Most diversified Vanguard fund?

Gaaraz

Hi,

I'm a big fan of funds such as Fidelity World Index which has incredibly low expenses but also is 100% diversified based on market weighting.

I also really like the Vanguard funds, due to the way they're structured and also the low fees.

I want to invest directly with Vanguard (don't want everything with just one institition!) but looking at their funds I can't decide on the best one. The LifeStrategy 80% is very tempting due to the composition with bonds, but it's also very UK heavy which I'm not sure about.

Any thoughts please? Is there another fund I should consider, preferably with a lower UK weighting? I will only be able to have a single fund with them so I can't mix and match, I have to just pick one fund. Thank you.

Al.

'Very' UK heavy?

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDT&univ=O&pagetype=portfoliobreakdown

colsten

Are you sure it is very UK heavy? http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDT&univ=O

You are aware that the min investment is £100K for direct investments with Vanguard?

Gaaraz

Fair enough, maybe 'very' wasn't the right phrase, but it has over 20% in UK equities (24% if you include bonds) compared to true index trackers which go by market weighting which put the UK closer to 7%.

I'm more than happy to go with the LifeStrategy, in fact it makes up the vast majority our portfolio already, I just wasn't sure if I'd be better off with something slightly higher in other markets.

bigfreddiel

Gaaraz wrote: »

Fair enough, maybe 'very' wasn't the right phrase, but it has over 20% in UK equities (24% if you include bonds) compared to true index trackers which go by market weighting which put the UK closer to 7%.

I'm more than happy to go with the LifeStrategy, in fact it makes up the vast majority our portfolio already, I just wasn't sure if I'd be better off with something slightly higher in other markets.

What other markets and how high do you wan to go.

The answer to that will tell you what to buy and the quantity

Glad to help. fj

redpete

You could balance it with something like the L&G World Index (Ex UK) fund, or maybe there is a similar Vanguard fund, to get the proportions you want. Of course this doesn't match your 'only one fund' requirement but if you invest with another platform this shouldn't matter.

Gaaraz

Thank you, I wanted to go directly with Vanguard to keep the fees down, but it seems like actually the fees are higher anyway for some reason, so another platform (and balancing with other funds) could be the best option

Al.

Garza,

Don't overly obsess with market weighting by volume/geographical. Have you considered Smart Beta trackers?

Gaaraz

Sorry, no, never heard of that before - will look it up now!

le_loup

Smart beta is a term that seems to have suddenly emerged out of nowhere to describe the rise of a new form of ‘passive’ investing. "The very words themselves conjure up a certain egg-headed technical prowess, implying that all the other beta trackers out there are just “back of the class” dullards, market capitalisation based, one-trick ponies that don’t do all the clever stuff that smart beta trackers can accomplish with their quantitative prowess."
Just another fad; don't bother.

Al.

Gaaraz wrote: »

Sorry, no, never heard of that before - will look it up now!

It has become an overused term and many funds which are promulgated as smart beta, aren't. But the essence of what it stands for stands merit if you engage with it.