Opinions on these Vanguard combinations on Vanguard platform

mears1

Linton said:

I share eskbanker's and tebbins' preference for Vanguad FTSE Global AllCap for greater diversification.  There seems no point in choosing multiple index funds to get some different allocation to what is provided by a single global fund if you do not have the experience to make a rational choice.

Another factor is the size of your investment.  I would not choose 100% equity for a time period as potentially short as 10 years for money that really matters.  If you are talking about a £10K lump sum that you could otherwise keep as cash  in a fixed term account whatever you choose won't be life changing and wont make a significant difference.  Just don't do anything stupid, which you aren't planning to do anyway. However if you are talking about a £M inheritance I suggest you seek professional advice.

Interesting! What is the ideal asset allocation for a 10 year period kept in an Isa, with High med/high risk appetite? As of yet not needing this money, do have a cash reserve. Also, appreciate your advice on being cautious.

mears1

ChilliBob said:

Look at the banker on wheels website which shows the comparison quite well. Basically the latter is more complete. More expensive though. Personally I went with the former, and Fidelity world P. 

I'd avoid the - UK one, the consensus seems to be the UK isn't doing too bad for a change, so perhaps its fate has turned a corner for a while.

If minimising fees and maximising coverage the veve + slice of EM is the way to go. You'll need to factor in rebalancing though to stick to your chosen ratio. 

When you say "I'd avoid the - UK one," Are you referring to option 3.Vanguard Ftse developed world ex uk  combined with Ftse UK all sharetracker (?10%)? 

And is there a typo in "I'd avoid the - UK one, the consensus seems to be the UK isn't doing too bad for a change, so perhaps its fate has turned a corner for a while"? For me if the UK isn't doing too bad, why should we avoid UK? We should be gravitating towards it!

eskbanker

mears1 said:

And is there a typo in "I'd avoid the - UK one, the consensus seems to be the UK isn't doing too bad for a change, so perhaps its fate has turned a corner for a while"? For me if the UK isn't doing too bad, why should we avoid UK? We should be gravitating towards it!

Presumably "the - UK one" is meant to be read as 'the minus UK one', although it would be more typical to use the 'ex UK' terminology for this....

CheekyMikey

mears1 said:

ChilliBob said:

Look at the banker on wheels website which shows the comparison quite well. Basically the latter is more complete. More expensive though. Personally I went with the former, and Fidelity world P. 

I'd avoid the - UK one, the consensus seems to be the UK isn't doing too bad for a change, so perhaps its fate has turned a corner for a while.

If minimising fees and maximising coverage the veve + slice of EM is the way to go. You'll need to factor in rebalancing though to stick to your chosen ratio. 

When you say "I'd avoid the - UK one," Are you referring to option 3.Vanguard Ftse developed world ex uk  combined with Ftse UK all sharetracker (?10%)? 

And is there a typo in "I'd avoid the - UK one, the consensus seems to be the UK isn't doing too bad for a change, so perhaps its fate has turned a corner for a while"? For me if the UK isn't doing too bad, why should we avoid UK? We should be gravitating towards it!

I deliberately moved into the ex UK fund with Brexit as I didn’t fancy the UK until I saw how things went. It was just simpler to add a separate UK fund when I wanted more exposure than finding a global fund with increased UK content.

mears1

Is my conclusion that now excluding UK might be a good idea, with the sinking pound?

As VEVE pays its pays dividends in dollars, might Veve be negatively affected?

tebbins

mears1 said:

Is my conclusion that now excluding UK might be a good idea, with the sinking pound?

As VEVE pays its pays dividends in dollars, might Veve be negatively affected?

The £ is not "sinking", it is down 7% vs the $ ytd and flat against the euro.
There is almost zero correlation between the £ and the UK stock market, but this is a common assumption so the (unsubstantiated) premise of the falling £ is not a sound reason to exclude UK equity from your portfolio (https://youtu.be/TjbQuA5ibgA).

Veve being $-denominated and paying dividends in $ has nothing to do with anything, it's just a currency the dividends are converted into before being paid to you, unless the dividends were already paid in $. Even if it did work the way you think it does, and you think the £ is sinking, the dividends being paid in $ would be preferable.

masonic

mears1 said:

Is my conclusion that now excluding UK might be a good idea, with the sinking pound?

As VEVE pays its pays dividends in dollars, might Veve be negatively affected?

It pays dividends in dollars because most of its assets are in dollars. If you want to avoid exposure to the dollar or currency risk more generally, an unhedged global tracker is not for you.

ChilliBob

My bad, yes, I am suggesting that now is *not* the time to shun the UK. I appreciate the comment wasn't entirely clear, I'm often posting when I get a quick moment between a billion other things!