Most diversified Vanguard fund?

colsten

I use IUSP http://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/Documents.aspx?type=point_of_sale&docid=74d9ebd8-920c-4ca0-bc3c-70f6d85fbfe9&user=halifaxonline but as with all investments, what suits me might not suit you.

grey_gym_sock

VNQ and VNQI are both US-domiciled ETFs. both are traded in $, and you need to watch how much your broker will charge for currency conversion - typically more than 1% . the advantages/disadvantages of US ETFs also depend on where you are buying them, i.e. ISA vs pension vs taxable.

in an ISA, you will have 15% tax withheld on dividends from a US ETF, because the US doesn't recognize ISAs as tax-exempt (nor does any other country except the UK, BTW). and there is no way to reclaim that 15% . for VNQ (invested in US property companies), that has the same effect as holding an irish/UK ETF/fund, because US companies would withhold 15% when paying dividends to an irish/UK entity. for VNQI (invested in ex-US property securities), it is worse than holding an irish/UK vehicle, because VNQI, as a US entity, will have to withhold an extra 15% on dividends, in addition to any tax withheld in the original (ex-US) countries.

in a SIPP, at least with some SIPP providers, there is no US withholding tax on dividends from US companies (including VNQ and VNQI), so this can be an very tax-efficient way of holding VNQ. and it is a not obviously inefficient way to hold VNQI, since there is no double withholding tax - i.e. no withholding tax in the US, but there may still be some in the original countries.

in a taxable account, the key question is whether these ETFs are reporting funds for UK tax purposes - because, if they're not, any capital gains when selling them will be taxed as income, not as capital gains. you will also get 15% tax withheld on dividends in the US, which isn't reclaimable, but which counts towards your UK tax liability (so there is no more to pay unless you are a higher/additional rate tax payer). you still have double withholding tax on VNQI, so not a good idea for it.

the simpler approach is to stick to irish/UK ETFs/funds ...

among funds, there is Blackrock Global Property Securities Tracker. or for a global ETF, there's IWDP.

or for separate regional coverage, there are:
IUKP (for the UK);
IPRP (for europe ex-UK);
IUSP (for the US); and
IASP (for asia/pacific).

other ETFs and funds are availble; that's just a few ideas ...

Bazofts_Revenge

I would have thought this is one of their most diverse funds. Vanguard Total World Stock Index Fund Investor Shares.

I invest in the FTSE Developed World index -uk in one of my pensions and it has hundreds of individual holdings.