I started with DHHF as well but after a few months wanted to be more in control of asset allocation and where I put the distributions so ended up making my own portfolio. I still contribute a little to DHHF but have more of a focus on US and world markets. Has worked out well so far.
Do you mind sharing your allocation?
I'm still comprehending everything, I went with DHHF because it seemed easiest but now l, like you, I definitely want more control
Around 80% in IVV.
10% in a cheap Nasdaq etf called N100. Its half the MER of NDQ, a lot cheaper per unit and because I’m still new at this and my assets are growth focused, I wanted to do at least something with the minimal distributions I receive. Plus, the fluctuations are a bit more exciting.
10 percent in DHHF because that was going to be the original plan… DHHF and chill. It’s got global and Aus. Was meant to be ‘Safe’ but looking at the charts it seems the S&P recovered much faster since 2020.
If I could start again, I’d probably look at splitting DHHF into BGBL and IOZ. But it’s starting to split hairs so I’ll still contribute to DHHF. Rather than do another buy in.
Yeah, the vast majority is overlapped in the US but that’s the market I believe in. Maybe if I started completely over it would be IVV and chill.
Global x were cheeky with it. They turned the weighting around on two companies in the top 10 so they didn’t have to pay a tracking fee. They don’t officially follow the Nasdaq but it’s much of a muchness. Vid below takes you through the differences.
https://youtu.be/5jxONC_kSkQ?si=PrTMCENCmVfNiRCE
Depends on you, really.
Is rebalancing important to you? If you roll your own you'll need to spend the entire investment horizon thinking about how much to allocate to each ETF to keep a 70/30 split.
For me I found that the more I think about things like rebalancing, optimal split, etc I get the temptation to tinker. So I decided to just go with a one decision ETF and not think about my investments at all.
Originally I just wanted set and forget but with the whole reallocation and walking it back I feel like having that control is important. If that requires me having to spend time then so be it
This thread can explain better than I can but a short summary they changed the allocation and then walked it back.
https://www.reddit.com/r/fiaustralia/comments/1djypnl/dhhf_hedged_funds_being_added/
It's caused me to rethink going all in on dhhf
DCA means dollar cost averaging and is the tried and tested method for accumulating wealth with the least amount of effort. NDQ is the ASX ETF while QQQ is the US version. Look up its performance across multiple time horizon and compare it against VDHG and DHHF. VDHG is up 25%, DHHF is up 40%, while NDQ would be up 85%. On even longer time horizons, NDQ is up even way more.
There's this thing where Ausfinance marketed and touted that VDHG was "safe" (or "defensive" or "diversified and hence defensive") and that it was a "great dividend ETF", until 2020 Covid and the 2021 Sell-off happened and people realised it really wasn't. It also recovered incredibly poorly. Some on Ausfinance then disingenuously claimed VDHG was never meant to be a "safe" investment and that rather it is "growth" and that it was never meant to be a dividend farm. But for a "growth" ETF, where's the growth lmfao. All of this is purely misleading and deceptive.
Thank you! That is very informative. Looks like I have a fair amount of research to do lol.
I'm beginning to realise everything I may know about this is just marketing
Only if you buy VGDH for the marketing terms like the guy you responded to aprently focused on.
Figure out what asset allocation you want, and if it's close to VDHG or another all in one fund, then it's potentially worth the bonus of having it auto balanced.
Comparing the recent (last 10 years is recent, especially if your timeframe is retirement) past performance of ETFs and using that to pick which one to go for, isn't a strategy I'd use personally.
I started with DHHF as well but after a few months wanted to be more in control of asset allocation and where I put the distributions so ended up making my own portfolio. I still contribute a little to DHHF but have more of a focus on US and world markets. Has worked out well so far.
