vanguard ETF troubles, or not, some heavyweight advice needed

wolves1976

i want 100% stocks for the ISA fund,
i am 42, this ISA i want never to touch it and pass down to the kids/use it in 20 years if i need to when i retire.  
Q1: with only VG as platform, can you please advise on what ETS's i need to have /or reduce down
Q1.1   and rough weighting for each ETF.
with regions being
UK, USA, Dev Europe, Emerging Markets - ex Japan, Japan, all world tracker 
very happy to consider other ETFS/remove ETFS from above.   

EDITED- cleaned up wording

Audaxer

wolves1976 said:  

at first i wanted to put the money into LS100 & LS 80, now after further reading, learning and unleaning, i want to reduce the heavy home bias on the UK.  

I think your first idea of putting it all in a well structured global multi asset fund is a much better option than trying to build a portfolio from various ETFs. If you want less UK bias than VLS100 or VLS80, then HSBC Global Strategy Dynamic would be an option worth looking into, but of course you would have to transfer to a different platform. I think IWeb or Halifax Share Dealing would be much cheaper than Vanguard for a large ISA amount like £102,000, especially if you plan to just leave it untouched for 20 years.

wolves1976

Audaxer said:

wolves1976 said:  

at first i wanted to put the money into LS100 & LS 80, now after further reading, learning and unleaning, i want to reduce the heavy home bias on the UK.  

I think your first idea of putting it all in a well structured global multi asset fund is a much better option than trying to build a portfolio from various ETFs. If you want less UK bias than VLS100 or VLS80, then HSBC Global Strategy Dynamic would be an option worth looking into, but of course you would have to transfer to a different platform. I think IWeb or Halifax Share Dealing would be much cheaper than Vanguard for a large ISA amount like £102,000, especially if you plan to just leave it untouched for 20 years.

thank you for response. 
1:first idea might have been the best but i didnt know about this home bias.
2:my SIPP is with VG also (as cash) about £145000 and i want to get idea what i am doing frist then worry about costs.   i dont mind the higher costs and for the last 20 dark years i have been paying over 1% on my pensions as i wasnt educated about costs then/only really started to look at costs now.
3: i will be moving my childs JISA into VG and want to keep method clean for now.

redpete

You could consider say 50% in LS100 and 50% in Dev World ex-UK Index ETF to dilute the UK bias of the LS fund.
Or maybe 50/40/10 in LS100 / Dev World ex-UK Index / Emerg Mkt Index but that's getting towards managing your own portfolio rather than let someone else do it, something I'd be happy to do but I enjoy playing with numbers and I'm in the fortunate position of being able to take certain risks with the money. 

george4064

Sticking with Vanguard’s platform, have you considered either of these funds with lower UK exposure than Lifestrategy;

- FTSE All-World UCITS ETF (4.0% UK) OCF 0.22%
- FTSE Developed World UCITS ETF (4.4% UK) OCF 0.12%
- FTSE Global All Cap Index Fund (3.9% UK) OCF 0.23%

Audaxer

wolves1976 said:

Audaxer said:

wolves1976 said:  

at first i wanted to put the money into LS100 & LS 80, now after further reading, learning and unleaning, i want to reduce the heavy home bias on the UK.  

I think your first idea of putting it all in a well structured global multi asset fund is a much better option than trying to build a portfolio from various ETFs. If you want less UK bias than VLS100 or VLS80, then HSBC Global Strategy Dynamic would be an option worth looking into, but of course you would have to transfer to a different platform. I think IWeb or Halifax Share Dealing would be much cheaper than Vanguard for a large ISA amount like £102,000, especially if you plan to just leave it untouched for 20 years.

thank you for response. 
1:first idea might have been the best but i didnt know about this home bias.
2:my SIPP is with VG also (as cash) about £145000 and i want to get idea what i am doing frist then worry about costs.   i dont mind the higher costs and for the last 20 dark years i have been paying over 1% on my pensions as i wasnt educated about costs then/only really started to look at costs now.
3: i will be moving my childs JISA into VG and want to keep method clean for now.

If you want to stick with the Vanguard platform that's fine, but I don't think you are likely to get the best portfolio by putting small percentages of your pot in lots of different ETFs. You would also have the extra decision making about annual rebalancing. It would be best to put it all in one or two multi assets funds, or to avoid UK bias, maybe a couple of the global ETFs suggested by george4064 above.

Albermarle

Seems to be some inconsistency in your overall approach . You want to go 100% equity in ISA and then maybe later in the SIPP  but have been holding £250K in cash as your were 'scared about Covid' 
What will happen when you have 250K in equities and the next financial shock happens? All back into cash again?

Maybe better to take a more medium risk route and just leave it alone.

wolves1976

redpete said:

You could consider say 50% in LS100 and 50% in Dev World ex-UK Index ETF to dilute the UK bias of the LS fund.
Or maybe 50/40/10 in LS100 / Dev World ex-UK Index / Emerg Mkt Index but that's getting towards managing your own portfolio rather than let someone else do it, something I'd be happy to do but I enjoy playing with numbers and I'm in the fortunate position of being able to take certain risks with the money. 

hi redpete , thanks for response, i can see the logic here, need to check the LS100 makeup then see if the split works.   as for managing my portfolio , i think i want to for the short term to learn the 'art' and to see if i can be passive with myself within it.

wolves1976

Audaxer said:

wolves1976 said:

Audaxer said:

wolves1976 said:  

at first i wanted to put the money into LS100 & LS 80, now after further reading, learning and unleaning, i want to reduce the heavy home bias on the UK.  

I think your first idea of putting it all in a well structured global multi asset fund is a much better option than trying to build a portfolio from various ETFs. If you want less UK bias than VLS100 or VLS80, then HSBC Global Strategy Dynamic would be an option worth looking into, but of course you would have to transfer to a different platform. I think IWeb or Halifax Share Dealing would be much cheaper than Vanguard for a large ISA amount like £102,000, especially if you plan to just leave it untouched for 20 years.

thank you for response. 
1:first idea might have been the best but i didnt know about this home bias.
2:my SIPP is with VG also (as cash) about £145000 and i want to get idea what i am doing frist then worry about costs.   i dont mind the higher costs and for the last 20 dark years i have been paying over 1% on my pensions as i wasnt educated about costs then/only really started to look at costs now.
3: i will be moving my childs JISA into VG and want to keep method clean for now.

If you want to stick with the Vanguard platform that's fine, but I don't think you are likely to get the best portfolio by putting small percentages of your pot in lots of different ETFs. You would also have the extra decision making about annual rebalancing. It would be best to put it all in one or two multi assets funds, or to avoid UK bias, maybe a couple of the global ETFs suggested by george4064 above.

audaxer - thank for post.  
i am trying to break to loop of low corrertion, spread the risk out,  i could do with some help in what percentages in each ETF to be honest and if i need 2 or more.  annual reblance i want to carry out until i really get into set it and forget it.
any more thoughts on % into each etf/number of ETFs.
i am not too stressed on the "can be more efficient"  or i "need to save every penny" in my portfolio, due to i was uneducated for many years on where to keep my money and while i am learning it will get more efficient in time as i want the time in the market now.

wolves1976

just to recap, think i recofused the board.  this is where i have about 20k from the 120k put so far.  the % are not where they are once all the money has been allocated.
i could do with some advice on the % for each ETF

FTSE Emerging Markets UCITS ETF (VFEM)   1.99%    
FTSE 100 UCITS ETF (VUKE)  2.99%  

FTSE 250 UCITS ETF (VMID) 2.00% 

FTSE All-World UCITS ETF (VWRL) 4.91% 

FTSE Developed Europe ex UK UCITS ETF (VERX) 1.94%  

S&P 500 UCITS ETF (VUSA) 2.98%

wolves1976

george4064 said:

Sticking with Vanguard’s platform, have you considered either of these funds with lower UK exposure than Lifestrategy;

- FTSE All-World UCITS ETF (4.0% UK) OCF 0.22%
- FTSE Developed World UCITS ETF (4.4% UK) OCF 0.12%
- FTSE Global All Cap Index Fund (3.9% UK) OCF 0.23%

these 3 i do have in my portfolio today. need to figure out weightings with some help from your goodself and other.  i know my limitations with knowledge in this field and since its only been a few months, i am eroding time and am not looking (nor do believe) i know the best strategy - so covering a very modest boring long term one reads right for me.