Investing in Global Trackers and other similar investments

DoneWorking

GeoffTF said:

DoneWorking said:

GeoffTF said:

DoneWorking said:

GeoffTF said:

Your easiest option is to just use VVanguard ESG Developed World All Cap Index Fund (UK), and not worry about the emerging markets. Here are videos on how to use iWeb and Vanguard:

https://www.youtube.com/watch?v=jbL0qDI868w

https://www.youtube.com/watch?v=PCL8L2_ktCM

With iWeb there is a £100 account opening fee, and if you pay in and buy in lumps of about £20K, that is another £55 in the first year. iWeb should be very cheap after that.

Thanks Geoff

That fund is quite new and has no track record

Does that matter

Is it just an update for the ESG Vanguard for Developed Countries

I have fixed some typos. The suggested fund is Vanguard ESG Developed World All Cap Index Fund (UK). It has been around for a year and has a market cap of £1.0 billion. Vanguard is not going to scrap it. iWeb lists that fund.

Is it this one
Developed World ESG based Vanguard Fund

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-gbp-acc/overview

It's been running since 2011

That is the Ireland domiciled version. I am getting confused too. That is the one with £1.0 billion assets. This is the UK domiciled version:

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-uk-gbp-acc/overview

Much smaller market cap. I expect that iWeb has both, but I have only checked the UK version, which is the one that does not readily come up in Google. You can go with either. Slightly more complicated tax for the Irish version, but the Irish version is longer established and bigger. I have held an Ireland domiciled OEIC with iWeb with no problems.

Do you recommend going with the Ireland domiciled version 

I use an accountant for my tax return 
So I'm assuming they will be ok with the Ireland domiciled version

GeoffTF

DoneWorking said:

GeoffTF said:

DoneWorking said:

GeoffTF said:

DoneWorking said:

GeoffTF said:

Your easiest option is to just use VVanguard ESG Developed World All Cap Index Fund (UK), and not worry about the emerging markets. Here are videos on how to use iWeb and Vanguard:

https://www.youtube.com/watch?v=jbL0qDI868w

https://www.youtube.com/watch?v=PCL8L2_ktCM

With iWeb there is a £100 account opening fee, and if you pay in and buy in lumps of about £20K, that is another £55 in the first year. iWeb should be very cheap after that.

Thanks Geoff

That fund is quite new and has no track record

Does that matter

Is it just an update for the ESG Vanguard for Developed Countries

I have fixed some typos. The suggested fund is Vanguard ESG Developed World All Cap Index Fund (UK). It has been around for a year and has a market cap of £1.0 billion. Vanguard is not going to scrap it. iWeb lists that fund.

Is it this one
Developed World ESG based Vanguard Fund

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-gbp-acc/overview

It's been running since 2011

That is the Ireland domiciled version. I am getting confused too. That is the one with £1.0 billion assets. This is the UK domiciled version:

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-uk-gbp-acc/overview

Much smaller market cap. I expect that iWeb has both, but I have only checked the UK version, which is the one that does not readily come up in Google. You can go with either. Slightly more complicated tax for the Irish version, but the Irish version is longer established and bigger. I have held an Ireland domiciled OEIC with iWeb with no problems.

Do you recommend going with the Ireland domiciled version 

I use an accountant for my tax return 
So I'm assuming they will be ok with the Ireland domiciled version

The Ireland version is probably the safer choice. I do not expect Vanguard to pull the UK version, but it does not look popular. Vanguard did pull their factor funds due to lack of demand. An accountant should have no problem working out the tax for the Irish version. Vanguard's tax guide is here:

https://www.vanguardinvestor.co.uk/investing-explained/general-account-tax-information

Umiamz

Apologies if this has already been discussed but there is a Vanguard ETF - ESG Global All Cap UCITS ETF (V3AM inc, V3AB acc).

This can be held with no platform fee with Freetrade or InvestEngine. Would this be a suitable alternative to the combination of the two funds held above?

