Another Vanguard S&S ISA thread..

Nurse2047

Sorry another Q re Vanguard, but its bugging me and i have read so much information im confusing myself now.
Im currently invested in Vanguard Lifestrategy 60 fund, i have noticed some others who also hold Lifestrategy also have VHYL, VUSA and VWRL in their portfolio.
I would be interested in your thoughts if this is a good idea or not?
Im currently 42 (Nurse working part time) and hoping to invest for 15 years, only started last year (£200 deposit each month).

Thrugelmir

The Vanguard VLS range is in effect a ready made balanced diversified portfolio. There's absolutely no need to immediately add other Vanguard ETF's and unbalance the portfolio entirely.  If you've assessed your risk tolerance and are prepared to live with higher volatility. Then VLS80 or 100 would provide more equity exposure. While maintaining the portfolio's balance. 

Alexland

Did you see this thread where we covered having a dedicated US fund and going passive high yield?
https://forums.moneysavingexpert.com/discussion/6258355/advice-on-first-s-s-isa-opened-with-vanguard
In terms of VWRL thats an OK global tracker ETF although I would prefer their Vanguard Global All Cap fund.  The question is why would you hold this alongside VLS - what equities percentage are you aiming for?

Nurse2047

Thankyou-can you explain how the VWRL and Vanguard global all cap differ? I think i need to stop messing about and leave it as a VLS fund. 

[Deleted User]

Mfw2026, Any of the VLS funds are ideal as stand alone investments for anyone who doesn't wish to actively manage. Find the one that best fits your goal and risk and hang in there long term.  You will be inundated with suggestions for more and different funds and lots of reasons VLS is not suitable, and that defeats the object of multi asset global funds for unsophisticated investors. Regards

smudger1964

This is interesting as some of the posters are knowledgeable about VLS.Is there any point in having some money in each of the 100/80/60 VLS as would i be right in thinking that if the market suffers a downturn the 100 would lose more than the 80 and the 60 would lose less than the 80.Is that how it works?

Alexland

MFW2026 said:

Thankyou-can you explain how the VWRL and Vanguard global all cap differ?

Other than the ETF/fund structure the main difference is the All Cap includes a modest allocation to smaller (but not small) companies so more diversified than an All World tracker.

MFW2026 said:

I think i need to stop messing about and leave it as a VLS fund. 

It really depends on what you are looking for. VLS offers some home bias and bonds in most of the series to reduce volatility.  A global equities tracker offers a lot of US exposure.

smudger1964 said:

if the market suffers a downturn the 100 would lose more than the 80 and the 60 would lose less than the 80.Is that how it works?

Generally that's what would be expected although no crash is the same and even bond markets can crash but that tends to be slower and less severe.
You might hold different VLS funds if you were investing money for different purposes with different likely withdrawal dates.

Eyeful

Other people are not you. Their interests, knowledge & personal circumstances, will lead them down a different investment path to you. 

You can make investing as simple or as complected as you like. Making it complicated does not mean it will perform better than simple. What it does do, is increase your costs and take up your time.

A number of years ago Fidelity did a survey to see which of their customers did best. The winners where those that forgot they had investments (that is they did not tinker with their funds)

Think of the VLS  60/40 as being a buy and forget fund. 

As long as you are comfortable with the share/bond split chosen. It allows you to sleep at night and stay invested for the long term, even when crashes happen, then you are in the correct fund for you.

Thrugelmir

smudger1964 said:

This is interesting as some of the posters are knowledgeable about VLS.Is there any point in having some money in each of the 100/80/60 VLS as would i be right in thinking that if the market suffers a downturn the 100 would lose more than the 80 and the 60 would lose less than the 80.Is that how it works?

Equities as an asset class are more volatile than bonds/fixed interest.  Returns on bonds are in the main fixed and can be quantified for periods of time into the future, that can extend to decades. Though with interest rates currently low even bonds can appear volatile when yields can increase or decrease by 10% very quickly impacting market prices. 

A_T

When do you plan to retire? Vanguard do a range of "Target Retirement funds" dated in 5 year increments from 2015 to 2065.

https://www.vanguardinvestor.co.uk/investing-explained/what-are-target-retirement-funds

Nurse2047

Thankyou I am using the 2040 retirement fund in my vanguard SIPP