AyG
Crazy Mango Extraordinaire
Posts: 5,871
Likes: 4,555
|
Post by AyG on Jan 17, 2021 10:41:48 GMT 7
You don't want to be buying US-listed ETFs - there's a 30% (or possibly 15%, depending on your country of residence and your broker) withholding tax on income. You're better off buying UK-listed ones. Last time I checked, iShares wasn't the cheapest - Lyxor beat them on price. Personally, I use TIPG (US) and GILI (UK) - both from Lyxor.
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,190
Likes: 5,191
|
Post by chiangmai on Jan 18, 2021 11:41:37 GMT 7
I made a mistake earlier, my Baillie Gifford holdings account for 20% of my portfolio so I've rebalanced to 15% (I measured against all holdings including cash rather than just funds). So that leaves me with an interesting problem: I'm holding 12% in cash that needs a home (perhaps). My geographic spread is where I want it to be, no need to tweak anything in that regard. I hold UK small caps. via TB Amati UK smaller companies but I don't hold a corresponding US fund, that could be a (slightly risky) option but probably worth 5%. Alternatively, I could increase the load on the remaining funds proportionally. I recall that TK Rowe Price has a good small caps product, maybe that's worth looking into. Conventional bonds are out plus my jury is still out on TIPS. Go for a defensive holding perhaps....only if I could spot one that performs well. I could leave it as cash for a while to see how markets react to Biden and how the vaccines pan out, that's a strong possibility. Or I could take the money and go lay on the beach at the Brando for a while....I wish.
|
|
GavinK
Crazy Mango
Posts: 101
Likes: 55
|
Post by GavinK on Jan 18, 2021 12:54:53 GMT 7
You don't want to be buying US-listed ETFs - there's a 30% (or possibly 15%, depending on your country of residence and your broker) withholding tax on income. You're better off buying UK-listed ones. Last time I checked, iShares wasn't the cheapest - Lyxor beat them on price. Personally, I use TIPG (US) and GILI (UK) - both from Lyxor. Yes I got hit 30% witholding tax on US divs. I switched out to US listed accumulation EFTs since there's no capital gains tax.
|
|
AyG
Crazy Mango Extraordinaire
Posts: 5,871
Likes: 4,555
|
Post by AyG on Jan 18, 2021 13:13:05 GMT 7
Yes I got hit 30% witholding tax on US divs. I switched out to US listed accumulation EFTs since there's no capital gains tax. If you're holding them in a US brokerage account, you should still watch out for US death taxes.
|
|
|
Post by rgs2001uk on Jan 18, 2021 20:02:10 GMT 7
I made a mistake earlier, my Baillie Gifford holdings account for 20% of my portfolio so I've rebalanced to 15% (I measured against all holdings including cash rather than just funds). So that leaves me with an interesting problem: I'm holding 12% in cash that needs a home (perhaps). My geographic spread is where I want it to be, no need to tweak anything in that regard. I hold UK small caps. via TB Amati UK smaller companies but I don't hold a corresponding US fund, that could be a (slightly risky) option but probably worth 5%. Alternatively, I could increase the load on the remaining funds proportionally. I recall that TK Rowe Price has a good small caps product, maybe that's worth looking into. Conventional bonds are out plus my jury is still out on TIPS. Go for a defensive holding perhaps....only if I could spot one that performs well. I could leave it as cash for a while to see how markets react to Biden and how the vaccines pan out, that's a strong possibility. Or I could take the money and go lay on the beach at the Brando for a while....I wish. Try this, its AyG approved, , I hold it and have no complaints. www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/artemis-us-smaller-companies-class-i-accumulation/charts www.trustnet.com/factsheets/o/krmd/artemis-us-smaller-companiesThe following are not AyG approved, I hold them, again, no complaints. www.hl.co.uk/shares/shares-search-results/p/polar-capital-technology-trust-ord-25pwww.hl.co.uk/shares/shares-search-results/w/worldwide-healthcare-trust-plc-ordinary-25p
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,190
Likes: 5,191
|
Post by chiangmai on Jan 19, 2021 5:30:11 GMT 7
Thanks for that rgs. I'm undecided which is the better US smaller companies fund, Artemis, JPM or T K Rowe Price so I shall have to ponder this.
