Search found 32 matches

by RME
Sun Jun 23, 2019 8:42 am
Forum: Investing - Theory, News & General
Topic: Does investing in US stocks mean investing in US Dollar?
Replies: 19
Views: 1724

Re: Does investing in US stocks mean investing in US Dollar?

This could be a tricky question depending on what is the meaning of "investing in US Dollar." Thanks for your reply By "investing in US Dollar" I mean having your purchasing power affected if the USD drops for example 50% in the next 5 years in comparison to EUR. By "investing in EURO" I mean havin...
by RME
Wed Jun 19, 2019 12:22 pm
Forum: Investing - Theory, News & General
Topic: Does investing in US stocks mean investing in US Dollar?
Replies: 19
Views: 1724

Does investing in US stocks mean investing in US Dollar?

Hello, Im trying to wrap my head around currencies. Consider a European investor that currently holds 50% in unhedged US stocks, 30% in EU(-ropean) stocks and 20% on EURO bonds. Will you consider that (A) this person has half of his investments in USD and half on EUR? Or on the contrary, (B) that ho...
by RME
Sun Feb 10, 2019 1:25 pm
Forum: Investing - Theory, News & General
Topic: Synthetic replication risk VS Securities Lending risk
Replies: 2
Views: 330

Re: Synthetic replication risk VS Securities Lending risk

Has someone studied this issue? I've found this papers about Securities Lending: VANGUARD - https://personal.vanguard.com/pdf/ISGSL.pdf From this paper: In the United States, borrowers generally pledge cash collateral equal to 102% of the value of domestic securities and 105% of the value of non-U.S...
by RME
Sat Jan 19, 2019 3:53 pm
Forum: Investing - Theory, News & General
Topic: Synthetic replication risk VS Securities Lending risk
Replies: 2
Views: 330

Synthetic replication risk VS Securities Lending risk

Hi, I already know some basics about Synthetic replication risk, I know that they are backed by a basket of bonds or cash and the SWAP contract is renewed frequently to avoid risks. In spite of everything, physical replication is recommended to avoid the small risk. What's the difference between SWA...
by RME
Wed Jan 16, 2019 6:08 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 58124

Re: John Bogle is dead at 89

May he rest in peace
by RME
Fri Oct 26, 2018 4:36 am
Forum: Non-US Investing
Topic: [EU] Bond funds in a negative interest rate enviroment
Replies: 3
Views: 562

Re: [EU] Bond funds in a negative interest rate enviroment

US investors can also write their opinion on this.
by RME
Wed Oct 24, 2018 2:13 pm
Forum: Non-US Investing
Topic: [EU] Bond funds in a negative interest rate enviroment
Replies: 3
Views: 562

[EU] Bond funds in a negative interest rate enviroment

Hi, I already understand the role of Bonds in a portfolio, the behaviour of a bond fund and basic bond theory. I am trying to understand if it makes sense to hold bond funds if interest rates are negative as they are right now in the Europe. As a reference, this is the bond fund that I'd choose if I...
by RME
Tue Aug 28, 2018 6:00 am
Forum: Personal Consumer Issues
Topic: Recommend a good SOCK. Yes, I said SOCK!
Replies: 77
Views: 7756

Re: Recommend a good SOCK. Yes, I said SOCK!

Going for just one sock is very risky, I'd recommend you to buy a diversified low cost sock index fund. This fund invest in multiple socks from different brands and styles.
by RME
Thu Jun 14, 2018 7:30 pm
Forum: Investing - Theory, News & General
Topic: Interest Rate Differential: The case for currency hedging
Replies: 2
Views: 594

Re: Interest Rate Differential: The case for currency hedging

Hi! As I understand, hedging a currency "costs" the differential between interest rates. Currently this differential is near 3% between EUR and USD so if you hedge the S&P 500 from USD to EUR you are "loosing" nearly 3% (without taking into account USD/EUR movements). https://i.imgur.com/agFKj9i.pn...
by RME
Thu Jun 14, 2018 8:13 am
Forum: Investing - Theory, News & General
Topic: Interest Rate Differential: The case for currency hedging
Replies: 2
Views: 594

Interest Rate Differential: The case for currency hedging

Hi! As I understand, hedging a currency "costs" the differential between interest rates. Currently this differential is near 3% between EUR and USD so if you hedge the S&P 500 from USD to EUR you are "loosing" nearly 3% (without taking into account USD/EUR movements). https://i.imgur.com/agFKj9i.png...
by RME
Tue Jun 12, 2018 3:19 am
Forum: Non-US Investing
Topic: [EU] Do bond funds like VANEGBX invest in negative interest bonds?
Replies: 2
Views: 395

[EU] Do bond funds like VANEGBX invest in negative interest bonds?

