Hsbc all FTSE tracker vs Vanguard LifeStrategy fund

MarcoM
MarcoM Posts: 798 Forumite
First Post Name Dropper First Anniversary Combo Breaker
in Savings & investments
Hi,

Which package would you choose between the two?

I am what you would call a passiva investor so the less hassle the better.
Money about 20k can be locked for a few years.

Thanks

Comments

  • jimjames
    jimjames Posts: 17,588 Forumite
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    I'd use HSBC
    Remember the saying: if it looks too good to be true it almost certainly is.
  • srcandas
    srcandas Posts: 1,241 Forumite
    First Post First Anniversary Combo Breaker
    They are very different animals. The Vanguard comes in different flavours to match your risk level. The HSBC tracker is all equity if I'm looking at it correctly and I believe failed to beat it's sector or benchmark over 5 years. Vanguard is on the other hand fairly new so no real history.

    Also costs vary depending on where and how you want to keep your investment.

    You'd need to be more specific about the circumstances and your objectives to get a clear idea. But that's all part of the fun :beer:

    ps both could be passive :)
    I believe past performance is a good guide to future performance :beer:
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    To be fair the hsbc is a tracker with charges so it's not normally going to beat it's index, would think it's probably second quartile over longer time periods which is respectable.

    Does anyone know who is offering he vanguard funds now?
  • Totton
    Totton Posts: 981 Forumite
    For me it's a no brainer, I would go for the Vanguard Life Strategy fund. Probably the 80/20 unless it was for less than 10 years when I would probably go for the 60/40. Much better to have a global spread than a ftse tracker, too much risk imho.
  • dunstonh
    dunstonh Posts: 116,288 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    I am what you would call a passiva investor so the less hassle the better.

    Architas multi asset passive funds or vanguard lifestyle depending on your platform. HSBC trackers are not diverse enough.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • oldtoolie
    oldtoolie Posts: 750 Forumite
    The HSBC fund is only UK equity while the Vanguard funds are diversified with international shares and bonds.

    So if you only have one fund, go Vanguard. See here more more information.

    Vanguard LifeStrategy funds turn passive investing catatonic

    http://monevator.com/vanguard-lifestrategy/
  • MarcoM
    MarcoM Posts: 798 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    ok thanks. Which would be the best online platform to use in order to buy the Vanguard Lifestrategy Fund?

    many thanks
  • BadgerFace_2
    BadgerFace_2 Posts: 333 Forumite
    I used Hargreaves lansdown. Their monthly platform fee is £2. It works out cheapest if you make monthly contributions, but only to one fund. If you are planning on a single lump sum then someone else who charge per deal may be better.
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