Is 4% a reasonable assumption for return in SIPP

Malthusian

SouthLondonUser wrote: »

You could probably track very similar indices with ETFs, but at much lower costs.

Index-tracking unit trusts are generally lower cost than ETFs. You can get a FTSE All-Share index-tracking fund for 0.07% TER, ETFs still seem to be around the 0.2% - 0.4% mark (more for the more esoteric indices).

Re RD42's portfolio, the obvious contradiction is having so many single-region tracker funds and two Vanguard multi-asset tracker funds on top. If you know what asset allocation you want, why not just use single-region tracker funds in the desired proportions? If you want to leave it to Vanguard, why not do so?

Can't see the point of holding a gold ETF and a silver ETF and a gold and silver fund either.

Why 6% in cash?

The portfolio is fine in the sense that if held for the long term it is unlikely to perform disastrously, the only reason I am picking nits is that it still suggests a lack of structure.

AnotherJoe

Malthusian wrote: »

Re RD42's portfolio, the obvious contradiction is having so many single-region tracker funds and two Vanguard multi-asset tracker funds on top. If you know what asset allocation you want, why not just use single-region tracker funds in the desired proportions? If you want to leave it to Vanguard, why not do so?

^^^ this. Why pick Vanguard multi asset (twice) and them partially replicate it with other Vanguard and other tracker funds spanning much of the same? If there was a Venn diagram of this, there would be huge overlap.

ex-pat_scot

Ref my earlier comment about lack of strategy.


There needs to be a clear statement about the broad asset class desired mix. The OP has lots of stuff across most of the classic asset classes, but no structure.
There also needs to be a clear set of geographic aims.
There's a huge amount of overlap in the proposed selection. It could be an awful lot simpler.


Frankly, I still end up with something akin to the Monevator "slow and steady" portfolio:
- one or two ETFs that provide the right balance across markets and currencies
- ditto for bonds if you wish
- a commodities ETF if you want exposure to gold etc.


? cash? Why? Is it for opportunistic dabbling?


Frankly the whole darn lot can be pithily summarised by VWRL or VLS100 / VLS80. Buy and forget.

jamesd

Regional trackers are an excellent idea because they let you shift the asset allocation away from whatever Vanguard is doing. Say to places that are cheaper on cyclically adjusted price/earnings ratio instead of expensive. Or to different asset class or company size weights.

The high amounts in expensive Vanguard trackers is a puzzle, why not pick cheaper ones that are available at half the price instead?

Use of the expensive Vanguard target fund is wasteful, it's not hard to use cheaper trackers and adjust the asset allocation from time to time.

ETFs or trackers could be cheaper, depends on the size of the holding and difference in platform charges. A charge cap at just £50k of ETFs but £250k of funds wouldn't be surprising. With £320k in this portfolio it'll be easy at many places for the ETFs to be much cheaper in overall cost.