Bogleheads.org

On the equity part you should go for a global index ETF like VWRD/VWRA. It includes China and India and most other countries too.

Alternatively check the new Vanguard Lifestrategy ETFs, like https://global.vanguard.com/portal/inst ... /?overview
All in one, less moving parts, easier to keep in the long run, cheap, etc.

One issue to check what is more convenient tax wise: accummulating or distributing funds. This will depend on how Cyprus gov taxes dividends and capital gains.

DXBinvest wrote: ↑Tue Sep 01, 2020 2:12 pmThere is unhedged version of AGGG in EUR as well, it is EUNU trading on XETRA. I was told it is always best to go for unhedged versions of ETFs.

For bond ETFs, assuming you are buying them for stability, this is not always the case. AGGG now has 42% exposure to the USD and the rest in other currencies. So the movement of the USD relative to the other currencies can affect the price of the ETF in USD substantially. If you get the hedged USD version, this effect largely goes away. Vanguard has done some studies on the subject I believe.

1) Does my strategy makes sense? Do you agree with the above ETF suggestions in my situation? If you're 30, planning to retire at 60, an 80-20 split is logical. But going from savings accounts to 80% stocks is a little abrupt. Are you emotionally prepared to see a paper loss of 40% and not panic sell? It doesn't hurt to start smoothly. To keep the savings aside since you want to buy a house in 2 years is also OK. I wouldn't put such money in AGGH because its duration is 7+years. But take care of currency fluctuations. If you want to buy a house in Italy, the money should be in euros. If you have it in AED now, you may go after 2 years to buy the house and have less euros. We generally don't invest monthly from the UAE to minimize the cost ...

Why not go for VWRA only and call it a day? Add bonds as needed.

Oh, I understand you are trying to simulate the global index but excluding a large chunk of it. To consider UK and France a proxy for all Europe, means you're disregarding Germany, Switzerland, Spain etc. That's an active bet IMO. If you similarly approximate Asia by using only Japan and China for example, then at the end the portfolio will have little resemblance to a global cap weighted portfolio.
What exactly do you have in the portfolio?

Buy VWRD/A and be done with it. The simpler the better. This may result in unnecessary extra taxes. For example, an investor from Japan will not only be taxed twice on dividends from Japan, but will also likely not be able to claim a refund that they would otherwise be entitled to on US dividends. This sort of investor will be better off reconstructing the world index from component parts, using the appropriate brokerage account and fund domicile for each part. Not familiar with the tax system in Japan. Is it applicable to Japan passport holders, residing in the UAE? Google suggests that the UAE has very low tax rates. If so, then for a tax resident of the UAE, the objective would be to minimize foreign dividend withholding. For example, w...

rhe wrote: ↑Thu Jun 18, 2020 7:18 pm

ICH wrote: ↑Thu Jun 18, 2020 3:05 pm Buy VWRD/A and be done with it. The simpler the better.

This may result in unnecessary extra taxes. For example, an investor from Japan will not only be taxed twice on dividends from Japan, but will also likely not be able to claim a refund that they would otherwise be entitled to on US dividends. This sort of investor will be better off reconstructing the world index from component parts, using the appropriate brokerage account and fund domicile for each part.

Not familiar with the tax system in Japan. Is it applicable to Japan passport holders, residing in the UAE?

Search here:
https://www.justetf.com/uk/

Buy VWRD/A and be done with it. The simpler the better.

Unless you're an exceptional case, you are a tax resident in the UAE. UAE does not issue TINs (Taxpayer Identification Numbers) to its residents.

What currency will you need the money in?
If AED, I believe ADCB still offers 5year term deposits.
If USD, a bond ETF with a duration smaller than your targets will be ok.
If EUR, don't bother. Due to negative central bank rates, you're not going to find any return with no risk. Might as well keep it in the bank earning 0.

Both portfolios are fine by the way.
Option 2 has one less etf, hence preferable. Simpler=better

Bank accounts.
In several banks. In several countries. In several currencies (because I'm an expat).
Interest rate is the last thing I care, as it's close to zero anyway.

1. Platform IB is substantially cheaper than Saxo, particularly for >100k usd portfolios where they don'tchargeinactivity fee. You can calculate the costs if you wish. 2. Asset allocation 75% stocks - 25% bonds is ok, assuming you can handle the volatility. That's a personal selection. Whatever you choose, simply stick to it. All funds you mention are fine. You don't need a combination of bond funds, simply select one of them. You shouldn't look at crypto, individual stocks etc as part of the portfolio. If you want to play with some money, keep aside a fixed amount and play with it. Once you lose it forget about it. 3. Distributing vs accummulating Selection has to do with how the funds are taxed in the country you are a resident. Since UAE...

