I Opened an ISA Account – Any ETF Recommendations?
I just opened an ISA account and I'm debating which ETFs to invest in. I'm planning to build up my portfolio over the long term and want to take on a moderate level of risk. I'm considering ETFs that track the U.S. S&P 500 or Nasdaq, but I've heard that domestic ETFs might also be a good option. Could anyone who's been managing their ISA account well share their portfolio?
7 answers
I'm investing 60% in a U.S. S&P 500 ETF (e.g., TIGER U.S. S&P500) and the remaining 40% in a domestic KOSPI 200 ETF (e.g., KODEX 200) within my ISA. Since I'm holding for the long term, the volatility is manageable and the tax benefits are quite nice. Just a heads-up: ISA only allows domestically listed ETFs, so direct investment in U.S. ETFs isn't possible.
I went a bit aggressive and put 70% into a Nasdaq-100 ETF (e.g., TIGER US Nasdaq 100), and filled the remaining 30% with a domestic dividend ETF (KODEX Dividend Growth). There's some volatility, but long-term returns are decent. Since ISAs allow netting of gains and losses, a tip is to rebalance frequently.
Do you happen to have a brokerage-type ISA account? If so, you get a wider variety of ETFs, which is great. I diversified with 50% in SOL US S&P 500, 30% in KODEX 200, and the rest in TIGER Crude Oil Futures ETF. Mixing in commodities helped with risk distribution. If you're investing long-term, consider dividend reinvestment too.
When I first started with an ISA, I only put money into the S&P 500 and later regretted it. Domestic ETFs turned out to be pretty decent too. For example, mixing in small amounts of growth ETFs like KODEX KOSDAQ 150 or TIGER Secondary Battery Theme improved my returns. If you have a moderate risk tolerance, I recommend 70% in stable assets and 30% in theme-based ETFs.
I started an ISA with TIGER US S&P500 and KODEX 200 in a 5:5 ratio, and after a year, I'm seeing about 8% returns. It seems like a decent combination for long-term accumulation. But have you checked the ISA account limits (annual 20 million KRW) and the mandatory holding period (3 years)? If you close it early, you'll lose the tax benefits, so make your decision carefully.
You're having similar concerns as me! I put 50% into the ACE US S&P500 ETF and the other 50% into the KODEX Short-Term Bond ETF for more stability. Mixing in bonds really reduced the volatility. If you're planning to accumulate long-term, an ETF that offers dividends (like TIGER Dividend Growth) is also a good option.
I was really torn about the fact that I can only put domestic ETFs in my ISA, but I finally decided on 80% TIGER US Nasdaq 100 and 20% KODEX 200. The Nasdaq is volatile, but its long-term returns are amazing. That said, with the recent rate cut expectations boosting domestic ETFs, SOL US S&P 500 could also be a good option.