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

grumiofoundation

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?

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.

Why so many overlapping funds? You haven't added any diversification, you have just changed the weightings vs VLS 100/global tracker.

Also what is the rationale between switching between them? 

Linton

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?

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.

You hold VLS100
Why hold the S&P500 when the US forms the largtest country allocation in VLS100?
Why hold two UK FTSE index funds when the UK forms the second largest country allocation in VLS100? 
WHy hold a FTSE100 fund and a FTSE All Share fund when the FTSE100 is 80% of the FTSE All Share?

If you want domething to hold alongside VLS100 why not an area which is poorly represented by that fund - eg small companies or EM/SE Asia?

Looking at 1 months or 2 years performance data wont help you identify funds -there is no reason to suppose that the next 1 month, 2 jears, or 20 years data will bear any resemblence to those figures.

tebbins

...
adindas said:

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.

There is no reason to think the FTSE has more 'room to grow' simply because it has not yet recovered to pre-pandemic levels.

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

Yes, and in the 2000s, 60s-80s, 30s etc. the opposite was true (at least compared with the US)

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

~1/2 of S&P 500 revenues come from outside the US, ~3/4 of FTSE 100 revenues come from outside the UK.

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

...no further comment...

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.

okay

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.

To offer some counter opinions - the FTSE 100 is arguably more globally diversified than the S&P 500 as I think only about 10-20% of revenues rely on the US economy, whereas half of the S&P 500's revenues do, though you'll find few people decrying that. Also, roughly half the S&P 500 can be thought of as "tech" (or whatever's "hot" e.g. IT + communication services + Tesla + Amazon), so you could also argue the FTSE 100 has a more diverse mix, even if it is more concentrated with the top 10 companies making up 42% of the index (accounting for both Shell classes as one company), vs the top 10 in the S&P 500  making up 29% (accounting for both Google classes as one company).

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.

I don't switch, I set and forget and keep buying.

 

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

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

...
The FTSE 100 seems to have had a bed rep for quite some time now, a quick google revealed the same opinions people have about it now were true in the GFC: https://forums.moneysavingexpert.com/discussion/970539/should-i-keep-my-ftse-100-tracker-isa, https://forums.moneysavingexpert.com/discussion/1525297/has-a-ftse-tracker-ever-been-a-good-investment, https://forums.moneysavingexpert.com/discussion/1862875/investing-in-ftse-100/p1

Having a look at the total return data, I really can't tell what information those posters were basing their opinions on at the time. I set this chart from 1/1/1990 which is as far back as IA sectors go, to 1/1/2010 to cover the period those three threads were talking about.


As for the more recent underperformance, if we just zoom out a little:



Since the FTSE 100 only goes back to 1986, and the MSCI World back to 1975, if we substitute the 100 for the very similar All-Share (and switch to capital only since the All Share's total return data also only goes back to 1986, we get this:

dunstonh

The FTSE100 has largely been an underperformer for 20 years.   Only a fool bets on one niche market being best going forward.   It could be UK large cap but with its history and poor business mix, you would not bet on it.

The Uk is more typically stronger on the small and mid cap side rather than the large cap.

sevenhills

Alexland said:

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.

I would say that the UK has suffered more from COVID than other countries, but the USA have done badly too.

Will that affect the stock markets, I don't know.

Thrugelmir

sevenhills said:

Alexland said:

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.

I would say that the UK has suffered more from COVID than other countries,

On what basis? 

tebbins

dunstonh said:

The FTSE100 has largely been an underperformer for 20 years.   Only a fool bets on one niche market being best going forward.   It could be UK large cap but with its history and poor business mix, you would not bet on it.

The Uk is more typically stronger on the small and mid cap side rather than the large cap.

You must have been writing that before you saw my post! You've been saying this since at least 2008 as far as I can tell but it wasn't true then...what are you basing that assertion in bold on? The only data I can find (I stuck a few trustnet chart screenshots in my previous post) shows underperformance since the mid-2010s. I'm mildly surprised to hear an IFA go against the usual advisory about past performance and future returns.

bostonerimus

My opinion is that this is another chart rich, numerology type post signifying nothing except the ability to stare at one's own navel.

adindas

About duplication.

Yes, I did look into portfolio data before throwing money into the funds.

FTSE 100 Index Unit Trust – Acc vs FTSE U.K. All Share Index Unit Trust – Acc

I want exposure of other UK stocks including smaller caps without the need to limit it to 100% largest public companies by market capitalization that trade on the London Stock Exchange (LSE).

About

Life Strategy 100% Equity Fund - Accumulation 0.22% vs S&P 500 UCITS ETF Distributing (VUSA) 0.07%

Yes, I am aware that VLS100 are heavily weighted on US large caps, mega caps companies which is in S&P 500 But I also want exposure to a more globally diversified portfolio while taking advantage of high growth Mega Caps US companies, which currently performing very well. But In the future I am seriously considering switching VLS100 to S&P 500 in the future.

For FTSE 100 and FTSE U.K. All Share I am considering adding it between now and near future and then later when they reach well above ATH I will swich part of the money to S&P 500. It is quite easy to do this myself within Vanguard Investor Platforms.

For other diversification such as Emerging Market, hot sectors, volatile small/medium caps companies which have not been covered by S&P 500 and/or VLS100. I do compose my own portfolios targeting individual stocks, by buying mainly on the dip. Mainly for trading but a few of them are for long term hold. I started doing this after the market crash last year. I also do trade (not for long term investing) FAANG and Microsoft and other high growth US stock to take the benefit of these stocks when tehre is a dip due to bad news, disruption from activists, missing the expection during the earning season. I sell it when they reach ATH or I beleive the time to sell it. For long term performance I already have S&P500, VLS100 to cover this.

Do not know how they perfom in the future, will see but so far, so good I am happy with this arrangement. I might even add more percentage for trading against volatility in the future.

For another layers of diversification on different assets I did invest in Cryptos and other comodities, mainly Gold. I know there are a lof of people are are against cryptos, but sofar it is the best performing assets in my portfolio. I am using three different low fees platforms for these purposes.

tebbins

... what is ATH?