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Quick recap
Just realised my last newsletter was about 5 videos ago so I’ve covered a few topics since we last spoke. The main theme has been “Getting started” in your investment journey. I’ve tried to cover key steps along the way, along with mistakes I’ve also made.
Let me be clear though - Prior knowledge of these mistakes might not stop you from making them yourself. Sometimes we just have to make the mistakes ourselves before we actually learn (that’s certainly what I’ve found)!
Set and forget ETFs
I thought I’d do a video on this general topic of “Multi-Asset class” ETFs like:
Vanguard’s legendary VDHG (Diversified High Growth ETF); and
Betashares’ DHHF (Diversified All Growth ETF).
The attraction of these ETFs is their auto rebalancing and generally lower aggregate fees than holding individual ETFs. There is a real “Set and forget” nature to them in that you just keep buying them over time. You don’t have to worry about whether you have too much exposure to Australia or International overseas etc.
The asset allocation (how much in each category) has been determined by the professionals at Vanguard and Betashares rather than you and I.
My key thoughts on these ETFs are:
Similar to what you might find in your superannuation (so should you consider putting more there before you invest in these)?;
Asset allocation has been done by professionals with thought and analysis;
However the allocation can be changed without your input;
These are great if you’re just starting…or are experienced and want to simplify;
They’ve only been around since 2017 - so it’s early days to see if they can be reliable source of income in retirement.