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

adindas

tebbins said:

... what is ATH?

All time high

dunstonh

tebbins said:

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. 

Look back further and you will see it was right then as it is right now.

I'm mildly surprised to hear an IFA go against the usual advisory about past performance and future returns.

When you look at the asset makeup of the FTSE100 it is a dire index.  it is overweight in yesteryear industries.       it's not about poor performance but future potential.         

Maybe you should tell us why you think UK large-cap is going to be the best performer in the world going forward?

sevenhills

Thrugelmir said:

On what basis? 

It is difficult to know the facts on how COVID has affected countries financially, but the UK has suffered much more than Germany, deaths worldwide per million population, the UK 8.51 and Germany 1.11, quite a difference.

How much countries have locked down their economies I don't know, I would suspect that more deaths would relate to a greater effect on their economies.

Change in benchmark yields between December 2019 and December 2020

https://www.oecd.org/daf/fin/public-debt/Sovereign-Borrowing-Outlook-in-OECD-Countries-2021.pdf

grumiofoundation

adindas said:

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).

By holding FTSE 100 (which is majority of All-share anyway) and All-share you have only succeeded in diluting these smaller caps. 

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.

A mix of S and P 500 + VLS 100 is not more globally diversified than VLS 100.

To try and explain another way. I don't know the percentages you hold each fund in so numbers won't be accurate but hopefully will help illustrate

Lets say VLS you hold £15,000
VLS100 = 33% US (5,000), 20% UK (3000) and remaining other (7000).

What you have done is said "I want to add more UK and US".

Say you add £2,500 to each you how have total of £20,000.

7500 US - 37.5%
5500 UK - 27.5%
7000 Japan/EM/Eur - 35%

So no more diversified, just differently distributed. Still as above majority in US/UK, just more so than before.

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.

Just because you can doesn't mean you should!

As numbers above (hopefully) demonstrate unless you are switching large percentages may well make little difference anyway.

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 did trade FAANG and Microsoft and other high growth US stock to take the benefit of Volatility of these stocks. I sell it when they reach ATH. 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.

You are already invested in emerging markets (8% of VLS 100 of which ~40% will be china).  

By having FAANG stocks you are just further concentrating your major holdings. 

ColdIron

adindas said:

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).

It would seem a strange decision then to buy the FTSE 100 which has no small caps and is entirely made up of the 100 largest public companies by market capitalization that trade on the London Stock Exchange (LSE).

If you already held the FTSE 100 then you could have added FTSE 250 and FTSE Small cap instead of the all share which is dominated by the largest public companies by market capitalization that trade on the London Stock Exchange (LSE)

Just trying to understand the thought process. It's like buying a hamburger and deciding you want cheese so you buy a cheeseburger rather than a slice of cheese

Thrugelmir

sevenhills said:

Thrugelmir said:

On what basis? 

It is difficult to know the facts on how COVID has affected countries financially, but the UK has suffered much more than Germany, deaths worldwide per million population, the UK 8.51 and Germany 1.11, quite a difference.

Population density perhaps. If you've ever travelled around the country you'll realise how big Germany is. How spread out the major cities are.

tebbins

dunstonh said:

tebbins said:

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. 

Look back further and you will see it was right then as it is right now.

I did, as you can see in my previous post on page 2 of this thread. Where is the twenty years of underperformance (say 2001-now) + the 15 years of underperformance before those prior threads I found from 2008. I should be seeing underperformance since 1993 According to you and... It's not there

I'm mildly surprised to hear an IFA go against the usual advisory about past performance and future returns.

When you look at the asset makeup of the FTSE100 it is a dire index.  it is overweight in yesteryear industries.       it's not about poor performance but future potential.

You said "  It could be UK large cap but with its history and poor business mix, you would not bet on it" implying you associate this non-existent 2/3 decades of underperformance vs (what exactly?) with underperformance in future, the opposite of what you're saying now

     

Maybe you should tell us why you think UK large-cap is going to be the best performer in the world going forward?

Well someone's triggered. I didn't realise that offering an opinion in a thread asking for people's opinions on the FTSE 100 vs S&P500 vs VLS100 would bring out the sarcasm.

You've been saying this for years as the threads I linked in my post on page 2 on this thread show - providing no evidence, or anymore detail than opinion vaguely asserted as fact, repeating the same decades old rhetoric you hear from active managers selling global funds. It's not very convincing.

Please quote exactly where I said "UK large-cap is going to be the best performer in the world going forward".

sevenhills

Thrugelmir said:

Population density perhaps. If you've ever travelled around the country you'll realise how big Germany is. How spread out the major cities are.

The cause is not important, more care home deaths, the effect on the UK economy has been more severe.

The UK had the fourth highest population density (266 people per square kilometre) of the EU countries in 2014, and was most similar to Germany (227 people per sq km).

bostonerimus

tebbins said:

... what is ATH?

All Time High. The difficulty with that is we don’t know what will happen in the future. So All Time High is really just Highest i Has Yet Been. I’ve never sold anything based solely on its price, but I have rebalanced although I stopped doing that now.

adindas

bostonerimus said:

tebbins said:

... what is ATH?

All Time High. The difficulty with that is we don’t know what will happen in the future. So All Time High is really just Highest i Has Yet Been. I’ve never sold anything based solely on its price, but I have rebalanced although I stopped doing that now.

The Traders: Swing traders, Day Traders are doing that all the time with individual stock with high volatility with reasonable range to trade. In this case it does not need to be ATH as long as as they believe they have made enought profit they will sell it and move on to another more profitable trade.

It is a game of probability looking into momentum rather than for long term holding.

In term of making profit, some are succesfull some are not.

But AFAIK most traders are also holding index fund that they hardly trade unless they have a very good reason on doing that. It is for long term holding.