World's Simplest Investment Portfolio for Australians - VAS + VGS + Cash
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- Опубліковано 9 тра 2024
- This is the world's simplest investment portfolio for Australians. VAS and VGS are two of the best index-tracking ETFs out there, and when combined with cash, they make a perfect 3-fund portfolio.
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▼ ▽ TIMESTAMPS
0:00 Intro
1:48 Portfolio Overview
3:20 My Rationale
7:15 Benefits
9:26 Portfolio Allocations
11:25 Alternative Options
▼ ▽ CONTACT
📩 Business inquires → helloraymondla@gmail.com
Hi All, hope you enjoyed this video! FYI - Betashares have reduced their fees for A200 further to just 0.04%!
Also - Don’t forget to get 12 FREE Stocks with WeBull when sign up and deposit any amount into your account ➭ bit.ly/41GdRQi (worth up to $1200 USD)
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Thanks heaps for reenforcing my thoughts on this 😊
You have an easy method of teaching Raymond Thank You so much for tips and advice
I would have also added extra super contributions.
Raymond this is such a simple, clear and helpful video in a calm and easy way. I really appreciate your guidance :)
Glad it was helpful!
Agree 100%
We have gone for a 3 fund portfolio including 3 years of cash + Berkshire Hathaway class2 shares . Works
Great video mate agree with your opinion on having cash
Great breakdown! Adding Cobre could diversify even further. Would love to see it featured in your next video!
I like the way you talk - peaceful, clear speech, and simple.
Appreciate that feedback!
I agree with you... I have the same investment portfolio VAS+VGS+CASH. It is simpler and I just invest and forget, I'm kind of a person who thinks there are more things to do out there than focusing in one thing, get stuck, and not moving on with life. I just live my life knowing I have investments, and cash to use anytime I want to go or buy something. My aim is very simple, 1 million investments, 1 million savings, that is just enough for me to retire on. Life is short don't make it shorter.
Simple is a no-brainer. Appreciate the explanation of fees and its impact over the years! Great video.
Glad it was helpful!
awesome video Raymond, hope you are making more
More to come!
Great info, made it simple for non financial people :)
12 outta 10, great video, so helpful
Thank you Raymond 😊
Hi Raymond! Great info! The VAS + VGS combo is very complementary as it allows us to capture both Aussie + global stock market returns.
I have a VAS + IVV portfolio but will add VGS soon.
Thanks for sharing! I think IVV is a solid option, just note that VGS essentially will slightly double dip into what IVV offers!
@@raymondla noted, probably by around 70%.
My VGS allocation will be primarily to easily track a separate bucket of funds (eg. company bonus/ gift from grandma).
@@Dividend.Investor.Channelhey I love this idea
@@bunnobear thank you!
Your Aussie investment tips are my go-to. Any chance you could share your thoughts on Fuse Minerals in an upcoming video? Would love to hear how it fits into a simple portfolio like the one you've just outlined.
Excellent advice very well presented.
Appreciate that feedback!
Brilliant video Raymond very clearly explained
Glad you enjoyed it
I’m probably leaning at 62 and on a transition to retirement to have more VAS for franking credits
For those who want to avoid Vangaurds or Blackrocks use ETF like A200 (Australian INDEX), IVV for SP500 index, GOLD for physical gold, ETPMAG for physical silver and NDQ for nasdaq tech INDEX. Plus cash either pure or in asset clas that just covers for inflation (bonds or time investment).
What a great video!
Glad you enjoyed it!
A200 and IVV the two ETFs I buy/own. I also own NDQ. The expense ratio is high, but worth it
NDQ has done super solid the so far in the year!
Hey Raymond, Speaking of cash...would you consider AAA? The dividend yield is relatively small but it pays dividends every month which is good, while risk is relatively low. Cheers
Hi Raymond brilliant video. Im a 33y/o woman just getting into investing. I’ve been trying to do endless research as i know nothing about investing and I am so exhausted. This was very helpful. Thank you
Hi Tina, great that you've started to get into investing! Glad I could be helpful 🙂
Hello Tina I can connect you to my broker
@@kimberlyjones4534 lol, Why introduce a middle man? assuming you're not a pos scammer
@@Fanta.... I don’t know what brought scam into this am just trying to help thank you
amazing
An alternative to VGS could be a combination of IVV and VEU.
