Vanguard Life Strategy

gadgetmind

bertpalmer wrote: »

Thanks for being so open. I need to start researching ETF's as I know nothing. Are they just a low cost fund that tries to track an index?

There are many and varied ETFs. I use the Vanguard tracker ETFs simply because it works out cheaper for my investments on the platform I'm using.

Not sure whether I really need these in addition to the VLS100 and a few smaller funds.

Well, no-one does!

mark55man

badger09 wrote: »

Sounds like a very sensible approach. I'm sure the novelty of checking your investments every day will soon wear off

I've been going since 2010 and I still check every day - but then with some of my investments its half the fun


I don't check for my Vanguard and other ETF - once a month for them

takesyourchances

I have been able to start my drip feeds again now the new tax year has started and I had some cash waiting to invest so I have drip feed £800 into my VLS and topped up some of my side funds including my First State Emerging Markets which I was able to add back to my monthly drip feeds calling HL.

I have also opened the First State Global Infrastructure Fund as part of my side funds for an industry focus and as a bit of a defensive type of holding. So now I have opened this my S&S ISA openings have finished and unless I change any funds in the future I will continue with the drip feeding into my VLS and side funds. I have been thinking over the First State Global Infrastructure fund for a while and looking into it etc.

My S&S ISA set up is as follows now and will stay like this for the foreseeable future and I am happy to be drip feeding away long term and keep the allocations balanced which will be as follows.

Present holdings are:
VLS 60% - Core Holding 65%
Seven Side funds at an even 5% each
Standard Life Global Smaller Companies
Marlborough Multi Cap
First State Asia Pacific Leaders
First State Global Emerging Markets
Aberdeen Global Asian Smaller Companies
Aberdeen Japanese Smaller Companies
First State Global Infrastructure - New opening for an industry focus and defensive type of equity holding.

I just need to raise the core VLS slightly more to 65% and build the First State Infrastructure fund up in line with the rest of the side funds which I will do over the coming months.

Any thoughts is appreciated as always and this forum and topic and been an excellent help.

It was good to get some money I had sitting in cash because my ISA limits was used up started again

ColdIron

Just a thought but I wonder if you really need to add the new fund, the VLS 60 is quite defensive anyway. The temptation to 'improve' can be hard to resist but it does dilute the purpose of your core holding

takesyourchances

ColdIron wrote: »

Just a thought but I wonder if you really need to add the new fund, the VLS 60 is quite defensive anyway. The temptation to 'improve' can be hard to resist but it does dilute the purpose of your core holding

Thanks Coldiron, fair points there. It did cross my mind to just raise to core level of the VLS 60% to 70% core and leave the side funds at 6 holdings at 5% each.

True about the temptation to improve, I was thinking defensive and industry focus and infrastructure refered to as between equity and bonds.

It is not a big opening and would need raised to 5%. I could rethink on this and change it back into the VLS core and run that at 65% to 70% so as not to dilute the core holding of the VLS60%.

While that would mean jumping out of it quick it might be better to keep it more simple and raise the core level slightly up and carry on from there with the rest I have in place.

I can see at this stage of the portfolio how it could be slightly over cooked so to speak by another holding.

Will have a think on it as it would be simple to revert back and just raise the core. Thanks for your input.

takesyourchances

I have now decided to revert back to the 6 original side fund holdings with the VLS core as I realize I may have "over cooked" the openings going to 7 and diluted the core effect. Lesson learned on this and a bit of over improving when not required.

Thinking over it again, I feel I am better off running the core towards 70% and the 6 side funds at 5% each. I am happy with those tilts to keep drip feeding as normal.

This will allow the core VLS to have a bit of give at 65% to 70% if any of the side funds increase and allow me to re-balance. The 7th also made that a bit tight.

I also added another £250 lump sum to the VLS tonight.

VLS 60% - Core Holding 70% aim now (allowing movement between 65% -70%)

Six Side fund tilts at 5% each
Standard Life Global Smaller Companies
Marlborough Multi Cap
First State Asia Pacific Leaders
First State Global Emerging Markets
Aberdeen Global Asian Smaller Companies
Aberdeen Japanese Smaller Companies

I think it is a matter of raising the core level to target level percentage, drip feeding away and re-balancing once a year and leaving it as it is in the S&S ISA portfolio.

Any thoughts on this is appreciated.

MarcoM

Hi,

I have the vls 80 equity with h & l.If I wanted to convert this to a 60 equity holding does it mean I would have to sell the current fund and buy a brand new one or can the operation be carried out on the current fund only.

Thanks

le_loup

It's a sell and a buy. There will be a costs.

LookingToTheFuture_2

I woke up in the early hours and decided to try to read this thread from the beginning to help me get back to sleep. Instead of making me sleepy I've been gripped by seeing how people have developed their investment strategy over time. Still haven't made it all the way through the thread yet (although I had already read the more recent posts first).

One thing that stands out is that there appears to be a general view that VLS seems to be too heavily weighted towards the US & UK and large companies. Therefore I am thinking of adding some side funds (all low cost index tracker Acc funds):-

Legal & General Pacific Trust Index (ex Japan) TER 0.22%

Blackrock Emerging Markets Equity Tracker TER 0.28%

Vanguard Global Small-Cap Index TER 0.40%

Legal & General European Index (ex UK) TER 0.20%

I'm thinking of allocating 70 to 80% to the VLS80 core fund and 5 to 7.5% each to the four side funds. I also intend to transfer 6K from an old cash ISA to give my S&S ISA a boost, as well as continuing to invest monthly.

These are just my initial thoughts as I won't be making any changes until the cash ISA transfer has taken place (I've only just downloaded the form from Charles Stanley!) Would appreciate any views on my fund choices.

mike88

VLS is definitely too heavily skewed to the USA (46%) in my view but OK for the UK at 25%. Your suggestions looks OK as a portfolio which you can leave but, as mentioned on an earlier thread, I would prefer to beef up my portfolio with a few active funds while keeping VLS as a core holding.

If savings are long term why hold the VLS 80 fund and not not VLS 100 as a few bonds is neither conducive to growth nor downside protection given the small percentage held?