Vanguard LS fund for income

MarcoM

Hello, I was wondering if any of the Vanguard LS ETF funds are any good for income. How do people deal with this type of fund in terms of drawing an income? Do they do so on a drawdown basis?

Thanks

dunstonh

If you are using yield as the investment strategy to provide income, then no, they are not (unless you have a low yield need).   If you are using total return and sale of units to fund withdrawals, then they meet that need (noting the usual VLS limitations of home bias and daily rebalancing on the fund version).

ColdIron

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

MarcoM

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

dunstonh

MarcoM said:

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

They probably have the largest range of bond funds of any fund house, in OEIC form.

Any reason you are wedded to Vanguard?  I find their bond funds (apart from UK gilts) are good but their equity funds not so good relative to other trackers from other fund houses.

rich06

MarcoM said:

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

VAGS?

Global Aggregate Bond UCITS ETF - GBP Hedged Accumulating (VAGS)

Sorry, I can't post links yet
 

GeoffTF

MarcoM said:

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

Yes, lots of them. Nonetheless, since you are asking these questions, I suggest that you just stick to VLS. The yield is irrelevant. When an investment pays a dividend, the capital value falls by the value on the ex-dividend date, so you are withdrawing capital anyway. If the yield is not enough, just sell some units. Obviously, if you draw too high an income, you will eventually run out of money, but that is another matter.

MarcoM

dunstonh said:

MarcoM said:

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

They probably have the largest range of bond funds of any fund house, in OEIC form.

Any reason you are wedded to Vanguard?  I find their bond funds (apart from UK gilts) are good but their equity funds not so good relative to other trackers from other fund houses.

I have holdings with other brokers and would rather spread the lot amongst them rather than focus on only one i.e. HL

MarcoM

GeoffTF said:

MarcoM said:

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

Yes, lots of them. Nonetheless, since you are asking these questions, I suggest that you just stick to VLS. The yield is irrelevant. When an investment pays a dividend, the capital value falls by the value on the ex-dividend date, so you are withdrawing capital anyway. If the yield is not enough, just sell some units. Obviously, if you draw too high an income, you will eventually run out of money, but that is another matter.

when you say I should stick with VS do you mean with the accumulation OEICs?
I like vanguard and has served me well for years however now I would like to move to a more regular income generating portfolio.

ColdIron

MarcoM said:

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

Plenty, the LifeStrategy itself contains the following:

Vanguard Global Bond Index (Hedged GBP)
Vanguard UK Government Bond Index
Vanguard UK Investment Grade Bond Index
Vanguard ETFs Global Aggregate Bond UCITS ETF (GBP) Hedged
Vanguard UK Inflation Linked Gilt Index

The largest is the Global Bond Index

https://www.vanguardinvestor.co.uk/investments/vanguard-global-bond-index-fund-gbp-hedged-dist/overview

Be aware though that, like equities, not all bonds are equal which is why Vanguard use several. So you would be into managing a portfolio yourself, something that multi-asset funds do for you. Does it have to be Vanguard?

As dunstonh says there are several strategies for income, plain yield, total return and periodic sales etc

GeoffTF

MarcoM said:

GeoffTF said:

MarcoM said:

ColdIron said:

The Vanguard LifeStrategy available to UK investors is a OEIC not an ETF and doesn't have a very high yield. There are precious few multi-asset ETFs

You could look at Vanguard's FTSE All-World High Dividend Yield UCITS ETF (VHYL), 100% equities, and marry it with another bond ETF/OEIC

does vanguard have a bond ETF/OEIC at all?

Yes, lots of them. Nonetheless, since you are asking these questions, I suggest that you just stick to VLS. The yield is irrelevant. When an investment pays a dividend, the capital value falls by the value on the ex-dividend date, so you are withdrawing capital anyway. If the yield is not enough, just sell some units. Obviously, if you draw too high an income, you will eventually run out of money, but that is another matter.

when you say I should stick with VS do you mean with the accumulation OEICs?
I like vanguard and has served me well for years however now I would like to move to a more regular income generating portfolio.

The tax reporting for income units is easier out side a tax shelter, otherwise it does not matter. VLS is an income generating portfolio. Just sell units to generate an income if you have the accumulating version. What matters for the sustainability of the income is the total return and the risk. If a fund is restricted to higher yielding stocks, it reduces the diversification and increases the risk. That is not a good idea. VLS spreads the risk over the entire market.