Moving from one global tracker to another

Pat38493

leosayer said:

I had the same conversation with a friend a few weeks ago who, like the OP, had notice the relative difference in performance between these two funds - he also holds the Vanguard tracker. He was driven by the superior performance of the L&G fund and was prepared to buy on that basis even though it wasn't a natural global index tracker due to the lack of UK exposure.

There's nothing wrong with re-examining the fund market and seeing if better products have appeared that better meet your objective regarding exposures, fees, index tracked etc. but in my opinion, favouring one country or region over another is something that's best left to people other than retail investors.

The naming of the L&G fund is not helpful here. It should say 'ex-UK'.

What interesting is that if I follow the method for fund screening that is on the training video I was watching, using the Morningstar fund screener, when looking for a global fund, nearly all the funds that are at the top of the shortlist are "global ex-UK".

Maybe I should've listened to myself a year or two back when I posited that I should de-invest from everything related to the UK  

Of course as everyone is pointing out this could go the other way in future.

Gary1984

There is an argument to say you should invest in ex-UK funds not because returns will be better but to offer better diversification. You're already heavily concentrated in the UK if you own a house and other assets in the UK, have Sterling in the bank, have a career in the UK etc.