Vedious
29-11-2015, 11:38 AM
Hey everyone,
I'm new to investing and have been trying to absorb all the knowledge available online. I've found Bogleheads Investment Philosophy to be of great help for someone starting out, which can be found here:
https://www.bogleheads.org/…/Bogleheads%C2%AE_investment_ph… (https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy)
The idea of a three-fund portfolio (https://www.bogleheads.org/wiki/Three-fund_portfolio (https://www.facebook.com/l.php?u=https%3A%2F%2Fwww.bogleheads.org%2Fwiki%2F Three-fund_portfolio&h=mAQEmnquoAQGqGW_6dHez6bfV8-a3KB1bI7onl3dDdhRFPg&enc=AZMFrvRufi5oKBFZCADHj0zU8E1TsRdb68wT9YDH0KVzzw el6l19ZfhYz0Pt9G9iIAbbDrgW45Hd-QgHVUAqEcD1pbi_XnZqtVhwB0KDG-KmJNAtngG_QiwBHYqUr_MBlD3F4Ts8nx6bUdX0PoCe7dc0Mw6D 006bZn788pLvraRfATfHoiEPYLPpd7HgoPnSlk4&s=1)) seems appealing due it's simplicity. This involves:
1. A US total market index fund
2. An international total market index fund
3. A bond total market index fund
Bogle recommends holding roughly your age in bonds to reduce the risk of having all your money in stocks.
So following that mindset, and looking at the ETFs available to us in NZ, I would appreciate a bit of advice.
Firstly, what is everyone's thoughts on SmartShares US 500 fund vs their Total World Fund (TWF) bearing in mind the S&P500 is often heralded as the best option for beginner investors and carries lower fees.
Secondly, can anyone recommend an international total market index fund? I can see the benefit of investing in these to diversify and prevent having your investments solely in the US market, but am not entirely sure of their value. Perhaps there is more benefit in investing in one of our domestic ETFs, such as the NZ Top 50 Fund, thereby reducing exchange rate risks.
Lastly, the options for gaining exposure to a bond index appear even more limited. SmartShares offer their NZ Bond Fund and Global Bond Fund. It seems obvious that the Global option would be more diversified and thus lower risk, could anyone advise on these two options?
Sorry for the long post but any advice would be appreciated.
I'm new to investing and have been trying to absorb all the knowledge available online. I've found Bogleheads Investment Philosophy to be of great help for someone starting out, which can be found here:
https://www.bogleheads.org/…/Bogleheads%C2%AE_investment_ph… (https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy)
The idea of a three-fund portfolio (https://www.bogleheads.org/wiki/Three-fund_portfolio (https://www.facebook.com/l.php?u=https%3A%2F%2Fwww.bogleheads.org%2Fwiki%2F Three-fund_portfolio&h=mAQEmnquoAQGqGW_6dHez6bfV8-a3KB1bI7onl3dDdhRFPg&enc=AZMFrvRufi5oKBFZCADHj0zU8E1TsRdb68wT9YDH0KVzzw el6l19ZfhYz0Pt9G9iIAbbDrgW45Hd-QgHVUAqEcD1pbi_XnZqtVhwB0KDG-KmJNAtngG_QiwBHYqUr_MBlD3F4Ts8nx6bUdX0PoCe7dc0Mw6D 006bZn788pLvraRfATfHoiEPYLPpd7HgoPnSlk4&s=1)) seems appealing due it's simplicity. This involves:
1. A US total market index fund
2. An international total market index fund
3. A bond total market index fund
Bogle recommends holding roughly your age in bonds to reduce the risk of having all your money in stocks.
So following that mindset, and looking at the ETFs available to us in NZ, I would appreciate a bit of advice.
Firstly, what is everyone's thoughts on SmartShares US 500 fund vs their Total World Fund (TWF) bearing in mind the S&P500 is often heralded as the best option for beginner investors and carries lower fees.
Secondly, can anyone recommend an international total market index fund? I can see the benefit of investing in these to diversify and prevent having your investments solely in the US market, but am not entirely sure of their value. Perhaps there is more benefit in investing in one of our domestic ETFs, such as the NZ Top 50 Fund, thereby reducing exchange rate risks.
Lastly, the options for gaining exposure to a bond index appear even more limited. SmartShares offer their NZ Bond Fund and Global Bond Fund. It seems obvious that the Global option would be more diversified and thus lower risk, could anyone advise on these two options?
Sorry for the long post but any advice would be appreciated.