Please talk about VESG too. It's important for those of us who want to live in an ethical and sustainable future when we grow older. No point having money or passing on wealth to future generations if the future is a nightmare.
The insane rise in the cost of insurance lately is just one point of evidence that, if we're not aware of where our money is invested in, we will end up paying the price in other ways (let alone the environmental impact).
An excellent breakdown of simplifying investments using index tracking ETFs and cash. Your focus on VAS and VGS for diversified market exposure, coupled with the importance of cash as an asset, really demystifies investing for beginners. The point about low fees and the impact on long-term returns is particularly valuable. How often do you recommend reviewing and rebalancing this simplified portfolio?
Much appreciated mate, investing doesn't have to be complicated at all! Personally, I look at my overall portfolio once a quarter to see which ETF I need to top up in the next few months. Glad to see more aussie finance content creators in the space!
I am very new to investment. I have found this video to be very informative. I had one question how do I determine when to sell my EFT.
Hi Bidisha, glad you found the video useful. Investing in ETFs is a long term investment, for me personally I only plan to see them to fund my retirement.
I go Vas + Ivv and cash, IVV slightly out performs vgs but not by that much. And I’d prefer my portfolio to be in the s&p 500 rather then Europe and Asia also as I don’t know Asia and Europes companies very well nor there economically status. Warren buffet says invest in companies you understand
Hey that's definitely a valid approach, can't go wrong with just investing into the S&P500 🙂
My ETF portfolio holds VAS - VGS - VAE, good balance of the world!
VAE is definitely a good option to include into the portfolio for more exposure into Asia!
@@raymondlaI use IEM Because vgs and IEM follow MSCI
@@pritpalsingh6483 IEM follows the MSCI Emerging Markets index, very different index and a much higher management fee
I'm not a fan of having a large allocation of the ASX and I find most people have home bias. Since Australian market only 3% of the world's overall, it would make more sense to invest 5% or less in the portfolio.
I'm not completely against VAS. I'd suggest to increase VAS allocation as you grow older. ASX tends to pay higher dividend which fits really well with FIRE.
But if you are 50 years old or younger, put more of your money into VGS. It performs better overall.
I'm surprised you didn't include VTS
Hey great video. Currently 25 Jul VGS is going crazy up. What do you suggest should we wait till it drop down a bit of still buy while its growing crazy up ??
Hey mate, we never know what the price is going to be tomorrow, it could go up, it could go down so the best time to invest is today 😀
Where to invest
Which brokerage is the best
Thank you for a great video.
I had a question regarding the investor who has their eye on future passive income from dividends, say in 20 years. The dividend yield on the international ETF is much lower than VAS. To transition from wealth accumulation phase to a dividend paying phase will require re balancing which will mean selling of your international stocks, then paying tax, then reinvesting into companies for the dividends.
I like the idea of accumulating a position in the ETF that eventually I will take dividend payments from. By amassing a larger position in VAS you can transition from having dividends reinvested to taking them and there is no requirement to trigger a capital gains event. Obviously its a balance between maximising growth in the long term and building the right portfolio from which dividends can be derived. Wonder if you have any thoughts on the right investment vehicles to use with this kind of an investment goal?
Hey there! Another alternative is that as the years go on you simply purchase more of VAS or another dividend focused ETF such as VHY and purchase less of the international focused ETF. This way your portfolio allocation will slowly change and be less international focused and more Australia/Dividend focused.
Hey Raymond, I love your videos. Is it better to Salary sacrifice in a good Super OR invest in long term EFT like Vanguard?
Hey mate, I think this depends on when you plan to access that money that you're investing. If it's not till retirement, then 100% it should be into your superannuation first (taking into consideration the yearly contributions cap) But if you want more flexibility with your money, then just investing into an ETF would be better.
Hi Raymond, thank you for the information. I just decided that I want to start investing into s&p500 but not sure where to start, can you help directing to the website or broker that can help? Thank you
Hi Raymond, great video. Is there a way to optimise the portfolio to reduce the currency risk as most of the portfolio will be in Australian dollars.
