Is FTSE 100 (This Yr coming Yr) better investment than VLS100 & S&P500 Your Opinion Please !!

adindas

This is subject to personal preference, but I myself prefer VLS100 than VLS80% equity as for Bond, I could allocate that 20% myself to Regular saving account (RSA)/high interest current accounts which arguably offer the same level of security than bonds components of multi asset funds. So, I will choose VLS100% as a comparison.

The investment charge using Vanguard Platform’

Life Strategy 100% Equity Fund - Accumulation 0.22%

S&P 500 UCITS ETF Distributing (VUSA) 0.07%

FTSE 100 Index Unit Trust Accumulation 0.06%

Performance:

The S&P500, VLS100% equity have reached ATH, far beyond pre pandemic level. FTSE100 has not even reached the pre pandemic level so there is a still a lot of room to grow.

The history over a few years VLS100%, S&P500% have outperformed FTSE100

VLS100 is a globally diversified portfolio, S&P is more global companies as it is operating and revenue comes from many countries.

But if you zoom it the performance from last months (attached), FTSE 100 is performing better than S&P500%, VLS100%.

IMHO, this will continue to outperform VLS100%, S&P500% for a few months to come until it reaches the pre pandemic level, February 2020. FTSE 100 has been severely battered during the pandemic and yet to reach ATH. S&P 500 and many of US high growth stocks which are majority of holding of VLS100 portfolios have been overheated. But FTSE 100 since reopening of the economy, it has gained its momentum.

Of course, VLS100%, S&P500% is more secure compared to FTSE as it is more globally diversified. But in general, all of them are secure as they are diversified funds and to some extents indexed. You also make the decision of investing vs put money in saving account.

What is your opinion of put more new money into FTSE100 and then later next year when it reaches ATH switch some of them to VLS100 and/or S&P500? Of course, need to take into consideration of losing several days for out and in again.

 

 Two years performance FTSE100 vs (VLS100, S&P500)

 Recent performance FTSE100 vs (VLS100, S&P500), Economic Opening

HHarry

FTSE100 was 7500 (?) pre-pandemic, currently 7200.  That’s a bit over 4% to go, which I wouldn’t have said is a ‘Lot of room to grow’.

kuratowski

This is classic market timing; there's acres of research showing you won't beat the market.  If you're going to keeping churning your investments, it would be better to find a financial adviser, indeed maybe even a DFM, keep your hands off the wheel entirely.

masonic

It looks like you are using past performance to make an argument for future performance, which doesn't work. The UK market does look better on a valuation basis, and I am fairly confident about the long term outlook for the UK, but I haven't been putting my money into a FTSE 100 tracker.

eskbanker

This thread makes as little sense as the other similar one you started earlier - there's no point in randomly plucking out funds or indices investing in different sectors and trying to guess which might deliver better performance!  Unless you're an out and out gambler trying to take a punt on short term movements, investing should be considered a long term activity, entailing a sensible and meaningful assessment of your objectives and strategy, before choosing products that will achieve these....

Thrugelmir

"Of course, VLS100%, S&P500% is more secure compared to FTSE as it is more globally diversified."

The pandemic is a global issue. Shortage of semi conductors is a global issue. Simply holding interconnected companies that are dependent upon each other doesn't provide as much diversification as it may appear. Churning markets isn't a viable investment strategy. 

Anyone can invest with hindsight.

Alexland

UK market should do well so recently increased our exposure up to the circa 20% found in the VLS series. Not a fan of the FTSE100 so invest via investment trusts (MUT, and more recently sibling DIG) which go into smaller caps and have ESG filters that exclude around 25% of the UK market which by happy chance is also many of the companies that I would have chosen to remove for likely performance reasons. Still have some of those companies via our global trackers.

DireEmblem

FTSE250 is a better reflection of the UK IMO.

Also, what is with all your posts these days, are you getting others to do research for your own forum or something?

adindas

DireEmblem said:

FTSE250 is a better reflection of the UK IMO.

Also, what is with all your posts these days, are you getting others to do research for your own forum or something?

Well, not really it is a genuine question. And thank you for all of you who shares their opinion, it is really appreciated. I actually already have these funds.

FTSE 100 Index Unit Trust – Acc

FTSE U.K. All Share Index Unit Trust – Acc

LifeStrategy100% Equity Fund – Ac

S&P 500 UCITS ETF Distributing (VUSA)

But I still have allowance for my SIIP for this year and I would like to try something new that I have not done before, try to switch between the funds within Vanguard Platform.

If you have not done before, it is good to gauge opinion from different people as you might have missed something that you have not thought before.

jbrassy

Will the FTSE 100 outperform the S&P500? Throw a dart at a board and if it lands on red it will be the FTSE 100, if it lands on black it will be the S&P500. 

No one can seriously know the answer to this question.

Just invest in a well-diversified portfolio of low cost index tracker funds.

ColdIron

adindas said:

DireEmblem said:

FTSE250 is a better reflection of the UK IMO.

Also, what is with all your posts these days, are you getting others to do research for your own forum or something?

I actually already have these funds.

FTSE 100 Index Unit Trust – Acc

FTSE U.K. All Share Index Unit Trust – Acc

What's the rationale? The all share is dominated by the FTSE 100. What you have is a very large amount of duplication