Skip to Content

A plug for Turtle Investor and his 3 ETF Portfolio for Singaporeans

We talk a fair bit about a rather passive approach to  index investing in a USA context and Singapore context with the Infinity Global, STI ETF and the POSB Invest saver.

Writing a rather comprehensive guide that brings you through how to get started and a blueprint portfolio allocation is difficult. You have to think with much parameters and there is seldom a one size fits all solution.

The Turtle Trader have written a useful article that shows you how to form a 3 ETF portfolio with the Standard Chartered Online trading platform. You can read it here> Establishing Bogleheads 3 Fund Portfolio in Singapore

Don’t worry. It won’t cost you an arm and leg. This guy looks genuinely wants to help provide the resources to help the average folks built wealth in a sensible way. Its provided free on his site.

A note of the difficulty is that, his recommendation for the global ETF is to use VWRD the US dollar version of Vanguard’s FTSE All World ETF listed on the London Stock Exchange. There is an inheritance tax in UK where currently if the investor held assets greater than 300k pounds,  and the investor passed away, the assets may be subjected to 40% inheritance tax.

This is the difficulty when it comes to selecting an ideal ETF to simplify wealth building. The alternative is to take on more cost with the Infinity Global Fund or to form a global allocation with Vanguard ETF based in Canada, where there currently do not have these death taxes.

If you would like to forgo an allocation that captures the world, there are Vanguard ETFs in Hong Kong that tackles the Asia Ex Japan region, where there are no death taxes and dividend withholding taxes.

Kyith

This site uses Akismet to reduce spam. Learn how your comment data is processed.

JW

Wednesday 10th of December 2014

I current hold SPY (S&P500) and VGK (Developed Europe) listed on the NYSE. I know there is a WHT applicable to dividends, but am unsure regarding capital gains & inheritance tax. Any idea?

Kyith

Wednesday 10th of December 2014

Hi , I suppose you are a Singapore based investor , there is a 50% estate tax for amounts in excess of 60k. No capital gains tax, and the 30% withholding tax on us domiciled stocks

The Turtle Investor

Wednesday 10th of December 2014

Hi Kyith,

A pleasant surprise to see this post today! I myself have learnt quite a bit from your writings, so I guess its time to say a massive "thanks" to you! I do hope a global index ETF lists on the Hong Kong Exchange in the near future.

Kyith

Wednesday 10th of December 2014

Nah I think you did a lot of the fact finding yourself so you got to give more props to yourself. This is also so they most folks know of people with more vested interest doing this so that they can contact u to discuss. And yes I hope vanguard see a role on global etf in hong Kong. Maybe we should write into them

momo

Tuesday 9th of December 2014

So you noticed turtle too lol. Agreed that Vanguard HK has some alternative options too (i believe eventually theyll have more global offerings), but the problem is not the product but the platform to trade HKEx! Probably have to choose a platform with low fx loss and pay the $2 per counter per month custodian fee.

JW

Wednesday 10th of December 2014

Hey momo,

I have holdings on the NYSE and even HKEx with Standard Chartered Brokerage. I don't get charged a S$2 custodian fee.

You might want to switch your broker.

Kyith

Wednesday 10th of December 2014

hi momo, the forex lost is a pain. i am not sure if interactive broker is cost efficient in this regard.

This site uses Akismet to reduce spam. Learn how your comment data is processed.