Hey mate, there is a hedged equivalent of VGS which is VGAD. Although research has been found that over a long period of time currency conversion nets out.
@@raymondla Thank you Raymond
Great video, and I do like the simplicity of your portfolio (low fees, diversification and well balanced between global/cash/Aus).
Questions: why you go for VGS and not S&P500?
What about 10% gold?
VGS provides exposure to other developed markets outside of the US, so it's really just more diversification. I've never been a fan of precious metals, just my own opinion though you could easily add it into your portfolio.
However I doubt that VGS would be suitable for an Australian retiree with his/her SMSF in the pension paying phase, where the retiree needs income to live on. VGS only seems to pay around 2% p.a. on average (sometime slightly above and often below) with ZERO franking.
What are your thoughts on BGBL from Betashares in place of VGS?
Hey mate, I think it's a great alternative to VGS. Lower management fee and it essentially provides the same exposure, might switch over to it myself instead of VGS.
Hi Raymond! Just wondering the rationale behind investing a significantly larger portion into VGS compared to VAS in your sample percentages. Is there a benefit in having more invested in international centred shares compared to Australian ones?
Australia only makes up around 3% of the global share market, whilst the US makes up around ~60%. So that's why it is recommended to be more heavily weighted towards VGS.
Great video! Ive JUST started investing and these are the two ETFs i had chosen so this video makes me feel good lol. So you recommend alterating buying one lot each month instead of splitting it each time to minimize fees?
Awesome to see you starting to invest! Yes I would personally just alternate between the two each month in order to minimise brokerage fees 👍
can I ask with these shares being around $95 each, how many should you buy to start off? a single girl wage cant buy much LOL
Hi Raymond, what exactly do you refer to when you mention cash? Physical notes or just funds in earning interest in personal bank accounts?
Thanks in advance
Hey mate, cash in a high interest savings account 👍
tbh 300 is a bit over diversified and the other 100+ are very small companies that make little difference, you can also go for asx200 IOZ and you would sit with very little difference except you pay less management fees
What happens between your 50s and 65?, I would consider this time towards / transitioning to retirement crucially. Time for a financial advisor?
A200+VGS+ Cash in your mortgage offset accounts
If you have a mortgage then definitely park it in there!
I’ve started investing via commsec pocket. They have 7 different etfs. My aim was to invest $1000 into each. Now I’m thinking I should perhaps sell my commsec pocket shares and reinvest the funds straight into commsec etfs directly. There seems to be a bit of overlapping in some of the commsec pockets etfs. Thoughts?
I'd just keep what you have invested into commsec pocket as is and then start investing directly into the ETFs directly. Although you probably don't need to invest in all 7 ETFs, best to keep things simple.
Hey Raymond,
Just came across your video on ETFs. I am looking to invest with Vanguard VAS and VGS. Found your video to be very informative and have subscribed to your channel (will check out your other videos over the coming days).
I am just curious whether you are holding the investment with Vanguard under your personal name or some form of trust structure? Please be assured that this will not be considered or taken as advice at my end.
Thanks.
Glad it was helpful! I personally just invest under my own name, it's not worthwhile for me at the moment to set up a trust yet.
@@raymondla Thanks for the prompt response 😊👍. I am thinking of investing under my name too as the set up and compliance costs of a trust is not justifiable at present.
Great advice Raymond....
Glad you enjoyed it
As a self-funded retiree I need monthly income, close to fully franked if possible. I realise most etf's pay distributions quarterly, but maybe different months. Raymond, an etf portfolio that meets my needs, and I suspect many others, along these lines, with low fees and relatively consistent payouts would be great. Don’t want much do I?!?
Franked dividends are definitely very beneficial when in retirement!
Great video! I'm having a hard time deciding between ishares global 100 and VGS ETFs. 100 does have a higher MER but history has shown it has outperformed VGS. What are your thoughts?
Glad you enjoyed the video! Those are both quite different ETFs because the iShares ETF is concentrated into the top 100 equities, so it wouldn't be a fair comparison to compare the performance against one another. Probably a better question to ask yourself is how diversified you want to be? Because iShares Global gives you exposure to ~100 companies whilst VGS gives exposure to ~1400 companies.
thanks lovely @@raymondla
Great video , I’m constantly learning new techniques everyday . In my current portfolio I have , vas vgs vae vue, in your opinion 25% in each a good call or . I just want to set and forget
What do you think of computershares as the registry for those ETFs? Having to pay for my yearly tax statement seems backwards?
