Adding new funds

AnotherJoe

Yanling said:

Good morning, thanks so much for all the help!
I am going to pick VLS100,  Global Small-Cap Index Fund and  FTSE Emerging Markets UCITS ETF.
my ISA is with Vanguard, I can not see small cap has active fund. 
Any other opinions? It is very much appreciated !

Yes, wait a few weeks and open another ISA with a provider that offers a range of funds rather than be stuck with a poor small companies one just because it's Vanguard. 

Yanling

for a diversified portfolio, which Vanguard funds would you be interested? Thanks !

Yanling

I chose VLS funds as i do not know how to rebalance, and now  i am thinking of investing my previous cash ISA , to spread the risk, i would like to invest a few more funds. 

barnstar2077

Yanling said:

I chose VLS funds as i do not know how to rebalance, and now  i am thinking of investing my previous cash ISA , to spread the risk, i would like to invest a few more funds. 

You are already spreading the risk by owning a globally diverse multi asset fund.  You will only be increasing risk if you add more funds with no reason for doing so other than a hope that they will perform better in the future. 

Thrugelmir

Yanling said:

in the last 5 yrs performance based on a £10000 lump sum investment are:

VLS is  £17975,  FTSE All-World UCITS ETF is £18823,  FTSE Emerging Markets UCITS ETF  is 19496,  Global Small-Cap Index Fund is £19412.
So the new funds are all better performance than VLS 100. I do not know what to do

Never invest with hindsight. Tells you nothing about future performance. 

Yanling

I am ok to take a bit of risk and hope to have a bit better return, so if you were me,  would just invest VLS 100 , not VLS100 and VLS 80?

AnotherJoe

Yanling said:

I chose VLS funds as i do not know how to rebalance, and now  i am thinking of investing my previous cash ISA , to spread the risk, i would like to invest a few more funds. 

YOu arent spreading the risk by merely buying more funds which are just minor variants of each other. YOu probably arent making it much worse either though. Its just pointless is all. And probably more costly.

Yanling said:

I am ok to take a bit of risk and hope to have a bit better return, so if you were me,  would just invest VLS 100 , not VLS100 and VLS 80?

YOu are misunderstanding risk. IN most peoples eyes vls80 woudl be high risk. Theres really very little difference between 80&100. And for a long term investment, say 15 years plus, all you'll get is worse performance with 80 than 100 . Anyway someone who was worried about risk would have VLS20 or 40, not 80 or 100. You've just pointlessly built yourself VLS90 (assuming you hold equal amounts of 80 and 100)

Although risk is relative, again over 15 years plus especially if you dont have a date by which you must sell, I would say VLS20 or 40 is higher risk than 80 or 100 as its close to a certainty 20/40 would be substantially lower than 80/100.

Thrugelmir

Yanling said:

I am ok to take a bit of risk and hope to have a bit better return, so if you were me,  would just invest VLS 100 , not VLS100 and VLS 80?

What you invest in needs to be considered in terms of your overall financial objectives. There's no one size fits all.  A high level of volatility can be extremely uncomfortable. Not to everyone's liking. 

Yanling

How about:
FTSE Developed World UCITS ETF for 75%, 
FTSE Emerging Markets UCITS ETF for 15%,
 Global Small-Cap Index Fund  for 10%
(FTSE All-World UCITS ETF includes Emerging markets already)

Yanling

I have pension funds with HL where I could add small companies active fund. as it is a bit completed to switch i will probably keep ISA with Vanguard