Vanguard: How much is in bonds?

Pete_J75

Hi, I have just opened a stock/shares ISA after getting sick of low returns on my cash ISA. I have used Vanguard as i believe the fees are low and the platform seems user-friendly and am hoping someone can help me understand exactly what i'm investing in.

After investing my first 5k and trying to spread it between a number of different funds and also geographically, I am trying to get an answer to the question what percentage is equity and what is bonds.

The Insight section of the site shows a breakdown between Equity and Blended but this does not really answer my question as the Blended funds also contain a certain amount of Equity.

When I look at Sector allocation I am none the wiser. because no coiumn refers specially to bonds.When i look at top 10 investments some bond funds are mentioned but this is just a partial snapshot.

I find it odd that there is apparently no easy way to calculate this as one of the first things Vanguard ask you to consider on their Help section is the breakdown between equity and bonds. Does anyone know how to get to the bottom of this?

Thanks,
Peter

masonic

The most popular Vanugard funds make the split between equities:bonds very clear. Which funds are you interested in?

Audaxer

Pete_J75 wrote: »

Hi, I have just opened a stock/shares ISA after getting sick of low returns on my cash ISA. I have used Vanguard as i believe the fees are low and the platform seems user-friendly and am hoping someone can help me understand exactly what i'm investing in.

After investing my first 5k and trying to spread it between a number of different funds and also geographically, I am trying to get an answer to the question what percentage is equity and what is bonds.

Rather than complicating things with a number of funds, you would be better investing in one Vanguard multi asset fund, such as one of their LifeStrategy funds, which come in 5 versions, from 20% equity and 80% bonds, to the highest risk fund that is 100% equity. These funds are low cost and globally diversified and you can pick the version that best suits your tolerance for risk/volatility.

AnotherJoe

Pete_J75 wrote: »

After investing my first 5k and trying to spread it between a number of different funds and also geographically

Just dont do that. Do what Audaxer said.

Pete_J75

ok, i have found the breakdown in the 'Key investor information' pdf relating to each fund. I can use the % value that each funds makes up of the total portfolio and multiple it by the fraction that is bonds. If I add them up that gives me the total. Bit unfortunate that this has to be done manually but i suppose it won't change much over the short/medium term.

Pete_J75

Thanks for the tip. LifeStrategy was one of the funds i invested in and as i put more money in i will definitely skew my investment towards it.

DrSyn

As a newbie first watch both of these:-

http://www.kroijer.com/

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

Then consider investing in a Global Multi Asset Fund, at a risk grade you are happy with. These have wide diversification while minimising risk, at low cost.

As you mention Vanguard this is what they have:-

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link

All you need to think about is what share/bond split you are happy choosing, pay them the money and they will do the rest.

If you can not decide which to use, I suggest think about the

Vanguard LifeStrategy 60%share/40%bond = VLS 60/40

https://www.vanguardinvestor.co.uk/investments/9241?intcmpgn=ls60_findmore_link

I suggest you invest via a Stocks and Shares ISA.

https://secure.vanguardinvestor.co.uk/Login

You can make investing as simple or as complicated as you like. I think simple is all you need (at lest until you understand investing).

Good Luck!

Thrugelmir

Pete_J75 wrote: »

Hi, I have just opened a stock/shares ISA after getting sick of low returns on my cash ISA.

What level of return are you expecting on "bonds"?

Audaxer

Pete_J75 wrote: »

Thanks for the tip. LifeStrategy was one of the funds i invested in and as i put more money in i will definitely skew my investment towards it.

Which Vanguard LifeStrategy fund did you invest in, and what other funds have you invested in, or planning to invest in?

Alexland

After investing my first 5k and trying to spread it between a number of different funds and also geographically, I am trying to get an answer to the question what percentage is equity and what is bonds.

Part of being a good investor is knowing your own limitations - we all have them. If you have invested in various funds without even reading the key information documents (although many of us have views on how the template could be improved...) then be concerned that your resulting asset allocation might not reflect your needs and circumstances.

as i put more money in i will definitely skew my investment towards it

I suggest you review how you have already invested, in addition to how you invest going forwards to achieve a consistent asset allocation strategy.

Bit unfortunate that this has to be done manually

It doesn't, there are multi asset fund series such as VLS or VTR with professionally constructed asset allocations suitable for a range of volatility appetites and future withdrawal dates. If you are happy with a multi asset fund you only need to hold one fund and your portfolio is good enough and complete.

Alternatively, if you enjoy a bit of admin and want to remove the UK bias, a 2 fund portfolio of either the VWRL etf or the Global All Cap fund (for the equities) and Global Index Hedged fund (for the bonds) would also do the job if you remember to rebalance every 3, 6 or 12 months.

Alex

DrSyn

Continuing on from my Post 7.

As you mentioned Vanguard you may prefer to invest in them this way. Think of it as investing from beginning to end the very easy way. Where all you do is chose a date and pay them your money :-

Vanguard Target Retirement Fund

https://www.youtube.com/watch?v=Sr-IFxRGT88

https://www.vanguard.co.uk/adviser/adv/investments/about-funds/target-retirement-funds

Good Luck!