VanGuard LifeStrategy

AndyPandyPoos

Hi All,

How do people view VLS as an investment now?
To me, It still seems to have good diversity. Certainly seemed 'flavour of the month' looking back at posts dated 2013 but would it still be a good choice today?

Im looking to tuck 3k away for at least 5 years that needs little attention from me. I'll likely be going for the 80% acc.

Is there a better choice of index tracked that I have yet to find?
Thanks
Andy

enthusiasticsaver

I am invested in Vanguard LS 60 probably for the same reasons you are considering it. The costs are low, it is well diversified and you can just invest and then leave it. There are other options - the L and G Multi index funds for example which have more or less the same costs and you can choose your level of risk but they have a property element to it which the Vanguard funds do not. Personally I did not go for that as I am already heavily exposed to property in bricks and mortar. The Blackrock Consensus funds are also similarly diversified. It is difficult to say which is better so you would need to look at all the options and decide which is better for you.

dunstonh

How do people view VLS as an investment now?

Nothing has changed to make them be viewed any differently.

To me, It still seems to have good diversity. Certainly seemed 'flavour of the month' looking back at posts dated 2013 but would it still be a good choice today?

Not as diverse as the L&G multi-index funds but variations of a theme along with several other similar funds from other fund houses.

Im looking to tuck 3k away for at least 5 years that needs little attention from me. I'll likely be going for the 80% acc.

That is high risk for 5 years. Its only investing for part of an economic cycle. You would no doubt be hoping to get a good part of that cycle but it could be the bad bit. Of course, if you can accept large losses on that money and not have it impact on your finances then fair enough. One also assumes you would be phasing the risk down quite quickly after investing as well.

BLB53

Persoanally, I would say this is still a good choice - reasonable charges, globally diversified and, something I think is under-rated, auto rebablance.

I have held the LS60 in my ISA for the past year only and it has done a little better than some of my investment trusts. But one year is not so long to make a comparison. The returns for the LS60 over the past 4 yrs are 8% p.a. which is pretty good for the risk (40% bonds).

Here's a recent article on Monevator which explains things in more detail

http://monevator.com/using-vanguard-lifestrategy-funds-life/

The lower risk LS60 or even LS40 may be better over 5 yrs than the higher equity LS80 - who knows!

AndyPandyPoos

Thankyou all.
I keep researching over and over and still find myself looking at the VLS. Interesting point about maybe 5years is too high a risk for the 80%.
I will make my choice tonight and Dive in. I've spent long enough reading and analysing, I could go on forever! Now is the time..

Thanks.

dunstonh

Interesting point about maybe 5years is too high a risk for the 80%.

Risk is relative to needs and affordability. VLS80 is higher than average risk for a typical UK investor and most new DIY investors do invest above their risk profile. Time dilutes risk a bit. So, if you can afford a significant loss and it would impact on your plans then there is nothing wrong with it if you can handle it.

SpeedSouth

I was in a similar position to you Andy and had been looking at posts and blogs for weeks.

In the end I decided if I didn't do I never would.
Ended up going for LVS 60%, for my 5-10 year drip feed, +£5k start (Savings for when kids get bigger)
LVS 80% for the missus SIPP. That can just drip feed for the next 20+ years so was happy at 80% for that one.

I decided to do this though after I'd pretty much exhausted the high interest current accounts for my emergency funds.

AndyPandyPoos

adam81 wrote: »

I was in a similar position to you Andy and had been looking at posts and blogs for weeks.

In the end I decided if I didn't do I never would.
Ended up going for LVS 60%, for my 5-10 year drip feed, +£5k start (Savings for when kids get bigger)
LVS 80% for the missus SIPP. That can just drip feed for the next 20+ years so was happy at 80% for that one.

I decided to do this though after I'd pretty much exhausted the high interest current accounts for my emergency funds.

I decided to go for 80% as looking at how the fund is split (compared to the 60%) I feel comfortable with the additional risk. (I'll find out in 5-10 years if my choice was wrong or right!) Realistically I want to forget about that fund and have a nice surprise in time :j.