What ISA 100% risk would you buy today?

Exodi

This thread seems like a joke with how it's worded. Nonetheless-

solidpro said:

I know the clever way to buy a year's worth of 100% equity-type ISA, or at least 100% high risk S&S ISA is to spread the £20k payment 12 or 52 or 250 times over a year but I just tend to plop the full amount in when the money is there, fire and forget style. I'm afraid that's how I roll. People to see, things to do, etc.

No, the clever way to invest has been shown as investing all the money you have available as soon as you can. DCA'ing is usually a symptom of peoples financial arrangements (e.g. the money coming from their monthly pay).

solidpro said:

I'm also 20+ years away from retirement, so tend to use HL or similar to invest in VLS100 or similar. Something hot to trot, but not likely to sting me after 20 years sitting there, making BIG ££££££££. Good job, can't be fired because I am my own boss and I think I'm a really great employee. Own my house. Have a 12 month stash of bullion in my pillow, incase it all goes south. I even practice drinking my 'own water' as a precaution against the bad times.

There's a lot wrong with this. HL is a infamously expensive platform (0.45% platform fee) and is generally only recommended for those holding ETF's, yet VLS100 is an OEIC. So if a global fund like VLS100 was intended to be your main investment, the obvious thing be to hold it on Vanguards own platform, at a platform fee of 0.15%.

Then there's VLS100 in general. I understand VLS20, VLS40, etc, but VLS100 (in my opinion) only exists to complete the series. It is a global index fund (well technically they classify it as an active fund because it has a large UK bias), and maintains the same high OCF of the other VLS funds which hold multiple asset types (0.22%). I'd like to hear a convincing argument why anyone would deliberately invest in VLS100, while aware that things like the HSBC FTSE All World Index exist which perform better at almost half the OCF: (https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation). If you were desperate to maintain the high UK weighting, just shove allocate 20% of your portfolio in a FTSE 100 fund or something.

eskbanker

Exodi said:

Then there's VLS100 in general. I understand VLS20, VLS40, etc, but VLS100 (in my opinion) only exists to complete the series. It is a global index fund (well technically they classify it as an active fund because it has a large UK bias), and maintains the same high OCF of the other VLS funds which hold multiple asset types (0.22%).

VLS100 isn't a global index fund, as it doesn't track an index!  It's a global equity fund though....

LHW99

masonic said:

solidpro said:

are you and @masonic  referring to this one?

Yes, that's the one.

Accumalation? Odd way to spell it, but it seems to be spelt that way on various links.

solidpro

I use Vanguard directly and HL. I used them because many people recommended them and since then many other people have told me I am absolutely off my rocker and tomorrow I'll probably read someone tell me why those two are great. Whatever I write, I'm fabulously more likely to be told I'm wrong and usually it's because I'll lose money over 20 years that adds up to what seems like a lot. But for some people a lot isn't the same a lot as others. Anyway, I've got so much to do, including writing posts like this that are too long, so I just get on with it. 

Anyway. This is a serious post. Even if it's written disseriously. Sorry about that. There are other posts available.

Anyway again. So I should only buy vanguard funds from vanguard even though they could go bust but will probably never go bust and the £85k protection is really useful except when it's with a financial company that is really reliable. Except until the day it isn't?

Exodi said:

No, the clever way to invest has been shown as investing all the money you have available as soon as you can. DCA'ing is usually a symptom of peoples financial arrangements (e.g. the money coming from their monthly pay).

I've got this secret forumula where I manage to time the market and have time in the market and your suggestion really doesn't sit right. Even despite what I initially said about doing exactly what you said which is now, it seems, the clever way to invest.

Exodi said:

There's a lot wrong with this. HL is a infamously expensive platform (0.45% platform fee) and is generally only recommended for those holding ETF's, yet VLS100 is an OEIC. So if a global fund like VLS100 was intended to be your main investment, the obvious thing be to hold it on Vanguards own platform, at a platform fee of 0.15%.

And in English? You're saying it's .45% more than using Vanguard directly? I'll let you into a secret. I don't know what an ETF is. I don't know what an OEIC is. I suspect it's an oil producing country?

Exodi said:

Then there's VLS100 in general. I understand VLS20, VLS40, etc, but VLS100 (in my opinion) only exists to complete the series. It is a global index fund (well technically they classify it as an active fund because it has a large UK bias), and maintains the same high OCF of the other VLS funds which hold multiple asset types (0.22%). I'd like to hear a convincing argument why anyone would deliberately invest in VLS100, while aware that things like the HSBC FTSE All World Index exist which perform better at almost half the OCF: (https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation). If you were desperate to maintain the high UK weighting, just shove allocate 20% of your portfolio in a FTSE 100 fund or something.

I actually own 52% VLS60 and 48% VLS100 which is my own secret thing I like to boast about called my own private hybrid VLS79. I hope that makes sense.

Our VLS100 has done better than VLS80 with the same amount of money over the same amount of time. That's why I've bought VLS100. I don't really know, care, understand, care, get, believe, wonder, or want to spend any more time on working out why it shouldn't exist.

Cus

For 10/10 risk I would put it in the VanEck Space Innovators ETF.  The future is out in space!

masonic

LHW99 said:

masonic said:

solidpro said:

are you and @masonic  referring to this one?

Yes, that's the one.

Accumalation? Odd way to spell it, but it seems to be spelt that way on various links.

Haha, I guess it's a kids' way of reinvesting income.

thegentleway

solidpro said:

I even practice drinking my 'own water' as a precaution against the bad times.

