StockTalk

General Category => Investing => Topic started by: Raven on Jun 30, 2022, 04:16 PM

Title: Build Your Own Index Tracker
Post by: Raven on Jun 30, 2022, 04:16 PM
Well as someone who supported the idea of a category like this "Investing" one I feel I must post something. Here's my base strategy.

For quite a long time I never took much notice of Sharesies and similar platforms, but a year or so ago when they stopped their monthly fees I started to think seriously about them and the concept of building my own ETF equivalents. With Sharesies allowing fractional share no dollar minimum purchases, then surely anyone with a bit of time and a minimum of a few hundred dollars could easily purchase and replicate the NZX50 or any Smartshares or similar ETF. Since there are no on-going annual fees with Sharesies then technically you should actually outperform Smartshares. I've long since realised with my efforts at stock picking, market timing, etc I'm not really much better than Mr Market, so having an NZX50 sort of ETF as the strong base of my portfolio is something I'm comfortable with.

In reality I decided that rather than the entire 50 of the NZX50, following the top 30 would surely be near enough, so that's what I do. I invest a small dollar amount each week which essentially re-balances the portfolio to keep the individual stock weightings correct. Of course despite my previous statement I can't resist tinkering with the weightings in an effort to prove my superiority over Mr Market... but the jury is still out on that.

It's nothing flash or complicated, but this provides me a bit of "fun" each week, dollar cost averaging, etc.
Title: Re: Build Your Own Index Tracker
Post by: Mr Cashflow on Jun 30, 2022, 06:30 PM
Thank you for some information on sharesies.