Tuesday, 7 January 2020

Strategy: Jan 2020 (FSMOne RSP)

For 2020, I will be focusing more on ETF purchases and have identified a few ETFs that I plan to purchase monthly. 

VHYD Vanguard World High DividendYield
WQDV iShares World Quality Dividend
VDCP Vanguard USD Corporate Bond
LQDE iShares USD Corporate Bond
VDPX Vanguard Asia Pacific
2800.HK HKSE Tracker

The first 5 are in US$ and monthly purchases of US$1k each would add up to US$60k a year. The last ETF is in HK$ and I will apply via FSMOne to RSP about S$900 a month.FSMOne RSP appears to be very attractive - minimum HK$5 comms for monthly RSP means that small purchases of 2800.HK become very feasible. 2800.HK is a bit annoying when it comes to regular trading because it has a larger lot size of 500. FSMOne's RSP ignores the lot size and will even allocate you fractional amounts of 2800.HK.

There are a few other ETFs that I plan to top up on a quarterly basis. Other than that, the rest of the free cash I guess is for picking individual stocks and/or timing the market.


More on FSMOne RSP
I really have to congratulate FSMONe with coming up with such an innovative low cost product. It is really amazing how they are able to cater on the same platform to (i) investors who don't mind paying platform fees but presumably want a 'high touch' service as well as (ii) cost conscious investors who go for the cheapest option. 

FSMOne ETF Regular Savings Plan allows you to buy a small amount of selected ETFs like the Tracker Fund 2800.HK and pay only a min comm of HK$5 (plus GST/exchange fees).  There are no other hidden costs to this and there is no lock in period. You can terminate the RSP anytime. Furthermore there are no penalties for failed RSP. 

For example, if you don't have enough money for a particular month in your account, the RSP simply doesn't take place that month but the plan doesn't terminate. It will carry on the next month unless the RSP is unable to deduct for 3 months. There is no penalty imposed. 

Some may complain that the selection of ETFs is limited (there are 38 that are eligible for RSP), but to me, this is still a good start and I'll be applying for 2800.HK RSP. If this is popular, I hope that more ETFs will become eligible for RSP.

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