Alternative to VLS80?

jdw2000

Perdu wrote: »

Hello again - looking for some ideas please..

This time last year, following a good deal of help and guidance from this forum, I made the decision to come out of an old, under-performing and very expensive offshore investment, and go the DIY passive route - based around the VLS80.

Of the approx £250k, my plan was as follows:-
1. £50k to keep in cash (well, premium bonds actually as have little choice as currently non-UK resident)
2. £100k in VLS80
3. £50k in VLS60
4. £50k in VLS100
(The last two were intended to average the 80 but make future French tax reporting much simpler).

The first 3 have been in place for some time and doing nicely, and the final £50k is now sitting with the platform provider waiting for me to push the buy button but..

I'm wibbling..

The original plan was made a year ago - one or two things (!) have happened since then and the world is now a very different place. I'm not sure if VLS100 is now the best idea - VLS40 does not really appeal, and I'd rather not add to the other two.

Could I please ask for suggestions for one or two other low cost funds I could look at, possibly with a slightly different mix?

Any comments welcome.

How well has VLS done for you?

Perdu

jdw2000 wrote: »

How well has VLS done for you?

Interestingly, I didn't really know for sure and had to go and unearth the login details to check!

VLS80 up 18.7%, VLS60 up 15.9% so I think that makes 17.7% in just under a year less platform costs of £100. Very pleasantly surprised although I know a lot of "gain" is due to the Brexit/Sterling thingy, and understand that past performance is no guide etc..

Premium Bonds returned 2.4% since Feb's draw so happy with that too.


While I was logged in, I finally stopped dithering and spent the last bit - went for L&G Multi-Index5 in the end. I feel a lot more comfortable with that - so a big thank you to all for your input to this thread.
:beer:

jdw2000

Perdu wrote: »

Interestingly, I didn't really know for sure and had to go and unearth the login details to check!

VLS80 up 18.7%, VLS60 up 15.9% so I think that makes 17.7% in just under a year less platform costs of £100. Very pleasantly surprised although I know a lot of "gain" is due to the Brexit/Sterling thingy, and understand that past performance is no guide etc..

Premium Bonds returned 2.4% since Feb's draw so happy with that too.


While I was logged in, I finally stopped dithering and spent the last bit - went for L&G Multi-Index5 in the end. I feel a lot more comfortable with that - so a big thank you to all for your input to this thread.
:beer:

Thanks for that. That's great to hear. I have recently purchased a 50/50 split of VLS80 and VLS60 myself (although not for anything like the amount of money you have to invest). I'm very happy with the simplicity of the funds.

All the best with all your investments!

bowlhead99

jdw2000 wrote: »

How well has VLS done for you?

Perdu wrote: »

VLS80 up 18.7%, VLS60 up 15.9% so I think that makes 17.7% in just under a year less platform costs of £100.

jdw2000 wrote: »

Thanks for that. That's great to hear. I have recently purchased a 50/50 split of VLS80 and VLS60 myself

Something you often see from newbies is the search for confirmation that what they have done is a good thing.

VLS has only existed for five or so years, over which both equities and bonds have been rising, particularly lucrative in the last year for GBP investors into globally-invested products such as VLS due to the currency effect we've all observed. So most VLS purchasers, especially those who are current VLS holders, will have made money. You are not going to find someone who lost 30%++ on their VLS80 fund in a crash, because there hasn't been a crash.

You can run a total return chart for whichever period, of one day to five and a half years, over the period the funds have been running, and find out all the different returns that anyone could have possibly got. You know what the returns are likely to have been before you even ask the question, and broadly, they are going to be good rather than bad.

So, exchanges like...

"hey, how has VLS done for you" ;

"well, I've made almost 18% in just under a year or so - during which time you are probably well aware that VLS made almost 18%" ;

"ooh thanks, that's great as I just bought some"

... always seem a little bit shallow to me - getting someone to tell you what you want to hear is just pandering to confirmation bias. Finding an investment that you like and getting someone to tell you that they had it and its performance was the performance you already read off a chart, doesn't help you sort the wheat from the chaff in terms of what investments are suitable for your needs.

jdw2000

bowlhead99 wrote: »

Something you often see from newbies is the search for confirmation that what they have done is a good thing.

VLS has only existed for five or so years, over which both equities and bonds have been rising, particularly lucrative in the last year for GBP investors into globally-invested products such as VLS due to the currency effect we've all observed. So most VLS purchasers, especially those who are current VLS holders, will have made money. You are not going to find someone who lost 30%++ on their VLS80 fund in a crash, because there hasn't been a crash.

You can run a total return chart for whichever period, of one day to five and a half years, over the period the funds have been running, and find out all the different returns that anyone could have possibly got. You know what the returns are likely to have been before you even ask the question, and broadly, they are going to be good rather than bad.

So, exchanges like...

"hey, how has VLS done for you" ;

"well, I've made almost 18% in just under a year or so - during which time you are probably well aware that VLS made almost 18%" ;

"ooh thanks, that's great as I just bought some"

... always seem a little bit shallow to me - getting someone to tell you what you want to hear is just pandering to confirmation bias. Finding an investment that you like and getting someone to tell you that they had it and its performance was the performance you already read off a chart, doesn't help you sort the wheat from the chaff in terms of what investments are suitable for your needs.

Yes, I'd go along with that. As a Monevator disciple (at least for the time being) I do think VLS is right for me for several reasons (passive, one-stop-shop, diversified, easy). But I am of course aware that the bad times have not hit yet, and this is why I have VLS70 rather than VLS80/VLS100. In the not-too-distant I may even reduce down to VLS60.

I am keen to hear though how the gains of an active investor such as yourself compare to those of VLS/passive investments over the same time period.

MonroeM

jdw2000 wrote: »

Yes, I'd go along with that. As a Monevator disciple (at least for the time being) I do think VLS is right for me for several reasons (passive, one-stop-shop, diversified, easy). But I am of course aware that the bad times have not hit yet, and this is why I have VLS70 rather than VLS80/VLS100. In the not-too-distant I may even reduce down to VLS60.

I am keen to hear though how the gains of an active investor such as yourself compare to those of VLS/passive investments over the same time period.

I'm looking at L&G MI funds at the moment because they seem to offer a different balance than VLS? Any thoughts anybody?

bigadaj

MonroeM wrote: »

I'm looking at L&G MI funds at the moment because they seem to offer a different balance than VLS? Any thoughts anybody?

Slightly active, includes property and a bit more expensive than vls.

Better or worse is another question

MPN

bigadaj wrote: »

Slightly active, includes property and a bit more expensive than vls.

Better or worse is another question

I suppose it depends on your individual preferences to the asset allocation of the L&G and the VLS funds. I personally favour the L&G MI5 however I don't think it has performed as well as the VLS60 in the past couple of years that said it could change in the future!

fwor

Perdu wrote: »

went for L&G Multi-Index5 in the end.

Is this fund less commonly available on the main trading platforms than the Vanguard VLS series?

It interests me, in that VLS ~appears~ to have too strong a US/UK bias for my tastes. But when I look on Interactive Investor I can't seem to find L&G MI5.

dunstonh

Is this fund less commonly available on the main trading platforms than the Vanguard VLS series?

Not aware of a platform that hasnt got it on the advice side. Certainly dont see platforms being removed as fund unavailable when I select that as the fund. However, the DIY side is very much different with more focus on fashion. VLS is more fashionable.