ETF choice for shortish term

Tugboat

Good afternoon to you all, I am in the process of transferring my cash Lisa into a EQI stocks and shares lisa. I am looking to invest short term into a few ETFs for circa 3 years, I am well aware of the risk over this short period but I am not risk adverse and can sit if necessary. 

I am just wanting my money to work a bit harder than the awful interest rates at the moment. Possibly looking to achieve a 5-10% possible gain a year. 

I am thinking of spreading the 25K I have across a few different ETFs that may do well over the next few years.

With this in mind if you were presented with this scenario how would you split it and can you advise ETFs you would consider for me to research.

My thinking is something like 50% in a global index as a slight safety net to compared to a volatile sector.

Then introduce some higher risk such as 25% in sustainable or green energy, 25% in metals or miners or possibly tech.

Any ideas or advice would be great, just theoretical to help me research my options. I am not against just lumping it all in one ETF if people think that is the better option. 

Linton

For a period of 3 years you are just gambling.  If you want to gamble "safely" put 90% in Premium Bonds and 10% in something highly risky but not completely mad like SMT.  That way you could get a much better return than cash with your losses restricted to approx 7%.

You can control your risk/return by adjusting the 90% figure - at the extreme perhaps put the whole pot on a 100-1 outsider..

Username999

Tugboat said:

Good afternoon to you all, I am in the process of transferring my cash Lisa into a EQI stocks and shares lisa. I am looking to invest short term into a few ETFs for circa 3 years, I am well aware of the risk over this short period but I am not risk adverse and can sit if necessary. 

I am just wanting my money to work a bit harder than the awful interest rates at the moment. Possibly looking to achieve a 5-10% possible gain a year. 

I am thinking of spreading the 25K I have across a few different ETFs that may do well over the next few years.

With this in mind if you were presented with this scenario how would you split it and can you advise ETFs you would consider for me to research.

My thinking is something like 50% in a global index as a slight safety net to compared to a volatile sector.

Then introduce some higher risk such as 25% in sustainable or green energy, 25% in metals or miners or possibly tech.

Any ideas or advice would be great, just theoretical to help me research my options. I am not against just lumping it all in one ETF if people think that is the better option. 

You could lose 90% in the next 3 years.
No matter what you put it into.

csgohan4

investing is not really short term, unless your happy with the significant risks. There has been 2 recessions in the last 12 years, crystal ball when the next one will be. 

If you like gambling, go all in at a casino. However going all in today's winners poses significant capital risk

Tugboat

Linton said:

For a period of 3 years you are just gambling.  If you want to gamble "safely" put 90% in Premium Bonds and 10% in something highly risky but not completely mad like SMT.  That way you could get a much better return than cash with your losses restricted to approx 7%.

You can control your risk/return by adjusting the 90% figure - at the extreme perhaps put the whole pot on a 100-1 outsider..

Many thanks, unfortunately I am locked into a LISA so premium bonds are not really a viable option. Maybe a gold ETF or something that contains a higher ratio of bonds?

SMT looks very interesting, I am a little concerned about the exposure to Tesla which seems bubble like in its valuation.

Linton

Tugboat said:

Linton said:

For a period of 3 years you are just gambling.  If you want to gamble "safely" put 90% in Premium Bonds and 10% in something highly risky but not completely mad like SMT.  That way you could get a much better return than cash with your losses restricted to approx 7%.

You can control your risk/return by adjusting the 90% figure - at the extreme perhaps put the whole pot on a 100-1 outsider..

Many thanks, unfortunately I am locked into a LISA so premium bonds are not really a viable option. Maybe a gold ETF or something that contains a higher ratio of bonds?

SMT looks very interesting, I am a little concerned about the exposure to Tesla which seems bubble like in its valuation.

Gold can be pretty volatile so not really an alternative to PBs.  I quite like the Wealth Preservation funds like Troy Trojan O or Trojan X (same fund, different charges) but they dropped 10% in the Covid fall and recovered in 2 months, so not like cash but less volatile than Gold can be.  Short duration bonds would be less volatile but are likely to provide a lower return, possibly a small loss.

grumiofoundation

Tugboat said:

Good afternoon to you all, I am in the process of transferring my cash Lisa into a EQI stocks and shares lisa. I am looking to invest short term into a few ETFs for circa 3 years, I am well aware of the risk over this short period but I am not risk adverse and can sit if necessary. 

I am just wanting my money to work a bit harder than the awful interest rates at the moment. Possibly looking to achieve a 5-10% possible gain a year. 

I am thinking of spreading the 25K I have across a few different ETFs that may do well over the next few years.

With this in mind if you were presented with this scenario how would you split it and can you advise ETFs you would consider for me to research.

My thinking is something like 50% in a global index as a slight safety net to compared to a volatile sector.

Then introduce some higher risk such as 25% in sustainable or green energy, 25% in metals or miners or possibly tech.

Any ideas or advice would be great, just theoretical to help me research my options. I am not against just lumping it all in one ETF if people think that is the better option. 

Why limit yourself to ETFs?
Eqi charge £11 to buy/sell ETFs, obviously this depends on how you plan to invest but this could eat into your returns if you are looking at say £1000. They don't charge for fund dealing. 

My thinking is something like 50% in a global index as a slight safety net to compared to a volatile sector. 

In event of a market crash a 100% equities global tracker could easily drop by 30%+

Thrugelmir

Tugboat said:

I am just wanting my money to work a bit harder than the awful interest rates at the moment. Possibly looking to achieve a 5-10% possible gain a year. 

Who wouldn't.  However be prepared to potentially accept a 15% loss after the 3 years has past. 

Tugboat

I am well aware of the risk, I am prepared to sit on it if I have to, I am just looking to see what others would do in this scenario with a view to getting a return in 3 years if not then I will wait or accept the loss. 

Tugboat

grumiofoundation said:

Tugboat said:

Good afternoon to you all, I am in the process of transferring my cash Lisa into a EQI stocks and shares lisa. I am looking to invest short term into a few ETFs for circa 3 years, I am well aware of the risk over this short period but I am not risk adverse and can sit if necessary. 

I am just wanting my money to work a bit harder than the awful interest rates at the moment. Possibly looking to achieve a 5-10% possible gain a year. 

I am thinking of spreading the 25K I have across a few different ETFs that may do well over the next few years.

With this in mind if you were presented with this scenario how would you split it and can you advise ETFs you would consider for me to research.

My thinking is something like 50% in a global index as a slight safety net to compared to a volatile sector.

Then introduce some higher risk such as 25% in sustainable or green energy, 25% in metals or miners or possibly tech.

Any ideas or advice would be great, just theoretical to help me research my options. I am not against just lumping it all in one ETF if people think that is the better option. 

Why limit yourself to ETFs?
Eqi charge £11 to buy/sell ETFs, obviously this depends on how you plan to invest but this could eat into your returns if you are looking at say £1000. They don't charge for fund dealing. 

My thinking is something like 50% in a global index as a slight safety net to compared to a volatile sector. 

In event of a market crash a 100% equities global tracker could easily drop by 30%+

Good point about limiting to etfs I wasn't aware of the charge difference between them and funds in EQI. I will also consider suitable funds to research. 

mark13

take a look at INRG , its a clean energy ETF