Investment Churning for DCA Buys-Sells+DFC

Investment Churning for DCA Buys-Sells+DFC

I’m content with the WBC Online Share Trading Platform and have been using it since we’ve first arrived here in Australia. Doesn’t seem like they’ve changed their trading comms and stays at 19.95 per trade, regardless of the trading order. ANZ Trading Platform, since they’ve integrated to their new platform, lack quality. Most likely won’t ever use them again. NAB never really bothered using their trading platform. CBA Comm Sec trading fees min is 19.95 and max is 29.95 depending on the trading amount. Their IRESS research analysis is interesting and user friendly, but because I’m a frequent trader through batch orders, having the 29.95 per trade makes up a significant amount in round trip fees, so decided not to continue using them as our main platform. Macquerie Online Trading Platform is ok. It’s simple, and looks old fashioned. Haven’t used their research tools (if any), but their trading fees are also 19.95, which is quite high since they’re not the top banks, so we’ll use them for KFI-BInvT Portfolio only. I’ve also researched on Self Wealth, but too many negative reviews regarding their customer service and hard to get money out, so won’t bother on using them.

I’ve analyzed our DCA Buys/Sells batches through churning. Our turnover is about 3x/4x last year, which is acceptable since last year the market had much higher market volatility. We’ve averaged 150K MV in EFI, realized 29K, DFC 6.3K (excluding JUL23 distributions). 29K+6.3K=35.3K/150K=23.5%.

Higher investment balance also means higher target balance. Our Target MV = 200K, 100K in Income and 100K in Income ETFs. At 20 Holdings, target is about 10K per fund. DCA Batch 4 = 2.5K. Initial 50% at -15% 52WH, that’s 5K Initial. 5K/2=2.5K DCA Batch 2. We still have a few holdings with a lower target %, so we’ll continue to keep the batches at 1.75K. For those at 2.25K-to-2.5K, we’ll continue at 7%/7.5%. Depending on volatility, we’ll target 7.5%/5% Batch 2. Round trip trade can Net 6%. DFC at 7.5%. Fully invested for the year target 13.5%. Depending on volatility, turnover 2x would be 6%+6%+7.5%=19.5%. We’ve liquidated about half of our portfolio early SEP23, and YTD at 11%. Only need one more round trip and stay the course for the DFC for the year to hit our 20%.

We’ve also decided to fully liquidate our individual REITs holdings. Some are at risk of becoming delisted, so its’ best to stay away from them. We’ll continue to increase our holdings in SLF and VAP since they’re REIT ETFs. As for Banking and Materials, some are trading close to their 52WH and some are mid-range, so we’ll continue to trade in-and-out depending on their volatility for the year.

Any cash investment holdings, we’ll keep 20% in EFI, rest will be in ING Offset since our Variable Interest Rate is at 6.29%. Any cost savings to our mortgage interest payables would be essential. If market volatility picks up, we’ll DCA and transfer 25% cash investments per batch.