Another ETF portfolio!

[RodolfoMcM]

I've spent the past few hours reading some very useful GeoExpat threads on ETF portfolios and brokers. Given that (a) some people seem to genuinely enjoy debating one another's portfolios and (b) there's a lot of knowledge on this forum, I'm going to post my proposed portfolio for public admiration / ridicule.

Lump sum of US$100,000 then US$10,000 per month into:

IGLS (iShares UK Gilts 0-5 years) - 30%
CUKX (iShares FTSE 100) - 20%
VWRL (Vanguard FTSE All-World) - 50%

All to be bought through Saxo, redistributed periodically but otherwise held for 20+ years. I'm British and a lazy investor.

[pin]

Are you intending to retire in the UK?

[RodolfoMcM]

I'd say the chance is 50/50.

[Sith]

If your investment horizon is 20+ years I would personally put it all Equities, hell my investment horizon is not that long and I don’t buy bonds.
For the rest I just think you are a bit heavy on UK. Hence Pin asked you if you are planning to retire there.
As a famous saying goes most people mistake familiarity with knowledge (about being bias with their home country)

[pin]

I would do a mix of the following:

- IWDA or VWRL
- EIMI or VDEM
- AGGG

What you suggest however would work, nothing wrong with it.

If you are getting paid in HKD, probably go in USD. You need to decide how to convert your HKD into USD because the Saxo rate isn't the best (I use IB to do that). One thing you could do is have USD100k in IB (therefore not have to pay any account fees) and your USD10k a month top up, via Saxo. Obviously if you get paid in USD, then no issue.

Its really up to you and your risk profile as to your bonds coverage. I'm of the mind that you need some sort of anchor and need an element of bonds. But that's just me, do your own research and decide your own risk profile.

[greenmark]

IGLS has avg yield to maturity of 0.8%, and fees of 0.2%. Saxo will take another 0.12% as well.
You''d be better off leaving it as cash in a bank account.

If you are 50% likely to retire in the UK, I'd rather put some towards the UK market than towards emerging markets. That way if the UK economy booms you won't be left too far behind. If it tanks then you won't need that much money to retire there.

[RodolfoMcM]

Thanks for the replies! Let me look again at the bond part. I'd be happier with 100% equity if we weren't sitting at historic highs for shares.

[shri]

For the record, mine is a combo of the following ETFs (about 50% of the target portfolio is individual stocks).

IWDA / LQDE / XLK / VDJP / 2800 / VEUD - Ratios vary, do buy some every month (IWDA), some every quarter (LQDE) and some when the price is right (lately 2800 / a month or so ago XLK).

Will be adding XLC or SXLC (forget what the UCITS / Ireland version is) - as there is some restructuring planned in Sept.

I prefer the iShares all world ETFs (IWDA - accumulating not distributing) as I found the liquidity a bit better than V* equivalent.

[pin]

For the record, mine is a combo of the following ETFs (about 50% of the target portfolio is individual stocks).

IWDA / LQDE / XLK / VDJP / 2800 / VEUD - Ratios vary, do buy some every month (IWDA), some every quarter (LQDE) and some when the price is right (lately 2800 / a month or so ago XLK).

Will be adding XLC or SXLC (forget what the UCITS / Ireland version is) - as there is some restructuring planned in Sept.

I prefer the iShares all world ETFs (IWDA - accumulating not distributing) as I found the liquidity a bit better than V* equivalent.

Do you feel with IWDA and VEUD there is some overlap? I appreciate that IWDA will have more of a tilt to the USA, but significant proportion of IWDA is in Europe as well.

[RodolfoMcM]

Re the global ETF, I want a FTSE All-World or MSCI ACWI tracker (instead of Core MSCI like IWDA) to give me 8/9% exposure to developing markets. Vanguard's is a bit cheaper than iShares (ACWI). Liquidity not such a concern of mine at the moment.

LQDE or AGGG certainly looking like better choices than IGLS, cheers!