Vanguard &/or world equity tracker

cattie

I've got a couple of Vanguard Life Strategy funds- LS 40 & 60 & a handful of other funds that are doing well at the moment, but that I shall probably sell before too long.

I've looked at the Lars Kroijer video & see he recommends a single world equity tracker would be suitable for the majority of people who don't want to get too involved with investing. I'm unsure if the Vanguard funds are a good alternative or would it be wiser to include a world equity tracker in my portfolio as well? I've yet to invest this years £20k allowance & have some cash isa's maturing in the next few months so will be looking for a s&s home for them when that happens.

Alexland

VLS40 and 60 are very different volatility profiles to the Vanguard All World ETF or All Cap fund.

Decide how much downside volatility you are comfortable with first, with consideration to when you intend to withdraw and use the money, then pick appropriate investments.

Alex

eskbanker

cattie wrote: »

I'm unsure if the Vanguard funds are a good alternative or would it be wiser to include a world equity tracker in my portfolio as well?

Perhaps I'm missing some subtle nuances here but Vanguard LifeStrategy is a world equity tracker!

Granted, the non-100% variants include bonds as well, but the equities component of each VLS fund already tracks a range of global indices, although as Alex points out, there are alternatives both within and outside the Vanguard range that track global equities in different ways....

Alexland

eskbanker wrote: »

Vanguard LifeStrategy is a world equity tracker!

Not quite - VLS is a mixed asset fund series which contain equity trackers (with a UK bias) in varying proportions. Still investing in VLS is not incompatible with the core Lars message of going for global equities with some bonds for volatility control.

Alex

cattie

eskbanker wrote: »

Perhaps I'm missing some subtle nuances here but Vanguard LifeStrategy is a world equity tracker!

This is something I wasn't too sure about.:o

Crabby

I've looked at the Lars Kroijer video & see he recommends a single world equity tracker

Does his ideal tracker actually exist? If it does, can someone point the way.
If not, what are the nearest alternatives, based on equity coverage and costs(cheapest).

chockydavid1983

Vanguard FTSE All cap is what I hold- think it's the closest available

msallen

I use SWDA.L as my global equity core holding, but I do have some smaller satellite holdings too.

I can't remember exactly why I settled on this one now, but I know that besides being a balance of cost/diversity, a large part of the choice came down to wanting an ETF rather than an OEIC as I moved my SIPP to X-O to save on fees (annual pension charge refunded for those who opened the latest incarnation of the Jarvis SIPP - this offer no longer open to new account holders) because I typically only pay them a flat £23.80 a year to cover my quarterly contributions, which are also used to re-balance by adding them to the most underweight element against target.

stphnstevey

msallen wrote: »

I use SWDA.L as my global equity core holding, but I do have some smaller satellite holdings too.

I can't remember exactly why I settled on this one now, but I know that besides being a balance of cost/diversity, a large part of the choice came down to wanting an ETF rather than an OEIC as I moved my SIPP to X-O to save on fees (annual pension charge refunded for those who opened the latest incarnation of the Jarvis SIPP - this offer no longer open to new account holders) because I typically only pay them a flat £23.80 a year to cover my quarterly contributions, which are also used to re-balance by adding them to the most underweight element against target.

Me too exactly

Simon.Edmunds

cattie wrote: »

I've got a couple of Vanguard Life Strategy funds- LS 40 & 60 & a handful of other funds that are doing well at the moment, but that I shall probably sell before too long.

I've looked at the Lars Kroijer video & see he recommends a single world equity tracker would be suitable for the majority of people who don't want to get too involved with investing. I'm unsure if the Vanguard funds are a good alternative or would it be wiser to include a world equity tracker in my portfolio as well? I've yet to invest this years £20k allowance & have some cash isa's maturing in the next few months so will be looking for a s&s home for them when that happens.

I used to use Vanguard but they are so out-performed by well selected ITs. Buy SMT, LTI, USA and JMC to see huge gains (10s if not 100s of % points) compared to trackers.

cattie

The funds you mention have had a pretty good run from what I gather, but as there's a chance it isn't going to continue for a great deal longer, I wouldn't be happy risking too much of my investment in them at this particular time, so I might try a smaller sum.

I know all funds have a risk & if you are lucky enough to have chosen a fund when it first starts to to take off then that's great, but I don't want to be in the situation of jumping in big a little too late.