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Good Investment Decision? S&P 500 with Vanguard?

ESonic
ESonic Posts: 15 Forumite
edited 29 September 2018 at 5:00PM in Savings & investments
Hi all,

I have £10,000 to invest. I have opened my first S&S ISA with Vanguard yesterday and I have so far made the following investment:

£500 in Global Small-Cap Index Fund - Accumulation
£500 in S&P 500 UCITS ETF (VUSA)

I am thinking about investing £9000 into S&P 500 UCITS ETF (VUSA) - Do you think this is a good idea?

Investment is for long term - 5 Years. :)

About me:
I have H2B ISA - I have enough deposit to buy my first house.
I am a beginner to investing, I've always held my money into various savings account. I want to see if I can make my money grow faster in stocks and shares.

Whats the best tips to investing in stocks and shares.
«134

Comments

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    I'd go global not US.
  • masonic
    masonic Posts: 28,502 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    As above, do you have a reason for focusing on the US and leaving out the rest of the world (other than your small cap fund)?
  • Prism
    Prism Posts: 3,856 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Another vote for a global fund - active, multi asset or an ETF

    Also, 5 years is short term for equities. Over 5 years its a very risky proposition
  • ESonic
    ESonic Posts: 15 Forumite
    I went with S&P 500 because the past performance has been really good.

    I will put some money into Global Fund. Thanks for the advice guys. :)
  • neildt
    neildt Posts: 59 Forumite
    Fourth Anniversary 10 Posts
    Would you say 60% is to heavily weighted to the US ?
  • lpgm
    lpgm Posts: 359 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    ESonic wrote: »
    I will put some money into Global Fund.

    Good old 'Global Fund'. Whatever it is!
  • masonic
    masonic Posts: 28,502 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    neildt wrote: »
    Would you say 60% is to heavily weighted to the US ?
    Given that the US makes up about 45% of global investable markets, then yes 60% is quite a heavy weighting for someone outside the US. Whether it is too heavily weighted would depend on your objectives for investing.
  • Zola.
    Zola. Posts: 2,204 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you choose S&P 500 you are essentially global anyway as most of the organisations are global.
  • masonic
    masonic Posts: 28,502 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Zola. wrote: »
    If you choose S&P 500 you are essentially global anyway as most of the organisations are global.
    This could be said of the FTSE 100, but it is unwise to invest solely in a FTSE 100 tracker.
  • Alexland
    Alexland Posts: 10,494 Forumite
    Eighth Anniversary 10,000 Posts Photogenic Name Dropper
    edited 29 September 2018 at 8:13PM
    5 years is the CII definition of short term so you are on the border of when investment would be suitable. Long term means 15 years plus. If you were investing 5 to 7 years I would suggest you consider Vanguard LifeStrategy 60.

    My 'best tip' is don't take high short term risks.

    Alex
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