Swapping VLS100 for a Global Tracker?

mageliken

A little background. 34 years old and my current holdings are:

S&S iSA VLS 80 - £6k
S&S iSA VLS 100 - £22k
Cash (~5%) - £25k
Pension various Dimensional funds - £55k

I will have to either pay-off or remortgage £25k in a couple of years. My biggest issue is needing to increase my income, however I come to the forum to ask about my VLS investments which I hold with CSD.

My intention is to transfer my CSD holdings to iWeb to save the 0.35% platform fee. Before I do this it has made me consider my holdings.

I am tempted to move all (or part of?) my VLS holdings to the HSBC FTSE All World index, for lower fees and from my understanding not too much difference (save for loss of UK home bias). I may hold the VLS 80 back, or do something else with it, for an emergency fund if my cash holdings will be spent on paying off the mortgage in a couple of years.

Does this seem like a reasonable step / are there other options that I should consider?

dunstonh

I am tempted to move all (or part of?) my VLS holdings to the HSBC FTSE All World index, for lower fees and from my understanding not too much difference (save for loss of UK home bias).

Effectively its market cap vs active decisions to change the weightings away from market cap.

If you like Vanguards management decisions, you stick with that.  If you prefer market cap and the FTSE all world index as an investment style then you switch to that.

Hoenir

mageliken said:

save for loss of UK home bias

The only real bias is the market on which the company holds it's primary listing.  Where it's Golden plate is situated. Overweighting the US might not be the way to go. 

eskbanker

Hoenir said:

mageliken said:

save for loss of UK home bias

The only real bias is the market on which the company holds it's primary listing.  Where it's Golden plate is situated. Overweighting the US might not be the way to go. 

Companies frittering money on golden plates, rather than the traditional brass ones, are probably best avoided!

DietIrnBru

Why do you have a VLS 80 and 100? In the scheme of things, theres hardly a difference to be had - just duplication and more fees.

If you do sell your funds to switch to HSBC just be mindful you are buying a lump sum in a new fund - which may take a few years to even out ifyou happen to buy at a high or a low - avoid the urge to micro manage.

If you are planning to use the 25K cash in the next few years - then you'd best start saving up a new lump sum now with a boring regular saver - I'd be inclined to leave your investments invested.

eskbanker

DietIrnBru said:

Why do you have a VLS 80 and 100? In the scheme of things, theres hardly a difference to be had - just duplication and more fees.

Not necessarily more fees, unless buying into both concurrently and incurring extra transaction costs (but even then it's not hard to alternate to avoid additional expense)?