addition to my s and s

dd95

hi all,

have another small lump (£500) that i want to put in my vanguard s and s isa.

are there any other types of fund i can look at other than my LS80 to give me a bit more diversification?

thanks

Alexland

VLS80 is a good fund and if you have a long term investment period, want automatic rebalancing and it meets your volatility tolerance then my vote would be to just buy more units as it already contains lots of diversification.

However if you were willing to do the periodic re-balancing yourself (given there are no fund trading costs on Vanguard's platform) you might prefer to split your investment into a 2-fund portfolio putting 80% in an equity fund (such as the Vanguard All Cap or All World trackers which do not have UK bias) and 20% in a bond fund (such as the Vanguard Global Bond Index Hedged). If you are brave this makes it easier to 'tilt' the allocation by switching units between funds when asset allocation opportunities present themselves.

Alex

learningmoneybasics

Is the Global Bond Index fund on it's own enough for the bond element? I see in the VLS20 they use that fund along with other bond and gilt funds. I wasn't sure to use the Global Bond Index on it's own or use the Vls 20 as the bond element with the Vanguard All Cap. I guess it will skew the geographic allocations slightly though.

Alexland

https://www.moneywise.co.uk/fund/Vanguard-Global-Bond-Index-GBPH-Acc

"This highly diversified fund gives exposure to more than 7,300 bonds with the US, Japan, Canada, France and Germany being the highest weighted countries. Investors can use it as a ‘one-stop shop’ for developed market investment-grade-rated fixed-income exposure. The fund is currency hedged into Sterling, which takes out the currency volatility for UK investors, which we think is a good feature for a beginner."

learningmoneybasics

Thanks Alex. I've seen two fund portfolios mentioned and prefer the weighting of the Global All Cap. I thought I was missing something after looking at the bond funds VLS20 uses.