Portfolio of LICs and ETFs

Paul, do you think a portfolio of LIC’s and ETF’s is a good way to go?

A: Yes – if you want broad based market exposure and don’t want the hassle of managing individual shares.

With the LICs, consider Argo, AFIC, Milton and possibly Brickworks. You can also add some of the smaller company LICs if you want this exposure.

In the ETFs, look at STW , VAS and IOZ.

A key issue when considering LICs or ETFs is whether the LIC  is trading at a premium or discount. I covered this back in May.

At the moment, the broad based LICs are trading at premiums of around 5% – so I would be inclined to invest via an ETF.


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