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ETF Analysis - Video Review List
In Portfolios and ETF analysis
ETF portfolio
In Portfolios and ETF analysis
Mark Monfort
Sep 13, 2021
Welcome @reusta. I see a lot of people talk about VDHG (Diversified High Growth ETF) and it's kind of interesting because it along with the other Vanguard ETF of ETFs (see VDCO, VDBA, VDGR), has bond exposure in it. Bonds are usually something you look at as you get older and closer to retirement so usually the talk is that you should look at DHHF which is a BetaShares ETF (Diversified All Growth ETF) which contians no bonds. The reason for this is that when you're younger you can ride the waves/ebbs and flows of the equity markets. Bonds have that lower risk but also lower returns so the thought process is you are sacrificing. There is an advantage to going with a single ETF rather than the multi ETF as you list above and that's also to do with transaction costs and rebalancing you don't have to technically worry about for any ETF yoou can buy and leave it but yes, with the ETF of ETF types, they will rebalance themselves. Here's what's interesting though with VDHG and DHHF VDHG has been around since pre 2018 and had some strong returns (chart 1), increasing net inflows each month (ch2), and more trades as it has been getting ever more popular. It's seen a decrease in spread as it trades more and seen div yield increase strongly with fees at 0.27% DHHF on the other hand has been around less - since mid 2020, but inflows been improving as have transactions.Also seeing better spread % (meaning it can trade more easily) and distribution yield not as strong but increasing. It is that little bit cheaper though. The costs only matter dependingon size of your trades. The costs come as part of your buying and sellling the ETF, you don't need to pay something separate so its built in. It might not matter as much on a $500 trade but that percentage difference might be of interest on a $5000 or $50k trade. DHHF might look like a lower returning ETF but if I put VDHG back to the same period the returns are only slightly better (+27%) which is interesting considering it has some bonds in it, it just means that the other ETFs VDHG held were better than what DHHF holds which are as follows: I think if you were to choose between them you just need to decide whether you're happier with some level of risk protection with bonds or you're happy to go all equity growth. Now one thing missing from all this is that both DHHF, VDHG and even the other ETFs you mention, none of them look at the other thematics you can get into with ETFs such as ESG or robotics, cloud computing, other technology or industries. If you were interested in those, check out the filter once you're in either the main ETFtracker app or the holdings app as there is are ETF categories or thematics you can choose from. Once you're in the apps the side menu filter button opens up to this: ETFtracker app: https://www.etftracker.com.au/the-app ETF holdings app: https://www.etftracker.com.au/holdings These can help show you what else is out there. You might look at VDHG or DHHF and then pick some other ETFs to fit a thematic goal you have. If you do, use the holdings app above to see if there is any crossover or similarity in the holdings. Anyway, with all this, do your own homework too, this is not financial advice, this is just looking at what the data is showing and how we interpret it. Hope it helps!
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Vanguard Holdings added
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DJRE Analysis Request
In Portfolios and ETF analysis
Mark Monfort
Aug 02, 2021
Thanks Roland - lets take a look at the numbers. DJRE sits amongst other property (global and local) ETF names so comparing it to those is what I'll do. It's always interesting to compare an ETF versus other similar ETFs otherwise it's a bit unfair. E.g. Fixed Income ETFs compared against Equity based ones won't work well given they're built for diffferent purposes. Anyway, performance wise, DJRE has had +33% returns since 2017 so a bit lower than some others like SLF, VAP, MVA. Size wise, it's seen the 3rd most inflows out of the group since beginning 2020 and a steady amount of trades a month Next we look at Transactions - you can do all of the above on the Comparisons page (last menu option). When you select your ETFs with the filter on the right hand side of the app you can see all on a page like this. But, if I select just DJRE from the table you can see that in a focused mode. What we can see here is that it's not as high in terms of liquidity but its got a better bid ask spread than most (you want that low). Not as much distribution yield compared to the others but lower cost in terms of MER This app doesn't dive into the holdings but you can see it on the State Street Holdings app also on ETFtracker - looking at DJRE we can see its biggest holdings So, it's an interesting ETF and compared to its peers has some pros and cons. Depending on what level of crrosver there might be in its holdings versus others you're holding you might want to consider that. Also, considering what's in the holdings, do you find those companies of interest. Always helps if you know a bit about those underlying holdings for passive ETFs. When I buy active I tend to trust the manager a bit more there. Anyway, hope these help.
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Portfolios Ideas?
In Portfolios and ETF analysis
Mark Monfort
Jul 19, 2021
Spot on @Laura Rusu @ LENSELL
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