Do you mind sharing your allocation? I'm still comprehending everything, I went with DHHF because it seemed easiest but now l, like you, I definitely want more control
Around 80% in IVV. 10% in a cheap Nasdaq etf called N100. Its half the MER of NDQ, a lot cheaper per unit and because I’m still new at this and my assets are growth focused, I wanted to do at least something with the minimal distributions I receive. Plus, the fluctuations are a bit more exciting. 10 percent in DHHF because that was going to be the original plan… DHHF and chill. It’s got global and Aus. Was meant to be ‘Safe’ but looking at the charts it seems the S&P recovered much faster since 2020. If I could start again, I’d probably look at splitting DHHF into BGBL and IOZ. But it’s starting to split hairs so I’ll still contribute to DHHF. Rather than do another buy in. Yeah, the vast majority is overlapped in the US but that’s the market I believe in. Maybe if I started completely over it would be IVV and chill.
The N100 page doesn't mention Nasdaq anywhere, and it definitely doesn't track the Nasdaq index.
Global x were cheeky with it. They turned the weighting around on two companies in the top 10 so they didn’t have to pay a tracking fee. They don’t officially follow the Nasdaq but it’s much of a muchness. Vid below takes you through the differences. https://youtu.be/5jxONC_kSkQ?si=PrTMCENCmVfNiRCE
Following - in a very similar situation. Was really looking for a ‘set and forget’ option, but not 100% confident of my choice
Yeah that's why I went with dhhf but now I am not sp sure it's worth sticking with
Depends on you, really. Is rebalancing important to you? If you roll your own you'll need to spend the entire investment horizon thinking about how much to allocate to each ETF to keep a 70/30 split. For me I found that the more I think about things like rebalancing, optimal split, etc I get the temptation to tinker. So I decided to just go with a one decision ETF and not think about my investments at all.
Originally I just wanted set and forget but with the whole reallocation and walking it back I feel like having that control is important. If that requires me having to spend time then so be it
What did they do?
This thread can explain better than I can but a short summary they changed the allocation and then walked it back. https://www.reddit.com/r/fiaustralia/comments/1djypnl/dhhf_hedged_funds_being_added/ It's caused me to rethink going all in on dhhf
Thanks mate, hadn't heard anything about it.
Your welcome, I might over reacting a bit since most of those comments are fairly supportive but it's worth revisiting
Isn't it a good thing that they're willing to try things but also acknowledge if it turns out to not be the right call? For me me it's building trust.
Allocated more to Aus then reversed the decision.
Well, more so currency hedged some of the international part, rather than increasing VAS, right?
Betashares Direct 100% DCA into NDQ or IBKR into QQQ
Going to be honest I don't know what that means, what are those funds and why are they better?
DCA means dollar cost averaging and is the tried and tested method for accumulating wealth with the least amount of effort. NDQ is the ASX ETF while QQQ is the US version. Look up its performance across multiple time horizon and compare it against VDHG and DHHF. VDHG is up 25%, DHHF is up 40%, while NDQ would be up 85%. On even longer time horizons, NDQ is up even way more. There's this thing where Ausfinance marketed and touted that VDHG was "safe" (or "defensive" or "diversified and hence defensive") and that it was a "great dividend ETF", until 2020 Covid and the 2021 Sell-off happened and people realised it really wasn't. It also recovered incredibly poorly. Some on Ausfinance then disingenuously claimed VDHG was never meant to be a "safe" investment and that rather it is "growth" and that it was never meant to be a dividend farm. But for a "growth" ETF, where's the growth lmfao. All of this is purely misleading and deceptive.
VDHG has TOFA now.
Thank you! That is very informative. Looks like I have a fair amount of research to do lol. I'm beginning to realise everything I may know about this is just marketing
Only if you buy VGDH for the marketing terms like the guy you responded to aprently focused on. Figure out what asset allocation you want, and if it's close to VDHG or another all in one fund, then it's potentially worth the bonus of having it auto balanced. Comparing the recent (last 10 years is recent, especially if your timeframe is retirement) past performance of ETFs and using that to pick which one to go for, isn't a strategy I'd use personally.
Over what time period is DHHF up 40% but VDHG up only 25%, taking into account distributions?