Hey everyone,

This week: two new ETFs just launched to compete with VWRA on fees, three Hong Kong dividend stocks worth knowing about, and why it's not too late to start investing at 50.

Let's get into it.

I mention VWRA a lot in this newsletter. It's been the default global ETF for years and for good reason. But two new challengers just launched and they're both cheaper.

VWRA tracks the FTSE All-World Index at a 0.19% annual fee. Now BlackRock and Xtrackers have both launched their own ETFs that track the exact same index.

First up is the iShares' FTAW, which comes in at 0.12%. Xtrackers' ALLW is even lower, at 0.07%, less than half of what VWRA charges.

So, should you switch? My take: not yet and here's why.

Both funds only launched in April or May this year, so there's no real track record. I'd want to see at least a year of tracking data before trusting a fund to properly deliver on what it promises.

The AUMs for both are still small too, in the tens of millions of dollars, maybe close to US$100 million now, which means wider bid-ask spreads than VWRA's US$42 billion in assets.

And finally, perhaps the biggest reason is the practicality: neither ETF is available as a regular investing option on IBKR or FSMOne, which means you can't automate monthly purchases into them.

That upends the whole point of DCA-ing without thinking about it. With VWRA, you can automate on IBKR or FSMOne, set an amount, and it just buys every month without you lifting a finger.

This week's video answers a question I get constantly. Is it too late to invest at 50?

Short answer: no. But the reasoning most people use to get there is wrong, and the plan that actually works at 50 looks nothing like the plan that works at 25.

I walk through why your real investing horizon doesn't end the day you retire, the two things that genuinely are different once you're in your 50s, and the three mistakes I keep seeing pre-retirees in Singapore make, the kind that can undo years of good saving in a single bad decision.

Then I lay out exactly what I'd do, step by step, if I were 50 today with savings just sitting in the bank.

I built a course for exactly what's in this week's video. Retirement Made Simple is a DIY guide to investing if you're 50+, designed specifically for Singapore-based investors.

I’ll walk through which ETFs make sense at your age, how to set up your accounts, how to build in a defensive layer as you approach retirement, and how it all fits with your CPF.

Registration for the first live cohort opens next week and it will be limited to 30 spots. The course will have its first session on the evening of Wednesday, 12 August.

Sign up to the waitlist to be first to know when it's live. Join the waitlist here.

If you hold Singapore bank stocks or REITs for the dividend income, Hong Kong is worth a look too. Remember that Hong Kong, like Singapore, has a 0% dividend withholding tax for locally-listed companies (excluding H-shares).

Hong Kong’s market is easily accessible from here, and some names offer dividend yields comparable to DBS, OCBC, or UOB, without the crowding that's pushed all three to record highs.

I got asked about three specific names on MoneyFM 89.3 recently: CLP Holdings (0002), BOC Hong Kong (2388), and MTR Corp (0066).

There's a common assumption that anything listed in Hong Kong is just a China play. These three aren't. Most of their revenue comes from Hong Kong itself (or other regions), and not just Mainland China.

CLP Holdings has supplied power to Kowloon and the New Territories for over 120 years. Think of it as Hong Kong's version of Sembcorp Industries. It pays a quarterly dividend yielding around 4.5%. Not exciting, but reliable, and cash flows from utilities companies tend to be predictable and inflation-linked.

BOC Hong Kong used to pay dividends twice a year. Last year, it switched to quarterly, which matters if you're after regular cash flow rather than a lump sum twice a year. It's benefitted from rising rates (like many global banks) as well as a growing wealth management business. Furthermore, its Treasury services business and loan book are mostly Hong Kong-focused.

MTR Corp runs Hong Kong's rail network, but the model's different to something like SBS Transit here. MTR builds the underground stations, then develops the property around them, and uses that property income to help fund its rail network’s expansion itself. Shares yield around 4% but there is a catch: the Hong Kong property market isn't in great shape right now, and MTR's model is intricately tied to it.

On risk: dividend traps exist everywhere, and utilities like CLP tend to be the most defensive since demand for power doesn't disappear. Banks like BOC Hong Kong are more cyclical, tracking the broader economy while MTR sits somewhere in between, dependent on how HK property fares.

One more thing worth knowing if you're considering any of these: the Hong Kong dollar is pegged to the US dollar, so you're taking on USD currency exposure alongside the stock itself.

None of these are high-growth plays and they're not meant to be. If you want a defensive dividend tilt (ex-Singapore) in a satellite position within a portfolio, they're worth a look. Just don't expect Nvidia-style returns from a power company or bank.

If there's a topic you'd like me to break down in a future edition, hit reply and let me know. The best ideas in this newsletter come from your replies.

Until next week,

— Tim

1. Investing Made Simple: A self-paced course that walks you through building a proper investment portfolio from scratch. ETFs, allocation, brokers, and the mindset to stay consistent. Everything you need to start and keep going. Join here.

2. Miles Made Simple: A strategy guide for earning and redeeming KrisFlyer miles the right way. If you're flying out of Singapore and not optimising your credit card spend, you're leaving a lot on the table. Get the guide here.

3. Got a question? Submit it here and I might answer it in a future edition.