Good Investment Decision? S&P 500 with Vanguard?

ESonic

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.

AnotherJoe

I'd go global not US.

masonic

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

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

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

Would you say 60% is to heavily weighted to the US ?

lpgm

ESonic wrote: »

I will put some money into Global Fund.

Good old 'Global Fund'. Whatever it is!

masonic

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.

If you choose S&P 500 you are essentially global anyway as most of the organisations are global.

masonic

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

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