advice on regular payments into a SIPP please

MallyGirl

sadexpunk said:

well ive just gone for 2 ETFs initially, the HMWO and FTWG.  havent decided on the other yet.  just looking at my portfolio now...... have i really just lost around £400 in a matter of seconds??

Yes, but it could go the other way tomorrow. Checking it daily is the route to madness - step away from the portal.

sadexpunk

MallyGirl said:

sadexpunk said:

well ive just gone for 2 ETFs initially, the HMWO and FTWG.  havent decided on the other yet.  just looking at my portfolio now...... have i really just lost around £400 in a matter of seconds??

Yes, but it could go the other way tomorrow. Checking it daily is the route to madness - step away from the portal.

haha ok.  i didnt realise they could be THAT volatile, in just a matter of a few seconds :-)

incus432

Are those not both Distributing ETF? I thought you wanted Acc?

sadexpunk

incus432 said:

Are those not both Distributing ETF? I thought you wanted Acc?

yes both ETFs.  i read the thread again and thought theres no real difference between ETFs and OEICs, so thought id do a mixture.  thats just over half my balance, so will probably choose 2 x accs to go into the mix too.

EDIT:  just had a nasty thought..... accs will plough money back into the funds yes, will ETFs not do that?  will i need to faff around a bit more with them?   shows how clueless i am doesnt it :-)  i just want to invest and forget about it for a few years.

incus432

There are both Dis and Acc ETFs - you seem to have bought Dis by mistake.  It means you will now get cash dividend payments into your account and have to arrange to reinvest. Not a disaster but not what you wanted

Eg

VANGUARD FTSE DEVELOPED WORLD UCITS ETF (VEVE) is DIS

VANGUARD FTSE DEVELOPED WORLD UCITS ETF (VHVG) is ACC

Some providers/platforms only do Dis versions, some offer both

sadexpunk

bloody donut, exactly what i was fearful of, investing in the wrong funds :-/ 

LHW99

sadexpunk said:

incus432 said:

Are those not both Distributing ETF? I thought you wanted Acc?

yes both ETFs.  i read the thread again and thought theres no real difference between ETFs and OEICs, so thought id do a mixture.  thats just over half my balance, so will probably choose 2 x accs to go into the mix too.

EDIT:  just had a nasty thought..... accs will plough money back into the funds yes, will ETFs not do that?  will i need to faff around a bit more with them?   shows how clueless i am doesnt it :-)  i just want to invest and forget about it for a few years.

You are confusing two things:

1) ETF vs OEIC - Both are funds, but there are certain differences in how they work. eg ETF's can be bought like shares, ie in real time, whereas OIEC's are usually traded once per day. Platform costs may be different depending which type you choose.

2) Acc vs Inc (or distributing), usually available for either fund type. Acc funds mount up any dividends within the fund, resulting in a (hopefully) increasing unit price. Inc funds pay the dividends out, often into the account the fund is in, but they can be paid away to your current account, in some cases. In a tax-free environment (Isa / SIPP) acc funds are fine unless you need the dividends. With inc funds you do have a choice whether to put the dividends into the same fund, or use them to rebalance into a different fund.

sadexpunk

LHW99 said:

You are confusing two things:

oh im confusing lots of things mate, i told you i was a financial doofus didnt i

should have just chucked it all into that one HSBC acc fund.....

incus432

sadexpunk said:

MallyGirl said:

sadexpunk said:

well ive just gone for 2 ETFs initially, the HMWO and FTWG.  havent decided on the other yet.  just looking at my portfolio now...... have i really just lost around £400 in a matter of seconds??

Yes, but it could go the other way tomorrow. Checking it daily is the route to madness - step away from the portal.

haha ok.  i didnt realise they could be THAT volatile, in just a matter of a few seconds :-)

The advice not to check in too often is good but I dont understand that loss

sadexpunk

we-ell, the figures are the figures i suppose.  i do want to invest and forget tho, so at some point im going to have to sell and buy different which will be an extra level of faff.  so im actually in a worse position than earlier now