Life Strategy / Vanguard FTSE Global All Cap Index

Zola.

Just thinking about most of my family's passive funds being either with Vanguard Life Strategy 100% or 80% acc... with it's 25% tilt towards UK perhaps.. it is a bit much.

Does anyone else feel like Vanguard FTSE Global All Cap Index would potentially be a better prospect for improved long term growth? It has over 6000 holdings in it, rather diversified!

Not sure if its worth fiddling with at this moment in time, but maybe something to consider?

Interested in opinions. :beer:

Prism

Not as a replacement for VLS80 but if I wanted a single global fund I prefer it over VLS100 if only to reduce the exposure to the FTSE 100 (Oil, banking, mining)

Linton

Vanguard FTSE Global AllCap has outperformed VLS100 in the two years it has been available. Like you I would be tempted by its broader diversification and lower UK

Alexland

I rate VLS60 and 80 but for long term 100% equities agree there are better choices than VLS100 such as FTSE All World or All Cap.

Still UK listed companies are looking cheap due to the Brexit, etc so in the medium term VLS100 might give a better result.

Alex

MrWizard

I was thinking of swapping my VLS 100 for the Global All Cap.

However the 22% weighting in the UK is probably 3x overweight however if you look at the top 10 holdings about 90% report revenues in USD, so I wouldn't really look at this being as overweight.

Does the global all cap automatically adjust like VLS?

bostonerimus

IMO combining something like VLSxx fund with a global equity fund is a sensible way to construct a simple and well diversified portfolio. In just two funds you get a broad range of bonds and equities. With a 6 month cash reserve in the bank and some rebalancing it can be made appropriate for most people in most situations. There will be some overlap of the equities, but I'd take that for the convenience.

ColdIron

MrWizard wrote: »

Does the global all cap automatically adjust like VLS?

It tracks a single index, the FTSE Global All Cap Index, so nothing to adjust. Any changes in weighting are down to market capitalisation. Google it and open the FTSE Russell pdf factsheet

StellaN

I would prefer the HSBC FTSE All World Index Fund or the Vanguard FTSE Global All Cap to VLS 100.

A_T

MrWizard wrote: »

I was thinking of swapping my VLS 100 for the Global All Cap.

However the 22% weighting in the UK is probably 3x overweight however if you look at the top 10 holdings about 90% report revenues in USD, so I wouldn't really look at this being as overweight.

It's not so much that it's overweight to the UK as that it's overweight to the FTSE100 which is dominated by certain sectors (eg oil and banks)

MrWizard

Ok interesting. I have been thinking of moving out of the VLS like the OP.

HSBC look attractive but it's going to cost a lot more versus the cheap vanguard platform.

The vanguard one is very new and only has a size of £93 million. Tiny versus VLS and HSBC. Do you think that's a concern?

ColdIron

That HSBC fund tracks the FTSE All-World index and is very similar to the FTSE Global All Cap Index which includes some small caps as well as large and mid caps. The Vanguard fund at Vanguard Investor will cost 0.24% OCF + 0.15% fee but you could get the HSBC one for 0.16% OCF + 0.25% without much trouble. However if it worries you have a look at Vanguard's VWRL ETF at 0.25% OCF + 0.15% which also tracks the FTSE All World Index, but remember you'll be constrained to Vanguard's funds. With trackers such as these, size isn't a factor that would worry me

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-ucits-etf