When will you start adding people to the pie feature ? Auto invest ?
This has also been answered several times above.
Sorry l meant to put a date maybe today? a week? or so ?
Hi, Sorry if this has been answered before.
Will there be opportunities to sell out of individual holdings in a company within a pie?
For example, if one company does really well or really poorly can I sell out without selling off the whole pie?
And will there be options to add more companies to the pie at a later date?
Ta.
Impatience and enthusiasm for pies must be very gratifying for the Trading 212 developers to see. But letās remember that on the time scale on which profitable investing usually occurs, a wait of several weeks or months is nothing.
I look forward with excitement, but also some trepidation, to the volume queries that will appear on this community forum when people start to construct their autoinvest pies. Already there are questions about pies within pies, breaking up pies, reshaping pies, and can I have my pie with ice cream a la mode?
Perhaps when this feature is rolled out it should initially be available in Practice accounts only, with a promise that it will appear in Real Money accounts as soon as 50,000 pies have been logged as built by the userbase in Practice. Wouldnāt that be a delicious tease? Iām joking of course.
Yes, at any time you can adjust the target value of each slice or completely remove a slice. Removing a slice is like setting its target value to 0%.
This will not immediately sell the holding but will stop all future investments towards it. The holding will be sold during the next rebalancing (the goal of the rebalancing action is to bring all slices to their target values). Also, when you withdraw money from the pie removed slices will be sold with priority.
You didnāt put a time frame on it ? This week ? Today ?
Iāve no idea. I donāt work for Trading 212. Better to delay and it be bug-free, rather than rush, Iād say. Whatās the hurry?
Patience young Padawan.
I agree with @Richard.W. This is a new thing, something other brokers do not offer, I think we should be patient with this one. It is really just a add on. Better be patient and get a proven product, instead of something that gives problems.
What I really would appreciate is if all our stock requests (of existing exchanges) appeared on T212, because that actually affects our ability to invest. Nonetheless, I will also try to continue waiting paitiently
Patience is key in investing. Sometimes hard for an impatient person like me. So investing is an excellent way to learn to be patient
Will we be able to have multiple pies and allocate a target percentage for each pie?
You will be able to have multiple pies. But if you mean you want pies that automatically adjust in relation to each other, you will need to wait for them to release āpies within piesā
Will there be any restrictions on which instruments can be put into pies? I am thinking about the fact that not all instruments have fractional shares, and even those that do have minimum permitted fractions, such as 0.01. For instance Jacobs has minimum quantity 1, current price $77. So if J is 25% of a pie into which I invest $200, then 0 of J is bought? Will I need to have invested $308 before 1 J is bought?
@Richard.W
Obviously non fractional, are no go. But t212 plans to have everything full fractional end of Q3.
If you check value beta - even tho instrument has 0.1 target fraction.
You can order 500$ of share.
So I think it is just matter of rounding up/down. But shouldnāt cause problem from shown in Value purchase.
Love it!
About dividend reinvestment: This does incur some spread loss compared to accumulating shares, no? I.e. if I have an accumulating fixed-income bond ETF, will it fare better over the years than the distributing variant with automatic reinvestment?
Accumulating funds do better than distributing ones with dividends reinvested because dividends get reinvested sooner. Generally, more time in the market is better.
Also, you donāt have to pay taxes on the āāautomatic re-investedāā dividends on an accumulating ETF.
If you have automatic re-investment of Dividends on Trading 212, youāll have to pay taxes on those as well as soon as you receive the dividends.
Therefore, acc ETF are more tax-efficient.
This is a common misconception. Perhaps your country differs. But under UK tax law, taxes must be paid on the dividends that are undistributed but reinvested internally in an accumulating ETF. One has to refer to the information on the ETF providerās website to find out what amount of dividends are reportable and then declare them and pay tax. Governments are not so stupid as to allow accumulating ETFs to provide a tax loophole for investors while distributing ones do not!
Will you have some patience.