Selecting a global index fund

MonroeM

StellaN wrote: »

As IanManc stated, IWEB does offer VWRP however, if you want to also invest with Fidelity then send them a secure message because they may add this to their ETF list. They already have VWRL so maybe they will be able to offer you VWRP in future. I have done this in the past when an IT or ETF was missing from the list available so its worth a try.

I don't know of any other all world accumulating ETF's but their are a few Developed World ETF's to choose from both accumulation and distributing such as SWDA, LYXOR LCWL, HMWO, VEVE etc

Thanks for your suggestion StellaN, I sent a secure message to Fidelity and this was their reply:-

Thank you for your secure message of 9 January, regarding the VWRP ETF from Vanguard.

I have had a quick look at this asset and on an initial check I cannot see any reason why this could not be added to our platform. I will send the suggestion to our Stockbroking Product Manager who can confirm for definite if this is one we can include amongst the assets we offer.

segovia

aroominyork wrote: »

I'm increasing the % of my equities in index funds and, since I want around 15% in the UK, plan to split between VLS100 and a more representative (ie 5% UK) fund. I am not too fussed whether it is an OEIC or ETF but other things being equal I prefer OEICs. I'm looking at three options:
i) HSBC FTSE All-World Index. Fully global, Mid and large caps (and a few small), 3088 holdings.
ii) Vanguard FTSE Global All Cap. Fully global, All caps, 6421 holdings.
iii) Fidelity Index World. Developed countries, Mid and large caps, 1661 holdings.

I'm veering towards Fidelity as I see small caps and emerging markets as areas best suited to actively managed funds, though should I be concerned by its significantly lower number of holdings or that does accurately reflect the absence of small caps and emerging markets? And are there any other factors (fees apart) that I should consider?

Edit: I assume one answer is to research tracking errors?

HSBC FTSE All-World Index seems to get good reviews.

bowlhead99

segovia wrote: »

HSBC FTSE All-World Index seems to get good reviews.

Where do you get the 'reviews' ?

MonroeM

MonroeM wrote: »

Thanks for your suggestion StellaN, I sent a secure message to Fidelity and this was their reply:-

Thank you for your secure message of 9 January, regarding the VWRP ETF from Vanguard.

I have had a quick look at this asset and on an initial check I cannot see any reason why this could not be added to our platform. I will send the suggestion to our Stockbroking Product Manager who can confirm for definite if this is one we can include amongst the assets we offer.

Further to my previous post above, Fidelity have now confirmed VWRP is now available on their platform so I'm quite impressed with their speed of service on this.

aroominyork

To save starting a new thread I want to add a UK index question please. Tomorrow I plan to buy Vanguard FTSE UK All Share Index, but have just seen that Morningstar rates the HSBC equivalent higher, 4* to Vanguard's 3*, and for most of the last four years has given the HSBC funds better ratings on risk/return.

Why the difference? They hold about the same number of holdings (565-575) and their OCFs are within 0.01% of each other. I was planning on Vanguard because (also for reasons I don't understand) it seemed a little more diverse: its top ten holdings, according to HL, make up 34.43% of the fund whereas for HSBC they make up 36.87%.

bowlhead99

aroominyork wrote: »

. I was planning on Vanguard because (also for reasons I don't understand) it seemed a little more diverse: its top ten holdings, according to HL, make up 34.43% of the fund whereas for HSBC they make up 36.87%.

Are the two reports at the same date?

If one is a couple of percent off the other when looking at the top ten and for the same dates, is this because the data feed for one is top ten companies and the other is top ten holdings. Two of the largest financial instruments by market cap will be Royal Dutch Shell A and Royal Dutch Shell B which will both qualify for the top ten, causing there to be only 9 companies listed within the top 10. If one provides top ten companies invested in, it would go and include the 11th place financial instrument, which would be another company.

Sue58

aroominyork wrote: »

To save starting a new thread I want to add a UK index question please. Tomorrow I plan to buy Vanguard FTSE UK All Share Index, but have just seen that Morningstar rates the HSBC equivalent higher, 4* to Vanguard's 3*, and for most of the last four years has given the HSBC funds better ratings on risk/return.

Why the difference? They hold about the same number of holdings (565-575) and their OCFs are within 0.01% of each other. I was planning on Vanguard because (also for reasons I don't understand) it seemed a little more diverse: its top ten holdings, according to HL, make up 34.43% of the fund whereas for HSBC they make up 36.87%.

In your portfolio review thread, I note you already hold Liontrust UK Smaller Companies therefore would investing in the FTSE UK All Share Index have some duplication with your existing UK smaller companies holding?

Personally I would of thought the HSBC FTSE 250 or the Vanguard FTSE 250 UCITS ETF (VMID) would be more appropriate just covering mid-caps? Interested in your views on why you went for the All Share though.

aroominyork

Sue58 wrote: »

In your portfolio review thread, I note you already hold Liontrust UK Smaller Companies therefore would investing in the FTSE UK All Share Index have some duplication with your existing UK smaller companies holding?

Personally I would of thought the HSBC FTSE 250 or the Vanguard FTSE 250 UCITS ETF (VMID) would be more appropriate just covering mid-caps? Interested in your views on why you went for the All Share though.

90% of a FTSE250 fund's holdings are under £5bn market cap so your strategy would mean I would get small and mid cap but no large cap. All Share has a low proportion of small caps so minimal crossover with Liontrust which is mostly under £1bn market caps.

Sue58

aroominyork wrote: »

90% of a FTSE250 fund's holdings are under £5bn market cap so your strategy would mean I would get small and mid cap but no large cap. All Share has a low proportion of small caps so minimal crossover with Liontrust which is mostly under £1bn market caps.

Fair enough, point taken. I just thought you would have enough UK Large Cap in your Fidelity Index World (5.5%). Also Fundsmith has about a 17.5% allocation to UK Large Cap.

Sheriff_Fatmen

bowlhead99 said:

segovia wrote: »

HSBC FTSE All-World Index seems to get good reviews.

Where do you get the 'reviews' ?

Can anyone shed some light on the pros and cons of the HSBC Income C and Income S versions. The S has lower OCF and is newer but reportedly same fund size 🤔