VWRL vs VLS80

Cam93

Hi all,
I'm thinking of changing from the VLS80 to VWRL as a global tracker as I don't like how UK weighed the VLS is.

I only have 7k in the VLS80, how can I swap this to VWRL? Do I need to wait until April to open a new isa then transfer it over? Or is it a case of selling my vls80 holdings and jist buying the VWRL now? I'm not sure I fully understand the 1 isa per year rule.

Does this swap seem like a smart idea? Any pros or cons ? 

I know it'll be asked, so I'm 26, est 50-55k pa, 10% into pension (yes it needs improving but not priority atm as money needed short term) looking to add 300-500pcm to the isa and leave for approx 23 years when I'll be 50.

Alexland

The rule is you can only add new money to one of each type of ISA account in each tax year. You are fine to grow, buy, sell and switch your investments within the ISA account without it being considered as a contribution of new money against your annual allowance.

https://www.gov.uk/individual-savings-accounts

It's a shame to have waited until the UK is at one of the most tense and depressing points in the Brexit negotiations and virus outbreak to give up on the UK bias within your VLS investment. You are at risk of buying high / selling low if you increase your overall equities exposure and bail out of the UK bias now. While there is no certainty it will get better for the UK it's hard to see how it could get much worse either so you may be missing an opportunity.

If going for a global tracker (accepting the high exposure to US growth stocks and greater currency risk) is there any particular reason you chose the VWRL etf over the Global All Gap tracker fund? Have you considered adding 20% into a bond index tracker to keep the same asset type ratio?

Dird

you just sell LS80 and buy VWRL. VWRL would be my choice between the two easily but then I'm 0% bonds everywhere

Alexland said:

it's hard to see how it could get much worse either so you may be missing an opportunity.

Not really. All kinds of things can happen. The only thing saying upside is because things have gone down so may go up in future. But then it hasn't with Turkey or Venezuela and instead just got worse. UK can easily have a less extreme yet similar path

Alexland

Dird said:

The only thing saying upside is because things have gone down so may go up in future.

Uncertainty is causing a disjoint in the valuation of the UK listed companies which are trading at materially lower valuations than companies with similar fundamentals in other markets. The whole point of being diversified is to hold variety to balance out risks.

Dird

Russia only has a P/E of 8 too

Cam93

Alexland said:

The rule is you can only add new money to one of each type of ISA account in each tax year. You are fine to grow, buy, sell and switch your investments within the ISA account without it being considered as a contribution of new money against your annual allowance.

https://www.gov.uk/individual-savings-accounts

It's a shame to have waited until the UK is at one of the most tense and depressing points in the Brexit negotiations and virus outbreak to give up on the UK bias within your VLS investment. You are at risk of buying high / selling low if you increase your overall equities exposure and bail out of the UK bias now. While there is no certainty it will get better for the UK it's hard to see how it could get much worse either so you may be missing an opportunity.

If going for a global tracker (accepting the high exposure to US growth stocks and greater currency risk) is there any particular reason you chose the VWRL etf over the Global All Gap tracker fund? Have you considered adding 20% into a bond index tracker to keep the same asset type ratio?

For what it's worth I started in Feb, lost 50% on March, doubled down abd I'm now currently +23% so I'm more than happy. 
I'm still very novice but a global such as VWRL seems to be advised alot and would suit my style of invest and forget, looking at previous performance the VWRL has preformed better however I know this means nothing...

Alexland

Dird said:

Russia only has a P/E of 8 too

Yup there are reasons for that too. Which would you rather invest in?

Another_Saver

I'm agreeing with @Alexland on the VLS vs VWRL debate (no surprise there). I would suggest the op consider switching from 80 to 100 instead of vwrl because bonds simply aren't worth holding atm.

Russia is uninvestable, completely corrupt, a dying economy. Anyone considering Russia should be warned it's common for the courts to refuse to recognise foreign ownership of Russian assets.

Just looking at the PE without understanding why is the same as just looking at the price, i.e. not investing.

Dird

Alexland said:

Dird said:

Russia only has a P/E of 8 too

Yup there are reasons for that too. Which would you rather invest in?

Neither. Both have crap prospects despite Farage & Boris both obsessing about the value of our fish

Scrudgy

Cam93 said:

Hi all,
I'm thinking of changing from the VLS80 to VWRL as a global tracker as I don't like how UK weighed the VLS is.

I only have 7k in the VLS80, how can I swap this to VWRL? Do I need to wait until April to open a new isa then transfer it over? Or is it a case of selling my vls80 holdings and jist buying the VWRL now? I'm not sure I fully understand the 1 isa per year rule.

Does this swap seem like a smart idea? Any pros or cons ? 

I know it'll be asked, so I'm 26, est 50-55k pa, 10% into pension (yes it needs improving but not priority atm as money needed short term) looking to add 300-500pcm to the isa and leave for approx 23 years when I'll be 50.

You might want to choose VWRP which is the same as VWRL but reinvests the income into the fund rather than paying it out as a dividend, probably suites your invest and forget requirements a little better.

Another_Saver

Scrudgy said:

Cam93 said:

Hi all,
I'm thinking of changing from the VLS80 to VWRL as a global tracker as I don't like how UK weighed the VLS is.

I only have 7k in the VLS80, how can I swap this to VWRL? Do I need to wait until April to open a new isa then transfer it over? Or is it a case of selling my vls80 holdings and jist buying the VWRL now? I'm not sure I fully understand the 1 isa per year rule.

Does this swap seem like a smart idea? Any pros or cons ? 

I know it'll be asked, so I'm 26, est 50-55k pa, 10% into pension (yes it needs improving but not priority atm as money needed short term) looking to add 300-500pcm to the isa and leave for approx 23 years when I'll be 50.

You might want to choose VWRP which is the same as VWRL but reinvests the income into the fund rather than paying it out as a dividend, probably suites your invest and forget requirements a little better.

If the OP is on the vanguard platform VWRP isn't available, vanguard FTSE global all cap index fund is closest thing to VWRL that accumulates.