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Crazy Mango
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Post by 3 on Sept 23, 2018 9:26:30 GMT 7
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AyG
Crazy Mango Extraordinaire
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Post by AyG on Sept 23, 2018 9:49:14 GMT 7
To save others wasting 6:47 of their life listening to this tedious video, he invests in iShares MSCI Thailand ETF listed on NYSE Arca. It's symbol there is THD (hence the THD in the title, which I'd thought was a mistake for THB).
He's completely ignored the taxation of dividends, and if he lives in Thailand he'd be better off investing in a Thai ETF. He'd also be better off investing in a good actively managed mutual fund.
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3
Crazy Mango
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Post by 3 on Sept 23, 2018 9:52:28 GMT 7
I posted the video AYG for peoples opinions, as I'm aware there's people on here who know a lot about investing.
Might even get him over here for advice.
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AyG
Crazy Mango Extraordinaire
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Post by AyG on Sept 23, 2018 10:16:07 GMT 7
I posted the video AYG for peoples opinions, as I'm aware there's people on here who know a lot about investing. Might even get him over here for advice. Not having a go at you for posting this. What he says sounds very credible. However, it does concern me that what he says is incomplete and in places inaccurate. He is talking authoritatively about a subject about which he apparently knows a bit, with the danger people might actually believe him and act upon his advice. (People far too readily believe any old tosh they see on the Internet.) |
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Post by Fletchsmile on Sept 24, 2018 10:20:50 GMT 7
In fairness he is talking about investing in Thailand from outside Thailand without bringing money into the country, and in that context an ETF such as THD is an easy option. To be honest though I'm not sure why that would make sense for most people, unless they have a specific view on Thailand and reasons why Thailand offers more potential than other EMs or other Asian markets. For someone outside Thailand that doesn't want to bring money into Thailand they would likely be better off with a broader ETF fund, eg one that invests in Asia, SE Asia, EMs etc. The guy gives no compelling reason to choose Thailand relative to peers. Investing specifically in Thailand because you have some form of ties to Thailand, would make much more sense. If you have such ties then it could well be more sensible to bring money into Thailand anyway, for a variety of reasons. I've said for a couple of decades now, that the best Thai funds are generally in Thailand. Not a surprise really as the best UK funds tend to be in the UK, best US funds in the US etc. Obviously a generalisation and there may be the odd exception. But that's often where the biggest demand is and also where the best local knowledge of the markets is. The range of options is much better in Thailand. There are plenty of active managed funds I would prefer to an ETF index tracker. If someone really wants to go the ETF route because of "cheaper/low cost fees" there are cheaper options within Thailand than THD, eg TDEX has been around for about the longest and is 0.4% p.a. ESET50 from (Krungthai AM) is only 0.3% p.a. Both compare with 0.6% for THD www.set.or.th/set/etfscreener.do?language=en&country=USAnyone recommending ETFs/mutual funds/unit trusts etc also really needs to touch on tax implications and how your broker handles tax in addition to the actual taxation by home/host country
So in summary for me: if investing in Thailand from Thailand, there are a much better range of options inside Thailand. If you're not inside Thailand want to keep your money outside Thailand and have no ties to it, one has to wonder why you are specifically choosing Thailand as a stand alone country and not other location. And think about tax.
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AyG
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Post by AyG on Sept 24, 2018 13:24:00 GMT 7
Anyone recommending ETFs/mutual funds/unit trusts etc also really needs to touch on tax implications and how your broker handles tax in addition to the actual taxation by home/host country Indeed. In this case THD yields 3.94%. If you're Thai resident and buy it through Saxo Singapore you'll pay 30% withholding tax on that, and through Internaxx Luxembourg you'll pay 15%. This reduces your return by 1.2% and 0.6%/year respectively. Add this to the annual management charge of 0.6% and you'll underperform the index* by between 1.8% and 1.2% each year. Compare this with USD denominated funds based in Luxembourg: Fidelity Thailand Y-Dis-USD charges an annual management charge of 0.8%; Templeton Thailand W (acc) USD charges 1.1%. (These are the available classes from Internaxx.) No withholding tax. So, the funds are cheaper than the ETF once tax is taken into account. Plus you get the benefits of active management. Plus you won't be paying tax to Trump to fund his overseas wars and Mexican wall. Whilst not a complete analysis, it's pretty clear that THD is an odd thing to recommend. * The index itself is MSCI Thailand which has 34 constituents. PTT is the largest weighting at 13.6%. The SET50 has (pretty obviously) 50 constituents, so it is more diversified, which is probably a good thing. A SET50 tracker would be preferable to THD. |
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Post by rgs2001uk on Sept 24, 2018 22:00:48 GMT 7
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Jan 4, 2023 21:15:53 GMT 7
Jan 4, 2023 21:15:53 GMT 7
