All world V All cap

ChilliBob

I found this page really useful in explaining the differences:
https://www.bankeronwheels.com/best-international-etfs/

Ignore the fact the URL  has ETF in it, there is a big section on indexes

Alexland

Dh6 said:

I’m happy for the foreseeable future being in just global trackers. I’m relatively new to investing and my total across my LISA, ISA and pension is less than 50k.

I’m aiming for a passive approach so the less faff about the better for me.

Yes probably the best place to start and continue for most people. I have also had my eye on Brunner IT which is currently trading at a high level of discount which developed as a result of the previous manager leaving unexpectedly and the new manager has been quietly building up the NAV which alongside the reduction in borrowing costs doesn't seem to have been reflected in the share price. I sometimes ask myself where else can you buy into Microsoft, Visa, etc at a 15% discount and get a 2.2% smoothed dividend yield? Tempting.

Albermarle

Ibrahim5 said:

The thing with small caps is that they are small. So they don't make much difference.

Although most of these 'small caps' included in these indexes are actually quite large companies .

strawb_shortcake

Presumably some sma caps will be medium and large caps in 10-20+ years so a small impact today can be bigger impact tomorrow?

A_T

Alexland said:

Dh6 said:

I’m happy for the foreseeable future being in just global trackers. I’m relatively new to investing and my total across my LISA, ISA and pension is less than 50k.

I’m aiming for a passive approach so the less faff about the better for me.

Yes probably the best place to start and continue for most people. I have also had my eye on Brunner IT which is currently trading at a high level of discount which developed as a result of the previous manager leaving unexpectedly and the new manager has been quietly building up the NAV which alongside the reduction in borrowing costs doesn't seem to have been reflected in the share price. I sometimes ask myself where else can you buy into Microsoft, Visa, etc at a 15% discount and get a 2.2% smoothed dividend yield? Tempting.

you won't be buying MSFT and V you'll be buying Brunner

Alexland

A_T said:

you won't be buying MSFT and V you'll be buying Brunner

Yes of course a potentially underrated opportunity.

A_T

possibly but Brunner's been on a discount for years - there's never been enough buyers convinced it's value enough to narrow the discount

Alexland

A_T said:

possibly but Brunner's been on a discount for years - there's never been enough buyers convinced it's value enough to narrow the discount

True but looking at the 10 year trend there have been opportunities to buy at a 15-20% discount and exit at a 5-10% discount and the total return for holding has just about kept pace with a global tracker (more likely now they have improved the management and reduced their borrowing costs). I have done well in the past buying trusts at discounts and selling at premiums although this one might never get into premium the discount is deep enough that it still presents opportunity. Hmm..

MDMD

A_T said:

possibly but Brunner's been on a discount for years - there's never been enough buyers convinced it's value enough to narrow the discount

From the AGM Q&A doc it looks like the board don’t expect that position to change 

https://www.brunner.co.uk/srp/lit/Xroggo/AGM-Questions-Answers_The-Brunner-Investment-Trust-PLC_30-03-2021.pdf

Stargunner

Alexland said:

A_T said:

possibly but Brunner's been on a discount for years - there's never been enough buyers convinced it's value enough to narrow the discount

True but looking at the 10 year trend there have been opportunities to buy at a 15-20% discount and exit at a 5-10% discount and the total return for holding has just about kept pace with a global tracker (more likely now they have improved the management and reduced their borrowing costs). I have done well in the past buying trusts at discounts and selling at premiums although this one might never get into premium the discount is deep enough that it still presents opportunity. Hmm..

Can someone please explain as to how the discount/premium makes a difference to the overall performance, because you buy and sell at the bid/ask price. If you buy when it is £1 per share and sell at £1.20 per share you have made 20% irrespective of whether you bought  and sold it when it was at a discount or a premium. Surely it is the performance of the IT that is more important than the discount/premium