Newbie considering Vanguard All World VWRL ETF

[Deleted User]

I appreciate the considered and very detailed reply. I think I'd be hesitant starting out and putting in a large amount but I feel starting out at £500/1000 and saving £100pm to start with is do-able and I genuinely do feel I'd keep it for 10 years or so.

arwain

bowlhead99 wrote: »

There are thousands of investment fund options and most people would be more comfortable with a fund that used a blend of different types of assets (company shares, company and government bonds, commercial property etc) to create a risk / return profile that was not so volatile as the global equity market.
.

This seems very sensible advice to me, you are giving up some potential gains in a rising market to reduce some of the losses in a falling market. What I don't think I have seen though is by how much roughly are you reducing your losses when the market is falling.

Here is an example of what I am talking about. Assume we have two investors lets call them investor A and investor B, they both invest their money on the same day.

Investor A invests £20k into Vanguard LS 100 (this may well not be the best global equity tracker for them but lets not get into that).

Investor B invests £20k into LS 60.

The very next day after they both invest, markets across the world start to dive. After 12 months of bear markets Investor A has lost 50% and so has only £10k in the market.

My question is how much do we think investor B has still in the market from their original £20k investment?

Investor B should have lost less than 50% but how much less, does anyone know?

[Deleted User]

I'll take a stab at this... 50% of £12,000 = £6000 lose. If we pretend their bonds had no lose or gain. I imagine they'll loose some. And if we pretend VLS100 and 60 have exactly the same exposure which I don't imagine will be the case. But for rough maths why not.

wannaberichbtch

For anyone who's interested, VWRP is now available on HL. Bid and offer spread higher than VWRL, although unit price lower. I'm guessing this is because the fund is new?

I was going to top up VWRL but may go 50/50 with VWRP and see how it goes.

jamels2

Can anyone recommend a platform for a newbie to start investing in vanguard VWRL or similar index tracker fund? I'll be starting small but adding every month hopefully. I see it as a long term investment which will eventually pay dividends. I just need to decide what platform , free trade looks simple but is app only . My friend uses etoro but I think that's more for traders. The escape artist uses the share centre. I've also seen x-o recommended as well as bigger names like HL. It seems like a minefield. If anyone can recommend and why that would be great! Cheers

arwain

jamels2 wrote: »

Can anyone recommend a platform for a newbie to start investing in vanguard VWRL or similar index tracker fund? I'll be starting small but adding every month hopefully.

If you only want Vanguard products then you could use just their own platform. If you want more choice for your investments then check out the Monevator site they have a broker comparison section that should enable you to select just what you need.

poppy10_2

jamels2 wrote: »

Can anyone recommend a platform for a newbie to start investing in vanguard VWRL or similar index tracker fund?

Just use Vanguard's own platform. Annual fee is a third of what the likes of Hargreaves Lansdown charge, plus there's no dealing fees so if you are investing on a monthly basis you don't have to worry about a fee every time you buy new shares of the ETF. The only potential downside would be that you can only buy Vanguard funds on their platform, but really there's no reason to go elsewhere anyway

Thrugelmir

jamels2 wrote: »

I've also seen x-o recommended

X-O is a pure consumer stockbroker, i.e. will trade anything listed on the LSE, no funds available.

It's parent Jarvis Securities does trade funds. However it's fee structure is targeted at a different target audience.

Dan29

It seems VWRP is not available on vanguardinvestor.co.uk - is that correct?

Alistair31

Dan29 wrote: »

It seems VWRP is not available on vanguardinvestor.co.uk - is that correct?

Correct. I queried it with them and their response was that there were no immediate plans to offer it.