Investing in Global Trackers and other similar investments

Thrugelmir

DoneWorking said:

Alistair31 said:

DoneWorking said:

Alistair31 said:

How would you feel if your £175k became £130k in a downturn? 

Why do you ask

If I don't do anything with it it's spending power is going to wither away due to inflation

Because that is the risk you need to accept if you are thinking 100% equities global tracker. How would you react? 

Oh !!!!!!, I only wanted inflation protection and now I’ve lost £45k, I better sell before I lose any more… thus guaranteeing the £45k is gone. 

Obviously if I want to protect my savings from inflation I have to accept the volatility in the Global Tracker over the long term

Equities have underperformed inflation in some markets for as long as a decade previously. Add in currency exposure to a global equity fund and there's a roller coaster of a ride lying ahead. 

DoneWorking

Thrugelmir said:

DoneWorking said:

Alistair31 said:

DoneWorking said:

Alistair31 said:

How would you feel if your £175k became £130k in a downturn? 

Why do you ask

If I don't do anything with it it's spending power is going to wither away due to inflation

Because that is the risk you need to accept if you are thinking 100% equities global tracker. How would you react? 

Oh !!!!!!, I only wanted inflation protection and now I’ve lost £45k, I better sell before I lose any more… thus guaranteeing the £45k is gone. 

Obviously if I want to protect my savings from inflation I have to accept the volatility in the Global Tracker over the long term

Equities have underperformed inflation in some markets for as long as a decade previously. Add in currency exposure to a global equity fund and there's a roller coaster of a ride lying ahead. 

Thank you

This is useful information I can use when making a decision.
Are there any less volatile options than Global Trackers

CheekyMikey

DoneWorking said:

Thrugelmir said:

DoneWorking said:

Alistair31 said:

DoneWorking said:

Alistair31 said:

How would you feel if your £175k became £130k in a downturn? 

Why do you ask

If I don't do anything with it it's spending power is going to wither away due to inflation

Because that is the risk you need to accept if you are thinking 100% equities global tracker. How would you react? 

Oh !!!!!!, I only wanted inflation protection and now I’ve lost £45k, I better sell before I lose any more… thus guaranteeing the £45k is gone. 

Obviously if I want to protect my savings from inflation I have to accept the volatility in the Global Tracker over the long term

Equities have underperformed inflation in some markets for as long as a decade previously. Add in currency exposure to a global equity fund and there's a roller coaster of a ride lying ahead. 

Thank you

This is useful information I can use when making a decision.
Are there any less volatile options than Global Trackers

Wealth preservation investment trusts like Capital Gearing or Personal Assets Trusts, as I suggested to you a few days ago on your original thread where you asked the same questions. They do what it says on the tin… or funds with some fixed interest elements like VLS20-80. Pick the level of volatility you prefer with those..

Albermarle

OP - Could be a good idea to go back to the start of the thread and re- read all the responses and the links.

DoneWorking

CheekyMikey said:

DoneWorking said:

Thrugelmir said:

DoneWorking said:

Alistair31 said:

DoneWorking said:

Alistair31 said:

How would you feel if your £175k became £130k in a downturn? 

Why do you ask

If I don't do anything with it it's spending power is going to wither away due to inflation

Because that is the risk you need to accept if you are thinking 100% equities global tracker. How would you react? 

Oh !!!!!!, I only wanted inflation protection and now I’ve lost £45k, I better sell before I lose any more… thus guaranteeing the £45k is gone. 

Obviously if I want to protect my savings from inflation I have to accept the volatility in the Global Tracker over the long term

Equities have underperformed inflation in some markets for as long as a decade previously. Add in currency exposure to a global equity fund and there's a roller coaster of a ride lying ahead. 

Thank you

This is useful information I can use when making a decision.
Are there any less volatile options than Global Trackers

Wealth preservation investment trusts like Capital Gearing or Personal Assets Trusts, as I suggested to you a few days ago on your original thread where you asked the same questions. They do what it says on the tin… or funds with some fixed interest elements like VLS20-80. Pick the level of volatility you prefer with those..

Thanks

That's really helpful

It is my intention to collate the various responses and follow up all of the links 
Thanks for all info

DoneWorking

Albermarle said:

OP - Could be a good idea to go back to the start of the thread and re- read all the responses and the links.