I hope that's a joke 

Exodi

eskbanker said:

Exodi said:

Then there's VLS100 in general. I understand VLS20, VLS40, etc, but VLS100 (in my opinion) only exists to complete the series. It is a global index fund (well technically they classify it as an active fund because it has a large UK bias), and maintains the same high OCF of the other VLS funds which hold multiple asset types (0.22%).

VLS100 isn't a global index fund, as it doesn't track an index!  It's a global equity fund though....

Come on, I even followed that sentence up by saying it is classified as an active fund, so it's a bit harsh to still hit me with the 'Ackchyually' like that.

VLS100 is a fund entirely made up of index funds. Index-ception, if you will. Of course it's technically not an index fund because Vanguard could theoretically decide one day that they no longer want the FTSE UK All Share Index component to be 20% but 50% instead (though it's been 20% since I can remember).

Rather than split hairs, it is certainly a global equity fund which has a lot of similarities to many global index fund (sans the high UK bias).

solidpro said:

Anyway. This is a serious post. Even if it's written disseriously. Sorry about that. There are other posts available.

Anyway again. So I should only buy vanguard funds from vanguard even though they could go bust but will probably never go bust and the £85k protection is really useful except when it's with a financial company that is really reliable. Except until the day it isn't?

Don't get me wrong, I'm a fan of the the writing style, it's entertaining!

I'm pretty sure though (and someone will correct me if I'm wrong) that the FSCS £85k protection isn't relevant to investments and that a company being insolvent has no bearing on your ownership of shares. So you could own £1M in investments and sleep easy (though I've no doubt it would be an administrative nightmare).

solidpro said:

Exodi said:

There's a lot wrong with this. HL is a infamously expensive platform (0.45% platform fee) and is generally only recommended for those holding ETF's, yet VLS100 is an OEIC. So if a global fund like VLS100 was intended to be your main investment, the obvious thing be to hold it on Vanguards own platform, at a platform fee of 0.15%.

And in English? You're saying it's .45% more than using Vanguard directly? I'll let you into a secret. I don't know what an ETF is. I don't know what an OEIC is. I suspect it's an oil producing country?

No, HL charges you 0.45% of the value of your investments every year for the courtesy of using their platform (they also charge you separate fees depending on the investments you choose). Vanguard charges 0.15% (but they only offer their own funds). Those intending to hold Vanguard funds might consider choosing the Vanguard platform as it saves them 0.3% in annual charges every year. E.g. on £100k, it's £300. There is an exception to this rule with things called ETF's on HL but I'll leave that as a bit of bedtime reading if you get bored.

solidpro said:

Exodi said:

Then there's VLS100 in general. I understand VLS20, VLS40, etc, but VLS100 (in my opinion) only exists to complete the series. It is a global index fund (well technically they classify it as an active fund because it has a large UK bias), and maintains the same high OCF of the other VLS funds which hold multiple asset types (0.22%). I'd like to hear a convincing argument why anyone would deliberately invest in VLS100, while aware that things like the HSBC FTSE All World Index exist which perform better at almost half the OCF: (https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation). If you were desperate to maintain the high UK weighting, just shove allocate 20% of your portfolio in a FTSE 100 fund or something.

I actually own 52% VLS60 and 48% VLS100 which is my own secret thing I like to boast about called my own private hybrid VLS79. I hope that makes sense.

Our VLS100 has done better than VLS80 with the same amount of money over the same amount of time. That's why I've bought VLS100. I don't really know, care, understand, care, get, believe, wonder, or want to spend any more time on working out why it shouldn't exist.

The hybrid VLS79 sounds interesting!

Equities outperforming bonds is to be expected. We talk about the odd existence of VLS100 quite often, but if it works for you that's great. If you ever do decide to re-look at your portfolio, I'd at least give a think to some of the other global equity funds offered - e.g. FTSE All World, Global All Cap, etc.

eskbanker

Exodi said:

eskbanker said:

Exodi said:

Then there's VLS100 in general. I understand VLS20, VLS40, etc, but VLS100 (in my opinion) only exists to complete the series. It is a global index fund (well technically they classify it as an active fund because it has a large UK bias), and maintains the same high OCF of the other VLS funds which hold multiple asset types (0.22%).

VLS100 isn't a global index fund, as it doesn't track an index!  It's a global equity fund though....

Come on, I even followed that sentence up by saying it is classified as an active fund, so it's a bit harsh to still hit me with the 'Ackchyually' like that.

VLS100 is a fund entirely made up of index funds. Index-ception, if you will. Of course it's technically not an index fund because Vanguard could theoretically decide one day that they no longer want the FTSE UK All Share Index component to be 20% but 50% instead (though it's been 20% since I can remember).

Rather than split hairs, it is certainly a global equity fund which has a lot of similarities to many global index fund (sans the high UK bias).

Seems I touched a nerve, but the context of the original quote above was your comparison of VLS100 with HSBC FTSE All World Index, so, as well as looking at relative OCFs, it's perfectly valid to highlight differences, such as the fact that one of these is an index fund and the other isn't, as well as similarities.

solidpro

Ok. Picture the scene. I've put up a picnic table. I've supplied everything. It's all there. At one end of the table, there are soft cakes, pies, rotten fruit - soft stuff and the like. Towards the middle we have pointed sticks, very very small stones and wasps and then towards the other end there are heavy rocks and pointed language. You have access to the entire table. Everything is yours. 

In the distance I have stung myself up against a massive thatched target. I can't do anything but await my pennance or praise.

I HIT you with one statement. I'm going to put in a full ISA allowance on 1st July 2024 and I'm going use HL.co.uk to put:

50% into L&G developed world ETF
50% into Mexico

My whole year's allowance. Gone. Like that. Not a single drip drip. You can hardly believe what I've said because you either have to use the table or you want to kiss both my cheeks and nod in agreement.

What do you do?