My proposed portfolio, or keep it simpler?

TelescopicWombat

Alexland said:

I just used SWDA as a comparator to LCWL as they are both accumulating World ETFs. We actually hold more in the distributing VEVE and HMWO than SWDA. Being developed world they are very US heavy so we also hold a separate emerging market fund and UK home bias IT such that overall we are now somewhat underweight on the US compared to an All World allocation, more like VLS100.

I've never really considered VEVE/VHVG as options, but will study those in more detail. Certainly another option to consider.

AlanP_2

TelescopicWombat said:

Alexland said:

LCWL does have a GBP price although the underlying assets will be priced in whatever their local currency is.

I don't know why you are making a big thing about it being unhedged as most of the tracker funds and ETFs we regularly talk about are unhedged. We rarely talk about hedged trackers such as iShares IWDG which can be useful when the GBP goes exceptionally low but while it's bouncing around 1.40 USD there's no compelling reason to go hedged. In previous crashes being unhedged has reduced the volatility for a UK investor as currency traders flee to safety of USD reducing the relative value of GBP giving similar benefit on the value of overseas investments seen after the Brexit vote.

In terms of LCWL yes the charge is low at 0.12% and we used to hold it but it does tend to have a bigger market spread and lags in performance compared to SWDA which also accumulates at 0.20%. Reasons for this include opportunities from the sheer scale of Blackrock's operations, their advanced asset lending programme, the more favourable witholding tax treatment of overseas dividends in Ireland, etc.

You're right Alexland about a performance lag for LCWL v SWDA, but HMWO seems to perform even better:

(best performing figure in bold) figures provided by Morningstar.

                  HMWO           VWRP          LCWL          IWDG           SWDA

1 M             4.20                 3.15             4.18              3.01              4.18
3 M             5.36                 4.28             5.33              5.35              5.34
6 M            11.81                9.31             11.71            13.67           11.78
YTD          14.60               12.71            14.47            16.60           14.55

2021          39.29              25.15             39.00               -               39.14
2020            3.16                  -                   2.76               -                 2.88
2019            6.75                  -                   6.23               -                 6.44
2018          11.43                  -                      -                  -                11.15
2017          18.41                  -                      -                  -                18.31

I already hold the HSBC FTSE All World fund elsewhere, so wanted a different provider in the form on an ETF. But on these figures, HMWO is a compelling-looking proposition.

I would suggest that you look at your portfolio in its entirety (across both partners if relevant) and not piecemeal to work out the overall asset allocation / diversification / "perceived risk level".

The accounts you use to implement are irrelevant and should be chosen on cost benefit / tax advantages / "equalisation across partners" (particularly for pensions and the like

_theinsider

I favour absolute simplicity and lowest possible charges, so would put the full amount into the cheapest global tracker via the cheapest platform then spend the time you've saved not researching and thinking about all the various other options to go and enjoy life*

*unless this is the love of your life, then by all means fill your boots researching and debating the various options!

_theinsider

JohnWinder said:

Ferri wrote a reasonable book on asset allocation, which is by way of introduction as his observation about the stages of an index fund investor comes to mind while reading the ins and outs of this thread: born in darkness, finds indexing enlightenment, over-complicates everything, embraces simplicity.

Excellent quote!

Thrugelmir

_theinsider said:

I favour absolute simplicity and lowest possible charges, so would put the full amount into the cheapest global tracker via the cheapest platform then spend the time you've saved not researching and thinking about all the various other options to go and enjoy life*

Indexes differ. Worth spending the time ensuring that the chosen fund fits your own investment strategy. 

tel_

Thrugelmir said:

_theinsider said:

I favour absolute simplicity and lowest possible charges, so would put the full amount into the cheapest global tracker via the cheapest platform then spend the time you've saved not researching and thinking about all the various other options to go and enjoy life*

Indexes differ. Worth spending the time ensuring that the chosen fund fits your own investment strategy. 