Unfortunately not much choice when it comes to which registry the ETFs are set up with.
Hi Raymond, nice video, I have two questions 1) As far as I know VAS is a good option when it comes to dividends but is it worth investing in VAS if let's say someone can only invest between $2-3K a year into VAS?
2) For VGS and IVV, I did some research and I can see IVV outperformed VGS but this wasn't the case in 2023, obviously past performance is not a guarantee for the future but for a long term investment do you think IVV is a better option than VGS when it comes to long term growth ?
Hey mate, I think it's still definitely worth investing even if you only have $2-$3k per year as that is still better than nothing! Like you said you can't really predict performance with with IVV and VGS, but they are technically invest into different markets so aren't actually comparable. A potential different question you can ask yourself is if you want to invest into just the US stock market (IVV) or which you want exposure to other developed markets (VGS)
you forgot to mention betashares mate!
Hi, what about AFI for aus etf and VOO, VTI, QQQ, SCHD as international etfs?
Thanks
AFI is technically a LIC, it could be used as an alternative the only thing is that it is actively managed and you wouldn't be as diversified. As for the international ETFs, they are fine alternatives, as long as you get similar exposure to VGS.
A200 plus QUAL ( much better 20 year annual return ) …qual fees is higher at 0.40 but better returns and investment thesis beats vgs 0.18 fees at long margin..vgs is diworsified
American big etf has lower fees, 0,03%, 0,05%.
Does not worth to invest on them from an us broker that allows australian to invest ?
Hello Raymond. Do you know if I can buy these ETFs through any of the major Super funds? Thanks kindly.
Hey mate, you can if you go via the index investing route which most industry superfunds have.
@@raymondla thanks kindly
I’d love to learn more about investing, but I have no idea what you’re talking about. VAS,VGF and ETF’s, it’s like another language, where can I learn more?
Newbie here. When is a good time to buy these ETFS? As over time they should all go up, is right now as good as any? Or should we not buy at the peak?
Thanks for your excellent videos and hope to hear from you.
Hey mate, the best time to invest is now if your finances allow for it! Even if it is at all-time highs the market will continue to go up over the long period.
@raymondla cheers thank you
Understanding the stock market world is very complicated but if you want to have a good chance of increasing your wealth then it is worth understanding this would be good only for those who already have a high wealth e.g. you could just put in $100k+ that you have spare and want to further accelerate your wealth accumulation then what is stated here is fine but for the average this is a very slow lane approach most aussies don't have $10k available and doing DCA (dollar cost averaging) strategies is also very slow lane thinking. Sorry I just have the mindset that I want to enjoy wealth while I'm young enough to enjoy it i.e. live in the fast lane, the slow lane doesn't suit me. Really by doing this method you're just helping out some of the biggest companies in the world... they only bit I do agree with is holding some cash at least with interest rates up a bit some banks offer ok interest rates to put money into.
Definitely a strategy you’ll regret.
VAS is now 0.07% PA fee
do you like a small amount of nasdaq 100 to take advantage of the ai boom?
Whilst you can if you wanted to be more concentrated into NASDAQ, VGS already will be invested into all top 100 companies in the NASDAQ.
Hi Raymond , first time investor here would you suggest a one of Purchase and leave it for 10 + years or would you make another purchase when more money comes in ?
Hey mate, you definitely should continue to invest over time as long as you can afford to.
VGS vs VGAD? Hedged to avoid currency fluctuations?
Studies have shown that currency fluctuations over the long term have negligible effects which is why I don't personally invest into them.
Hey Raymond, how would I go about buying ETF?
Hey Roxanne, I've done a full video talking through the process here ua-cam.com/video/mSnR2_jt4DY/v-deo.html let me know if you have any further questions
By cash do you mean savings? Or physical cold hard cash?
Hey mate, I meant money in a high-interest savings account or in your off-set if you have a mortgage.
Those allocations are all aggressive, particularly the retiree allocation with only 30% cash.