Check this out: https://ibkr.info/node/1267

GMTriffid wrote: ↑Sun Mar 15, 2020 4:38 am Is this ETF held on the London Stock Exchange?

Or is it US held and then subject to US inheritance laws if over the $60k threshold?

LSE - It's on the title of your post...

GMTriffid wrote: ↑Sun Mar 15, 2020 4:38 am Why are VWRA or VWRD being used by those wanting exposure to the S&P 500, of VUSD:LSE:USD ?

People who want exposure to the S&P500 only, buy VUSD.
But why would you want exposure to the S&P500 only, if you're not a US person? Hence, most people tend to go global with VWRD or similar.
Some people like to combine individual ETFs for US, Europe, Japan, Asia, etc in a portfolio. For me it is an unnecessary complication.

Degiro is certainly a cheap option.
Search also for any retirement or tax free/deferred accounts that may be available in Portugal.

Note: you need a global equity fund, such as VWRD. Why restrict yourself to the S&P500 only?

mooudn wrote: ↑Sat Feb 29, 2020 4:29 pm Why would you go with ishares? the fees are higher not lower than vanguard IWDA (0.2%) + EIMI (0.18)>VWRD (0.22%). Have you made adjustments to your portfolio holdings since this post?

You need to do the math properly. I will give it a try:
Say you go for 90%IWDA + 10%EIMI.
Cost = 90%*0.2% + 10%*0.18% = 0.18%+0.018%=0.198%.
Smaller than the 0.22% of VWRD.
We're splitting hair of course and such differences are immaterial. I prefer the simplicity of all in one with VWRD and it minimizes the transaction costs.

PurpleArc wrote: ↑Fri Feb 21, 2020 9:22 pm
Also, why would I want to keep my money in the bank when they are not giving me any interest, in the case of Eurozone.

What's the alternative?
1. Buy treasuries. Ok, but they are having negative yield!
2. Take on more risk (e.g. many banks push their customers towards mutual funds). Ok, but beats the purpose of having cash.
3. Convert to positive yielding currency e.g. USD. Ok, but you're taking currency risk.

cabbagehead wrote: ↑Wed Feb 12, 2020 4:41 am

Equity: VHVE FTSE Developed World (62%) + VFEA FTSE Emerging Markets UCITS ETF (8%)

Why not get VWRD FTSE All World, which combines developed and emerging markets? Simpler.

For ETF listings you can have a look here: https://www.justetf.com/uk/find-etf.html?ls=any

Vanguard FTSE All-World UCITS ETF (USD) Accumulating and one of the bond funds (they're the same) is enough.

Having a car loan at 8% when you get 0.55% in term deposits, makes no sense. Pay it off. It will be the best investment. Assuming it is fixed rate, there will be some penalty for early settlement, but I guess will still worth it.

1. As per wiki should be fine. Suggest to keep some of the fixed income in local currency. Do you have access to SSS, Pagibig, PERA, etc?

2. Wait for what?

3. Yes, but depends on your risk tolerance. Would you be ok is stocks dropped by 50% in the next 6 months?

4. Definitely don't keep it in a Filipino bank lol. Basically depends on the time frame. Here is an idea: https://andrewhallam.com/2019/09/how-ex ... education/

Online: https://www.mof.gov.ae/en/mservices/Ind ... s/tax.aspx

Very easy and fast process. Get all the required papers, scan them, include them in the application and you get the certificate in your email. To use it outside the UAE, you will need to print it, get stamp from MoFA and the embassy of the country you want to use it in.

Any specific questions, ask.

I haven't read that one, but I have read this one and enjoyed it: https://www.amazon.com/gp/aw/d/B078TR1F ... 752&sr=8-5

Every expat should read it.

He has saved thousands of expats in several ways:
1. Preaching the spend below what you earn mantra
2. Debunking and steering expats away from whole life insurance type schemes.
3. Step by step guy on investing for expats

Other than that, he is very active and helpful in the bogleheads community of the UAE and a very good guy.

AlohaJoe wrote: ↑Thu Dec 05, 2019 5:01 am

DubaiEntrepreneur wrote: ↑Thu Dec 05, 2019 3:34 am Do you know a local (UAE) broker that give access to the LSE ?

