S & P 500 - what platform?

compound

Thrugelmir said:

compound said:

From what I've seen the global funds have not performed as well as the US ones over the last 5 years or so. 

For the simple reason that the majority of the companies that have performed exceptionally well more recently are at the top of the S&P 500. By adding another 3,000 plus stocks to the fund tracked , the performance has been diluted. That's simply mathematics and the weighted assignment to the US within the indexes. 

I think i understand what you mean are you saying that based on this a global index fund is a better option? I am new to this so learning as much as i can from everyone's valuable contribution

dunstonh

compound said:

Alistair31 said:

https://www.vanguardinvestor.co.uk/investments/vanguard-s-and-p-500-ucits-etf-usd-distributing/overview

Thank you. Would i also be able to invest in other funds such as fundsmith equity fund, Baillie Gifford American,  legg mason japan fund, etc? Or those are not available under vanguard and therefore have to look elsewhere?


 

Some of those are the higher/highest risk funds in their sector.    Are you ready for that level of volatility?

Thrugelmir

compound said:

Thrugelmir said:

compound said:

From what I've seen the global funds have not performed as well as the US ones over the last 5 years or so. 

For the simple reason that the majority of the companies that have performed exceptionally well more recently are at the top of the S&P 500. By adding another 3,000 plus stocks to the fund tracked , the performance has been diluted. That's simply mathematics and the weighted assignment to the US within the indexes. 

I think i understand what you mean are you saying that based on this a global index fund is a better option? I am new to this so learning as much as i can from everyone's valuable contribution

In no way promoting them per se, but that's where products such as the VLS range fulfill a usefull purpose. You'll start out by building a broadly diversified portfolio. Never going to be a top performer. Just a solid long term performer.  That will be rebalanced for you.  

There'll always be a market segment than outperforms what you are holding in the short term. Don't let it concern you. Markets are cyclical. Patience is a virtue. 

Always make your first objective not to lose capital. 

compound

Thrugelmir said:

compound said:

Thrugelmir said:

compound said:

From what I've seen the global funds have not performed as well as the US ones over the last 5 years or so. 

For the simple reason that the majority of the companies that have performed exceptionally well more recently are at the top of the S&P 500. By adding another 3,000 plus stocks to the fund tracked , the performance has been diluted. That's simply mathematics and the weighted assignment to the US within the indexes. 

I think i understand what you mean are you saying that based on this a global index fund is a better option? I am new to this so learning as much as i can from everyone's valuable contribution

In no way promoting them per se, but that's where products such as the VLS range fulfill a usefull purpose. You'll start out by building a broadly diversified portfolio. Never going to be a top performer. Just a solid long term performer.  That will be rebalanced for you.  

There'll always be a market segment than outperforms what you are holding in the short term. Don't let it concern you. Markets are cyclical. Patience is a virtue. 

Always make your first objective not to lose capital. 

Thank you for this. It does give me pause to think and it does make sense to me in what you have said especially in regards to a long term sense.

dunstonh said:

compound said:

Alistair31 said:

https://www.vanguardinvestor.co.uk/investments/vanguard-s-and-p-500-ucits-etf-usd-distributing/overview

Thank you. Would i also be able to invest in other funds such as fundsmith equity fund, Baillie Gifford American,  legg mason japan fund, etc? Or those are not available under vanguard and therefore have to look elsewhere?


 

Some of those are the higher/highest risk funds in their sector.    Are you ready for that level of volatility?

My thoughts right now is to look at VLS/ global fund as something for long term. Something to add to regularly. This would be my main investment.

With the other funds if i did choose to take the risk associated I would put in a small amount and not touch it and accept it could lose the amount. 

Alexland

compound said:

With the other funds if i did choose to take the risk associated I would put in a small amount and not touch it and accept it could lose the amount.

For something that could make you rich (but won't on average) then maybe just buy a national lottery ticket alongside your regular contributions into something sensible?

VLS is fine for hands-off but if you enjoy admin and want to run a multi-fund portfolio, and fund trades are free on Vanguard, then maybe hold 2 funds (global equities and bonds) or a 3 funds (developed world equities, emerging market equities and bonds) in suitable proportions and you get to see more volatility in action and can switch a few units around or use new contributions to rebalance periodically.