And to diversify further Chinese Govt bonds ICBC CSOP CGB ETF S$ (CYC) in SGX also. I know Chinese equities is hit real hard since last year 2021 but this is slightly different this is bonds issued by Chinese Govt. I know some readers in here quite anti-China and won't invest that is ok. I only know monies talk loudest. If one believe Chinese govt can default on bonds and lower rating than Spore govt can don't invest also. I am just sharing info.

While ABF SG BOND ETF (A35) is safe the latest traded price is close to like 5 years ago in 2017. For such ETF/stock I generally won't buy becuz it don't move. Imagine you bought in 2017 and DCA 5 years later the share price at 2022 is back to 2017 ? Some could argue add more just to get the half yearly dividends of cuz but I think otherwise. To me long term is the investment must overall be on the rising trend not go back down.

https://www.sgx.com/securities/products/A35
https://www.sgx.com/securities/products/CYC

This post has been edited by sgh: Feb 14 2022, 03:11 PM

For SGX, HKEX I think you can try Tiger, Moomoo as I don't think IBKR is offering so good rates for non-US exchange traded ETF.

Thanks for sharing. Also the reason why I am not a big fan of bond. As you pointed out, equities drop 30%, bond up only 2% ? equities drop 50% bond up only 7% ? And that is your monies will be tied up for quite a lot of years which can be used to invest to get higher returns like equities etc in good times.

In another SG forum, I have asked can the definition of "bond" be stretched further like bank FD, insurance endowment plans, CPF (Msia EPF) etc with guaranteed capital protected investment? If yes then the so called "bond allocation" need not be strictly confined to bond or bond ETF or bond mutual fund.

It can be lose big time too so it is always two sides. I see so many investors in other forum complain about their losses on China stocks listed in US stock exchanges. The interest in accessing China A shares and HKEX gaining traction there.

Bogleheads? Has quite strict definition and a lot of investment would be out including mutual fund. Even sector theme ETF are out as they are pursuing low cost index tracking funds and only a few will do. I cannot. How can I eat economy rice with same 3 dishes every day for years? I like noodles actually, rice is just to fill stomach.

Some oldbirds told me many years ago when I started investment "only invest with monies you can afford to lose" else just stick to bank FD and other lower return but capital guaranteed investment instruments. There is hardly any high returns capital guaranteed instruments and via legal means of cuz.

Many years later that sentence still hold true based on my experience.

And it would even be better if Msian can use EPF and Sporean can use CPF for the regular invest due to super low cost. Anyone know why cannot becuz there is still risk?

Just want to understand if a fund just track index and ask for high expense ratio it will not find any takers. Usually it is index tracking ETF with low expense ratio that fit the bill. Fund managers are motivated to beat the index so if it just buy what is in the index how to attract investors?

Index tracking ETF suffer the problem you mention above and seldom it is a mutual fund as fund managers are motivated to beat the index they will adopt more strategy including buying stocks NOT in the index etc which translates to higher expense ratio

This post has been edited by sgh: Apr 8 2022, 04:28 PM

Avoid China tech for a while. All latest China fund factsheet I have shown fund managers all have shifted to Industrials, Consumer Cyclicals as top sector and tech is relegated to maybe 4th or 5th position. This mean fund manager are also actively avoiding the China tech sector. In times of crisis we witness fund managers doing the hard work.

For index tracking ETF too bad hard for them to avoid if all stocks in the index all perform badly UNLESS can remove those non-performing stocks from the index so the ETF no need to buy those stocks ?

I am not here to argue whether ETF can make one richer than mutual fund. I am replying to your earlier post how you describe fund is forced to buy what is in the index. That description fit an index tracking ETF than mutual fund.

Now you add new topic about mutual fund flaws for which there are for ETF too. Already point out the flaw of index tracking ETF if all stocks perform bad ETF price drop unless non-performing stock is dropped from index else the index tracking ETF has to buy it to fulfill its mandate as a low cost index tracking ETF.

Sometimes it is wise to diversify investment instruments. ETF mutual fund individual stock etc. For China ETF I think HKEX quite a lot but if you use IBKR the fees not that cheap. IBKR mainly for US trading. Tiger moomoo also not cheap basically HKEX China A shares yet to find cheap 35 cents fee.

I am eyeing HKEX Global X Electric Vehicle ETF although in SGX NikkoAM also launch one equivalent to compete. EV not tech correct?

You ask a valid question but based on what I guess from the active readers in here they are not that old like those 50-60 for which I am joining soon. They are at best late 30s? Hope to read a reader in age 50-60 comment as your question will apply higher probability for them?

As for me let me reply I share the same view as you which is why I have yet to DIY via foreign brokers prefer a local. To access overseas just use local broker like FSM Spore,Endowus for ETF,stocks etc.

Now is year 2022 new era ppl are not so fixated on marriage they pursue solo freedom and happiness which mean can really be single all the way till death. It is a choice now compared to olden times. I will respect their choice. As to how they explain to their parents I guess they need find a way somehow.

Thanks for sharing I think such rules do apply to Spore who invested in US incorporated stock as it has also been discussed in Spore forums I have read but no one is certain for sure. All ask to check with your own tax advisor but come on who really can afford as a smalltime retail investor?

Key point to note is to diversify your investment. Don't all in to US incorporated stock in US,Europe etc exchanges. Have some non-US incorporated UT,ETF,stock in one overall total portfolio. Diversification this word crop up again and again in investment.

The other way also possible Ukraine lost the war and be conquered and war stops. To us as long as war stops don't care which party win so world market can get back to normalcy.

Previously anything China don't touch now it is soon anything US don't touch. Wait it will go down further. Emergency fund don't touch please

Now I am touching countries outside US China small capital to try diversify away from China,US for new investment. Existing already invested stay put.

The index fund concept is nice in theory but I notice its flaw. If majority of the stocks in the index perform poorly the index fund will reflect that accordingly too e.g kweb ETF saga. So this bring me to think there should be some active management to decide which stocks are to be included in the index. It cannot be say change once every few months? The word active will scare ppl as index supposed to be passive investing

Just notice your own personal finance blog. I am curious those listed are all your investment instruments? You have zero dollars in say bank FD, govt bonds, endowment insurance etc? Those are considered safe and capital guaranteed investment.

Thanks for sharing so your investment instruments have nothing that is capital guaranteed correct? What about Msia EPF? That is also a form of "investment" by the govt on behalf of citizen just like Spore govt. Govt worry citizen dunno how to invest go and lose monies then old already no work stomach hungry ask govt feed them. But your govt quite lenient at age 50,55 can take all out unlike mine which come out with some Minimum Sum concept to buy annuity plan so every month got allowance from that in your retirement years and that is mandatory btw.

I am actually asking for your overall investment portfolio but seem you have it covered with emergency and cash in bank balance. This is I think the fixed income portion. Now I understand your blog those are the 100% equities portion. Thanks for sharing.

That is quite good very similar to mine except I have Point 5 FD and endowment insurance. Next would be what is your percentage allocation for each point 1 to 4? Point 4 will be higher percentage since you do not have Point 5 of FD, insurance correct?

To be frank my Point 5 is way higher than my Point 4 haha. That is why for Point 4 in all my posts for any new investment instrument I keep asking what is the minimum capital to enter as I allocate little. I only slowly increase once I get profitable based on my minimum capital and comfortable with the investment instrument. My strategy is like soccer. I have defenders, defensive midfielders as backbone and assign 1-2 out and out strikers to score goals. Boring I know but I don't hope for big wins. Sneak in a goal or draw is enough.