Setting up global tracker SIPP

ArchBair

IanManc wrote: »

Vanguard Global All Cap is not "quite expensive" and you are not comparing like with like.

For example, 54.29% of Fidelity is invested in the US, whereas the Vanguard fund percentage is 47.57% in the US, because the Fidelity fund has no emerging markets content, and is underweight on developed Asia, whereas the Vanguard fund includes the emerging markets.

The Fidelity fund is concentrated in large cap companies and omits small cap, whereas the Vanguard fund includes medium and small cap: Fidelity invests in 1659 companies, while Vanguard Global All Cap invests in 5803 companies.

Vanguard is not "quite expensive" - it is very cheap, and it is a very different fund from Fidelity.

It's worth looking under the bonnet of funds to see what they are actually composed of rather than just seeing the name and looking at the OCF percentage.

However, the HSBC FTSE All-World Index Fund that was also mentioned alongside the Fidelity World Index Fund I believe does cover most regions but I accept it does not include mid and small caps.

Andymac1987

IanManc wrote: »

It's worth looking under the bonnet of funds to see what they are actually composed of rather than just seeing the name and looking at the OCF percentage.

Yes obviously I am aware that the Fidelity index World fund and Vanguard Global All Cap are different funds and I am not comparing them like-for-like. The point was that for the purposes of the OP portfolio, over the 30 years of investing his pension, is the higher cost really worth it to access 5.8% of emerging markets? Is this fund really going to give a greater return to warrant the cost? Personally i would rather pay less and have potentially less risky large cap fund.

I don't claim to be any more than a novice on the matter but I feel for the OPs purposes it's best to stick to the sentiment of the book he says he agrees with, and that's to keep it simple and cheap.

MPN

You could also look at ETF's which are generally even cheaper on most platforms such as VWRL FTSE All-World UCITS ETF and I seem to remember there is an equivalent iShares MSCI ACWI UCITS WORLD ETF?

Magginnis

Thanks so much for your replies. Really helpful information.
Yes I'm looking at AJ Bellyouinvest for platform.
I did see the vanguard ETF, however, thought the ETF fund purchase charge (£9.95) which would be once a month might negate any benefits?