Which Vanguard Fund

pd164

Looking to invest some money for my 2 kids and debating between VG LS100 or VG Global All Cap (VAFTGAG). Will be invested for at least 10-15 years. 

Thoughts appreciated. 

Olivia2018

My brother in law is a financial advisor, around 6 months ago he suggested I take out two JISAS for my kids 5 and 8 years old, with a view to investing it for around 10 years. He recommended the vanguard Life Strategy 100 fund so we went with that for both of them. I can’t give you any info around the other one sorry

dunstonh

 VG LS100 or VG Global All Cap (VAFTGAG). Will be invested for at least 10-15 years.

100% equities for a medium term period of 10-15 years is high risk.  However, you probably know that.

VLS100 is the odd one out in the VLS range.   The rest are multi-asset funds but VLS100 is a global managed fund.

The all cap tracker invests to match market cap.  VLS100 has managed decisions to go overweight in UK equity.

So, it really boils down to whether you think the UK is going to be better than the rest of the world, so you want to overweight it in VLS100 or stick to market cap with the tracker.

Bostonerimus1

It really doesn't matter which one you choose. The key is to keep contributing regularly and don't mess around with it. If you are having a hard time choosing do a 50/50 split.

thunderroad88

Neither…put it in HSBC Ftse All World C

leosayer

My reasons for preferring funds like VAFTGAG ie. market-cap weighted non-hedged global equity index tracker:

• It is the most diverse equity fund with over 7,000 holdings including small cap companies and emerging. Whether this makes a material difference to performance is doubtful but you can achieve almost identical exposure and cheaper fees via VWRP or the previous mentioned HSBC fund.
• If the UK stock market does badly then it will probably be bad for me in other ways too eg. higher taxes, higher inflation, worse exchange rate etc. All those international holdings should act a hedge against that.
• After decades of investing, I've come to realise that I am pretty crap at predicting market movements so I now refuse to take a bet on any one country over another. Therefore the VS range is out of contention.

GeoffTF

Both of the options considered here are expensive. VEVE (and it accumulating equivalent) are much cheaper. You can add a market weight of VFEM (or its accumulating equivalent) if you want Emerging Markets exposure. These options do not include the small companies, but that is not likely to matter much. Small companies have done relatively badly in recent years. That may change, or it may not.

DRS1

If your kids are anything like me they will thank you for investing in VAFTGAG.  They will think it a huge laugh.

Then again I am the person who bought BHP Billiton because of the ticker (BLT).