yea same here.. tried buy a bit of crypto before the china ban end of last year.
Then suddenly after the ban I lost 50% value in a few days time.

Hi I’m looking to invest through IBKR for ETFs.

I plan to put 10k into ETF solely.
Do I all in to CSPX? 50/50 it with CSPX + VWRA?

Or is there another combination.

And if I were to DCA after the initial 10k, what’s a good amount monthly?

New to investing please guide / advise.
TIA

I'll just crosspost my answer to this question from Bogleheads Local Chapter [Malaysia Edisi]

(VUAA is equivalent to CSPX)

As for DCA amount, I recommend that you keep your total transaction cost (fees and commissions) under 1% or ideally 0.5%.

E.g. If it cost you 1.7USD IBKR commission, 2USD forex fee, then your DCA amount should ideally be no lower than 740USD (~RM3000) or 370USD (~RM1500).

You will find that if you use Wise to send USD directly, your route fees has a minimum of ~0.5%, so keep that in mind.

With these info in mind, it'll still be up to you to decide how much fees is acceptable for you, and what is the balance between tracking the up and downs of the market vs saving fees. (e.g. DCA monthly, quarterly, annually, etc)

Hey thanks for the reply.
I see so you’re saying I should only pick one or the other between VUAA ( CSPX ) and VWRA.

But seems like you’re saying i should take VWRA instead of CSPX more yes?
Just to clarify, VWRA is also Irish domiciled stock right? Where it’s gonna be less tax-ed compared to a us ETF?

yea...


whenever a dividend is announced for VWRA, you'll only be taxed 15% of the dividend rather than the normal 30%

I see okay.

Is it sufficient enough to just hold VWRA?

Or do I need to diversify and hold another ETFs too. If so which?

Thanks and appreciate the help.

If I were you I will just buy sp500 etf. Why?
1. Look at VWRA. How many % is is US companies?
- 59.9%
https://www.vanguardinvestments.dk/portal/i...quity/?overview
- so what this means is VWRA basically tracks the US market.
- so if US market tanks, then VWRA will also tank.

2. Sp500 consists of 500 US largest companies
- majority of the companies on sp500 have business overseas hence they themselves are already diversified.

You raised a valid point, will definitely keep this into consideration.

So your take for me is still to just focus on CSPX instead of VWRA? Only 1 ETF instead of diversifying it into several other different etfs?

I learnt that from a UT teacher who taught me about UT investing.
That's why he said don't waste time and money buying global unit trust. Just buy US unit trust. To be specific, buy tech funds.

2nd step, if you look closely at sp500, vwra, you will see that tech takes up a huge chunks of the etf. So next question. 25% in sp500 Vs 17% in vwra.

Your choice. Up to you. I am not you and you are not me. For me, if I am buying etf, I will just buy Qqq, soxx, wcld and wcbr. Yes they are in tech sector but they are diversified as mentioned the companies have overseas business. If I can buy only one etf, I will just buy Qqq. But I am risk taker. So again the choice is yours. No need follow me.

This post has been edited by Ramjade: Apr 19 2022, 10:56 AM

All very valid points. Be mindful of what you buy and more importantly why. Don't add a ticker to your portfolio just because someone else did.

Buying pure SP500, QQQ, VWRA is all fine - over 30-40 years, they will all give you ample returns with the cyclic nature of the market. I always joke about how if one had the conviction to properly hold what they buy, over 30 years, a person buying nothing but Maybank at mediocre prices and fees will probably outperform most investors who duck in and out of market, switch funds, or pay 2+% to fund managers just to trade sideways.

Curious to know, what happen if you sell a put options but don't have the money to fulfill the options when it hit the strike price? Banker/Broker will knock on your door and demand you to fulfill it? or there's a Penalty for doing so. Or you can't sell a put options if you don't have the money beforehand,

normally when you sell (naked) options, broker will ask to "reserve" a certain amount of money in your account (aka margin). if the money falls below margin, you'll get a margin call. if you fail to meet it, they'll realise your losses.

This post has been edited by Medufsaid: Apr 19 2022, 11:49 AM

You cannot sell naked put on cash acocunt if you don't have collateral to buy 100 shares.
If you use margin and if you are on interactive broker, it will make your account negative hence interest starts charging.
If it goes too negative, interactive broker will just simply liquidate your other position to pay for it without notification.

But if are on margin and it never hit the strike price and your cash balance still positive, no interest will be charged for interactive broker.

This post has been edited by Ramjade: Apr 19 2022, 11:57 AM

So Options is not an option for beginners until they have enough $$ to buy 100 shares of the shares on Cash account. So Margin account, will spend more time reading on it.

Wrong. You can use options to build up small account. One example is this.
https://youtu.be/tKLMRWvGB5k
There's even call spread and many more. For me I don't want to pening hence I stick with only covered call and covers put.

IBKR can buy fractional share from LSE?

Nope, full shares only.

If you do not have sufficient money/margin to be assigned (i.e. buy the stock), they will just force you to close the put at expiry. So your loss will be the difference between the current share price and the strike price at expiry.

If you have sufficient margin, you will be assigned the stock. If you do not have money, your cash balance will be negative i.e. you will be charged interest.

People prefer to roll the put downwards or sideways for more credit if possible rather than be assigned the stock because they do not have to come out with money, pay interest and it is more capital efficient. Rolling the put is the same as buying the stock and selling a covered call at that strike price.

FT Last Weekend (16-170422): https://drive.google.com/file/d/1acIJYYYhDn...iew?usp=sharing

FT Yesterday (180422): https://drive.google.com/file/d/1YoaMvbfL4y...iew?usp=sharing

FT Today (190422): https://drive.google.com/file/d/1MCIQdostrv...iew?usp=sharing



This post has been edited by TOS: Apr 19 2022, 02:58 PM

Appreciate the sharing but perhaps it wouldn't be a bad idea to hide the image behind a spoiler tag or just link them so people who are just scrolling by don't get hit by a few massive file size images forcefully.

This post has been edited by Hoshiyuu: Apr 19 2022, 03:00 PM