Wealthsimple closing! - where to transfer to?

F1001

Thanks @GeoffTF
Agree - it looks great and I think this will be really popular (especially with all the referral links that were going around), and will be interesting what the Dodl offering is this year. For now will play it safe and go with II and VG Lifestrategy 8020 then I can also do a SIPP there too at some point. 

Now to choose the funds - would the Vanguard Lifestrategy 80:20 have funds like "ESG Leaders" and "Japan Equity"? Maybe after seeing all the different fund names in the Wealthsimple portfolio, it feels as though Lifestrategy is too passive?

Thanks!

eskbanker

F1001 said:

For now will play it safe and go with II and VG Lifestrategy 8020 then I can also do a SIPP there too at some point. 

Now to choose the funds - would the Vanguard Lifestrategy 80:20 have funds like "ESG Leaders" and "Japan Equity"? Maybe after seeing all the different fund names in the Wealthsimple portfolio, it feels as though Lifestrategy is too passive?

If you go with LifeStrategy, then you don't need to choose any (other) funds, as that's the whole point of a multi-asset fund of funds - it's effectively a portfolio in a box, buy it and leave it alone.

Although the valid point is often made that LifeStrategy's mix involves active decision-making, its constituent funds are all passive, so the management style is essentially passive, even though it's not tracking a specific index as such.

https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-80-equity-fund-accumulation-shares/portfolio-data lists its breakdown, which does include a Japanese fund but not an equivalent of ESG Leaders, as its construction is generally geographic.

GeoffTF

F1001 said:

Thanks @GeoffTF
Agree - it looks great and I think this will be really popular (especially with all the referral links that were going around), and will be interesting what the Dodl offering is this year. For now will play it safe and go with II and VG Lifestrategy 8020 then I can also do a SIPP there too at some point. 

Now to choose the funds - would the Vanguard Lifestrategy 80:20 have funds like "ESG Leaders" and "Japan Equity"? Maybe after seeing all the different fund names in the Wealthsimple portfolio, it feels as though Lifestrategy is too passive?

Thanks!

As has been said, LifeStrategy 60 is fire and forget. Vanguard decides which trackers go into the fund. If you want to choose your own funds, the best way is probably to use accumulating ETFs. (That avoids the percentage fee on OEICs and Unit Trusts on most platforms, and foreign exchange fees to convert dollar dividends to pounds.) You could set up a tiny account with a robo-adviser and copy their allocation. Better, perhaps, you can use this simple approach:

https://www.kroijer.com/

F1001

Thank you so much everyone - by transferring over to II I also have given someone a £200 credit and have fees paid for 12 months, so not a bad deal since I am also learning more about investing and being a bit more independent - never thought I would go DIY!
Will probably be posting more questions on fund choices etc on a separate thread. Thank you all again!! 

Skininthegame

F1001 said:

Albermarle said:

If you go to a DIY platform , then which one largely depends on the size of your fund. Some charge a flat fee and some a % fee.
As a rule the bigger your fund the better the fixed fee ones , although there are exceptions.
Also Vanguard Lifestrategy 80 is the most well known of these types of funds but not necessarily the best .
HSBC global strategy range of funds and Blackrock Mymap series are also similar + others .

There is a new(ish) roboadvisor in town - Investengine - cheaper than the others but inevitably a question mark about their longevity.
InvestEngine review - is it the cheapest way to invest? - £50 Welcome bonus (moneytothemasses.com)

Investengine looks really interesting - seems cost wise it's better than the DIY and roboadvisor rivals? I guess they will inevitably introduce fees at some point / other functionalities or sell out and I will have to go through all this again!

Sorry to jump in on this discussion, but I have a doubt that I hope someone can resolve. 
InvestEngine is certainly interesting and the review confirms this, but (I humbly request help) of the roboadvisors in the UK is there any way to know who performs better after fees?

For example moneyfarm claims to be the roboadvisor that has had the highest returns (the source of this claim is to be verified https://www.revenue.land/moneyfarm ) compared to competitors, but Moneyfarm clearly costs more than most roboadvisors.

