Move my Vanguard LS100 to FTSE Global All Cap Index?

SamDude

I have around £30k in a Vanguard Lifestrategy 100 ISA and was looking to pay around £15k into my ISA and £10k into my wifes ISA to use up our ISA allowance for this year.

The FTSE Global All Cap Index has performed better than the LS100 over the years, so I was thinking of putting the £25k into that instead.

I could pay the money in one go (and be at the mercy of this volatile period), or I could pay it in over a few weeks/months to average it out.
I am also wondering if it's a good idea to move some or all of the existing £35k from my LS100 into the FTSE Global fund.

Any thoughts on LS100 vs FTSE Global?
Any thoughts on if this is a 'do it now' (either lump sum or smaller chunks) or a 'wait-and-see' period?

eskbanker

The costs for the two are similar but LS100 has the UK bias that Vanguard chooses for its LifeStrategy range, which is why its performance will differ from that of a fully cap-weighted index tracker (which also includes small caps), so LS100 is better suited to those feeling that UK(-domiciled) equities will outperform the rest, otherwise go with the fully cap-weighted product.  Global equity trackers are also available from other fund managers if you're not using Vanguard's platform.

In terms of lump sum versus drip-feed, in general it makes sense to commit funds as soon as you have them, on the basis that on average markets will rise - the current period really isn't particularly volatile....

tebbins

If you wait and see you're just going to have to make this decision again in future.

By your logic, you would be putting all your money into an S&P500 or global technology index fund simply because that is what has driven returns in recent years. It's not so much a tale of UK underperformance as US/tech outperformance.
You're thinking in terms of selling low to buy high, yet over the very long term the UK has performed very similarly to the rest of the world, the apparent underperformance you're referring to has only arisen since the mid 2010s. Personally I would stick with LS100, it's a sensible balance of home bias and global diversification, even though my portfolio is almost the other way round, over 70% UK last time I checked. Some folks like me see the past half decade or so as an oddity that will correct itself as we transition into a value (flip? I forgot the word) and Brexit/COVID pessimism subsides and the market remembers the UK is still 
(Edit: IMHO *the* global business capital, objectively definitely on the if the main ones)
with strong governance, institutions, regulation, a skilled native English speaking workforce and a diverse mix of decent companies with reliable financial reporting nd disclosure that don't borrow to buyback their own shares just to keep the price up and fund managements' options unlike the S&P500.
Others see it as an indicator of longer term future poor returns from UK large cap.

eskbanker

tebbins said:

the market remembers the UK is still the global business capital

Perfectly valid (albeit debatable) opinion that UK markets will strengthen relative to others, but the notion of the existence of a singular "global business capital" seems nebulous....

GeoffTF

The Vanguard economists expect the UK market to do better than the global market

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Nonetheless, the market clearly disagrees. Nobody knows.

[Deleted User]

GeoffTF said:

The Vanguard economists expect the UK market to do better than the global market

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Nonetheless, the market clearly disagrees. Nobody knows.

Vanguard UK claims the UK stock market is going to go up next year. Is that view affected by the extra fees they will get as a result of excited investors rushing to them after reading the article with additional bags of cash screaming "take my money"? Hmmm.

MX5huggy

Deleted_User said:

GeoffTF said:

The Vanguard economists expect the UK market to do better than the global market

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Nonetheless, the market clearly disagrees. Nobody knows.

Vanguard UK claims the UK stock market is going to go up next year. Is that view affected by the extra fees they will get as a result of excited investors rushing to them after reading the article with additional bags of cash screaming "take my money"? Hmmm.

Not really if you rush to buy FTSE 100 or All Share funds you’ll be paying a staggering 0.06% 

[Deleted User]

MX5huggy said:

Deleted_User said:

GeoffTF said:

The Vanguard economists expect the UK market to do better than the global market

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Nonetheless, the market clearly disagrees. Nobody knows.

Vanguard UK claims the UK stock market is going to go up next year. Is that view affected by the extra fees they will get as a result of excited investors rushing to them after reading the article with additional bags of cash screaming "take my money"? Hmmm.

Not really if you rush to buy FTSE 100 or All Share funds you’ll be paying a staggering 0.06% 

0.06% of a few billion is still enough to get me slightly interested.

Alexland

I very much doubt that the low charges on UK equity funds is affecting the result of the Vanguard capital market model. All these models seem to come to the same conclusion that the UK is currently valued below it's norm and so if reversion to the mean happens then it would present a better opportunity than US markets. There are good companies in the UK but many of us have seen how US tech is an increasing presence in our everyday lives can understand why those shareholders have been rewarded.

IanManc

Deleted_User said:

GeoffTF said:

The Vanguard economists expect the UK market to do better than the global market

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Nonetheless, the market clearly disagrees. Nobody knows.

Vanguard UK claims the UK stock market is going to go up next year. Is that view affected by the extra fees they will get as a result of excited investors rushing to them after reading the article with additional bags of cash screaming "take my money"? Hmmm.

Vanguard doesn't "claim" anything. One of their economists has written an article suggesting that world equity markets will provide returns at a certain level, and that UK equity markets will provide returns in a slightly higher range - not as you state that "the UK stock market is going to go up next year" -  and the two ranges overlap slightly. All this is caveated in the headline and the article as heavily dependent on policy decisions by governments. It is an opinion piece about the state and future of the markets, written by someone whose job it is to provide such opinions.

You seem to have a low opinion of Vanguard, a customer owned company renowned for its low fees and charges; which is matched by your view of "excited investors" apparently "screaming"; neither of which seem to be supported by any evidence.

tebbins

Deleted_User said:

MX5huggy said:

Deleted_User said:

GeoffTF said:

The Vanguard economists expect the UK market to do better than the global market

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Nonetheless, the market clearly disagrees. Nobody knows.

Vanguard UK claims the UK stock market is going to go up next year. Is that view affected by the extra fees they will get as a result of excited investors rushing to them after reading the article with additional bags of cash screaming "take my money"? Hmmm.

Not really if you rush to buy FTSE 100 or All Share funds you’ll be paying a staggering 0.06% 

0.06% of a few billion is still enough to get me slightly interested.

Then why wouldn't they be writing opinion pieces about more expensive funds? Why wouldn't they write a peice about why their cheap index funds are better than iShares or L&G or HSBC or Fidelity? Surely all that will happen is investors will be encouraged to switch funds within their existing Vanguard accounts, generating no net gain for Vanguard.
Literally nothing you've said has any basis in reality whatsoever.
Vanguard are simply stating, as is plainly obvious and factual that the UK is at present relatively, historically & internationally undervalued (though you may believe that to be justified) and therefore it is likely based on historical data, and reasonable to expect that returns will be higher over the foreseeable future than for more expensive markets like the US. At no point do they claim to predict what UK equity markets will do next year. It's called an opinion, I happen to agree, others disagree. That's called a debate.