That is my intention

There are so many points and I intend to look over them all 
Including comments from a different thread

GeoffTF

Thrugelmir said:

Nebulous2 said:

DoneWorking said:

GeoffTF said:

DoneWorking said:
I had assumed there were various Global Trackers which would meet my requirements and was hoping for advice to help me chose one

You have already been told that all global trackers are much the same and offered a suggestion. It does not matter which one you choose.

"Surely some perform better than others.
If people do not want to say which ones they could at least point me in the right direction to find out."

DoneWorking said:
I was hoping to find one which once set up would require no further action from me

You have already been told that applies to all global trackers.

"What I meant to say was 
*I was hoping to find a decent Global Tracker I could invest in without any further effort on my part other than checking it's performance from time to time.*"

See comments added above

A global tracker tracks an index. They should all perform the same if they are tracking the same index. There may be slight tracking errors, but these are likely to be less significant than the difference in charges. 

Vanguard VLS funds interestingly do not benchmark an index. A throw back to it's Wellington days of being an investment boutique. Times have changed in the past decade and with a diverse range of alternatives now available, . 

Vanguard VLS does not track one of the popular global equity indexes, which is what we are talking about here. The OP is confused enough already.

GeoffTF

Nebulous2 said:

DoneWorking said:

GeoffTF said:

DoneWorking said:
I had assumed there were various Global Trackers which would meet my requirements and was hoping for advice to help me chose one

You have already been told that all global trackers are much the same and offered a suggestion. It does not matter which one you choose.

"Surely some perform better than others.
If people do not want to say which ones they could at least point me in the right direction to find out."

DoneWorking said:
I was hoping to find one which once set up would require no further action from me

You have already been told that applies to all global trackers.

"What I meant to say was 
*I was hoping to find a decent Global Tracker I could invest in without any further effort on my part other than checking it's performance from time to time.*"

See comments added above

A global tracker tracks an index. They should all perform the same if they are tracking the same index. There may be slight tracking errors, but these are likely to be less significant than the difference in charges. 

Here's an article giving a view on different trackers - based largely on costs. You'll see that the HSBC one that was mentioned earlier is one of those mentioned as being low cost. 

Low-cost index trackers that will save you money - Monevator

The intention with these is that you use them for money you can afford to tie up for a long period of time.  You buy them, leave them and they should grow over time. They are likely to be volatile and can move up, down or sideways. 

One of the biggest risks is that you buy them, panic when they drop and sell them, thus making sure your money is lost. If you are stressed now, do you think you would be able to relax and leave them alone if they had dropped a significant amount? 

That is absolutely right. Specifically, your link says:

World equity – developed world and emerging markets (total world)
Cheapest
HSBC FTSE All-World Index Fund C (GB00BMJJJF91) OCF 0.13%

Ray_Singh-Blue

Bit late to this thread, but OP I can recommend a book called "fail safe investing" by Harry Browne.

It is quite old now, perhaps 20 or 25 years old, but I have found it to provide an answer to the question you ask.

The execution will need some updating and translation to the UK market, as it was written for investors in 1990s America.

But the key idea is a permanent portfolios - or a portfolio for all seasons- consisting of cash, bonds, shares and gold in equal measure.

If you latch onto an investment strategy you can really believe in and commit to through all economic events, then all that remains is to enact it.

I have chosen to do so using VWRL, wisdom tree physical gold ETF, and fixed rate cash ISA. My plan is to add bonds at some point soon using VGOV.

If you search "take a peek at my hand" you'll find a diary thread documenting my 7 year journey from gung ho chancer to supine passive- head.

JakeHyde

DoneWorking said:

Thrugelmir said:

DoneWorking said:

Alistair31 said:

DoneWorking said:

Alistair31 said:

How would you feel if your £175k became £130k in a downturn? 

Why do you ask

If I don't do anything with it it's spending power is going to wither away due to inflation

Because that is the risk you need to accept if you are thinking 100% equities global tracker. How would you react? 

Oh !!!!!!, I only wanted inflation protection and now I’ve lost £45k, I better sell before I lose any more… thus guaranteeing the £45k is gone. 

Obviously if I want to protect my savings from inflation I have to accept the volatility in the Global Tracker over the long term

Equities have underperformed inflation in some markets for as long as a decade previously. Add in currency exposure to a global equity fund and there's a roller coaster of a ride lying ahead. 

Thank you

This is useful information I can use when making a decision.
Are there any less volatile options than Global Trackers

Gold ETF's?   Not that I know anything about them, but I hear people talking about gold as a way to fight inflation. 🤷🏻‍♂️