Choosing an ETF

[jjtrader]

HI,
how does one go about choosing an etf in comparison to choosing companies to invest in. I will be after a high yield dividend etf. I know what to look for to choose dividend stock, obviously the fundamental metrics cant be applied to a group of companies that the fund invests in. Do I just look at the % performance of the fund and forget about the rest.

 

[Panaman]

An etf is very different to a single stock, I looked at all the index etf,s for my super and particularly for a high dividend one, basically it came down to just 2 that I thought were the best and very little between them

State Streets Select high Dividend ETF (SYI) and Vanguards Australian Shares High Yield ETF (VHY)

Go to there websites for a run down of how they manage the funds and the index they track plus performance, both though have performed very well.

http://www.spdr.com.au/etf/fund/fund_detail_SYI.html

https://www.vanguardinvestments.com.au/retail/ret/investments/etfdetailVASHYE.jsp

I chose SYI, and the only reason was to diversify away from Vanguard were I add all my employer and salary sacrifice contributions to there balanced fund.

 

[sydboy007]

I use the iShares IHD high dividend yield ETF. I picked it because they have sector and share limits, which helps to reduce their investment in the financial stocks and forces them to be a bit more diversified than other high yield ETFs.

 

[li21]

Any more suggestions on solid ETFs with good dividend yield ?

 

[Tightwad]

I looked at it recently and chose VHY, still waiting for a bit of a dip to start buying however.

this may be useful http://www.switzersuperreport.com.au/2011/high-income-etf-smsf/

 

[li21]

I looked at it recently and chose VHY, still waiting for a bit of a dip to start buying however.

this may be useful http://www.switzersuperreport.com.au/2011/high-income-etf-smsf/

Thanks for that, that was a good read.
What is target price you are looking to enter VHY at?

 

[Tightwad]

i've got it set for 64.55, which was about where it was last time it dipped.. i'm no expert with charts, i'll just buy a reasonable amount and average down if it happens.

I'm looking for one that tracks the nasdaq at the moment, bit of a correction today

 

[CanOz]

i've got it set for 64.55, which was about where it was last time it dipped.. i'm no expert with charts, i'll just buy a reasonable amount and average down if it happens.

I'm looking for one that tracks the nasdaq at the moment, bit of a correction today

QQQ - Powershares QQQ Trust

 

[Tightwad]

yeah the qqq one looked good, i'm not set up for international shares at the moment though. none of the local etf's seem to follow it

 

[thembi]

Any more suggestions on solid ETFs with good dividend yield ?

If you're after yield you might want to check out the Yield Maximiser Fund (ASX: YMAX)

See this link http://www.betashares.com.au/products/name/equity-yield-maximiser-fund/#each-keyFacts. 12 mth yield has been >9%.

It holds the ASX 20 and has a strategy to optimise yield ("buy write" strategy) which is often done by stockbrokers..

 

[Newbunymo]

I know its a bit late, but I recently started investing in EFTs and it turns out there are some really options now like'Vanguard Total World Stock'.
As an investor, purchasing companies ‘s stocks on foreign trading exchanges could be messy. There are a lot of rules and regulations. There also needs to be a foreign exchange transaction completed in the country that the investment will be made into. Ownership in the VT ETF, however, solves everything with one straightforward purchase. For this reason, it’s my best dividend ETF.
For more: Dividend ETFs for 2017
Also, the annual management fee annually is 0.14%; which simply means that for each $100.00 invested, $0.14 is paid to the management team.

Great !!

 

[Boggo]

I've had VAS (ASX300) in my SMSF for about a year now, dividend yield of about 3.5%, unit price appreciation and the mer is 0.14%.
I look at it as a way of parking cash.

 

[Wysiwyg]

Some mention on the early retirement thread bout investing 1million in ETF fund(s?) to live off distributions. I know the share market a bit and checked some ETF performances and I am not convinced this is a viable path. The underlying investments are susceptible to lengthy periods of mediocrity and the actual ETF price can maintain a long downtrend. Not good for drawing funds from under those circumstances.

Looking at one ETF in particular and relevant I think is the BetaShares Australian Div Harvester(mgd) (HVST). Looking at the distrbution for this ETF shows a reduction over time and the HVST price itself is in a long term down trend. I don't want to investigate where a million dollars would be without withdrawing along the way or DRP but a buy at inception for $25 would give 40,000 units. Those units are now valued at $640,000. I added all the monthly distributions since inception and multiplied by the number of units. That comes to $7.41686 x 40,000 = $296,674.40. Add the 640k present value = $936,670.40.

Less than a million dollars not including tax on distributions if payable. Hopefully I have not missed anything but if anyone thinks any investment is a put in take out then they are wrong.

Distribution data from Betshares. Chart Yahoo.

