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Best Option for Cash Lump Sum

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  • Thanks for the replies, youve given me much food for though there! The Motley fool site looks to be a very good learning resource for a beginner too GeoffTF!  A global tracker from other platforms dunstonh? From Vanguard i'm looking at VEVE and FTSE World ex-UK as 2 of the cheapest global funds but i dont want to necessarily exclude the UK. (just found out what the ex in ex.UK actually means!) 
      Theres always potential to put some more cash in a general fund, as well as S&S isas, in the next 12 months too to potntially move them into an isa later! IS that the bed and isa? Thanks! 
  • GeoffTF
    GeoffTF Posts: 2,059 Forumite
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    VLS 100 is a reasonable choice. Nonetheless, VEVE plus a market weight of VFEM (about 10%: the precise value will be the Emerging Markets allocation for VWRL) is cheaper. There is an HSBC All-World OEIC at the same price, but it may not be as good. You would have to study the small print. ETFs are often cheaper to hold than OEICs

    https://monevator.com/compare-uk-cheapest-online-brokers/
  • P933alilli
    P933alilli Posts: 406 Forumite
    Ninth Anniversary 100 Posts
    I'm now considering Vanguard's Developed world ex-UK equity fund.
  • dunstonh
    dunstonh Posts: 119,786 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I'm now considering Vanguard's Developed world ex-UK equity fund.
    That fund is designed to be held with a portfolio of funds to cover the areas it does not invest in itself.   So, what other funds are you going to hold with it?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • P933alilli
    P933alilli Posts: 406 Forumite
    Ninth Anniversary 100 Posts
    dunstonh said:
    I'm now considering Vanguard's Developed world ex-UK equity fund.
    That fund is designed to be held with a portfolio of funds to cover the areas it does not invest in itself.   So, what other funds are you going to hold with it?
    Hmm, yes that would mean i'd need to scrap my VLS60 which holds 19% of the ex-UK fund! Can the ex-Uk not make a good stand alone option? Unless the view still holds that U.S is still vastly overvalued and thereby thats where the risk is?
  • P933alilli
    P933alilli Posts: 406 Forumite
    Ninth Anniversary 100 Posts
    11% VFEM emerging markets fund + 89% Developed world ex-Uk. would give overall charge of 0.15% but i'd then need to keep an eye on it and rebalance it. Its all if, buts and maybes though!
  • tebbins
    tebbins Posts: 773 Forumite
    500 Posts Name Dropper
    dunstonh said:
    I'm now considering Vanguard's Developed world ex-UK equity fund.
    That fund is designed to be held with a portfolio of funds to cover the areas it does not invest in itself.   So, what other funds are you going to hold with it?
    Hmm, yes that would mean i'd need to scrap my VLS60 which holds 19% of the ex-UK fund! Can the ex-Uk not make a good stand alone option? Unless the view still holds that U.S is still vastly overvalued and thereby thats where the risk is?
    The US was expensive before the pandemic, since Covid its been stuck in bubble valuations IMHO but maybe that's justified - the US doesn't rely on Russian gas.
    But the myths about the US being "higher growth" than other marksrs are just that, myths (stock buybacks, secular upwards rerating since the 80s secular growth of corporate America vs the rest of US GDP since the 80s also, no long-term evidence).
    That is one specific risk, albeit a significant one, about one specific market, albeit half of the global market cap. There are plenty others.

    I'm not aware of anything on Vanguard's website or the fund's KIID, prospectus or annual reports about it being intended to be held as part of a portfolio rather than sufficing as a standalone, although I clearly agree with no exposure to the home market, developing markets or bonds it isn't really suitable as a standalone.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    11% VFEM emerging markets fund + 89% Developed world ex-Uk. would give overall charge of 0.15% but i'd then need to keep an eye on it and rebalance it. Its all if, buts and maybes though!
    I wouldn't become overly obsessive about fund charges. The less you pay, the lower the amount of management you'll receive. Passive investing in it's self isn't a panacea. 
  • GeoffTF
    GeoffTF Posts: 2,059 Forumite
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    11% VFEM emerging markets fund + 89% Developed world ex-Uk. would give overall charge of 0.15% but i'd then need to keep an eye on it and rebalance it. Its all if, buts and maybes though!
    I wouldn't become overly obsessive about fund charges. The less you pay, the lower the amount of management you'll receive. Passive investing in it's self isn't a panacea. 
    Performance is a matter of chance, but you can control charges. They compound up. Vanguard does 100% job on the management of its funds, so do not pay more.
  • GeoffTF
    GeoffTF Posts: 2,059 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    11% VFEM emerging markets fund + 89% Developed world ex-Uk. would give overall charge of 0.15% but i'd then need to keep an eye on it and rebalance it. Its all if, buts and maybes though!
    VEVE has an OCF of 0.12%. Missing out about 4% UK is not going to make that much difference, and could go either way. Most UK investors overweight the UK, to reduce withholding taxes and volatility. You will not, however, reduce volatility by much unless you hold more UK than most people would consider sensible. The percentage of UK that minimises volatility varies over time anyway. The simple options are to track the All-World index or buy LifeStrategy and leave it to Vanguard.
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