ETFS looked good to me numbers wise (>10% for 1 year performance on a lot of htem... but obviously past perf isn't the same as future perf
), but how would one control a spread like that? Is there some kind of "fund" I can buy into that allows me to allocate like that?
I'm on UniSuper since that was the default at my place of employment.
You would have to set the balance yourself. There are online tools/apps to do that or some better brokerage houses will have ways of automatically tracking that. In theory though that's why you are saving money as you are the one managing the fund.
Lets say though you were going to all your money in the Vanguard real estate ETF. The holdings are exactly the same as the Real estate managed fund that Vanguard actively manages. Except its .65% cheaper (plus no .15% spread cost for buy/sell). They charge that extra to actively re-balance the fund.
Its probably not as clear with one fund, but if you are buying a fund that has the break down I mentioned it makes more sense. Since all they are doing is adjusting your % in the funds of their choice.
Every 3 months you should go in and adjust your position accordingly to the break down that you want. If you see real estate has grown 30% but Emerging Markets only grew 5% then you need to add more money to Emerging Markets. Avoid selling though as then you are cashing in the gain and will have to pay tax. This then puts you in a better position if real estate goes pop. Your other funds will absorb the loss and make sure you don't get stung as much.
I'm sure there is an app that can keep track of that. A simple pie chart of your holdings is really all you need.
As for your super, you would have to log in and check. If you didn't want to use your super you could use etrade or some other low cost brokerage house. Then you just buy the ETFS (they are on the ASX) and balance accordingly. If you are starting low then maybe have a goal of what you want.
So if you were doing a $5000 goal, but only had $1000. Put $1000 into the first ETF. Then the next $1000 into the next etf, then so on and so on. I wouldn't put like $400, $200, $200, $100, $100, as you have to pay a buy fee at first for each one. Thats 5 fees at first, then for the next $1000 its 5 fees, etc etc. Where instead you could break it down as just 5 fees overall.
If that makes any sense.....
Edit:
The minimum should really be how big a chunk the brokerage fee is going to be and whether that makes sense to do on that basis. I don't think it makes sense to pay $15 to buy $500 worth of ETFs as that's a 3% fee, and you have to pay it on the way out too. I think it's better to buy one lot with the initial $5000, and have a spread like you've listed as a goal to work towards with future investments, not as a way to split up the first $5000.
Funny, thats what I was just typing out
But yea its setting a realistic goal for yourself and how much you can actually contribute.
You shouldn't really have more then 5 funds either, 6 would be the max.