I follow Paul Merriman regularly and live in Australia. Currently, I've invested in index-tracking options for my retirement (Australian) superannuation portfolio using Australian and International (incl. Emerging Markets) equities, Diversified Bonds, and Cash (about four years of income).
I'd like to add some international small-cap value as Merriman suggests, up to perhaps 10% of my total equity allocation.
Is that a sensible thing for me to do? Can you recommend a suitable ETF?
Small-cap value ETF for Australian retirement income portfolio
Re: Small-cap value ETF for Australian retirement income portfolio
Vvlu. No scv exists. There is also vism.
- andrew99999
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Re: Small-cap value ETF for Australian retirement income portfolio
VVLU is the closest I know of, which is not just small, but is value with about 1/3 each of small, mid, and large.
The other option is to buy US-listed funds. AVUV/AVDV are the popular ones mentioned most often after Ben Felix discussed them in his videos. Many brokers offer the ability to buy US-listed shares, but Aussie brokers have extremely high FX fees, so if you choose these options and depending on how much you plan to buy, you may want to consider setting up an account with Interactive Brokers for US purchases, which has FX fees of 250-500 times less than Aussie brokers.
The other option is to buy US-listed funds. AVUV/AVDV are the popular ones mentioned most often after Ben Felix discussed them in his videos. Many brokers offer the ability to buy US-listed shares, but Aussie brokers have extremely high FX fees, so if you choose these options and depending on how much you plan to buy, you may want to consider setting up an account with Interactive Brokers for US purchases, which has FX fees of 250-500 times less than Aussie brokers.
Re: Small-cap value ETF for Australian retirement income portfolio
Okay and thank you.
Personally, I'm disinclined to invest super money outside of superannuation because the Australian benefits and ease of staying inside are worthwhile despite the merits of, for example, VBE (USA). Tilting towards small-cap as opposed to small-cap-value seems to have no great benefit.
Personally, I'm disinclined to invest super money outside of superannuation because the Australian benefits and ease of staying inside are worthwhile despite the merits of, for example, VBE (USA). Tilting towards small-cap as opposed to small-cap-value seems to have no great benefit.