Hi, The Euro Government Bond Index Fund holds nearly 20% of bonds with a duration less than 3 years, this bonds are issued mainly by France (24%), Italy (21%) and Germany (20%), two of the three offer negative interest rates as today: France 2-Year Bond Yield -0.466 Germany 2-Year Bond Yield -0.614 ...
by RME
Sat Jun 09, 2018 5:42 pm
Forum: Spain
Topic: Vanguard products in Spain
Replies: 6
Views: 1405

Re: Vanguard products in Spain

You cannot directly buy Vanguard funds or ETFs in Spain, it is required to buy them from a bank or broker like Renta4, Selfbank, BNP, ING. This adds between 0.10% and 0.30% to the Vanguard fund cost. I believe that Vanguard does not operate in Spain due to the low popularity of passive investing in ...
by RME
Fri Jun 08, 2018 6:08 pm
Forum: Non-US Investing
Topic: Looking for EUR holy grail bond strategy
Replies: 76
Views: 6861

Re: Looking for EUR holy grail bond strategy

Check the allocations proposed by my post here:
viewtopic.php?f=1&t=251280


Image
by RME
Fri Jun 08, 2018 6:05 pm
Forum: Non-US Investing
Topic: [EU] Looking for the European Boglehead way to go: Findings & Discussion
Replies: 5
Views: 1599

[EU] Looking for the European Boglehead way to go: Findings & Discussion

The European Boglehead community is on the search for the perfect country asset allocation for stocks and bonds. US investors can solve this by just looking at Vanguard LifeStrategy or Target Retirement Funds, they are the one fund way to go recommended by Vanguard. This funds are carefully designed...
by RME
Sun May 27, 2018 7:29 am
Forum: Spain
Topic: [EU] Considering investing in 10Y Spanish bonds: Change my mind
Replies: 8
Views: 1462

Re: [EU] Considering investing in 10Y Spanish bonds: Change my mind

Spain has somewhat higher govt debt to gdp around 100%. That is high but not as bad as others. The risk, which is remote, is that something happens such that Spain leaves the Euro. Perhaps precipitated by Greece leaving, after which other higher debt slower economies prefer to leave (Italy and Port...
by RME
Sat May 26, 2018 4:20 pm
Forum: Spain
Topic: [EU] Considering investing in 10Y Spanish bonds: Change my mind
Replies: 8
Views: 1462

[EU] Considering investing in 10Y Spanish bonds: Change my mind

Hi, Im from Spain and I follow a Boglehead approach in the stock allocation: low-cost, diversified indexes. The issue appears in the bond part of the portfolio, the boglehead would suggest a Global Goberment Bond Fund hedged in EUR or a Europe Goberment Bond fund but as you know, the interest rates ...
by RME
Mon May 07, 2018 1:01 pm
Forum: Non-US Investing
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 27
Views: 3453

Re: [EU] About the cost of taxes on dividends in European funds

What would happen with witholding tax on dividends if an European buys an American fund/ETF (domiciled in USA) that doesn't distribute dividends (accumulation)?
Is this a loophole?
by RME
Mon May 07, 2018 12:58 pm
Forum: Non-US Investing
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 27
Views: 3453

Re: [EU] About the cost of taxes on dividends in European funds

I'm very impressed about the high quality of answers in this forum, you guys rock! They seem to be three different types of european S&P500 funds: - The ones who pay 30% witholding tax on dividends (-0.60%) - The ones who pay 15% witholding tax on dividends (-0.30%) - The ones who are Synthetic (Use...
by RME
Mon May 07, 2018 7:17 am
Forum: Non-US Investing
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 27
Views: 3453

Re: [EU] About the cost of taxes on dividends in European funds

They seem to be three different types of european S&P500 funds:
- The ones who pay 30% witholding tax on dividends (-0.60%)
- The ones who pay 15% witholding tax on dividends (-0.30%)
- The ones who are Synthetic (Use SWAPS) and don't pay tax (0)
by RME
Mon May 07, 2018 6:56 am
Forum: Non-US Investing
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 27
Views: 3453

Re: [EU] About the cost of taxes on dividends in European funds

Check out this table, some funds seem to pay less withholding tax than others. https://i.imgur.com/WYO8RlH.png The AVG row is the tracking error from the GROSS index, the AVG (exTER) row is the tracking error from the GROSS index excluding fees. For example, the fund called "BNP Paribas Easy S&P 500...
by RME
Sun May 06, 2018 12:23 pm
Forum: Non-US Investing
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 27
Views: 3453

Re: [EU] About the cost of taxes on dividends in European funds

Thanks for your anwsers! I have researched and I have reached this conclusion: S&P500 funds domiciled in Europe loss between 30 and 35% of their dividends in tax even if they are accumulation ones. S&P500 funds domiciled in USA (like VOO) follow the S&P 500 GROSS INDEX. S&P500 funds domiciled in Eur...
by RME
Sat May 05, 2018 9:26 am
Forum: Non-US Investing
Topic: [EU] About the cost of taxes on dividends in European funds
Replies: 27
Views: 3453

