ETF Kyle's ETF Portfolio

Discussion in 'Shares & Funds' started by KyleT, 28th Dec, 2010.

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  1. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Hi Dave

    66% of STW is financials and mining. You must really must like resources to get more. :confused:




    Johny.
     
  2. thembi

    thembi Member

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    Sector Tilts

    Johnny,
    Sorry, I was obviously not clear.

    My strategy is not to invest equally in both the Financials and Resources sector at the same time, but rather to tilt or overweight my portfolio using these sector ETFs to the sector I am currently bullish on.

    As I am currently bullish on the Resources sector, I am overweighting my core STW position with QRE - and I not currently purchasing the financials sector.

    This gives you a different overall performance than using the STW alone. For example, I've attached a graph that shows the performance of the S&P/ASX 200 Resources Sector (tracked by QRE), to the S&P/ASX 200 Index (tracked by STW).
     

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  3. Johny_come_lately

    Johny_come_lately Well-Known Member

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    hmm, fair enough. What method do you use to time the market, and switch from resources to financials?




    Johny.
     
  4. thembi

    thembi Member

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    Sector Tilts

    Not really trying to time the market as such. My strategy is broker research, my own analysis on the sector and also the amount of yield I'm seeking.

    I'm growth oriented at the moment so am overweight resources via QRE - when I'm needing a little more yield I'll switch some of my exposure to QFN
     
  5. Johny_come_lately

    Johny_come_lately Well-Known Member

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  6. Redwing

    Redwing Well-Known Member

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    Kyle's most likely no longer around on the forum, but it would've been interesting to see how his portfolio tracked over this period to date, inclsuive of the margin loan
     
  7. KyleT

    KyleT Member

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    Hi Redwing

    I'm not really active around here, however email notification on replies still works!

    I actually pulled out back in August 2011. I was uncomfortable with how much leverage I had. It sure was a lesson learnt and I do not believe I will use a margin loan in a sideways market again.

    I pulled out with a loss of $3585. I just did a comparison with the price of the stocks today, and if I were still in the market, I would be at a loss of $3386. Please note, both of these figures do not include the interest on the margin loan, so if we take that into account over the past 9 months, add another $1200 loss.

    I'm actually studying a career certification at the moment, however once I'm done with that I want to start reading up on the trend following strategy (using chart analysis, etc).

    I guess I'm not experienced enough to say this, but to me it seems that diversification across several countries is not really a safeguard. Global events effects all (most?) markets.

    Regards
    Kyle
     
  8. Redwing

    Redwing Well-Known Member

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    Hi Kyle

    Thanks for the update :D

    We copped a couple of body blows during the GFC with an income based managed fund and a couple of margin calls that we topped up, eventually we sold out as the recovery of lost growth seemed a long term play when there were better opportunities elsewhere
     
  9. OnTime

    OnTime New Member

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    Kyle, as a long term investor, costs will make a big difference to you. Instead of STW, consider using VAS. They both track Australian shares, with one being ASX 200 instead of ASX 300. VAS is almost half the price at 0.15%.
     
  10. Redwing

    Redwing Well-Known Member

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    Is liquidity a consideration?

    i.e. STW would seem to have the ability to trade more so than VAS

    What is the buy-sell spread like?

    I ask as VAS, VTS, VGB, VEU and STW are of interest
     
  11. OnTime

    OnTime New Member

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    ASX prints spreads monthly. In July STW WAS 0.05% and VAS 0.19%. Total cost of each would be 0.34%. You only need to hold VAS for 1 year to be better off.

    Market makers are there for liquidity. Focus on paying net asset value instead of depth of market