passive investing

dunstonh

Just out of interest, why is using trackers for small amounts pointless? Not everyone has 50k+ to put into a tracker from day one and rely on drip feeding, would ETF trackers not be appropriate for this?

You have about 10-15 main sectors (depending on your views). So, that would be 10-15 trackers (although not all sectors have trackers). If you are investing £100pm and have an allocation of 3% to Japan, then you are investing £3 into that.

That is what makes it a complete waste of time having a bespoke portfolio for small amounts. All that work researching 10-15 funds. Rebalancing the 10-15 funds periodically for just a few pounds. Hence, multi-asset fund is better.

Audaxer

dqnet wrote: »

Just out of interest, why is using trackers for small amounts pointless? Not everyone has 50k+ to put into a tracker from day one and rely on drip feeding, would ETF trackers not be appropriate for this?

The multi asset funds that are discussed on here like Vanguard LifeStrategy, HSBC Global Strategy and L&G Multi Index funds contain a number of different trackers to make each multi asset fund into one professionally set-up globally diversified portfolio. So that make it better for small amounts that using individual trackers. I also think these multi asset funds are a good option for large portfolios if you want global diversification and low costs.

DrSyn

You mentioned passive investing, so these might of interest to you:

https://www.ifa.com/indexfundsthemovie/

http://www.kroijer.com/

The Vanguard Life Strategy Fund basically follows the approach suggested by the second video. You just pick your share/bond split and pay them your money.

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds


Multi Asset Funds you could look into

Vantage Life Strategy
HSBC Global Strategy
L&G Multi Index Funds
Blackrock Consensus

bradqwer

Alexland wrote: »

The VLS fund management fee is 0.22% - the platform costs are 0.15% for Vanguard Investor versus 0.45% for HL so a 0.30% difference - doesn't sound much but if you do the maths then over the years this difference really adds up.

I suggest you go for the cheapest platform that has the investment fund you want and will accept your rate of regular contributions.



Problem is these are 100% equities funds and the OP is looking for a more balanced risk fund. Even the discounted Blackrock Consensus 85 is too high risk for what the OP is looking for.

Bradqwer, out of interest what product(s) do you already have with HL?

Alex

None Alex I just have a account that I opened a few years ago with the view to doing what Im about to do now

bradqwer

I think from what I have read on the internet most passive investors seem to chose the vangaurd products for the fact they have a basic split, I have not looked into the other mentioned funds but as im not a whiz when it comes to such things I am looking for the most simple to use product that gives me some form of balance with a acceptable risk level

dunstonh

I think from what I have read on the internet most passive investors seem to chose the vangaurd products for the fact they have a basic split

Multi-asset funds are not passive. They may have underlying passive funds within them. However, the asset weightings are a management decision.

VLS is a fettered fund of funds on a returns-focused strategy. Most of the others are fettered or unfettered fund of funds on a risk targetted strategy. Effectively this means VLS will move around the risk profiles as its allocations are rigid. Whereas the risk targetted ones will adjust their allocations based on the economic cycle and market values. It could be argued that VLS is better at the higher risk end but the others are better at the lower/medium risk end.

You do have to be wary as Vanguard has a bit of a biased following on the internet who pray in the church of Vanguard and will not consider others. Even though others have come along and improved upon Vanguards offering.

Vanguard is fine. Once they were leading in most of the areas they are involved in but that is no longer the case. So, keep an open mind and do not become brainwashed into believing Vanguard is the one true God.

buyhighselllow

Vanguard VEVE/VFEM split 90:10 or according to risk profile. Very low fee's, most bases covered. VEVE is today at a year low....

bradqwer

dunstonh wrote: »

Multi-asset funds are not passive. They may have underlying passive funds within them. However, the asset weightings are a management decision.

VLS is a fettered fund of funds on a returns-focused strategy. Most of the others are fettered or unfettered fund of funds on a risk targetted strategy. Effectively this means VLS will move around the risk profiles as its allocations are rigid. Whereas the risk targetted ones will adjust their allocations based on the economic cycle and market values. It could be argued that VLS is better at the higher risk end but the others are better at the lower/medium risk end.

You do have to be wary as Vanguard has a bit of a biased following on the internet who pray in the church of Vanguard and will not consider others. Even though others have come along and improved upon Vanguards offering.

Vanguard is fine. Once they were leading in most of the areas they are involved in but that is no longer the case. So, keep an open mind and do not become brainwashed into believing Vanguard is the one true God.

So what do you suggest I should go with I understand u cant give a informed choice as you dont fully understand my circumstances however...

bradqwer

buyhighselllow wrote: »

Vanguard VEVE/VFEM split 90:10 or according to risk profile. Very low fee's, most bases covered. VEVE is today at a year low....

Could you please let me know what the VEVE/VFEM stand for so I can look at said funds

Alexland

bradqwer wrote: »

Could you please let me know what the VEVE/VFEM stand for so I can look at said funds

This is a 90% developed world and 10% emerging market equity mix which is significantly above your stated 25% tollerance for loss so I am unclear why buyhighselllow suggested it to you.

Alex