Sorry, I don't know any about the UAE except where it is on a map Given the wealth there, I'd be shocked if there aren't local brokers giving access to the London Stock Exchange, though.

There are. But cost an arm and a leg. Plus they're dangerous (they will promote active funds).

Generally recommended brokers:
Interactive brokers
Internaxx
Saxo
Swissquote
Degiro (you need bank account in Europe and from what I heard lately they may not accept UAE residents)
HSBC Invest Direct (the brokerage based in the UK, not the one that sells HSBC mutual funds)

There's a pretty active UAE Bogleheads chapter:
https://www.simplyfi.org/

You can ask him if he is a fiduciary, but you already know the answer I guess... From what I see, WM industry is thriving, as usual. Who are the clients? Oh, plenty of victims around. WM throws in a yield of 15% and the sheep follow. Until they discover in a couple of years that 15% was an imaginary number, WM has already taken his commission. Trends? Depends where you live. In UAE I see them mainly pushing the whole-life-insurance schemes masquared into the phrase "long term savings plans". Offshore bonds are also in fashion and they have enriched them with index funds and ETFs also, because they offer tax advantage (UAE has zero income tax, so what advantage they're talking about I don't know lol). Anyway, if you have nothing el...

olliric wrote: ↑Fri Jun 21, 2019 3:11 am. I have just read a book by Andrew Hallam (Global Expatriate's Guide to Investing_ From Millionaire Teacher to Millionaire Expat) in which he says time and time again to stay away from US domiciled investments and brokers. He suggest various brokers but none such as Interactive Brokers which it may turn out to be by far the best for any expat NRA. And this is a guy that writes books and blogs about people like us. Or maybe not, we are actually Bogleheads

There is a reference to IB in his new book.

Strange. I opened it a year ago, specifically told them that I am resident in another non-EU country and they were OK with it. I opened it in the UK since I have a bank account there. I don't have a UK postal address, I used my real one.
Maybe it is new requirement. I don't plan on closing my account.

Curny wrote: ↑Sun May 26, 2019 8:58 am Anyone have an opinion on AGGU v IAAA?

IAAA is Global AAA-AA Govt Bonds. It is USD unhedged, so you will feel the full effect of currency fluctuations. But in panic times, it is likely to increase in value as investors opt for safety.
AGGU is Global Aggregate Bond. It is hedged to the USD so no issue with currency fluctuations (assuming you are a USD investor). But in case of trouble it will probably go down together with your stocks.

Depends what you want.

For 1 month or 3 years, I would keep it in the bank. Too short duration to consider bonds. Is this your emergency fund or retirement fund? 3 years too short? I'm surprised. It's just an ETF that's easy to buy and sell. 3 years was just a random number, I may not need it again ever. Or I might need it in 1 year. Depends on the rest of my investments. For an emergency fund? 3 days may be too long... For a retirement fund? 3 years is waaaay too short. Depends on the purpose. Hi, the problem with keeping cash in the bank is the EU deposit guarantee scheme isn't very comprehensive and will entail multiple bank accounts with different institutions as soon as you have a decent amount of money. The ultra short term bond ERNE ISIN: IE00BCRY6557 is ...

For 1 month or 3 years, I would keep it in the bank. Too short duration to consider bonds. Is this your emergency fund or retirement fund?

Very strange issue.
I don't believe the MF ends up paying double withholding tax than needed. It doesn't make sense. But this is what the statements are saying.

I found three USD denominated share classes of the MF, with different expense ratios:
IE0002639775 -> Institutional -> 0.10%
IE00BFPM9T72 -> Institutional Plus -> 0.06%
IE0002639668 -> Investor -> 0.25%

All three seem to systematically under-perform the ETF with ER 0.07%.

Laurizas wrote: ↑Tue Apr 30, 2019 12:14 am In Lithuania the highest rate at credit union is 2 % per year and 1 % at the bank. No negative interest.

1. How much is the deposit guarantee?
2. How likely is it that it will be honoured?

In Greece you can get 1.6% in 6month term deposits, 0.5% in a savings account. However the answers to the above questions are:
1. 100k euros
2. Highly unlikely

Sorry, I forgot to mention. I used this tool which says +165% dividends reinvested . PraefectusDelegatus: Try justetf: https://www.justetf.com/de-en/etf-profile.html?groupField=index&from=search&isin=IE00B5BMR087&query=IE00B5BMR087&tab=chart you can see the effect of different currencies and if you choose distributing funds, you can choose to run the calcs with dividends reinvested or not. From 19-05-2010 to date, I see CSPX in EUR gaining 230%. In USD 200%. In GBP 230%. In CHF 165%. That is one of the effects of currency variations. Using the tool you posted, I see that from May 2010 to April 2019, the S&P 500 has risen 157% and with dividends reinvested 205%. I assume this does not include the costs of a fund. Dates a...

