How to construct my investment portfolio?

bowlhead99

ifonlyian said:

if i understand it, Vanguard Global Equity is a Distributing Fund - Quarterly,, on their platform as opposed to the LS100 which is an accumulation, are there any advantages for the Distributing Fund if you are looking long Term 10 years + to build your pot up?

Both Vanguard Global Equity fund and their LifeStrategy series of funds are available as Income (distributing) or Accumulation versions and you can just pick to use whichever version you prefer.
(see https://www.vanguardinvestor.co.uk/investments/vanguard-global-equity-gbp-accumulation-shares?intcmpgn=equityglobal_globalequityfund_fund_link, at the top of the page there is a drop-down arrow for 'available in other share classes').

Actually those funds distribute annually, not quarterly. See the 'distributions' tab once you have selected the income share class.

If you are looking to build up your pot and not take income from it, and you are not planning to reinvest the distributed income into other funds as part of a plan to 'rebalance' the proportions of various investment fund holdings that you have from time to time - because you are only using the one product), then it is more convenient to use the accumulation version.

Some people who are not looking to take income out, but are not using a tax-exempt ISA or SIPP account (meaning they will need to track their income and investment costs more closely for tax purposes) might prefer to use the income distributing version just so they can more easily see the periodic cashflows get distributed and reinvest the money manually back into the fund themselves, which gives them a prompt to update their personal records of the income and costs. Otherwise, with the accumulation version, the money would be einvested internally in the product without the quarterly cashflows being seen, and you would have to rely on a periodic statement from the platform on what the total income had been.

ifonlyian

bowlhead99 said:

ifonlyian said:

if i understand it, Vanguard Global Equity is a Distributing Fund - Quarterly,, on their platform as opposed to the LS100 which is an accumulation, are there any advantages for the Distributing Fund if you are looking long Term 10 years + to build your pot up?

Both Vanguard Global Equity fund and their LifeStrategy series of funds are available as Income (distributing) or Accumulation versions and you can just pick to use whichever version you prefer.
Actually those funds distribute annually, not quarterly. See the 'distributions' tab once you have selected the income share class.

If you are looking to build up your pot and not take income from it, and you are not planning to reinvest the distributed income into other funds as part of a plan to 'rebalance' the proportions of various investment fund holdings that you have from time to time - because you are only using the one product), then it is more convenient to use the accumulation version.

Some people who are not looking to take income out, but are not using a tax-exempt ISA or SIPP account (meaning they will need to track their income and investment costs more closely for tax purposes) might prefer to use the income distributing version just so they can more easily see the periodic cashflows get distributed and reinvest the money manually back into the fund themselves, which gives them a prompt to update their personal records of the income and costs. Otherwise, with the accumulation version, the money would be einvested internally in the product without the quarterly cashflows being seen, and you would have to rely on a periodic statement from the platform on what the total income had been.

Thanks, missed that, i think it was i was looking at FT FTSE All-World UCITS ETF (VWRL) which is distributing Only, unless I have also missed an accumulation version of that one?

bowlhead99

ifonlyian said:

bowlhead99 said:

ifonlyian said:

if i understand it, Vanguard Global Equity is a Distributing Fund - Quarterly,, on their platform as opposed to the LS100 which is an accumulation, are there any advantages for the Distributing Fund if you are looking long Term 10 years + to build your pot up?

Both Vanguard Global Equity fund and their LifeStrategy series of funds are available as Income (distributing) or Accumulation versions and you can just pick to use whichever version you prefer.
Actually those funds distribute annually, not quarterly. See the 'distributions' tab once you have selected the income share class.

If you are looking to build up your pot and not take income from it, and you are not planning to reinvest the distributed income into other funds as part of a plan to 'rebalance' the proportions of various investment fund holdings that you have from time to time - because you are only using the one product), then it is more convenient to use the accumulation version.

Some people who are not looking to take income out, but are not using a tax-exempt ISA or SIPP account (meaning they will need to track their income and investment costs more closely for tax purposes) might prefer to use the income distributing version just so they can more easily see the periodic cashflows get distributed and reinvest the money manually back into the fund themselves, which gives them a prompt to update their personal records of the income and costs. Otherwise, with the accumulation version, the money would be einvested internally in the product without the quarterly cashflows being seen, and you would have to rely on a periodic statement from the platform on what the total income had been.

Thanks, missed that, i think it was i was looking at FT FTSE All-World UCITS ETF (VWRL) which is distributing Only, unless I have also missed an accumulation version of that one?

The Global Equity Fund is an actively managed open-ended fund while the FTSE All-World ETF or the FTSE Global All Cap open-ended fund are index trackers.