So I wonder where the truth is and if any good soul has ever made a comparison table.

Preview

Skininthegame

Skininthegame said:

F1001 said:

Albermarle said:

If you go to a DIY platform , then which one largely depends on the size of your fund. Some charge a flat fee and some a % fee.
As a rule the bigger your fund the better the fixed fee ones , although there are exceptions.
Also Vanguard Lifestrategy 80 is the most well known of these types of funds but not necessarily the best .
HSBC global strategy range of funds and Blackrock Mymap series are also similar + others .

There is a new(ish) roboadvisor in town - Investengine - cheaper than the others but inevitably a question mark about their longevity.
InvestEngine review - is it the cheapest way to invest? - £50 Welcome bonus (moneytothemasses.com)

Investengine looks really interesting - seems cost wise it's better than the DIY and roboadvisor rivals? I guess they will inevitably introduce fees at some point / other functionalities or sell out and I will have to go through all this again!

Sorry to jump in on this discussion, but I have a doubt that I hope someone can resolve. 
InvestEngine is certainly interesting and the review confirms this, but (I humbly request help) of the roboadvisors in the UK is there any way to know who performs better after fees?

For example moneyfarm claims to be the roboadvisor that has had the highest returns (the source of this claim is to be verified https://www.revenue.land/moneyfarm ) compared to competitors, but Moneyfarm clearly costs more than most roboadvisors.

So I wonder where the truth is and if any good soul has ever made a comparison table.

Preview

I've just found a partial comparison on the fool:

Stocks and shares ISA: being time-poor doesn’t always mean money-poor | Fool UK

Nutmeg and Moneyfarm seems to win but the risk-comparison seems to be impossible to me.

Albermarle

It is very difficult to compare like with like, and any comparison can only be valid if it is over a long period of time.

Typically a fund that grows most during the good times goes down more/quicker in the bad times, so you have to go through a couple of market cycles to have a chance of making a fair comparison.

GeoffTF

Skininthegame said:

F1001 said:

Albermarle said:

If you go to a DIY platform , then which one largely depends on the size of your fund. Some charge a flat fee and some a % fee.
As a rule the bigger your fund the better the fixed fee ones , although there are exceptions.
Also Vanguard Lifestrategy 80 is the most well known of these types of funds but not necessarily the best .
HSBC global strategy range of funds and Blackrock Mymap series are also similar + others .

There is a new(ish) roboadvisor in town - Investengine - cheaper than the others but inevitably a question mark about their longevity.
InvestEngine review - is it the cheapest way to invest? - £50 Welcome bonus (moneytothemasses.com)

Investengine looks really interesting - seems cost wise it's better than the DIY and roboadvisor rivals? I guess they will inevitably introduce fees at some point / other functionalities or sell out and I will have to go through all this again!

Sorry to jump in on this discussion, but I have a doubt that I hope someone can resolve. 
InvestEngine is certainly interesting and the review confirms this, but (I humbly request help) of the roboadvisors in the UK is there any way to know who performs better after fees?

For example moneyfarm claims to be the roboadvisor that has had the highest returns (the source of this claim is to be verified https://www.revenue.land/moneyfarm ) compared to competitors, but Moneyfarm clearly costs more than most roboadvisors.

So I wonder where the truth is and if any good soul has ever made a comparison table.

Preview

Past performance is completely irrelevant to future performance. Just ignore it. Funds that did well in the past are no more likely to do well in the future than funds that did badly. You cannot buy good performance. You can buy low cost and wide spread of risk.

Skininthegame

Albermarle said:

It is very difficult to compare like with like, and any comparison can only be valid if it is over a long period of time.

Typically a fund that grows most during the good times goes down more/quicker in the bad times, so you have to go through a couple of market cycles to have a chance of making a fair comparison.

True, it is an impossible comparison without data collected over long periods.

I will keep an eye on performance and costs in the meantime.

Thank you for your reply.