Worldwide Healthcare looks interesting but I'm already nicely covered on the healthcare side of things and I sure as poo don't need any more technology holdings..
Yep, US small caps is definitely the gap I will try to fill, that'll leave me with 15% small caps, 25% mid caps and 60% large caps (approx). But I think I ight wait until after the inauguration, just in case that throws up any nasty surprises.
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,190
Likes: 5,191
|
Post by chiangmai on Jan 19, 2021 6:23:05 GMT 7
GavinK: I just finished looking through the Factsheets and KIIDS of all the funds I hold, something I do periodically to see what's changed and to remind myself of the details of each fund. What struck me was that none of the funds, apart from SOI (one of my smallest holdings at 6%), have anything invested in Thailand and my holdings in Asia represent a large percentage of my portfolio. SOI has less than 3% invested here.
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,190
Likes: 5,191
|
Post by chiangmai on Jan 19, 2021 7:08:19 GMT 7
I was persuaded that because it's so difficult to pick individual winners in the US markets that holding an S&P tracker was the best idea, indeed the L&G Index Trust has performed very well for me over the past year and I have no regrets. But if you buy say an S&P tracker fund thinking that's the US markets all taken care of, that would preclude you from buying into a whole series of otherwise excellent funds, because they also invest partially in the US markets.
Case in point is Baillie Gifford International which is invested 50% in the US with the remainder invested in markets around the world. I own BG Int. because it's geographical diverse which gives the FM plenty of scope to duck and dive as the need arises, I also hold it because it has excellent performance. The downside is that I have overlap with the S&P tracker, as indeed several other of my funds do, that results in a US asset allocation of over 30% which each individual will view differently. OK so the US market is the largest so my holdings there should be much larger but the overlap and replication of holdings is unavoidable, that's why M'Soft is my biggest single holding inside my funds because every FM involved in technology investing wants to hold it.
The bottom line is that an S&P tracker is a bet on the entire market whereas individual funds invested in the US are a bet on specific companies, the two fund types are therefore compliementary, regardless of the overlap factor. Agreed?
|
|
AyG
Crazy Mango Extraordinaire
Posts: 5,871
Likes: 4,555
|
Post by AyG on Jan 19, 2021 7:25:49 GMT 7
if you buy say an S&P tracker fund thinking that's the US markets all taken care of, that would preclude you from buying into a whole series of otherwise excellent funds It would also have you invest in a lot of companies that, in my humble opinion, are overpriced and don't have a long term future. Here are the top ten holdings: 6.38% Apple Inc 5.05% Microsoft Corp 4.16% Amazon.com Inc 1.97% Tesla Inc 1.90% Facebook Inc A 1.63% Alphabet Inc A 1.58% Alphabet Inc Class C 1.43% Berkshire Hathaway Inc Class B 1.33% JPMorgan Chase & Co 1.33% Johnson & Johnson I wouldn't want to hold any of the top 7 holdings which is just shy of a quarter of the index.
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,190
Likes: 5,191
|
Post by chiangmai on Jan 19, 2021 7:52:22 GMT 7
Sure, you have to take the bad with the rest of them if you buy a tracker.
But that raises two interesting points:
1) you wouldn't want to hold any of the stocks you listed yet all the FM's of the funds I hold do, clearly this is a matter of individual preference rather than anything structural.
2) at some point those stocks were valid purchases for even you, that questions what the lifecycle and duration is of well performing stocks. If the answer is P/E ration then most stocks today should be excluded?