PraefectusDelegatus wrote: ↑Thu Apr 18, 2019 8:14 am CSPX has tripled since January 2011, while the S&P 500 has increased by less than 150%. Does that mean CSPX is not hedged against currency volatility? I assume the difference in performance is because EUR is so cheap compared to USD?

Note: CSPX is accumulating; i.e. the dividends are not distributed to the shareholders, but are increasing the value of the fund. The S&P 500 index "distributes" the dividends. Maybe that's why you see a big difference.

You need to grasp the concept of the different types of ETF currencies and mainly the difference between "trading currency" and the currencies of the assets that the ETF holds. There is a nice summary here: https://www.bogleheads.org/wiki/Non-US_investors_and_ETF_currencies . Basically, you choose the trading currency based on convenience: if you have euros -> buy in euros. If you have usd -> buy in usd. But whether you buy it in euros or usd, the performance will be the same. I am a beginner myself but I believe these instruments (e.g. funds that track a US index but are traded in EUR) do so via the use of swaps. This is a derivative. I haven't read any prospectus in its entirty, though. Isn't default of the swapping partner a m...

Good news.
They seem to have made accumulating versions of all their fixed income ETFs. Equity ETFs soon to follow I guess.

Expenses:
EUR Corporate Bond UCITS ETF -> 0.12%
EUR Eurozone Government Bond UCITS ETF -> 0.12%
U.K. Gilt UCITS ETF -> 0.12%
USD Corporate 1-3 Year Bond UCITS ETF -> 0.15%
USD Corporate Bond UCITS ETF -> 0.12%
USD Emerging Markets Government Bond UCITS ETF -> 0.25%
USD Treasury Bond UCITS ETF -> 0.12%

Greek here also. -While I generally agree that the Vanguard FTSE All-World UCITS ETF is the best all-round etf for your equity exposure, if you go with a Degiro custody account, which is the cheapest solution, you should prefer accumulating etfs. In this case, go with 80-90% iShares MSCI World UCITS ETF + 10-20% iShares MSCI Emerging Markets UCITS ETF. Add a Small cap world etf as you grow your balance, as per the EU investing boglheads wiki. Since i'd prefer to buy the ETF's in Euro in order to avoid the currency risk what would be the equivalent proposal of the above mentioned iShares ETF's that are in USD? You need to grasp the concept of the different types of ETF currencies and mainly the difference between "trading currency"...

Panos_S wrote: ↑Thu Apr 04, 2019 3:58 am Hello, fellow Greek here. Just started reading about investing and would need some help with all that info. Could i pm you for some help?

Since we 're becoming a crowd around here, why not post in public?
A p.m. will get you one opinion.
A post will definitely get you more. And can help another fellow Greek.

The ishares Core Global Aggregate Bond UCITS ETF has a Net Assets of Fund = USD 1,880,903,700. This is divided today (02-April-2019) as follows: AGGG - USD unhedged distributing : USD 306,445,615 AGGU - USD hedged Accummulating : USD 1,049,468,447 AGGH - EUR hedged Accummulating : EUR 294,401,485 AGBP - GBP hedged distributing : GBP 94,906,144 AGGNZX - NZD hedged Accummulating : NZD 40,793,950 Just from the above numbers you would expect the USD hedged version to have the highest liquidity. However I have not researched the subject. However, if you are a USD only investor, you should get the USD hedged version. If you are a EUR only investor, you should get the EUR hedged version. If you deal with multiple currencies and have no idea what y...

megatron1911 wrote: ↑Fri Mar 29, 2019 3:12 am (which i think there is no treaty for with HK - that is directed towards posters discussing SIPC protection of USD 250k, which is more than 4x the estate tax exemption limit of USD 60k).

One should not keep large amounts of cash in a brokerage account - irrespective which brokerage. There are plenty of banks for that purpose.

The abive 60k US Estate tax cannot possibly apply to non-US domiciled ETFs and other non-US dom assets.

RedDawn wrote: ↑Wed Mar 27, 2019 10:36 pm IB ensures funds up to 500k, doesn’t it? What would happen if case the portfolio is bigger?

