In this episode of “What’s the Risk?”, we dive into the impact of currency hedging by examining the historical performance of the MSCI World ex Australia Index (net dividends, hedged to AUD) and its unhedged counterpart. We analyze a 50/50 portfolio combining these indices, commonly tracked by ETFs like VGAD (hedged) and VGS (unhedged). This […]
In this episode of “What’s the Risk?” we dive into a question from a concerned family member navigating a delicate financial situation. A son-in-law, reviewing his mother-in-law’s investment portfolio, is alarmed by the high fees she’s incurring. While his mother-in-law remains unperturbed, confident her needs are met, and his wife is indifferent as long as […]
As of writing the S&P 500 in the US is up nearly 15% year to date. That would be a decent annual return, but we’ve not yet notched six months in 2024 so it’s a very impressive return for half a year. Recently a poll conducted for the Guardian found 49% of Americans believed the […]
Doing better. We all want to do better. Across the board. Whatever it is, there’s someone out there claiming they can best whatever we’re currently doing. Doing better can come in close quarters from someone we trust, or it can come from a cold call. Here’s a couple of stories of doing better. The Trusted […]
In this episode of “What’s the Risk?” we examine the historical performance of a 60/40 portfolio combining the MSCI World ex Australia Index (net div., AUD) and the S&P/ASX 300, rebalanced annually. Popular among Australian DIY investors, this portfolio is often implemented using Vanguard’s VGS and VAS ETFs, tracking the respective indices. Since its hypothetical […]
In this episode of “What’s the Risk?” we explore the historical performance of the MSCI World ex Australia Index (net div., AUD), a global benchmark tracked by Vanguard’s VGS ETF. Since its inception in 1975, this index, covering large- and mid-cap stocks across 22 developed markets, has navigated significant market cycles, offering a compelling case […]
In this episode of “What’s the Risk?” we dive into the historical performance of the ASX 300 Index, a benchmark capturing the top 300 companies listed on the Australian Securities Exchange. Widely recognized through Vanguard’s VAS ETF, which seeks to replicate the index’s performance, the ASX 300 offers a broad snapshot of Australia’s equity market. […]
No contribution this month because the taxman came calling. This is only the second time I’ve missed a monthly contribution, both were related to paying tax. What I had to pay was around the same as a monthly contribution. Sure, I could set aside from distributions, but it seems easier to reinvest when you receive […]
One of the big allures of investing is finding a company at a low price, buying it, and then riding it to a high price. Very sweet. It’s said that losses are felt more acutely than wins, but hitting a big winner would be an amazing feeling. Unfortunately, it’s very hard to do. Being right […]
April was a down month, but also one where distributions came in. Which is somewhat handy if you get to reinvest them at a discount. Given they don’t arrive in the account until the 3rd week if the month has had a rough start it can work out in your favour. The month’s actual contribution […]
