#Investnow #InvestingTips #FoundationSeries
Hey everyone! 👋 I’m new to investing and could use some advice on moving my funds to Investnow’s Foundation Series. I currently have $20k in Smartshare US 500 ETF and plan to hold for 10+ years while investing $500 monthly.
Here are some questions I have:
– Would it be better to move/invest the amount in increments of 1k per month or all at once?
– Should I consider the hedged fund version?
– Should I stop investing in Smartshare and start DCA on the Foundation Series instead?
In my opinion, spreading out the move in increments and opting for the hedged fund version may reduce risk. It could also be beneficial to stop investing in Smartshare and start DCA on the Foundation Series for a more efficient long-term strategy. What do you think? Let’s discuss! 🤔 #Investing #FinancialAdvice #DollarCostAveraging
Probably best to switch to Foundation Series as you suggest. Seeing you are switching from SP500 to SP500 then I cannot see any reason to not do it one go. Hedging is a personal call. Given your long time frame that’s far too far away to make a call on NZD/USD exchange rate so probably just ride the FX rollercoaster and go unhedged.
I don’t really like the hedged foundation series funds from InvestNow because you are still taking a position on the future USD:NZD rate. You still get currency risk it’s just opposite of the currency risk of the unhedged fund. If you want to actually minimize real currency risk you could buy 50:50 hedged and unhedged which would protect you regardless of direction the currency moves. Personally I just have all in the unhedged fund.
No reason to DCA when the underlying assets are exactly the same, just move it all in one go.
Foundation series is good for long term investment but who knows what the future holds in terms of new NZ funds based on S&P500. For that reason I don’t invest only in Foundation as the transaction costs are high if I want to sell (or move to a better fund) sooner than 3-4 years. I found the moneykingnz review of Foundation funds helpful.
Volatility of S&P500 is pretty low at the moment so I would just move it all over in one go or if paranoid spread it out over a few days.