Global ETF

chiang_mai

I'm strongly considering investing a recent surprise windfall (under 10k) into a global ETF such as "Vanguard FTSE All World UCITS (GBP)", can anyone recommend a better global ETF alternative? Thanks in advance for any useful suggestions. 

maxsteam

Haha. in 12 months time, with the benefit of hindsight, I could point to a better performing fund. Without the benefit of hindsight, I reckon you've made a good choice. I prefer UK fund managers and I dislike trackers but I know a lot of people on these boards like both Vanguard and trackers.

chiang_mai

When I say "better' I wasn't referring to performance. Cost, coverage, approach, size, tradeability, daily volumes etc are all factors. And FWIW I'm not a huge fan of ETF's either and much prefer managed funds. But in my current situation, a global ETF fits nicely since it's highly diverse, cheap and it won't require any further effort on my part.

Alexland

Is there any reason it must be an ETF? Maybe related to your platform choice? If not then consider the HSBC FTSE All World index fund at almost half the ongoing charge.
On platforms where fee capping causes me to use ETFs then I tend to hold cheaper developed world ETFs such as VEVE, HMWO and LCWL then hold enough of an emerging market fund in my workplace pension so overall the asset allocation roughly matches All World although I now add some UK bias using an investment trust.
Vanguard's All World ETF is good but the price is higher than I am willing to pay for a tracker although with only £10k it might only be around £10 pa difference.

chiang_mai

No none at all. A fund is actually better in many respects and is cheaper to buy.....I'm on the HL platform. Many thanks for the idea which is indeed better.

Alexland

Might I also suggest you consider transferring from HL to Fidelity to still get broad market choice but save 0.10% in platform fees? Fidelity sometimes run attractive cashback deals. Or you might want to consider a fixed price or execution only platform depending on the overall account valuation and how frequently you trade.
Of course one of the cheapest ways to get this All World exposure would be on the Vanguard platform (where you might also consider their Global All Cap fund) but it sounds like you have other investments with HL and might not want to run multiple accounts or might be affected by the limit of only contributing into one S&S ISA each tax year?

Linton

Another non-investor in global trackers, Vanguard and ETFs.  However the Vanguard FTSE Global All Cap fund looks the best to me as it provides the widest diversification.

chiang_mai

Also a good idea but probably not workable currently in my present situation. I was based offshore for many years and was stuck in a high priced Transact account without an IFA. I came back onshore, moved to HL and transferred my SIPP but now I find myself stuck offshore once again, this time because of the virus. Perhaps when everything settles down I'll be in the UK long enough to optimise my platforms and holdings, for now I'm just happy to not be with Transact.

Voyager2002

Check allocations to the UK: I understand that Vanguard is over-weight and HSBC GIF provides a satisfactory alternative.

Alexland

Voyager2002 said:

Check allocations to the UK: I understand that Vanguard is over-weight and HSBC GIF provides a satisfactory alternative.

Vanguard's LifeStrategy fund series has an active allocation decision to be overweight to the UK but they wouldn't be doing that with their pure index funds? What are the HSBC GIF funds? Do you mean their Global Strategy or more expensive World Selection multi asset fund series?

chiang_mai

Linton said:

Another non-investor in global trackers, Vanguard and ETFs.  However the Vanguard FTSE Global All Cap fund looks the best to me as it provides the widest diversification.

For me it's a matter of risk vs reward, I'm perfectly OK with being thought of as a non-investor, if I could make a larger return with less risk I would, why others wouldn't is confusing to me. That said, my SIPP contains equity funds that were selected based on sector, geographic spread, FM etc. The time/effort maintenance & monitoring overhead is sometimes a bit much for someone who already has plenty of hobbies and is not a naturally talented investor....I know my limits and my place in this world.