Does this split makes good investment

snowshine

Vanguard 
40% in S&P 500 ETF VUSA

30% in FTSE 250 ETF VMID
30% in FTSE100 ETF VUKE

All are marked risk category 6

Age 40
Time to invest 26 years

I understand we don't have a crystal ball..

masonic

Is there a particular reason you would exclude Europe, Asia, Japan etc, but include the USA?

Thrugelmir

Only time will tell if such a split makes a good return. Doubt that you'll find many people holding such a portfolio. 

Equities by their very nature will carry a higher risk level. Risk premium is your compensation for holding such assets. 

Steve182

The fastest growing economies for the next couple of decades are forecast to be in Asia, particularly China, India and Vietnam. 

UK makes up only about 2.5% of world PPP GDP but you propose to put 60% of your investments in the UK. 

UK may represent good value right now but I would not consider investing >25% in the UK due to poor diversity.

snowshine

masonic said:

Is there a particular reason you would exclude Europe, Asia, Japan etc, but include the USA?

No.
Asian Tigers I heard of but just not comfortable when I hear political unrest

(Singapore and Taiwan are stable I suppose) 

I am a novice.

masonic

snowshine said:

masonic said:

Is there a particular reason you would exclude Europe, Asia, Japan etc, but include the USA?

No.
Asian Tigers I heard of but just not comfortable when I hear political unrest

(Singapore and Taiwan are stable I suppose) 

I am a novice.

There's political unrest within the UK at the moment.

JohnWinder

I think you’re on the right track with diversified, low cost, funds tracking suitable indices, but the true believers in that approach would question why you don’t just choose a global all cap tracker. That would give you the best diversification without trying to pick winning or losing sectors. 

To suggest there are problems ahead for stocks in Singapore or Taiwan is something enough other investors have considered and so is already factored into the price of those stocks. You’re unlikely to know something that the rest of the world doesn’t know, so probably best to just forget about betting on or against certain sectors. 

Start early to benefit from compounding, invest as much as you can, choose broad cap weighted index funds and stick to the plan. You could put up a dozen reasons to avoid stocks from somewhere, and someone else could have a dozen reasons to rebut them. 

You might benefit from thinking about how much home bias you have, and how much currency hedging you have. Otherwise, keep it simple and broad. 

https://www.bogleheads.org/blog/2020/03/02/50-years-of-investing-in-the-world-part-3
 

IvanOpinion

If you are intent on Vanguard, why not look at one of their Global funds for the bulk of your portfolio, or even one of the LifeStrategy to provide you with mixed assets ... leave it to them to do any rebalancing and splitting.

DrSyn

You state you are a novice. As a first investment I think you should instead consider a simple Global Multi Asset Fund which would provide you with a ready made portfolio. There are a number of such funds.

 An alternative would be a cheap Global ETF, like those with the following ticker, VWRL, HMWO,
 

dunstonh

snowshine said:

Vanguard 
40% in S&P 500 ETF VUSA

30% in FTSE 250 ETF VMID
30% in FTSE100 ETF VUKE

All are marked risk category 6

Age 40
Time to invest 26 years

I understand we don't have a crystal ball..

Obviously, you haven't bought into the passive investing views.  So, why are you using passive funds when you are so keen to be a fund manager yourself?

If that spread was put in place under advice, it would probably be classed as a missale due to its poor diversification.  
Obviously, when you DIY, you are free to choose your own funds but it also means you are able to make your own mistakes.    Currently, you have a poor asset allocation.  You should reconsider.

Thrugelmir

snowshine said:

masonic said:

Is there a particular reason you would exclude Europe, Asia, Japan etc, but include the USA?

(Singapore and Taiwan are stable I suppose) 

The Chinese will regain control of Taiwan within the next decade.