Portfolio Update

After the two recent sell transactions, my portfolio is slightly changed. Therefore, I provide an update below. A lot has happened since the first time that I posted my portfolio. Well, I guess that is a little exaggerated but everything is relative. Since then, I have revisited each of my positions and particularly looked at their total expense ratio (TER) which is the ongoing costs of owning such funds. It is expressed in % and deducted from the the fund itself meaning I will never get a bill for it. It is just that a fund’s portfolio value is reduced by this percentage over the course of a year. You can find all of the TERs of the funds that I invest in, in the table below. A simple average of those TERs is 0.52%. Before, I sold two positions this simple average was almost 0.9%. So, by paying closer attention to which positions I want to own, I was able to almost half my annual fund management expenses. I am quite happy about that.

income-portfolio-20161211

Also, I still have to decide what I will reinvest the proceeds from those two divestments into. I am thinking about either Vanguard’s FTSE All-World High Dividend Yield UCITS ETF or adding to my existing SPDR S&P Global Dividend Aristocrats ETF. The former has a TER of 0.29% and the latter of 0.45%. Both pay dividend quarterly. Vanguard offers a dividend yield of 3.9% (as per most recent factsheet per end of Oxtober) and the SPDR ETF has a dividend yield of 3.9% (as per 08-12-2016). Either way, I am not in a rush to be any of those two, but most likely it will be one of those two funds.

 

Disclaimer: None of the content of this site is to be considered investment advice. Readers have to form their own opinion about which investments are right for them and take full responsibility for their own actions.

 

 

4 thoughts on “Portfolio Update

  1. Nice work on lowering that average TER on your portfolio. Looks like it was really worth it to sell those 2 positions. I’m not so familiar in the ETF range, but the options you mention both have a high dividend yield. What is their growth rate over the pas few years? Maybe that changes some perspective in returns over the long haul.

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    • Hi Divnomics,
      Thank you for your comment. I had a look at the returns of those two ETFs and in my mind they do not differ that much. So, my current thinking is to buy the one I don’t own yet because it pays dividends in different months. In that way I can smothe my income a little bit. I know, this is very behavioral instead of economics or so but I like it. I have not bought the ETF yet. I guess I am waiting for a better entry point. Who knows, maybe I get a chance tomorrow after tonight’s FED decision. We’ll see.
      Thank’s for stopping by.

      Like

  2. I need to park my money somewhere in the next couple of weeks. The Trump Bump has definitely skewed my analysis a little bit and what I thought was going to happen has clearly not gone in the direction I thought. I guess that’s why timing the market is bad 🙂

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    • Hi MSM,
      Thank you for your comment. I know, timing is very difficult. I tend not to time but to price or value might be a better word. If the dividend yield or any other metric ain’t what I want it to be, I don’t buy. We’ll see. Also, I plan to write a post soon on patience.
      Thanks for stopping by.

      Liked by 1 person

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