Thursday, 30 October 2014

VUKE.L & IDVY.L Purchased

Earlier in the month i looked to take advantage of some fairly steep falls in european equities markets with a  couple of new purchases.

Firstly i added to my existing holding of the Eurozone high dividend ETF (IDVY) at around GBP13.88 a unit.  There has been a lot of negative sentiment about eurozone growth (or lack of) but the sharp fall in equities markets looked on the face of it to be a bit of an over-reaction, or technical correction - there wasn't anything out there we didn't know already.  To me this represented a good buying opportunity of a well diversified dividend payer.

In addition i increased my UK equities exposure, but instead of adding to my existing UK high dividend ETF (IUKD) i instead opted for the much lower cost Vanguard FTSE100 tracker. With costs of only 9bps compared to 40bps on the iShares high dividend ETF, i figured the cheaper cost would offset a lot of the dividend premium, whilst offering additional diversification against a wider basket of shares.  As an index, the FTSE100 is a relatively high dividend payer anyway, so well see how it goes.  The unit cost was around GBP28.7.

Incidentally i was tempted to buy the Vanguard europe index tracker (VERX) for similar reasons, but having only just been launched it didn't yet appear to be actively traded on my online broker platform, hence sticking with IDVY.  This may instead be one to watch for the future.

No comments:

Post a Comment