Interactive brokers is a SIPC member.
The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash.
https://www.sipc.org/for-investors/what-sipc-protects

If Interactive Brokers one day decides to become a Ponzi scheme for some reason and nobody notices it, you may get affected if you have more than that in there.
I am emphasizing the

and nobody notices it

because we are talking about a NYSE listed company, regulated by the SEC, the SIPC and I don't know who else. We are not talking about a Bermuda based coorporation, whose offices are limited to a P.O. Box and whose shares are traded in the street!

If yes how do i control it? You are already controlling it by having bonds hedged to euro. That's enough, for me. To avoid unnecessary currency conversion when buying / selling the ETFs, buy them in euro (trading currency) as follows : iShares Global Aggregate Bd ETF HAcc IE00BDBRDM35 Global aggregate hedged (€) † USD -> ticker AGGH, traded in euros on the LSE, Six Swiss, Xetra iShares Core MSCI World ETF USD Acc IE00B4L5Y983 Global, developed markets Large+Mid USD -> Traded in euros in the following exchanges: -ticker SWDA, on the Borsa Italiana -ticker EUNL, on the Xetra -ticker IWDA, on the Euronext Amsterdam iShares Core MSCI EM IMI ETF USD Acc IE00BKM4GZ66 Emerging mkts IMI : Large+mid+small USD -> Traded in euros in the following exc...

Did you try to open an account with one of the low cost, online brokers? If successful, you can then invest in ETFs (Vanguard or others).
Try Interactive Brokers, Degiro, Saxo, Internaxx.
Not sure if there are more economical options in Austria.
Definitely don't use an Albanian broker.

Just to confirm: have you found the UAE bogleheads chapter? We are quite active in the UAE, for passive investors :D 1. IB is OK, if not the best. 2. Irish dom OK. US investors pay additionally capital gains taxes. In UAE you don't. 3. You are confusing the matter here. You want to keep cash as part of your asset allocation or to time the market? I suggest to think in terms of allocation. There's nothing wrong to go for 30% cash, or 40% bonds or whatever. But planning to keep cash to throw in the market at the bottom may disappoint you. If that's the plan, why not keep all in cash for now? In any case, there are plenty of short to intermediate term bond ETFs you can choose from. 4. Correct, the 30% tax on dividends is a drag. But the estate...

DJN wrote: ↑Wed Mar 20, 2019 4:49 am Thanks ICH,
Whats your view on the exchange rate risk? Is it a serious risk for $ bonds on a short term basis? Seems pointless to suffer a negative return on Euro bonds. Whats the cash equivalent alternative?

DJN

Huge mistake.

If you have and need Euros -> stick to euros
If you have and need dollars -> stick to dollars

To change your euros to dollars so that you can get a yield 2% higher, when you know that currency movement can be as large as 2% in a day makes no sense.
If you really want to play currencies there is no point looking at bonds and such. Get an fx trading account and go for it. You will lose, but at least you 'll not be paying commissions to buy ETFs.

DJN,
from all the ETFs you listed, non seem suitable.

The only one that I found resembling EUR cash is the one I posted above: https://www.ishares.com/uk/individual/e ... -ucits-etf

iShares € Govt Bond 0-1yr UCITS ETF, Expense Ratio 0.20%. Expect negative returns of course


For people having USD, an equivalent ETF I discovered recently is iShares $ Treasury Bond 0-1yr UCITS ETF: https://www.ishares.com/uk/individual/e ... -dist-fund

original_nam wrote: ↑Tue Mar 19, 2019 1:28 pm I've never filled in taxes, so that will be something new as well this year.

Don't panic! Taxation will follow you for the rest of your life - might as well educate yourself about it. You should be able to find plenty of "how to" guides online. After getting this basic info, and if you still have querries, it doesn't hurt to get some (cheap) professional advise for the first year.

Thesaints,
Up Northern Europe, where 5-year treasuries are 0 to negative, I would expect the short term treasuries to be deep negative. I could be wrong. However, this means that you are guaranteed to lose capital.

In the South, where you can get some positive yields, I doubt 6-month treasuries beat 6-month CDs (after tax). Not by any significant margin anyway. We are talking minuscule yields of course.

Thesaints wrote: ↑Tue Mar 19, 2019 12:13 pm Not an etf, buy those bonds directly. You can choose basically any amount and fees are very minimal.
If your objective is safety of principal, that’s the way to go.
Maturity, you can pick anywhere from 3 months or longer. My suggestion would be to buy new emissions, rather than on the secondary market (lower fees).

Not sure what you mean by”hedging”, they are denominated in Euro.

Which country - what yields are you talking about?