@pork6811 :(
Found out about SPYL and sold all S&P 500 ETF again😂
Already knew about that before this decision.
Why didn't you try SAXO ?
Fees are higher.
Are you still on moomoo?
Sg stocks n some US yes
Hey Demi, just put the $6K lum sum into CSPX & forget it for 20 years. No need to vomit blood & cost dollar average for such a small amount.
🫡