ah.. sorry. I misread as world total stock.

https://investorplace.com/2014/08/better-index-sp-500/

I think u mixed up VTI n VT.. That's why.


This post has been edited by Cubalagi: Oct 15 2019, 02:56 PM

thanks

I've been using Rakuten since end of 2017.
Feel free to PM me if you want to know more in depth experience (the pros and the cons) on using Rakuten.

I don't have M+ but may consider switching in the future if attending AGMs / buying IPOs becomes relevant to me.

One Q, is the RT points any good?

I would say it is good, but only at a minuscule level. I'm not familiar with AirAsia BIG but we'll take BONUSLink Points as an example, since I'm also a shell petrol user. In Bonuslink you need 1000points to convert to RM10 worth of petrol, but each Rakuten trade transaction only gives you very little point (easily single digit).

"For every RM 2 brokerage paid, earn 1 RT point = 1 point on any of our affliate partners platforms."

When they have promotions though it's kinda worth it (e.g. opening an account and get free 1000 points).
It's only in Rakuten's favor to encourage you to perform more trades, since that's how they generate profits. Don't be tempted to trade excessively just for the sake of getting those points if you're not into short term stock trading, or should I say gambling. RT has too little emphasis on long term investment. But if you're talking about convenience plus A BIT of incentive in the form of points, then RT is the clear winner.

Yes, can see that they want to push for more active trading. I see a lot of points for contra account opening and warrant trading. Dangerous stuff for newbies.

So u get good points in the joining, but thereafter if purely based on cash upfront brokerage, it's really nothing great. To get an extra 500 RT, need to trade RM1000 worth of brokerage. That will take me several years. I guess it only make sense when you combine the points with other sources.

This post has been edited by Cubalagi: Oct 16 2019, 03:13 PM

what can u use d RT points for?

Convert to AirAsia Big points, n buy AA flight tickets at big discounts. That's the theory. Another is Bonuslink points.

UK & EU already found a deal.

so no more recession?

wah... can use USD, HKD or RMB. Definitely a plus.

but the expense ratio is 0.18%! Damn high!
VOO only 0.03%.

More worried about US n China. UK small fish.

High? Hahah.. 0.18% pa is not damn high at all.

High is like the Public Mutual/FSM UT types that are still charging 1.8% per annum for foreign equity funds. N many ppl still invest in them!

US etfs like VOO are super low expense nowadays is to attract those advisors such as Stashaway to use them. These guys charge like 0.8% per anum. So u add in the ETF fees, say 0.18%, then it becomes 0.98% which then this start to impact performance.

But if u invest directly, then u practically won't feel the difference in performance between a 0.18% vs a 0.03% pa, unless u are the few bucks that matter person. Your selection of the right underlying and market timing are far more important.

This post has been edited by Cubalagi: Oct 18 2019, 01:42 AM

Cubalagi saya plankton,prolly cant rake up enough RT points to convert..haha...im more interested in the support and learning facilities?do u know of it,or its non-existent in RT?I checked out their site,not much workshops but im wondering if they show it only to registered users

Not much on learning n workshops.

I'm not sure how to calculate the fees based on expense ratio so I used an online calculator.

https://www.begintoinvest.com/expense-ratio-calculator/

10k initial, 12k annual, 6% annual return = 1359 difference.

but on the other hand, dividend in HK has no tax. Hmm... still not sure which is better. Maybe just buy both.

For me 0.18% pa is good. I guess if u r thinking of 10 year+ investing in tht product, then all the small savings will look big. U can try plug in using the expenses of a normal Malaysian UT .. U will get a shock of how much it costs an investor over a long term which is why I exited UT many years ago.

I also think u should also look at ur total investment portfolio costs. Since I hold directly stocks n bonds (No MER), cash (no MER) n ETFs (low MER), my total portfolio cost is still low. I hold 0 unit trusts n don't use discretionary fund services or robo advisors.

N of course u need to minimize the transaction costs: brokerage, forex etc. That tends to be high as well.

On the HKD ETF, u still can't avoid the WHT tax I'm afraid. I believe the dividends paid to u will be net of the WHT on the ETF itself.

This post has been edited by Cubalagi: Oct 18 2019, 05:15 PM

no tax rate on div, no?

You don't get taxed.

But the ETF itself would have been subject WHT for dividends it receive from US companies.

oh yeah, I forgot. The companies are based in the US. So basically, there's no tax advantage?