Investing in Global Infrastructure

In by John Gardner2 Comments

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John Gardner

Hi Guys, I’ve been listening the past 4 months and enjoying the podcast. Just taken the plunge and registered so that i could ask the following question.

I have a portfolio of mainly LIC’s, ETF’s and REIT’s and am a little underweight in Infrastructure according to my desired weighting. I am now buying a few individual stocks too but small amounts only. I’m planning to hold long term.
I’m a fan of the barefoot investor and others that recommend minimising cats (e.g. management fees)

In Infrastructure I have some IFRA ETF which is hedged and has MER of 0.47% which for this sector is not too bad.
Ideally i was going to buy a similar weighting in VBLD which is unhedged, tracks a slightly different index with a slightly lower MER%, however this is a new ETF and i’m finding it illiquid with a large (~4%) buy/sell spread which concerns me.

What do you recommend from my other options which i think are?
1) Buy Active infrastructure ETFs/LIC’s with higher MER such as AGLI, GLIN, MICH etc or
2) Buy some individual stocks such as TCL, AST, SKI, APA, SYD, AIA etc . Zero MER but greater “risk” of over/under performance) and overweight Aussie vs International.
3) Just buy more IFRA and be happy with the hedged position (until VBLD has grown and is more liquid)?
(I’m not yet into buying international stocks directly – seems like a nightmare at tax time).
Have i missed any options?
I’d appreciate your thoughts on this…
John