side funds to VLS80 - tracker funds or ETFs?

cuthbertlilly

I'm going to add some side funds (small cap and emerging markets) to my VLS80 acc fund.
Is it more cost effective to add side funds through tracker funds (I've had a look on CSD) or ETFs?
The idea is to set-up and forget for 10 years plus.
Would also welcome any any suggestions for Smallcap and EM trackers/ETFs that complement VLS80.

collingbone614

Bear in mind that the Vanguard LifeStrategy 80 already has an emerging markets tracker within its spread.

If you wanted to diversify further into emerging markets, though, you might consider the specialist Advance Frontier Emerging Markets. This appears to be a step beyond emerging markets and hence more risky:

http://www.hl.co.uk/shares/shares-search-results/a/advance-frontier-markets-fund-ord-npv

It's not a tracker.

In terms of small-cap, the Aberforth Smaller Companies is one discussed by the popular Monevator blog. Again, not a tracker:

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/aberforth-uk-small-companies-accumulation

http://monevator.com/aberforth-smaller-companies-trust/

You might also want to look at the Marlborough Micro-Cap fund. Not a tracker either though:

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/m/marlborough-uk-micro-cap-growth-class-p-accumulation

Are these small cap funds overvalued and is this a good time to buy them for your specific purposes? Unfortunately I can't answer that.

Linton

Investing in Small Companies with an index tracker seems perverse as it will preferentially invest in the largest small companies whereas the whole reason to invest in small companies is that you believe smaller companies will provide higher returns although at a higher risk (volatility). I hold both small company funds identified by Omnirife.

cuthbertlilly

omnirife wrote: »

Bear in mind that the Vanguard LifeStrategy 80 already has an emerging markets tracker within its spread.

If you wanted to diversify further into emerging markets, though, you might consider the specialist Advance Frontier Emerging Markets. This appears to be a step beyond emerging markets and hence more risky:

http://www.hl.co.uk/shares/shares-search-results/a/advance-frontier-markets-fund-ord-npv

It's not a tracker.

In terms of small-cap, the Aberforth Smaller Companies is one discussed by the popular Monevator blog. Again, not a tracker:

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/aberforth-uk-small-companies-accumulation

http://monevator.com/aberforth-smaller-companies-trust/

You might also want to look at the Marlborough Micro-Cap fund. Not a tracker either though:

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/m/marlborough-uk-micro-cap-growth-class-p-accumulation

Are these small cap funds overvalued and is this a good time to buy them for your specific purposes? Unfortunately I can't answer that.

Thanks for these suggestions, what is the minimum lump sum or monthly investment in these trusts?

TCA

I'm currently looking at Aberforth (ASL), Standard Life UK Smaller Companies (SLS) and BlackRock Smaller Companies (BRSC). All three have more or less given up their gains from the past year and using the latest NAVs are close to or have surpassed their highest discounts for the last 12 months.

All are active funds and I'd echo Linton's comments above re index trackers for small companies.