Vanguard ftse all world vs hsbc ftse world index

Matt_22

Can anyone offer advice on which is the best fund out of these two? I already own around 60k in the hsbc one but am looking at adding to a world index fund with another platform I use. I wondered whether to add carry on with hsbc or start with the vanguard one for diversity? Thanks for any advice 

masonic

You should be clear on which funds you are referring to. Neither fund in the thread title exists. HSBC has a FTSE All-world tracker and Vanguard has a FTSE World ex-UK tracker and a couple of ETFs tracking FTSE World and FTSE All-world.

In all cases, you'd achieve very little if any diversification by holding a mixture of these funds.

ColdIron

Define best

I think one is an ETF and the other an OEIC which may be significant to you and they have different fees

Adding the Vanguard one won't give you much in the way of diversity as they track the same index but you would be splitting across providers for what it's worth

Matt_22

Is splitting across providers worth doing incase one provider hit trouble/went bust?

Matt_22

Its hsbc ftse all world index.

ChilliBob

I'd choose the lowest fees personally if the structure doesn't matter. I believe the HSBC one will be cheaper. That and Fidelity world P make the core of my portfolio 

Matt_22

And vanguard ftse all world.

masonic

The Vanguard fund is an ETF, so you should understand the differences between this and the HSBC fund you hold before considering an investment. Both track the same index, so will be essentially identical in terms of composition.

Vanguard or HSBC would not only have to go bust, but also the billions in assets they hold in custody for their clients would also have to disappear in order for it to impact you. It's not going to happen, so the suggestion to stick with the lowest fee option is a good one.

Matt_22

Thanks I don't no the difference between an etf and the hsbc fund and google isn't clear when I have looked.it up. Could you help? I'll probably stick with the hsbc. 

Alistair31

Matt_22 said:

Thanks I don't no the difference between an etf and the hsbc fund and google isn't clear when I have looked.it up. Could you help? I'll probably stick with the hsbc. 

https://monevator.com/etfs-vs-index-funds-differences/

JohnWinder

 Vanguard or HSBC would not only have to go bust, but also the billions in assets they hold in custody for their clients

I think the custodian is the State Street Bank and Trust, from reading a prospectus. That’s where your assets would be held.
If that was your concern, you’d need to check that HSBC uses a different custodian.