What about VDHG as a replacement of VAS + VGS ?
Hey Shawn, whilst VDHG is a great all-in-one ETF it doesn't give you flexibility in the allocation. You're locked into VDHG's allocation which will always have ~10% allocated towards bonds.
@@raymondla yes, good point. I am just wondering, if you wanted to reduce your exposure to bonds, you could offset that by adding VAS or VGS and vice versa if you wanted to increase your exposure to bonds. However, yes, you can't have 0% bond allocation with VDHG.
can I ask with VAS shares being around $95 each, how many should you buy to start off? a single girl wage cant buy much LOL and is having say 6 shares worth doing?
I would recommend saving up overtime to let's say at least $1000 before you invest. You don't want to invest in small amounts because you'll be incurring fees every time you do
What platforms do you recommend for getting into ETFS with the lowest fees on fortnightly investments?
I'd recommend Stake personally, it's $3 per trade and has a good mobile app / UI. Check it out here - bit.ly/3x2tiBu
@@raymondla ah no worries, is this the fees u were talking about in the video?
@@cheyannedelgado5993 The fees I mentioned in the video are the fees relating to the ETFS themselves, this is paid to the funds that manage those ETFs. The platform fees for Stake are essentially the transaction costs to invest. Slightly different, let me know if that makes sense!
@@raymondla hi Raymond, it makes perfect sense. Perhaps a video on these different platforms and online brokers would be really good. Either way, thank you for replying to me so fast 👌🏽
Hey what's the best platform for this portfolio?
Any brokerage platform works, I personally use Stake but you could also use other well known platforms such as Pearler, Selfwealth or CommSec!
I have VAS and VDGH. Should I just hold VDHG and cash?
It is an overlap of exposure, so you don't technically need VAS if you already hold VDHG.
Have a question about etf, is there an extreme situation that after you hold your ETF for 10 years and then no one like to buy it from you when you want to sell it😅😅.
Hey mate totally valid question, but no there wouldn't be a situation where you wouldn't be able to sell. The market cap of VAS itself is $13B meaning that is the total value of all shares in circulation. It is constantly being bought and sold daily so you won't have any issues selling if you need to.
STW has 0.04 % fees with same diversification
How would I know how much to invest based off your 70% VGS and 30% VAS allocations? Ie. I want to invest $500 each month, would this mean $350 VGS and $150 VAS? Thanks!
Hey mate you'd just buy one set of shares each month and alternate so your allocation is where you want it to be. You don't want to be splitting up your purchases too much because then you'll be incurring additional fees each time.
returns?
when is the time to sell the etf?
Ideally when you're retired and are no longer earning an income
Hi what do u mean by cash ? Cash means ? Plz
Just means having cash in a high-interest savings account
VGE
Dude, where's the 50-65%?
Get rid of back ground music please. When you loose hearing as you get older it socks with back ground noise.
turn on captions, gramps
Personaly, I would include AGBs into this list. Thumb up if u think the same way!
superfund 101
Thanks for the update and keep doing what you do. My journey in the current market has taught me a lot of lessons, thinking about investing diversification certainly is the key, that’s why I engaged in sectors based on projected growth. There are no shortcuts to getting rich but there are smart ways to go about it. professional Eunice Berthold has been my advisor and trader for a while now she has been doing a great job reviewing all charts and trade on BTC which has enhanced the growth of my portfolio to a six figures lately.
This is not the first time I am coming across Eunice Berthold and her trading exploits but I have no idea how I can reach her so that i can invest.
Thanks i will get in touch
this is the stay poor/middle class portfolio that will underperform against currency debasement
I don’t think anyone is retiring at 40-50 lol 😂
You're better off doing negative gearing and buying investment properties
My life has totally changed since I started an investment of 78k and now earning over 152k just in 15 days
What was the investment in..??
Haha nothing like taking financial advice from a 20 year old 😂
Do you have better advice?
@@oggyoggy1299 haha yeah don't take financial advice from a 20 year old on you tube 😂
What do you think VDHG, seems a thing with millennials, but performance not that good ?
It’s a solid all in one portfolio. Reason for the performance being slightly lower is due to the allocation in bonds
KISS is best !! Spruiker complicate things so they can put their greasy hands in your pocket !!