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Too many ETF’s?
Investing Strategy
Hi All, In my early 60’s and only started investing a few years ago as my partner and I have spare $’s and try to utilise all the tools like salary sacrifice an$ the bring forward rules along with spouse co-contribution. I signed up to the Barefoot blueprint, which has since closed. I purchased both Breakfree (IOO, STW, VAF, VAP & VSO) and Idiot Grandson (VAS, VTS & VEU) portfolios. Plus both AFI & ARGO. I have all of these in an auto invest setup, all with different percentages. The question is, am I diluting the benefits gained from dollar cost averaging by investing in so many ETF’s and LIC’s? TIA.
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LinnyV
Asked on 12 March 2023
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Hi Linda.
The main issue with having lots and lots of holdings isn’t lower returns or diluting any benefits of DCA.
Instead, the main problem is how much time it takes to manage, the mental load of all these moving parts, the possible extra brokerage depending on how much you’re buying each one, and the extra tax/admin stuff to do.
As you probably know, there are a lot of overlaps in your holdings, with multiple Aussie funds and multiple overseas funds. If you’re happy with all these then that’s perfectly fine, but if you wanted to simplify a bit, it could make sense to offload a couple of things (considering tax first) and concentrating on whichever ones you prefer.
Hope that helps.
Dave
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