Cheap global index funds

BowerBadgers

What does everyone think of the idea of using cheap global index trackers for most of your investments, as suggested by the Donegans of the Rebel Finance School - ie Vanguard Developed World ex UK and FTSE Global All Cap?

aroominyork

Most people might think that's a good idea, but most people might also think that excluding the UK and emerging markets is not really a global fund.

Hoenir

Never ever heard of the "Donegans of the Rebel Finance School". Immediately makes me wary. 

Beddie

Fine, if you're happy to be 100% equities - that is considered to be high up the risk scale.

Probably better for those with a very long time horizon, but I like to have bonds in the mix too.

Bostonerimus1

There's nothing rebellious about using low cost global equity index funds as the core of your portfolio with the percentage allocation being set according to your circumstances: Bogleheads, and many others, have been doing that for half a century. If you are young and have say 40 years until retirement or if you are retired with sufficient SP and DB pensions to cover your spending you might have 100% global equity index funds. I've been at least 60% global index equites since 1991 so I think it's not a bad idea.

Eyeful

Never heard of this school.
To answer your question
1. First watch this:   https://www.kroijer.com/
2. Now consider Low cost passive Global Index Fund or ETF. Example:  VWRL
https://monevator.com/best-global-tracker-funds/
3. More risk control ,consider a low cost passive Global Multi Asset Fund at a share/bond split you are happy with. Example: https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced
https://monevator.com/passive-fund-of-funds-the-rivals/

MX5huggy

I’ve no idea who these people you mention are, but yes I use VHVG. Global inc UK, no EM so cheap. 

Mikeeee_2

I have 85% of my pension in VEVE (the ACC version of VHVG) at 0.12%
5% in the Vanguard Emerging Markets fund
10% money market fund for any dip opportunities.

This way I can control my own EM exposure and lower the costs.

MX5huggy

Mikeeee_2 said:

I have 85% of my pension in VEVE (the ACC version of VHVG) at 0.12%
5% in the Vanguard Emerging Markets fund
10% money market fund for any dip opportunities.

This way I can control my own EM exposure and lower the costs.

VEVE is the the income version not the accumulation version VHVG is the accumulation version. 

VHVG used not to be available on Vanguards platform so I used to have VEVE but swapped to VHVG (it’s in an ISA so I don’t need to track income) that saves having to buy after dividends payed out. 

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ucits-etf-usd-distributing/overview

DrSyn

They are only repeating what many well known investors have been advising people to do for many years:
People such as:-
Jack Bogle (who started Vanguard)
Warren Buffett (The Oracle of Omaha)
Lars Kroijer ( former Hedge Fund Manager) 

Use a passive low cost Global Index Tracker Fund or ETF. 

thunderroad88

I think for the equity portion of your overall pf, having a developed world index fund forming the vast majority of that portion is a great idea, I’d favour Fidelity World P for that. I’d then have some emerging markets exposure but not a blanket EM fund as it will contain countries I don’t want e.g. China. I’d look at having a few selected country funds such as India and Vietnam to potentially provide a bit of EM pop, but that would require a little research and monitoring which might be both too non passive and too risky for some. If it is then just having Vanguard Global All Cap or HSBC Ftse All World as your only equity investment is perfectly fine.