You are right that VWRL is distributing only (VWRL is an ETF  priced in pounds and VWRD is the same thing priced in dollars on the London stock exchange). However, they do also have a listing on the London market for an accumulating version of the same thing, VWRA is accumulating priced in dollars, VWRP is accumulating priced in pounds.

They are managing more investor money in the regular distributing version ($5 billion for distributing vs $1bn for the accumulating ETF).  I'm not sure if Vanguard let you buy the distributing version through their platform as a retail customer or only offer the more popular class, as I don't have an account with them.  But you can buy the accumulating one through a stockbroker or independent platform, and its factsheets are on their institutional investor and financial advisor / intermediary websites.

dakofsta

csgohan4 said:

dakofsta said:

Deleted_User said:

You could also look at the active fund Vanguard Global Equity. This is a portfolio of approximately 200 stocks from around the world picked and managed by Baillie Gifford and Wellington. OCF of 0.48%

Had no idea Baillie Gifford managed on behalf of Vanguard - their active funds were the ones I wanted to invest in most, so I think all active money will go into here

I'm a big fan of BG funds, I use their pacific ex japan and Global discovery funds (global Smallcaps) which are both active as my satellite funds for my portfolio. I decided against getting their Emergeing markets fund, they did well and went neck to neck with the discovery funds, but personal preference. I wanted a bit more China, but not 100% China. 

They have an american Fund which covers most of what global trackers do and is active too.  Their funds do very well in comparison to others and priced competitively in terms of their OCF. Say compared to Fundsmith for example. 

Their overperformance across nearly all funds is borderline terrifying; my final draft is a 25% weighting to the Vanguard Global Equity active fund and a 75% weighting to the Vanguard FTSE Global All Cap Index Fund. Alongside this, I'll maximise my lifetime ISA and maximise my company pension (in terms of the percentage which they'd match my contributions for)

ifonlyian

just received this from Vanguard re ETF & accumulating:-
I'm afraid that currently, personal investors are only able to purchase the income ETFs and not their accumulation counterparts.
We hope to make these available in the not too distant future however I don't have an estimated time frame unfortunately.

dakofsta

ifonlyian said:

just received this from Vanguard re ETF & accumulating:-
I'm afraid that currently, personal investors are only able to purchase the income ETFs and not their accumulation counterparts.
We hope to make these available in the not too distant future however I don't have an estimated time frame unfortunately.

No way? That's so disappointing

short_bread

AnotherJoe said:

dakofsta said:

AnotherJoe said:

Dont go for the VLS. Too much oil and finance in it.

 

I'm guessing your issue with oil is the volatility, but what's your issue with finance?

No, not the volatility as that implies it might go up
The fact it's going to be on a long term downward trend because billions of dollars of assets under the ground will have to be written off . It's a dead industry. Share prices propped up by unsustainable dividends.  Some realise it's doomed . Get out before everyone else does. That's your "edge" as an ordinary investor to move faster than dinosaur industries and analysts too locked in to see the problem.  

Finance is going to have a a lot of bad debts - Many fossil fuel related, oil, coal,  the auto industry has debt up to the eyeballs  and needs more money to switch to EVs. 

Covid will be the icing on the cake. IMHO of course. 

So you would advocate an index fund that excludes oil, gas and finance? Im an indexer so I don't try to second guess the market.
With oil and gas, what about REITd that own petrol stations, midstream processors, related services?
With finance are you advocating excluding just banks or insurers, pension managers, stock exchanges, investment trusts, REITs too?

dakofsta

short_bread said:

AnotherJoe said:

dakofsta said:

AnotherJoe said:

Dont go for the VLS. Too much oil and finance in it.

 

I'm guessing your issue with oil is the volatility, but what's your issue with finance?

No, not the volatility as that implies it might go up
The fact it's going to be on a long term downward trend because billions of dollars of assets under the ground will have to be written off . It's a dead industry. Share prices propped up by unsustainable dividends.  Some realise it's doomed . Get out before everyone else does. That's your "edge" as an ordinary investor to move faster than dinosaur industries and analysts too locked in to see the problem.  

Finance is going to have a a lot of bad debts - Many fossil fuel related, oil, coal,  the auto industry has debt up to the eyeballs  and needs more money to switch to EVs. 

Covid will be the icing on the cake. IMHO of course. 

So you would advocate an index fund that excludes oil, gas and finance? Im an indexer so I don't try to second guess the market.
With oil and gas, what about REITd that own petrol stations, midstream processors, related services?
With finance are you advocating excluding just banks or insurers, pension managers, stock exchanges, investment trusts, REITs too?

Trying to second guess the market is the opposite of what I'm trying to do by looking into passive funds!