And I'm no expert, but what I've picked-up on these boards over many months is that the cheapest isn't always the smartest move where global trackers is concerns - liquidity for one.

You can go real cheap and purchase the Amundi Prime Global ETF (PRIW) which is only 0.05% - what a bargain!  But only has a fund size of 404 Mil USD, or L&G's (LGGG) 0.11% - at an even smaller 54 Mil USD. 

Thrugelmir

tel_ said:

Thrugelmir said:

_theinsider said:

I favour absolute simplicity and lowest possible charges, so would put the full amount into the cheapest global tracker via the cheapest platform then spend the time you've saved not researching and thinking about all the various other options to go and enjoy life*

Indexes differ. Worth spending the time ensuring that the chosen fund fits your own investment strategy. 

And I'm no expert, but what I've picked-up on these boards over many months is that the cheapest isn't always the smartest move where global trackers is concerns - liquidity for one.

You can go real cheap and purchase the Amundi Prime Global ETF (PRIW) which is only 0.05% - what a bargain!  But only has a fund size of 404 Mil USD, or L&G's (LGGG) 0.11% - at an even smaller 54 Mil USD. 

I'm referring to the different index providers (such as). 

S&P
MSCI
FTSE Russell
REFINITIV 

All offer a variety global equity indexes that can be tracked. Knowing which one will produce the best returns in the future is the challenge. 

bostonerimus

Thrugelmir said:

tel_ said:

Thrugelmir said:

_theinsider said:

I favour absolute simplicity and lowest possible charges, so would put the full amount into the cheapest global tracker via the cheapest platform then spend the time you've saved not researching and thinking about all the various other options to go and enjoy life*

Indexes differ. Worth spending the time ensuring that the chosen fund fits your own investment strategy. 

And I'm no expert, but what I've picked-up on these boards over many months is that the cheapest isn't always the smartest move where global trackers is concerns - liquidity for one.

You can go real cheap and purchase the Amundi Prime Global ETF (PRIW) which is only 0.05% - what a bargain!  But only has a fund size of 404 Mil USD, or L&G's (LGGG) 0.11% - at an even smaller 54 Mil USD. 

I'm referring to the different index providers (such as). 

S&P
MSCI
FTSE Russell
REFINITIV 

All offer a variety global equity indexes that can be tracked. Knowing which one will produce the best returns in the future is the challenge. 

I think it's fruitless to try to find the "best", so throw a dart or maybe just go with the "widest" so you capture a bit of mid cap. Until we get to the future we are dealing with opinions. You could look back and see what worked in the past and then you might implement a small cap over-weighted portfolio, but that can be stressful and is the possible extra gain worth the increased risk and volatility?

Thrugelmir

bostonerimus said:

Thrugelmir said:

tel_ said:

Thrugelmir said:

_theinsider said:

I favour absolute simplicity and lowest possible charges, so would put the full amount into the cheapest global tracker via the cheapest platform then spend the time you've saved not researching and thinking about all the various other options to go and enjoy life*

Indexes differ. Worth spending the time ensuring that the chosen fund fits your own investment strategy. 

And I'm no expert, but what I've picked-up on these boards over many months is that the cheapest isn't always the smartest move where global trackers is concerns - liquidity for one.

You can go real cheap and purchase the Amundi Prime Global ETF (PRIW) which is only 0.05% - what a bargain!  But only has a fund size of 404 Mil USD, or L&G's (LGGG) 0.11% - at an even smaller 54 Mil USD. 

I'm referring to the different index providers (such as). 

S&P
MSCI
FTSE Russell
REFINITIV 

All offer a variety global equity indexes that can be tracked. Knowing which one will produce the best returns in the future is the challenge. 

I think it's a fruitless to try to find the "best" so throw a dart or maybe just go with the "widest" so you capture a bit of mid cap.

Some even include frontier markets there's a wealth of choice.