Comments on: Ringgit Freedom’s August 2021 Updates https://ringgitfreedom.com/updates/ringgit-freedoms-august-2021-updates/ step-by-step towards financial freedom in Malaysia Mon, 20 Sep 2021 16:10:10 +0000 hourly 1 https://wordpress.org/?v=6.6.2 By: Gracie https://ringgitfreedom.com/updates/ringgit-freedoms-august-2021-updates/#comment-428 Mon, 20 Sep 2021 16:10:10 +0000 http://ringgitfreedom.com/?p=4807#comment-428 In reply to Jayden.

Hi Jayden,

I think in the end its really personal preference.I personally chose 3067 initially due to expense ratio and preference towards Asian side but recently I've also been thinking if KWEB would be a better choice since its more "sensitive" to price movements (hence tapping on lows)

Here's my quick round up after looking at 9067 / KWEB.LSE (personally I only own 3067 / KWEB US)

In terms of 3067 vs 9067 - both seems to be almost the same except the currency denominated. What's worth considering is: what are the underlying assets being traded at? More HKD assets or more USD assets? Since the fund manager need to convert whatever currency to buy underlying stocks anyway (though not like it'll have significant impact since HKD are pegged to USD).

Now, for KWEB NYSE vs LSE, it'll be more from the perspectives of commissions, for example, IBKR charges min. USD0.35 for NYSE but GHP1 for LSE. Another consideration is the Withholding Tax treatment (US 30% vs LSE 15%) - but in the end are these worth the tradeoffs?

Lastly, 3067/9067 vs KWEBs in general:
1) liquidity and trade volume
Most of the time, KWEB might have bigger volume hence the liquidity but its not so relevant for long term buy and hold (except when trying to liquidate).

2) tracking accuracy

KWEB are listed in US which most "first time" International investors have access to, compared to HK Stock market (plus different group of audiences) - which probably explains why the tracking difference during the US panic sell-off for China stocks.

3) expense ratio
KWEB generally has way higher expense ratio too (0.7x% vs 0.2x%) compared to their HK counterparts.

Hope these helps to navigate your thoughts! Apologies if I did not provide a straightforward response on which to pick ?

Cheers
Gracie

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By: Jayden https://ringgitfreedom.com/updates/ringgit-freedoms-august-2021-updates/#comment-426 Mon, 20 Sep 2021 14:53:23 +0000 http://ringgitfreedom.com/?p=4807#comment-426 Hi Gracie,

What is your thoughts on buying china tech ETF via 3067(HKD) vs 9067(USD) vs KWEB(NYSE) vs KWEB(LSE) and which one is the best for Malaysian ?

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By: Gracie https://ringgitfreedom.com/updates/ringgit-freedoms-august-2021-updates/#comment-422 Thu, 16 Sep 2021 15:42:47 +0000 http://ringgitfreedom.com/?p=4807#comment-422 In reply to Jac Wyn.

Hi Jac!

The blog post is still sitting in my draft unfortunately ?. However, I do have some topline sharing at this juncture and hope the below would help!

For ETF’s/Index Funds, I generally look at these areas:
– Fund Domicile (for tax efficiency) - generally I opt for Ireland-domiciled fund (vs. US-domiciled fund) due to the 15% WHT for Malaysians via Ireland (vs. 30% via US) since we do not have tax treaty with the States.
- Fund Currency (minimizing conversions or hedge against currency risks)
– Fees a.k.a. Expense Ratio (minimizing cost)
– Liquidity (though my criterion for this is very lax – as long as the ETF is not having single-digit volume I’m generally okay-ish…)
– Sectors / Geographical coverage (to ensure I’m well diversified) - e.g. US vs China; Technology vs. Broad-based Index
– Tracking Accuracy (how accurate is the tracking vs. the underlying index?)

Once you have decided on the funds, just need to buy them through international brokerages like IBKR, TSG, etc.

Hope these helps!

Cheers
Gracie

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By: Jac Wyn https://ringgitfreedom.com/updates/ringgit-freedoms-august-2021-updates/#comment-421 Thu, 16 Sep 2021 08:19:09 +0000 http://ringgitfreedom.com/?p=4807#comment-421 Hi, Gracie, do you have any advice on how to pick an ETF? for beginner?

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By: Gracie https://ringgitfreedom.com/updates/ringgit-freedoms-august-2021-updates/#comment-414 Sun, 12 Sep 2021 02:56:40 +0000 http://ringgitfreedom.com/?p=4807#comment-414 In reply to Suraya Zainudin.

Hey Suraya!! Great to see you here ??
??? ayyyy to the tooth removal ?
In a way I'm grateful to be born with 1 missing tooth hence I only needed to pluck 3 of 'em.
But still ???

Oh wells, for the long-term investment returns (for that beautiful smile)!

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By: Suraya Zainudin https://ringgitfreedom.com/updates/ringgit-freedoms-august-2021-updates/#comment-411 Sat, 11 Sep 2021 03:22:03 +0000 http://ringgitfreedom.com/?p=4807#comment-411 Ayy I can related to braces - pulled out 4 teeth and the first few months were horrible (I'm sorry). But it'll be worth it!

And nice summary as always 🙂

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