Vanguard ETF diversification questions

clt1979

Hi, I have for one reason or another ended up with the following and wondered what people’s thoughts are (should I change some potentially)?

In my pension which I started only a few years ago I have most in the VLS80 and about 20% in the VLS100. I was thinking about putting £250 a month in each? Is it silly to have both and pay two lots of fees?

Then my ISA is VLS100 and a bit in emerging markets accumulation and then some in FTSE global all cap. The thing with these is that I’m only adding to these every now and then as I believe it’s £100 min trade each time for them all? So mainly wondering if it’s still ok to have this many with the fees plus not always paying in like my pension? Thanks in advance.

GeoffTF

It is rather pointless. You could save money and trouble by using just VLS80, VLS100 or the FTSE global all cap. They all cost about the same. I expect that you could save more money by using cheaper funds, but that would either involve more work or straying from Vanguard.

clt1979

GeoffTF said:

It is rather pointless. You could save money and trouble by using just VLS80, VLS100 or the FTSE global all cap. They all cost about the same. I expect that you could save more money by using cheaper funds, but that would either involve more work or straying from Vanguard.

So if it were you (staying with Vanguard). Would you sell one of the VLS80/100 and put into one for the pension? Then also, put the three ISA funds into one only also? If so, which one and why?

GeoffTF

If you have a big risk appetite, it would make sense to use only VLS100 in both the ISA and the pension. If you have a lower risk appetite, it would make sense to use only VLS80 in both the ISA and the pension. If the pension is the longer term investment, it might make sense to use only VLS80 in the ISA and only VLS100 in the pension. Only you can decide how much risk you want to take.

Qyburn

None of these are ETFs are they?

Albermarle

Qyburn said:

None of these are ETFs are they?

No they are OEICS.

OP - The charges on these funds are a % of the fund, and the charges are all similar.
So from a charging point of view it does not matter if you have one fund with £10K in it, or 10 funds with £1K each 

clt1979

Albermarle said:

Qyburn said:

None of these are ETFs are they?

No they are OEICS.

OP - The charges on these funds are a % of the fund, and the charges are all similar.
So from a charging point of view it does not matter if you have one fund with £10K in it, or 10 funds with £1K each 

Ah, thanks, was actually just looking the way all the fees worked this morning. I suppose the main question is, am I better off only having one fund for a pension and one for my ISA so I’m continually adding to them each month? Or having a few funds in each but not always adding to some of them?

GeoffTF

It does not really matter, but there is no point in complicating matters.