my ideal risk level would be the level that will not effect me both financially or emotionally not matter how the performance of the level would be.

MYR, investments made in USD.
Seems from forummers previously that those with loans will have investments made in GBP.

They published a few posts about risk-adjusted returns before. The ideal risk levels macam 12-20% range, low risks got too low return, high risk levels don't necessarily outperform medium risks to justify the volatility.

I see MyTheo also includes a ESG ETF called iShares MSCI USA ESG Select ETF (SUSA)

Thanks!

So, some SAMY portfolios may see addition of these ESG-themed ETFs by way of re-balancing (and need not wait until re-optimsation)?

Middle range about 12% to 22% SRI is the most "balanced" for the average person, who have some money able to invest and already have a solid savings and insurance plan

That's a reason why SAMY locks away risk indices higher than 22% unless you've got high savings and/or study the investing modules in SA.

higher risk doesn't necessarily mean higher returns https://www.stashaway.my/r/debunking-high-risk-high-return

This post has been edited by DragonReine: Feb 25 2021, 12:56 PM

Yeah that's why my 36% is bleeding red now and my 18% still positive. I just put 15k into each portfolio earlier this month.

Hey....what do you mean by re balancing? Do we need to do anything ourselves? Or just wait all change is automatic if we have the re automisation option on?....

ok. reporting back. my account AND deposit was pending on "processing" for a week or so. Contacted support through whatsapp and they verified my account. Now awaiting 2-3 days for deposit to go through. Thanks for the suggestions here!

I think SAMY just propose will add into portfolio, we need to switch on the re-optimisation button & wait SAMY renew the portfolio.

If they change ETFs in your portfolio, it's reoptimisation already. That's not just mere rebalancing.


You will get an email asking you to accept or reject the new portfolio.

The reoptimization should happen soon right according the the email ? Hopefully see better result for 2021

I would rather they do it while re-balancing - just allocate some our top-ups/ DCA into the new ETFs, rather than the "real" re-optimisation like last year....

That "real" re-optimisation will reset all the DCA back to zero.

I don’t get your logic. Reoptimisation follows by rebalancing into new ETFs no? How do you introduce new asset allocations into new portolio and not cause a huge rebalancing?

The wizard Freddy is never early nor he is early. He will re-optimise precisely when he means it

I see in SAMY that when a particular asset (say IJR) has reached the set weightage (IJR is 15% for 36% SRI), subsequent top-up will not go into buying anymore IJR units and instead will be directed to other assets. Here "re-balancing" is trying to ensure that all the individual assets in the portfolio will be topped-up through the deposit made so that their set weightage will be achieved (say GLD -20%, KWEB-20% and so forth in accordance with the SRI-%). That's why in my 36% portfolio, IJR and KWEB have not been allocated any new top-up funds for quite a while as these 2 have gone past their set weightage. Instead, all top-up went to the other assets (GLD, AAXJ, SPEM, XLV, XLY and VNQI). This "re-balancing" goes on everytime a top-up is made.

I have yet to see SAMY "re-balance" my 36% portfolio by selling-off a particular asset's units because that asset has gone beyond its set weightage. SAMY merely directed all new top-ups to other assets of the portfolio that are still below their set weightage.

Why must there be huge "re-balancing" due to new asset introduction into the portfolio? By introducing new ESG-themed ETFs into the portfolio (say into 36% portfolio, it will be AAXJ, KWEB, SPEM, IJR, XLV, XLY, VNQI, GLD plus the new ESG-themed ETFs), SAMY can adjust the top-ups more towards the ESG-themed ETFs and less to the existing ones. SAMY need not sell units in the original 7 ETFs just to "re-balance" everything in one go at the point of introduction of the new ESG-themed ETFs. By not selling existing units just to get funds to buy units in the ESG-themed ETFs, all the DCA that customers have accumulated since last year's re-optimisation are intact.

Well, that's my understanding of re-balancing and re-optimisation. WRONG?

But in the end, not that I can control what SAMY does with re-balancing/ re-optimisation. I signed-up for it, so either I just follow or withdraw and quit.

This post has been edited by svchia78: Feb 25 2021, 09:53 PM

You missing something. Reoptimisation often means a portfolio overhaul, meaning there will be ETFs that get kicked out from current one.

So they will sell off all the eliminated ETFs, sell some of your current one, then buy all back in.

Kicking out existing ETFs will really mean trashing out all the accumulated DCA over the past fantastic months.

And then using the funds raised to buy new ETFs whose underlying stocks'/ assets' prices may already be at all time high? The new ETFs better be able to perform very very well.

Correct to say so?

This post has been edited by svchia78: Feb 25 2021, 10:02 PM

Look at the prev optimisation KWEB and that should answer your question