[EU] About the cost of taxes on dividends in European funds

Hello again! I'm raising this issue here because we were unable to answer this question on local investor forums, I hope someone here knows the answer. We have noticed that funds domiciled in europe underperform US domiciled ones. https://i.imgur.com/1yHwd5l.png Also, when we take a look to the fund...
by RME
Fri Apr 27, 2018 1:54 am
Forum: Non-US Investing
Topic: [EU] Yields of Bond Funds questions
Replies: 3
Views: 748

[EU] Yields of Bond Funds questions

What do you think about the current state of low interest rates? Is it dangerous to get involved in bond funds with durations of 7-8 years? I find it curious how it is very difficult to find key data of a bond fund such as the weighted average coupon, yield at maturity, duration and effective durati...
by RME
Thu Mar 01, 2018 3:30 pm
Forum: Non-US Investing
Topic: [EU] This is how spanish Robo-advisors are doing its Asset Allocation
Replies: 5
Views: 786

Re: [EU] This is how spanish Robo-advisors are doing its Asset Allocation

Seems like these advisors adhere to a kind of slice and dice strategy with some regional overweighting in some cases. Looks like many of the used funds are Irish ETF index funds. The exceptions should be looked into: what are the ER of those funds? What are the costs that these advisors request? wh...
by RME
Thu Mar 01, 2018 1:52 pm
Forum: Non-US Investing
Topic: [EU] This is how spanish Robo-advisors are doing its Asset Allocation
Replies: 5
Views: 786

[EU] This is how spanish Robo-advisors are doing its Asset Allocation

There is a lot of information about asset allocation for US based boggleheads, not so much for europeans, for this reason I have studied the asset allocation from some of the most popular Robo-advisors that are coming to my country, Spain. This services use a quick test to fit you in a risk category...
by RME
Mon Jan 29, 2018 3:09 pm
Forum: Non-US Investing
Topic: [EU] Help needed with European Bonds ETFs
Replies: 20
Views: 2126

Re: [EU] Help needed with European Bonds ETFs

Thanks for all the answers, I think im going for these two: LU0378818131 db x-trackers II Global Government Bond http://www.morningstar.es/es/etf/snapshot/snapshot.aspx?id=0P0000IPRR Category: Global Gov. Bonds - EUR Cubierto Benchmark: BBgBarc Global Aggregate TR HdG EUR LU1437018598 Amundi Index ...
by RME
Sun Jan 28, 2018 8:50 am
Forum: Non-US Investing
Topic: [EU] Help needed with European Bonds ETFs
Replies: 20
Views: 2126

Re: [EU] Help needed with European Bonds ETFs

Thanks for all the answers, I think im going for these two: LU0378818131 db x-trackers II Global Government Bond http://www.morningstar.es/es/etf/snapshot/snapshot.aspx?id=0P0000IPRR Category: Global Gov. Bonds - EUR Cubierto Benchmark: BBgBarc Global Aggregate TR HdG EUR LU1437018598 Amundi Index J...
by RME
Sun Jan 28, 2018 8:48 am
Forum: Non-US Investing
Topic: [EU] Help needed with European Bonds ETFs
Replies: 20
Views: 2126

Re: [EU] Help needed with European Bonds ETFs

I had not heard about CDs before, I will research about it. CD = certificate of deposit (savings account not accessible for a fixed amount of time), in Spanish this would probably be depósito a plazo fijo. I've checked a couple of them and they are giving 0,20%. Its possible to find better interest...
by RME
Thu Jan 25, 2018 5:13 pm
Forum: Non-US Investing
Topic: [EU] Help needed with European Bonds ETFs
Replies: 20
Views: 2126

Re: [EU] Help needed with European Bonds ETFs

Thank you all for your answers. :sharebeer I like this combo. Pick which corp bond ETF you like better between the first two and combine it with the third. 50% IE00B3F81R35 iShares Core € Corp Bond UCITS ETF EUR (Dist) (EUR) http://www.morningstar.es/es/etf/snapsh ... 0P0000M4I5 Category: Corp Bonds...
by RME
Thu Jan 25, 2018 10:12 am
Forum: Non-US Investing
Topic: [EU] Help needed with European Bonds ETFs
Replies: 20
Views: 2126

[EU] Help needed with European Bonds ETFs

First of all I have to thank this community, you have a nice Wiki, thank you for your work. I am European and I am looking for some ETFs to try to build a EUR Bond Portfolio to balance stocks during bear markets (like 2008). I am restricted to a couple of ETFs so I cant just buy a Total Bond Market ...