Right. My previous investment policy was buy whatever has tanked most in the last few months:-)
Whilst it worked admirably for Rolls Royce, for Intu, THG, Cineworld & Amigo not so much ....🤣😈
So, need to buy some funds, and the Vanguard ones I bought last time seem to be up 15% PA, so something along those lines
But there's 80 to choose from. What's your favourite?
Vanguard Lifestrategy are overweight the FTSE, which is a terminal underperformer. Also bonds seem to be in a Japan-style multi-lost decade waste of time scenario, so avoid anything with them in.
That leaves you with VWRL - but that's overweight the magnificent 7, which any fule now are all about to crash, er, magnificently. And when that happens they'll drag down emerging markets with them.
I'd seriously consider keeping it in a high interest savings account for now and gambling on a correction - possibly post-US election - being a better time to enter.
What are you after - Managed, tracker? Attitude to risk?
Despite what finbar said, I have made 28% to date on a combo of life strategy and S&P500.
better than the average ISA. 🤷♂️
I'm spreading my exposure by investing in
European sri
Japan
USA Equity
S&P 500
Pacific excl Japan
Lifestrategy 100
That said I am heavy on north America with approx 1/3 invested there. It's tough to try to outguess the market and some adjustment is probably due . However , I can keep going as I am for 2 - 8 years so can weather a downturn as long as the market returns to growth eventually
VUSA - Vanguard S+P Tracker for me.
A bit of Life Strategy 60 & 80 with a small punt on sustainable 80.
No real idea on all this. I just put my money in, wait and don't blink when it has a wee wobble.
USA is 60% of the global equity market. Apples Market Cap is bigger than the whole FTSE 100.
@Kryton57 I have Lifestrategy funds too, and they're up more than that (obviously just a function of when they were purchased).
But I'd have more if I'd only bought VWRL.
Past performance future returns yada yada. But it's hard for me to imagine the FTSE outperforming in the next five years, so I'd not actively buy funds that overweight that at the moment.
Notice I don't say not include - but Lifestrategy 80 is 23% UK based companies, which is way too much - given we all have massive exposure to UK economic performance through our pensions, house and salaries already.
This is partly why Hunt announced that stupid Gammon ISA at Budget, because smart investors are shying away from the FTSE.
VHVG
Best thread title this year. Under appreciated. 🙂
Interesting, I hadn't come across VHVG:
https://portfolioslab.com/tools/stock-comparison/VHVG.L/VWRL.L
A developed market fund will always have lower fees than the Emerging markets, as they are illiquid and more expensive to trade in.
Ive got some LS100in my workplace pension. My wife’s pension has some LS80 as she wants a slightly more cautions portfolio.
In my ISA I have VWRP and VUAG, just to overweight on the highest performing market.
I agree that the UK overweight is a bit annoying, but as I’ve only just bought LS100, getting some undervalued UK stocks might play well in the long term.
You could also consider some VASTMGA (money market fund) as a very cheap safe hold, currently yielding over 5% without the recent bond volatility risk.
Also bonds seem to be in a Japan-style multi-lost decade waste of time scenario, so avoid anything with them in.
Explain please!
(I'm this far > < from retirement ie a couple of months or another dumb decision from my boss, and I'm done with working... so I'm not much looking for "growth" but more like making sure my investments don't tank..)
I have made 28% to date on a combo of life strategy and S&P500.
Could you add the vital missing piece of info please ? 😉
My crappy mixture of airlines, oil, Rolls Royce, Intu, THG, Cineworld & Amigo Loans is up more than 28%, but since that's over 2-4 years it's actually a bit pisch.
Thanks all. Lots to think about. Especially the warnings about having such a high percentage in 7 companies.
/ goes off to look up all the acronyms...
Re bond market outlook - they had a fantastic run for years as firstly, inflation fell consistently and, secondly, central banks spent an extraordinary amount on what amounted to a manipulation of bond prices through a process called QE. Inflationary forces surged late-21 onwards which is bad news for bonds as are exploding government spending deficits here and overseas, not to speak of the limits of QE being reached. So, interest rates will unlikely return to the previous all-time historic lows and consequently bond markets will unlikely match the returns of the years up to 2021.
I would be much happier holding actual bonds in my portfolio than tradable bond funds.
I followed the advice to invest in index funds, I have a 50/50 split in the following two. 24-12 months ago the performance was zero %, in the last 12 months the return has been 25%. I'm happy with that! I'm investing for 10yrs plus so not focused on ups ands downs.
FTSE Developed World ex-U.K. Equity Index Fund - Accumulation
U.S. Equity Index Fund - Accumulation
.
iamtheresurrectionFull Member
Best thread title this year. Under appreciated. 🙂
Posted 12 hours ago
Nobody has picked up on this, and don’t want people thinking I was being a sarcastic dick, so I thought I’d better explain that I thought the thread title was a genius play on the subject mixed with Wout Van Aert.
I was tired.
I wish I could follow my own advice, but it really is just best to fire & forget, ride the market & leave well alone. We really aren’t emotionally suited to this though.
I wish I could follow my own advice, but it really is just best to fire & forget, ride the market & leave well alone. We really aren’t emotionally suited to this though.
Agree that fire and forget is good up to a point and I check every 4-6 months to see if I need to rebalance.
That leaves you with VWRL – but that’s overweight the magnificent 7, which any fule now are all about to crash, er, magnificently.
Which is what I'm concerned about at the moment so I'm looking at moving some of my S&P 500 ETF to a similar one that has equal weighting i.e. 0.2% in each company.
I get the idea that the mag seven are overvalued, but overthinking it and avoiding investments in the major US stock indexes would have avoided gains of 25%+ in the last 12 months. If you look at the US stock market over 20 years it’s easily outperforming most other indexes. Overthinking is what most people do with managed portfolios, and most of them end up doing worse than market trackers.
As has already been mentioned I think the main issue with Vanguard portfolios is a bit too much in the UK markets and over-reliance on bonds, with no adjustment when it all went pear-shaped during and after Covid.
Their developed world ex UK funds and US trackers have done as well as any in the last 18 months or so though.
Vanguard was the new kid on the block with low fee trackers compared to the old style managed portfolios, but they arent always the cheapest platform any more, even for their own funds!
They charge a 0.15% platform fee, capped at £450/yr for big portfolios. Ive just moved my wifes old workplace schemes to Interactive Investor, flat fee of £12.99/mo, which for her £370k pot comes in at 0.04%.
Her new workplace pension with Standard Life has platform fees of 0.6%!!!
My one with Aviva has just reduced to 0.1% and many of their inhouse trackers have no extra charge on top at all.
Because she is a bit more cautious than me, we invested her in 75% VGLS80A and 12,5% each into Fidelity Index World and RL Short term Money Market fund, giving about 70% global equity and 30% fixed income.
Interactive Investor is cheaper than Vanguard as soon as you have about 95,000 or more. Plus you can invest in the same funds if you want to.
Yep, even better that they gave £2.5k cashback as a new customer!
For kids JISA we are using HL as we could transfer the CTF direct to there and they charge no fees for that.
My IsA is Trading212 as no platform fees for that, and they pay 5.2% on any uninvested cash held.