|
|
AyG
Crazy Mango Extraordinaire
Posts: 5,871
Likes: 4,555
|
Post by AyG on Jan 19, 2021 8:38:43 GMT 7
1) you wouldn't want to hold any of the stocks you listed yet all the FM's of the funds I hold do, clearly this is a matter of individual preference rather than anything structural. It's a clear sign that the fund managers of your funds are not looking at the fundamental value of the companies concerned and are simply getting dollar signs in their eyes looking at how the stock prices have gone up and up in defiance of all logic. This style of momentum investing doesn't work forever. It made me think of Warren Buffett and Charlie Munger, two of the most successful investors of all time, so I wondered what they had in their top holdings. Here are the top 15 from the 2019 annual report: Only one of the top 7 S&P 500 stocks is there. An accompanying note, which just about sums up the approach. www.berkshirehathaway.com/2019ar/2019ar.pdf
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,190
Likes: 5,191
|
Post by chiangmai on Jan 19, 2021 8:54:08 GMT 7
Do we end up wondering who to believe in this debate, Mr Munger or Nick Train, Terry Smith, Spencer Adair AND all the other highly experienced FM's who have excellent track records?
I don't have a horse in this race, just trying to work it all out so that I can decide what I believe. I'm inclined to think this is just another point of view, similar to the Tesla argument, don't buy Tesla because because, don't buy FAANG's because because. If we followed all that advice we'd have nothing left to invest in, OR, we'd be left with a bunch of unknown stocks that all needed complete evaluation and when one became successful we would have to let it go, just because it was!
|
|
|
Post by rgs2001uk on Jan 19, 2021 20:52:16 GMT 7
1) you wouldn't want to hold any of the stocks you listed yet all the FM's of the funds I hold do, clearly this is a matter of individual preference rather than anything structural. It's a clear sign that the fund managers of your funds are not looking at the fundamental value of the companies concerned and are simply getting dollar signs in their eyes looking at how the stock prices have gone up and up in defiance of all logic. This style of momentum investing doesn't work forever. It made me think of Warren Buffett and Charlie Munger, two of the most successful investors of all time, so I wondered what they had in their top holdings. Here are the top 15 from the 2019 annual report: Only one of the top 7 S&P 500 stocks is there. An accompanying note, which just about sums up the approach. www.berkshirehathaway.com/2019ar/2019ar.pdfI wonder how many of those companies are too big to fail? Buffet and Munger obviously arent short of a bob or two, are their porfolios more about wealth protection than wealth creation? It sure as hell isnt about income in the form of divis.
|
|
|
Post by rgs2001uk on Jan 19, 2021 20:55:14 GMT 7
Do we end up wondering who to believe in this debate, Mr Munger or Nick Train, Terry Smith, Spencer Adair AND all the other highly experienced FM's who have excellent track records? I don't have a horse in this race, just trying to work it all out so that I can decide what I believe. I'm inclined to think this is just another point of view, similar to the Tesla argument, don't buy Tesla because because, don't buy FAANG's because because. If we followed all that advice we'd have nothing left to invest in, OR, we'd be left with a bunch of unknown stocks that all needed complete evaluation and when one became successful we would have to let it go, just because it was! I have a horse in the race, skin in the game, gawd I hate americanisms. If the truth be told, technology has been with us ever since caveman invented fire and the wheel,it isnt going anywhere, will there be winners and losers along the way, no doubt.
|
|
|
Post by rgs2001uk on Jan 19, 2021 21:02:13 GMT 7
Thanks for that rgs. I'm undecided which is the better US smaller companies fund, Artemis, JPM or T K Rowe Price so I shall have to ponder this.
Worldwide Healthcare looks interesting but I'm already nicely covered on the healthcare side of things and I sure as poo don't need any more technology holdings.. Yep, US small caps is definitely the gap I will try to fill, that'll leave me with 15% small caps, 25% mid caps and 60% large caps (approx). But I think I ight wait until after the inauguration, just in case that throws up any nasty surprises. Ha ha ha, too much info, I will stick with Artemis for the time being. Thanks for the pointers, but have other fish to fry at the moment. Ponder, , I am trying to suss out out where to park the proceeds of Alliance Trust. How long to give Brunner before it gets offloaded, everyone is allowed a bad year or two, but I am watching it like a hawk, and it will be sold in a heartbeat, that leads to more problems, where to put the proceeds, see above. Next on the agenda Croda seems to be up and down like a bargirls knickers these days, have done well out of it over the years, maybe the time has come for us to part ways, more problems, where to park the proceeds. Never had these problems in my poor student days.
|
|