Vanguard Life Strategy

mapk

Some great info on this thread, thanks!

I set up a VLS 60 fund a couple of months ago, and am moving across around £10000 from a cash ISA with a further £10000 in the next 6 to 10 months to the platform where it's held.

Reading around, I gather that the VLS 60 is lacking in commodities, property, small-cap and value shares. Also, the emerging markets allocation is only around 5%, which seems a bit light.. is this a fair assessment?

I'm prepared to invest primarily and regularly in the VLS fund, but wonder whether I should broaden the portfolio by looking elsewhere. Any advice on where, and in what kind of proportion would be most welcome!

dunstonh

Reading around, I gather that the VLS 60 is lacking in commodities, property, small-cap and value shares. Also, the emerging markets allocation is only around 5%, which seems a bit light.. is this a fair assessment?

VLS is a cheap multi-asset solution with a basic (but sufficient for most) asset mix. The asset allocation is built to match a risk profile. With the exception of property, all the other things would increase the risk/volatility of the fund. It would also introduce a greater range of management decisions.

Any advice on where, and in what kind of proportion would be most welcome!

Advice is a regulated activity and the board is not authorised to give advice. All you get here is discussion.

VLS is not the only option. It gets talked about a lot here as there are some fanboys who think it is the answer to everything. However, there are plenty of other options which are similar but have different asset make ups. The L&G multi-index funds for example. That uses passives but has a wider range and the allocations are more fluid (so small management decisions exist). The L&G MI4 has outperformed the VLS40 (risk matched) over 3 months, 6 months and 1 year (history is short). Similarly the L&G MI5 has outperformed the VLS60. Although its not as close on a volatility match as the VLS40 and MI4. There is nothing to say it will continue but when you consider that for many here, the VLS is the automatic response to anyone wanting to invest, you have to wonder why they are not considering other similar options.

chiram2015

I have used both the equity income and growth VLS portfolios and have installed these in my Retireeasy LifePlan tool. Low cost investing is essential to me and the Vanguard charges of 0.1% initial and 0.24% annual plugged into the free Lifeplan tool is fantastic value in my opinion.

chockydavid1983

Thanks dunstonh. I did look at the L&G multi-index funds but have decided to go with Vanguard mainly because it has a slightly longer history and I wasn't sure the slightly higher AMC of the L&G could be justified.

Thanks,
Chris.

inspireme247

I decided to go for Vanguard LifeStrategy 100% (Acc), mainly because of my age (I'm 27) and I am looking for 15+ years.

I will start with £50 a month, increase in time.

I am trying to see which platform is most suitable for me - obviously the cheapest one. On Monevator, it says HL would be ideal because I will use only one fund.

Would you agree, guys? I will do more research, especially on this forum.

Thanks!

dunstonh

chockydavid1983 wrote: »

Thanks dunstonh. I did look at the L&G multi-index funds but have decided to go with Vanguard mainly because it has a slightly longer history and I wasn't sure the slightly higher AMC of the L&G could be justified.

Thanks,
Chris.

Fair enough. Although do remember that they are both fettered fund of funds where the underlying funds are passives. So, if they had the same asset mix, you wouldnt expect much difference. However, as you are querying the asset mix and considering branching out from that, then the L&G MI asset mix may be more suitable. (and for others reading, the L&G fund has a version which can be purchased without a platform which could be cheaper than fund plus platform cost)

Charge is a secondary consideration to investment objective. And we are only talking 0.0x% a year difference.

chockydavid1983

Thanks dunstonh. I don't think I fully understand the differences between them. Are they not trying to essentially do the same thing with varied risk/ return expectations depending on which VLS or L&G multi you choose?

inspireme247, I am only a novice myself but I'm just about to do the same as you and have concluded that Charles Stanley Direct is cheapest for me as the fees are lower than HL. Again though, happy to be corrected :-).

Thanks,
Chris.

arbster

dunstonh wrote: »

VLS is not the only option. It gets talked about a lot here as there are some fanboys who think it is the answer to everything. However, there are plenty of other options which are similar but have different asset make ups. The L&G multi-index funds for example. That uses passives but has a wider range and the allocations are more fluid (so small management decisions exist). The L&G MI4 has outperformed the VLS40 (risk matched) over 3 months, 6 months and 1 year (history is short). Similarly the L&G MI5 has outperformed the VLS60. Although its not as close on a volatility match as the VLS40 and MI4. There is nothing to say it will continue but when you consider that for many here, the VLS is the automatic response to anyone wanting to invest, you have to wonder why they are not considering other similar options.

Thank you once again dunstonh for answering my question, this time before I had even asked it! The Vanguard LS funds are not available via AXA Self Investor, so I had been looking for something that would replicate the Index-tracking nature and was planning to canvass opinions about the L&G Multi-Index 5, versus trying to create a comparable asset allocation from other index funds.

mapk

dunstonh wrote: »

the L&G fund has a version which can be purchased without a platform which could be cheaper than fund plus platform cost

Thanks dunstonh. Excuse my ignorance here, but would that be bought from L&G directly? Presumably, outside the ISA wrapper..?

xyz123

inspireme247 wrote: »

I decided to go for Vanguard LifeStrategy 100% (Acc), mainly because of my age (I'm 27) and I am looking for 15+ years.

I will start with £50 a month, increase in time.

I am trying to see which platform is most suitable for me - obviously the cheapest one. On Monevator, it says HL would be ideal because I will use only one fund.

Would you agree, guys? I will do more research, especially on this forum.

Thanks!

I would also appreciate some opinions on this. ta