HSBC Global Strategy Vs Vanguard LifeStrategy

Chickereeeee

Deleted_User wrote: »

There really isn’t a need to hold 14 (!) ETFs to replicate VLS80. Complexity is bad particularly when there is no need. Lots of options, but here is one:

10% Strategy of Lyxor Core Morningstar UK NT (DR) UCITS ETF. Cost 0.04% or 4 quid, assuming 100k total portfolio
50% Vanguard FTSE Developed World UCITS ETF cost 0.12% or 60 quid
20% Vanguard FTSE Emerging Markets UCITS ETF Acc cost 0.22% or 44 quid
20% SPDR Barclays 1-5 Year Gilt UCITS ETF 0.15% 30 quid

UK equity is being held within two separate ETFs. This is deliberate; IMHO one should be overweight in the home market

Put this in AJ Bell and platform charges for SIPP are 0.25%, capped at 100 quid.

Rebalancing - I am guessing one buy and one sell per year. Total cost 20 quid.

Overall annual cost = 240 pounds; smaller % for larger portfolios. Makes 24 bp, I think. Not bad.

You also benefit vs holding funds which have to pay Stamp duty.

It looks like a lot of effort. Not TOO bad when you have one account but when holdings are spread over ISAs, SIPPs and trading accounts, x 2 for a couple and spread across two platforms for security, then less simple...!


I have not seen any reason Vanguard don't do a version of VLS as an ETF


C

Chickereeeee

JohnWinder wrote: »

https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/fundDetail/etf/portId=8219/assetCode=balanced/?overview
Is that an ETF like VLS30?

It looks close, at first glance. Way too much bonds/fixed interest for me though


C

[Deleted User]

Chickereeeee wrote: »

It looks like a lot of effort. Not TOO bad when you have one account but when holdings are spread over ISAs, SIPPs and trading accounts, x 2 for a couple and spread across two platforms for security, then less simple...!


I have not seen any reason Vanguard don't do a version of VLS as an ETF


C

All investments should be treated as a single portfolio, at least that’s the conventional wisdom. Tax efficiency may impact which particular ETF goes into which account.

I don’t find it complex at all, but it does require a spreadsheet (or a Google sheet in my case). Certainly more complex than a single multi-asset fund though.

ArchBair

Rather than hold either VLS or the HSBC GS range you’re could just hold a multi asset ETF such as the iShares Core Moderate Allocation ETF (there are also aggressive and Conservative versions).

This would save quite a lot of money in platform fees depending on the platform. For example on Fidelity the platform fees are capped at £45 per annum for holding ETF’s (or IT’s). Therefore if you hold large sums in a multi asset fund there is a significant saving using the ETF multi asset fund. They all do a very similar job.

cisamcgu

ArchBair wrote: »

Rather than hold either VLS or the HSBC GS range you’re could just hold a multi asset ETF such as the iShares Core Moderate Allocation ETF (there are also aggressive and Conservative versions).

This would same quite a lot of money in platform fees depending on the platform. For example on Fidelity the platform fees are capped at £45 per annum for holding ETF’s (or IT’s). Therefore if you hold large sums in a multi asset fund there is a significant saving using the ETF multi asset fund. They all do a very similar job.

Is that available in the UK (via HL for instance) ? And how does it re-balance ?

[Deleted User]

ArchBair wrote: »

Rather than hold either VLS or the HSBC GS range you’re could just hold a multi asset ETF such as the iShares Core Moderate Allocation ETF (there are also aggressive and Conservative versions).

This would same quite a lot of money in platform fees depending on the platform. For example on Fidelity the platform fees are capped at £45 per annum for holding ETF’s (or IT’s). Therefore if you hold large sums in a multi asset fund there is a significant saving using the ETF multi asset fund. They all do a very similar job.

Isn’t that in USD and traded in the US? If so, how easy would it be to trade on a British platform and what would be currency exchange costs?

ArchBair

cisamcgu wrote: »

Is that available in the UK (via HL for instance) ? And how does it re-balance ?

I must admit I hadn’t noticed it traded in USD, I just made a search for a multi asset ETF and came up with this. May be worth a call to HL to see if they offer this ETF or if not whether BlackRock have a GBP equivalent?

bearshare

ArchBair wrote: »

Rather than hold either VLS or the HSBC GS range you’re could just hold a multi asset ETF such as the iShares Core Moderate Allocation ETF (there are also aggressive and Conservative versions).

This would save quite a lot of money in platform fees depending on the platform. For example on Fidelity the platform fees are capped at £45 per annum for holding ETF’s (or IT’s). Therefore if you hold large sums in a multi asset fund there is a significant saving using the ETF multi asset fund. They all do a very similar job.

That is the sort of thing to which I was referring, and for that reason. So it seems it IS possible in an EFF, but those particuar ones are very USA centric, with all/most bonds and fixed interest in USA. Also, I don't beleive they available in UK. Come on Vanguard, do something similar here!

[Deleted User]

bearshare wrote: »

That is the sort of thing to which I was referring, and for that reason. So it seems it IS possible in an EFF, but those particuar ones are very USA centric, with all/most bonds and fixed interest in USA. Also, I don't beleive they available in UK. Come on Vanguard, do something similar here!

Why would Vanguard do that? All the tools are already available:

1. If you want simplicity then they have answer to your prayers: VLS funds. ETFs will always be a little bit more complex for a novice. And why would Vanguard want to cannibalize their own products?

2. If your priority is minimal costs and maximum flexibility then you can execute the same strategy with 3 to 4 ETFs. Not really complex either, but cheaper and can be more efficient.

What UK market seems to be lacking is free trading platforms and reasonably priced financial advice. If I were Vanguard, I would focus on this.

Thrugelmir

Deleted_User wrote: »

What UK market seems to be lacking is free trading platforms and reasonably priced financial advice. If I were Vanguard, I would focus on this.

Vanguard were built on the concept of piggybacking onto everyone else in the market suffering the cost.

Someone has to be the market.