Investing in ETFs is a great and easy way to build a diversified share portfolio at a low cost. In this video I talk about 10 ETFs that may be a good investment for 2021. These ETFs are based on historical investment returns, diversification, market exposure, management fees, and dividends (distributions). I discuss my top 10 dividends which I’m looking to invest in 2022 providing exposure to the Australian Stock Exchange (ASX), NASDAQ, S&P and other international stock markets.
SPIVA® Australia Scorecard - https://www.spglobal.com/spdji/en/doc...
⏱️TIMESTAMPS
0:00 Intro
3:57 ETFs - Pros vs Cons
6:26 VAS
9:46 MVW
11:42 IEM
14:03 VTS
15:47 NDQ
17:45 BBOZ
19:03 WDIV
20:45 ILC
22:01 GDX
24:06 AAA
25:30 Final Verdict
#1 VAS Vanguard Australian Shares Index ETF tracks the performance of the top 300 companies listed on the Australian Stock Exchange (ASX). AS has a 0.1% management fee and has returned an average of about 9.5% per year since its inception in 2009.The full historical average yield for VAS is 4.41%.
#2 MVW VanEck Vector Australian Equal Weight ETF tracks the returns of the MVIS Australian Equal Weight Index. Its weighted greater in other sectors, such as IT, which makes up 7% of this ETF holding. $10,000 invested in MVW in 2014 would have grown to $18,601 by the end of 2020, with all dividends reinvested, whereas $10k in the ASX200 would have grown to $16,311. The ETF has a total of 102 holdings and has a management fee of 0.35%, meaning if you invested $10,000, you would be paying $35 a year in management fees.
#3 IEM iShares Core MSCI Emerging Markets ETF consists of companies based in Emerging Markets including Southeast Asia, China, Africa, and South America. The purpose of the ETF is invest in the largest stocks in these countries, as they have more room to grow than stocks which are based in the US, Europe or Australia. Over the last 5 years, the fund has returned 10.5% average per year. However, the management fee for this ETF is 0.68%.
#4 VTS Vanguard U.S. Total Market Shares Index ETF provides investors with exposure to the world’s largest companies listed in the United States, with one of the smallest management fees on the ASX. The ETF also pays a 1.2% dividend yield. Since its inception, the ETF has returned about 17% on average per year and 20% average per year over the last 10 years.
#5 NDQ Beta Shares NASDAQ 100 ETF or NDQ ETF. Tech Companies including Apple, Microsoft, Amazon, Facebook, and Tesla, which collectively make up almost 40% of the total ETF. The management fee is 0.48%, meaning that if you invested $10,000, you would be paying about $48 a year in management fees. Since inception, NDQ has returned 23.9% per year, and 28% per year over the last 5 years.
#6 BBOZ BetaShares Australian Equities Strong Bear Hedge ETF (BBOZ) which only increases in value when the ASX dops and loses value. It has a hefty 1.38% management fee per year, meaning if you invested $10,000, you would be paying $138 in management fees a year. It also doesn’t pay dividends.
#7 WDIV SPDR S&P Global Dividend ETF (WDIV) is designed for Australian dividend investors and consists of 94 companies and has a dividend yield of 5.14%. Since inception the ETF has returned an average of 7.65% per year, assuming dividends are reinvested.
#8 ILC iShares S&P/ASX 20 (ILC), which is an ASX ETF that only tracks the 20 biggest companies in Australia. The ETF also has a management fee of 0.24% per year, which is almost 3x the BetaShares ETF for ASX 200. It does have a dividend yield of about 3.5%. The fund has slightly underperformed the ASX300 over the last 5 years, delivering an average annual return of 10.9% compared to 11.1% for the ASX index.
#9 GDX VanEck Vectors Gold Miners ETF or (GDX) invests in 55 of the biggest gold mining and companies in the world including Australian companies like Newcrest, Northern Star, and Evolution mining. This gold ETF has delivered an average annual return of 5.6% over the past 5 years, although it did significantly drop in 2020. The management fee for GDX is 0.51%.
#10 AAA BetaShares Australian High Interest Cash ETF or AAA only achieved an average return of 1.4% per year over the last 5 years. This ETF is essentially the same as putting your money in a high interest savings account.
DISCLAIMER: This video is for general knowledge and entertainment purposes only, and should not be considered as financial advice. I am not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information in this video relates to your unique circumstances. I am not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.
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