Recent Distributions

Ex Date Record Date Payment Date Distribution Unit ($) Annual Distribution Return (%) (1)
1-Mar-18 2-Mar-18 16-Mar-18 $0.15003 -
1-Feb-18 2-Feb-18 16-Feb-18 $0.15003 -
2-Jan-18 3-Jan-18 17-Jan-18 $0.15003 8.79%
1-Dec-17 4-Dec-17 18-Dec-17 $0.15003 9.18%
1-Nov-17 2-Nov-17 16-Nov-17 $0.15003 9.60%
2-Oct-17 3-Oct-17 17-Oct-17 $0.15003 9.15%
1-Sep-17 4-Sep-17 18-Sep-17 $0.15003 9.16%
1-Aug-17 2-Aug-17 16-Aug-17 $0.15003 9.21%
3-Jul-17 4-Jul-17 18-Jul-17 $0.1556 9.57%
1-Jun-17 2-Jun-17 19-Jun-17 $0.16662 10.08%
1-May-17 2-May-17 16-May-17 $0.17165 11.12%
3-Apr-17 4-Apr-17 20-Apr-17 $0.17381 11.23%
1-Mar-17 2-Mar-17 16-Mar-17 $0.17103 11.11%
1-Feb-17 2-Feb-17 16-Feb-17 $0.17453 11.13%
3-Jan-17 4-Jan-17 18-Jan-17 $0.17291 11.56%
1-Dec-16 2-Dec-16 16-Dec-16 $0.17249 11.32%
2-Nov-16 3-Nov-16 17-Nov-16 $0.18019 11.22%
4-Oct-16 5-Oct-16 19-Oct-16 $0.18012 11.60%
1-Sep-16 2-Sep-16 16-Sp-16 $0.18343 11.64%
2-Aug-16 3-Aug-16 17-Aug-16 $0.20047 11.51%
1-Jul-16 4-Jul-16 18-Jul-16 $0.1813 11.45%
1-Jun-16 2-Jun-16 16-Jun-16 $0.20575 11.12%
2-May-16 3-May-16 17-May-16 $0.20427 10.59%
1-Apr-16 4-Apr-16 15-Apr-16 $0.20477 10.10%
1-Mar-16 3-Mar-16 16-Mar-16 $0.20171 9.70%
1-Feb-16 3-Feb-16 16-Feb-16 $0.21224 10.06%
4-Jan-16 6-Jan-16 19-Jan-16 $0.21208 10.16%
1-Dec-15 3-Dec-15 16-Dec-15 $0.21594 10.37%
2-Nov-15 5-Nov-15 18-Nov-15 $0.21587 9.89%
1-Oct-15 6-Oct-15 19-Oct-15 $0.21545 -
1-Sep-15 3-Sep-15 16-Sep-15 $0.21102 -
4-Aug-15 6-Aug-15 19-Aug-15 $0.21327 -
1-Jul-15 3-Jul-15 20-Jul-15 $0.21621 -
1-Jun-15 3-Jun-15 17-Jun-15 $0.21711 -
1-May-15 5-May-15 18-May-15 $0.22118 -
1-Apr-15 3-Apr-15 20-Apr-15 $0.22173 -
2-Mar-15 4-Mar-15 17-Mar-15 $0.22429 -
2-Feb-15 4-Feb-15 17-Feb-15 $0.22935 -
2-Jan-15 6-Jan-15 19-Jan-15 $0.22724 -
1-Dec-14 3-Dec-14 16-Dec-14 $0.235 -

 

[investtrader]

Does anyone know of a website that tracks ETF prices versus NTA. I am specifically looking for undervalued ETF's. Best result would be a free resource.

 

[monkton]

Does anyone know of a website that tracks ETF prices versus NTA. I am specifically looking for undervalued ETF's. Best result would be a free resource.

If buying an index etf like vas, stw, ioz or a200, then the it's daily price is pretty much it's nta.

 

[investtrader]

Sorry - I meant LIC. Duuuhhh..

 

[Dona Ferentes]

Bell Potter do a pretty good coverage. I'll find a link.

NTA only comes out once a month, some LICs, especially those trading below, tend to release data weekly or even daily (if desperate)

LIC reports and updates

Various reports and updates on Listed Investment Companies (LICs) and Listed Managed Investments (LMIs) as provided by Bell Potter, Independent Investment Research, and Morningstar.

www.firstlinks.com.au

 

[Sharkman]

i think one of the FIRE guys (either Aussie firebug or Pat the shuffler IIRC) was working on some sort of LIC tracker at some point, you could try searching their blogs for it if you're keen. i don't invest in LICs so i didn't look too closely into it though.

 

[investtrader]

Bell Potter do a pretty good coverage. I'll find a link.

NTA only comes out once a month, some LICs, especially those trading below, tend to release data weekly or even daily (if desperate)

LIC reports and updates

Various reports and updates on Listed Investment Companies (LICs) and Listed Managed Investments (LMIs) as provided by Bell Potter, Independent Investment Research, and Morningstar.

www.firstlinks.com.au

Dona,

That looks pretty good. Many thanks
Cheers Gary

 

[investtrader]

i think one of the FIRE guys (either Aussie firebug or Pat the shuffler IIRC) was working on some sort of LIC tracker at some point, you could try searching their blogs for it if you're keen. i don't invest in LICs so i didn't look too closely into it though.

I;ll have a quick look
Thanks
Gary