We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Some General Advice
Comments
-
Just after some thoughts really, spit the 175k into Asia/Japan/FTSE 100/FTSE 250/Allworld/S&P 500/Europe ex UK ETF……
The use of single sector funds is often cheaper than a single global tracker. However, it requires more work. i.e. how much you allocate to each. Do you follow market cap, or an alternative benchmark or do you put your own tilts on it. Then each year, you need to adjust to keep in line with your chosen strategy.
If you are going to use single sector funds to build the portfolio, then make sure your benchmarks are consistent (i.e. dont mix and match MSCI and FTSE). Do you have the knowledge and undestanding to run a portfolio yourself?
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
Interesting stuff. I have a couple of single sector funds, the rest in global trackers. Perhaps I should consider more sector funds. How does one usually compare/benchmark?
0 -
The main issue is that in some regions, MSCI and FTSE Russell (the two main ones, but there are others) include countries or exclude countries. e.g. FTSE North American includes US and Canada, Asia pacific and emerging markets are others where the makeup is different.
So, if you building a portfolio of single sector funds to give you global coverage, then if you mix and match MSCI and FTSE Rusell benchmarked funds, you could be missing countries out or doubling up.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.8K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.2K Spending & Discounts
- 248.4K Work, Benefits & Business
- 606K Mortgages, Homes & Bills
- 179K Life & Family
- 263.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards