2 pots to invest into ETF's

wolves1976

my journey to passive investing is getting underway, since i really only researched Vanguard ETF's i only know them.
my plan is
POT1:
SIPP = Fidelity   -  80% equities ETF and 20% Bonds.  -  Global Equities with EM +  Bonds (not sure which, simple and boring ones)
POT2:
S&S ISA = IWeb - 80% equities ETF and 20% Bonds.   world tracking + Emerging Market (if the world tracking one doesn't capture)     ++ bonds as above.

wolves1976

would HMWO be a more reaching (global)  ETF that VEVE  - if so why as its more expensive and has less stocks 
HSBC MSCI World (HMWO)
charges 0.15 and has 1396 stocks

FTSE Developed World UCITS ETF (VEVE)

charges 0.12 and has 2176 stocks

bowlhead99

Much of investing is about opinions and preferences between various choices and if you have only researched Vanguard ETFs, why not research other providers' ETFs, and things that are not ETFs, such as open-ended funds (which could be held at IWeb for the same platform fees as ETFs)

 For example, you're right that HSBC's MSCI World ETF costs a tiny fraction of a percent more than Vanguard's FTSE World ETF, but HSBC's open ended fund tracking the FTSE All-World index is cheaper than Vanguard's All-World ETF while covering more emerging markets than VEVE or VHVE.
(https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000TXY8) 

Vanguard's FTSE Global All Cap fund is not an ETF, and is a bit more expensive, but covers even more companies than a FTSE All-World fund (around 7000 holdings) as it holds a small proportion in smaller companies too. No saying that the additional cost is going to outweigh the extra returns potential.

If you don't know what sort of bonds you want for your pension, I don't know what bond ETFs you would want to hold in it. You would need to have some sort of an idea, in order to decide which combination of ETFs would 'fulfil the brief'.

I'm not sure why you want to hold bonds in the pension but equities only in the ISA, making the ISA more volatile, even though the ISA is something that can be accessed instantly while the pension can only be accessed from an older age and may need planning to extract funds from it within annual income tax thresholds. Usually, portfolios which are harder to access instantly are the ones that you would put the more volatile assets into.

Perhaps there is a back-story in a previous thread that you haven't mentioned here.

Then:

POT3:
can some heavyweight posters suggest ETF's they are happy with that can cover off my needs

If you have already decided to set up a 'pot 1' pension and a 'pot 2' ISA with different rough high level asset allocations defined, what are we supposed to use as the basis to 'advise' or 'guide' you for 'pot 3'? You asked, "can some heavyweight posters suggest ETF's they are happy with that can cover off my needs" - but you don't seem to have articulated any ideas or needs whatsoever, for that pot? 

Also,

wolves1976 said:

i have read my two pervious posts but cant nail it and as i have big lump sums to get right i could do with some hand holding  - i understand that posts are not from financial advisers, i will be using advice as a guide.

From what I remember of your previous thread, you have over three hundred grand to invest, and are not sure exactly what you want, but have already started transferring money to different platforms to be ready to go full steam ahead with your plan before it's been finalised. 

You're querying the difference between an ETF at 0.12% and one at 0.15% but don't know what bonds you'll use for 20% of the pension or whether to run an emerging markets fund alongside the global tracker and rebalance from time to time, or have an allocation that just floats within a global tracker. Asset allocation will make bigger differences than a fee differential of a few hundredths of a percent of fees here or there.

With the amount of money you have, if you feel you need hand holding and are willing to be taught or 'guided' by anonymous random strangers for free, would it be so bad to simply spend a couple of percent for advice?

DireEmblem

Here is a split for Pot 3 as a starting point 

• 75% VWRP - Vanguard FTSE All-World UCITS ETF Accumulation
• 15% XDWT - Xtrackers MSCI World Information Technology Accumulation
• 5% ESPO - VanEck Vectors Video Games
• 5% ECAR -iShares Electric Vehicles and Driving Technology

wolves1976

@bowlhead99 - some very good observations. i am rushing around tying to sort all parts out at the same time.  
from my first post to this one, i am realizing i am too worried about losing time not in the market without knowing fully why i want to be in and also how to be invested.

your points are well made, i have been reading posts on here since Jan 2020, and while people on this forum are are strangers, i do see the actual want to help people out ,i do it regularly in my field of work so someone doesn't have to experience the stress/get overwhelmed by it all.   this was the main reason for this post.   "be careful of the advise you buy.but be patient with those who supply it"  is why i wanted to post here and not go to paid advice.  
for example - then penny has dropped just on one a single line comment you made about the bonds.
 thank you about the point about the bonds in ISA- makes more sense to have it in ISA than SIPP, or to sleep easy in both
i am a collector of knowledge, then i filter it, then i commit.  so i hope that i can still turn to this forum for advice even if it one sided for now.

bowlhead99

wolves1976 said:

i am a collector of knowledge, then i filter it, then i commit.  so i hope that i can still turn to this forum for advice even if it one sided for now.

Yes I wasn't saying you shouldn't try to build your knowledge by asking questions and turn here for a bit of a steer, so of course you can still come here and ask things, and people who hang out on forums mostly have good intentions. People often like to solve other people's problems or help to fix perceived inadequacies with a solution.

But ultimately the service of giving financial advice is something that's subject to regulation because you can get a bad result if you have low knowledge and experience and are just doing something you read about what some other forum user informally thinks they might like to do if they were you and had a few hundred grand to tuck away. The potential cost of getting it wrong, or taking more risk than you later realise you wanted, or just getting a sub-optimal result, will be well into the thousands or tens of thousands on a £300k set of holdings. 

So, it seemed sensible to point out that you could simply pay someone a few thousand for advice instead and then be whelmed instead of overwhelmed . That doesn't mean don't try and learn for yourself (because it's good to understand the advice you're receiving) but when you are struggling to decide how to go about meeting an objective it can be good to outsource the problem-solving to someone else for a fee.

wolves1976

DireEmblem said:

Here is a split for Pot 3 as a starting point 

• 75% VWRP - Vanguard FTSE All-World UCITS ETF Accumulation
• 15% XDWT - Xtrackers MSCI World Information Technology Accumulation
• 5% ESPO - VanEck Vectors Video Games
• 5% ECAR -iShares Electric Vehicles and Driving Technology

that a interesting mix, i will do the research on the XDWT,ESPO & ECAR.  i am also hearing that saying "stay away from the latest crazy/fund, just be boring" thanks for posting.

Another_Saver

Vanguard FTSE global all cap, and vanguard global bond index fund are all you need.

DireEmblem

Another_Saver said:

Vanguard FTSE global all cap, and vanguard global bond index fund are all you need.

Agree with this.  Potentially you may want to find an equivalent ETF of the Vanguard.  If you have already maximised your ISA, then you could use a free platform to buy the ETFs, and then switch from one holding to the other to take advantage of your tax free allowance.

Another_Saver

There may be cheaper funds from.iShares or Fidelity, 

Alexland

wolves1976 said:

POT2:
S&S ISA = IWeb - 100% Stocks ETF  - world tracking + Emerging Market (if the world tracking one doesn't capture)

I still don't understand what you don't like about the HSBC All World Acc fund at 0.13% for your iWeb ISA? Bowlhead mentioned it above, I mentioned it twice last time and it gives the equities exposure you want in a single fund. So much cheaper than the Vanguard All World and All Cap options and includes EM unlike the similar priced World options.
iWeb charge the same regardless if you hold an ETF or fund and IMHO funds are generally better as they come with the FSCS protection up to £85k. Sure it takes longer to trade a fund but that shouldn't matter much if your intention is to buy and hold for 20 years.
If you go with HSBC for the iWeb fund then maybe a different asset manager for the Fidelity capped SIPP ETF?
P.s. we hold the bonds in our pensions as we would prefer more long term growth in the ISAs where it will not be subject to pension income tax or LTA issues.
Alex