Tracker fund investment for retirement

andy001

I'm thinking to invest some money for our next 20 yrs so I can retire early.

Which one would MSEs recommend ?

-L&G international index tracker
-VWRL
-FTSE 100
or any other trackers?..

I wish to stay as a passive investor.:beer:

regards
Andy

System

Not the FTSE100!

andy001

Why not FTSE100?
Is vanguard FTSE dev world ex UK okay then?

masonic

andy001 wrote: »

Why not FTSE100?
Is vanguard FTSE dev world ex UK okay then?

A global index that includes the FTSE100 is fine, but just the FTSE100 would be a bad choice. Most people would opt for the FTSE All share or even the FTSE250 for UK exposure.

Have you considered a multi-asset fund such as L&G Multi-index?

AnotherJoe

andy001 wrote: »

Why not FTSE100?
Is vanguard FTSE dev world ex UK okay then?

Because the FTSE100 is dominated by value by the top 20 or so companies which only cover a handful of industry sectors

dunstonh

Which one would MSEs recommend ?

What portfolio model are you looking to build?

I wish to stay as a passive investor.

But building a model portfolio of single sector funds requires management decisions.

For example, choosing FTSE100 to represent your UK allocation is a management decision. You are choosing large caps largely weighted to financials and oil. Very clearly a management decision. (ignoring the fact the FTSE100 has been one of the worst indexes to track for the best part of 25 years).

What management decisions have you made for your weightings?
How frequently are you going to rebalance your portfolio?

Is the amount involved high enough to make building a portfolio worthwhile? (if not then why not use a multi-asset fund)
Is your knowledge enough to understand how to build a portfolio?

Alexland

You would probably be best looking at low cost diversified mixed asset fund series such as Vanguard LifeStrategy, HSBC Global Strategy, Blackrock Consensus or L&G Multi Index.

If you insist on going high risk 100% equities (at this point in the market cycle...) then the HSBC FTSE All World fund or the VWRL ETF you mention are both good choices.

If you are thinking 20 years then consider the most suitable tax efficient wrapper (Pension, S&S LISA, etc).

Alex

OldMusicGuy

What Alex said. I have built a defensive approach using three of the four multi-asset funds he mentions (don't forget their are different risk levels within each provider).

Bravepants

Yeah for 20 years you could also look at Vanguard's FTSE Global All Cap Index fund. Switch to lower volatility funds (i.e. more bonds) as your 20 years runs down.

Tom99

[FONT=Verdana, sans-serif]I have a blend of:[/FONT]
[FONT=Verdana, sans-serif]FTSE100[/FONT]
[FONT=Verdana, sans-serif]FTSE250[/FONT]
[FONT=Verdana, sans-serif]Vanguard FTSE dev world ex UK[/FONT]

[FONT=Verdana, sans-serif]That allows me to choose my UK weighting and the FTSE100/250 mix dilutes the amount in the very top 10 much more than the FTSE All Share does.[/FONT]
[FONT=Verdana, sans-serif]I think a combined world tracker/index puts too much overseas, particularly US, where percentages range from 40%/60% with some having less than 10% in the UK. [/FONT]

geeovana

Tom99 wrote: »

[FONT=Verdana, sans-serif]I have a blend of:[/FONT]
[FONT=Verdana, sans-serif]FTSE100[/FONT]
[FONT=Verdana, sans-serif]FTSE250[/FONT]
[FONT=Verdana, sans-serif]Vanguard FTSE dev world ex UK[/FONT]

[FONT=Verdana, sans-serif]That allows me to choose my UK weighting and the FTSE100/250 mix dilutes the amount in the very top 10 much more than the FTSE All Share does.[/FONT]
[FONT=Verdana, sans-serif]I think a combined world tracker/index puts too much overseas, particularly US, where percentages range from 40%/60% with some having less than 10% in the UK. [/FONT]

Why do you think this?