Best Etfs for Diversification

Deano37

Hi everybody, I am starting to invest in etfs in my stocks and shares isa on t212, I am wanting a global portfolio with good diversity. The vanguard ftse all world etf has quite high fees so I am wanting to make one with a few seperate etfs in that has much lower fees.

I am thinking something like this

60% vanguard s&p 500
4% vanguard ftse 100
4% vanguard ftse 250
16% vanguard ftse emerging markets
16% vanguard ftse developed europe ex uk

I have used vanguard in the past and am comfortable using them that's why I chose them etfs.
What do you think of the portfolio and percentage allocation?

Also I am doing all accumulating rather than dividends. Any advice is appreciated. 

Thanks Dean

ColdIron

You've deliberately chosen to exclude Japan, Asia Pacific and mid caps? The All world ETF would provide more diversification as it includes these

Last month you posted ...

Deano37 said:

also starting to put a little money £100 a month or so towards ETFs in a stocks and shares isa.

For very small amounts like these, shaving off a few hundredths of one percent will make no difference. Creating a bespoke portfolio at these levels just isn't worth it

I would stick to your original plan of (presumably) VWRP

Deano37

ColdIron said:

You've deliberately chosen to exclude Japan, Asia Pacific and mid caps? The All world ETF would provide more diversification as it includes these

Last month you posted ...

Deano37 said:

also starting to put a little money £100 a month or so towards ETFs in a stocks and shares isa.

For very small amounts like these, shaving off a few hundredths of one percent will make no difference. Creating a bespoke portfolio at these levels just isn't worth it

I would stick to your original plan of (presumably) VWRP

Your right I am missing them off and should certainly be there, wanted a bit more exposure to US and ftse 250 aswel as rest if the world. Was just looking at costs etc Might be best to just Invest in the one fund as you say. I have noticed a lot of people have seperate funds in there portfolio as was thinking it may be better but maybe not. I I going to be adding few hundred a month I imagine them once moved home maybe 500-1000 monthly and was just wanting best option.

I am going to look at the all world and see exactly where and what is in the fund.

Still not looked into aviva pension and seen what the best funds are in there platform but that is for another question.

Thanks dean

aroominyork

Why ETFs? Any special reason? HSBC FTSE All-World Index charges 0.13% and, depending on your platform, OEICs can be cheaper than ETFs to trade.

root

aroominyork said:

Why ETFs? Any special reason? HSBC FTSE All-World Index charges 0.13% and, depending on your platform, OEICs can be cheaper than ETFs to trade.

I use ETFs in HL as they are far cheaper vs the HL fees for funds.

masonic

aroominyork said:

Why ETFs? Any special reason? HSBC FTSE All-World Index charges 0.13% and, depending on your platform, OEICs can be cheaper than ETFs to trade.

Trading212 is a stock broker. It doesn't offer non-exchange listed products.

Millyonare

Trading 212 has become rubbish in the past year. They ditched real-time stock pricing and ramped up their stealth prices.

InvestEngine is a much (much) better app for ETFs, imv.

wmb194

Millyonare said:

Trading 212 has become rubbish in the past year. They ditched real-time stock pricing and ramped up their stealth prices.

InvestEngine is a much (much) better app for ETFs, imv.

What stealth pricing have you noticed? 

Deano37

I will have a look at invest engine next year for my isa as have read good things. So you think it is more beneficial having 1 all world etf over having a portfolio and trying to make your own ?

Thanks dean

artyboy

Quite interested in this discussion as I've started looking at ETFs as an alternative to funds, given the opportunity to save on platform charges - that said I've yet to spot obvious equivalents for 2 of the more frequently mentioned global diversified funds on here - Vanguard Global All Cap, and HSBC FTSE All World. 

Vanguard has the VWRL etf but it has half the holdings, no smaller cap, and (presumably for those reasons), a higher internal risk rating than the All Cap fund.

Not spotted an HSBC equivalent. Am I missing any other options...?

wmb194 said:

Millyonare said:

Trading 212 has become rubbish in the past year. They ditched real-time stock pricing and ramped up their stealth prices.

InvestEngine is a much (much) better app for ETFs, imv.

What stealth pricing have you noticed? 

On that point, I've read other threads here suggesting that the 'free' trade platforms make it back through wider bid/offer spreads - any truth in that?

DavidT67

Invesco has FTSE All-World ETF with OCF of 0.12%, if you can find a broker which lists it.

HSBC has a MSCI World ETF at 0.15%.

 

No UK brokers can't widen the spread.  However InvestEngine uses delayed bulk trades and T212 uses internal trade matching, so pricing isn't always instant or known in advance.

Plus with T212, InvestEngine and FreeTrade you should consider what impact the current HMRC investigation into the eligility of fractional shares within ISAs will have on them and/or you.