Ah - I see that it has been mentioned earlier in the thread. I've been looking for a suitable bond ETF to go along with this but not sure what is "best" in the current environment.

DoneWorking

Umiamz said:

Apologies if this has already been discussed but there is a Vanguard ETF - ESG Global All Cap UCITS ETF (V3AM inc, V3AB acc).

This can be held with no platform fee with Freetrade or InvestEngine. Would this be a suitable alternative to the combination of the two funds held above?

Ah - I see that it has been mentioned earlier in the thread. I've been looking for a suitable bond ETF to go along with this but not sure what is "best" in the current environment.

That fund is only a year old and has no long term track record on performance

grumiofoundation

DoneWorking said:

Umiamz said:

Apologies if this has already been discussed but there is a Vanguard ETF - ESG Global All Cap UCITS ETF (V3AM inc, V3AB acc).

This can be held with no platform fee with Freetrade or InvestEngine. Would this be a suitable alternative to the combination of the two funds held above?

Ah - I see that it has been mentioned earlier in the thread. I've been looking for a suitable bond ETF to go along with this but not sure what is "best" in the current environment.

That fund is only a year old and has no long term track record on performance

What impact do you think that has/will have? 

Both the ETF linked, and the funds linked earlier are passive and will track the index they track. In this case the FTSE Global All Cap Choice Index/FTSE Developed All Cap Choice Index (all-world/dev world). Simplistically the long term track record of the fund will be the long term track record of the index (minus costs). 

Umiamz

DoneWorking said:

Umiamz said:

Apologies if this has already been discussed but there is a Vanguard ETF - ESG Global All Cap UCITS ETF (V3AM inc, V3AB acc).

This can be held with no platform fee with Freetrade or InvestEngine. Would this be a suitable alternative to the combination of the two funds held above?

Ah - I see that it has been mentioned earlier in the thread. I've been looking for a suitable bond ETF to go along with this but not sure what is "best" in the current environment.

That fund is only a year old and has no long term track record on performance

Does that really matter? It’s a Vanguard ETF and it’s tracking an established index…

DoneWorking

Thanks both

Point taken 
This is all new to me and I'm learning by the day

For instance just read a very good article on trackers v managed funds saying that
"the evidence is fairly clear cut, however, and it shows that index trackers beat the vast majority of managed investment funds over the long term."

https://www.fool.co.uk/investing-basics/isas-and-investment-funds/index-trackers-vs-managed-funds/

Is this a generally accepted view on here.

One IFA I spoke to told me 

"Trackers are  passive managed funds which means that if markets go down then your funds go with them."

He also reminded me that I am only covered for £85K should Vanguard go bust

Malthusian

"Trackers are  passive managed funds which means that if markets go down then your funds go with them."

If markets go down actively managed funds also go with them.

There is no evidence that any actively managed fund can beat the market, let alone that they can beat the market enough to go up when markets are negative. Expecting any actively managed fund to not go down when markets go down is a recipe for disappointment.

The only kind of actively managed fund which never goes down when markets go down is a money market fund (return = nil).

He also reminded me that I am only covered for £85K should Vanguard go bust

If Vanguard goes bust then nothing has happened and you have no losses to cover. All the shares you and everyone else hold via Vanguard would still be there. Another fund manager would buy Vanguard's book from the administrators and carry on.

older_and_no_wiser

Malthusian said:

There is no evidence that any actively managed fund can beat the market

Would anyone here have a belief that some areas of the market are better served with managed funds rather than trackers? For example, I had read that emerging markets and small cap managed funds perform better managed than passive. This is because these markets tend to be more volatile and a fund manager has valuable insights that can spot opportunity and hone in on a smaller subsection of those sectors.

....or did I just dream that? ;-)

coyrls

DoneWorking said:

Is this a generally accepted view on here.

There is no generally accepted view on here (particularly of active vs passive).  There are multiple views and these issues are debated all the time.  You will have to make up your own mind.