Vanguard FTSE Developed World ex-U.K. Equity Index Fund GBP Acc YTD

k6chris

Looking at adding some ex-UK, world wide large equity to my SIPP portfolio.  I note the above fund is down less tha 10% YTD.  Is that (smaller than I would have expected fall) simply because of the decrease in value of GBP vs USD?

Thanks

Albermarle

Yes , the strong dollar has meant UK investors in these types of investments have been shielded from some of the market drop .

Linton

It rather depends on the basis of your expectations.  I dont believe that particular fund is significantly different  with respect to the £/$ rate to any other broadly diversified globa large company equity fund and has not behaved very differently either.

The high point before the recent fall was at the start of December 2021 and since the start of June prices have risen somewhat so YTD is an under-estimate of the total fall.

From a quick check of various funds the main factor seems to be the value vs growth ratio. Large company global index funds  have a higher value % than many other funds and growth shares have been particularly badly hit in the fall.  I expect that most small investors for the past 10 years have strongly favoured growth over value and so have suffered accordingly.