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Following Passive Investing
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What process would you follow to choose which fund to buy for this index?
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There's a current thread on that very subject:
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I also meant ETFs are not definitely among the lowest cost securities. The lowest cost is probably something like a cash savings account or ISA (negative cost if cashback/incentives included).. but they form a very different role to equities.
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MSCI ACWI (Morgan Stanley Capital Investment All Country World Index) is an global equity index used to track a large percentage of the World's stock markets. Many companies sell ETFs and funds that track that index. So you would but a fund from someone like iShares or State Street. I searched on ACWI on Hargreaves and Landsdown and came up with a number of ETFs one of which was a SPDR (Standard and Poor's Depository Receipt) from State Street with the ticker ACWI.
This all just goes to show the layers of BS acronyms…I won't explain that…that the finance industry uses. Any fund/ETF that tracks one of the global equity benchmarks from MSCI, FTSE etc will be just fine in your portfolio.
And so we beat on, boats against the current, borne back ceaselessly into the past.1 -
Throw a dart. Seriously any fund from a reputable company that tracks one the the major global equity indexes will be ok. Maybe just go with the least expensive. In the world of index trackers you get what you don't pay for.
And so we beat on, boats against the current, borne back ceaselessly into the past.1 -
Make sure that ETFs are denominated in GBP. Make sure that they have Reporting Status if you are going to use them outside a tax shelter.
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My usual process for ETFs (and I prefer exchange traded instruments due to caps on platform fees) is to apply whatever geographic etc filters I want, sort in ascending order of fees and work my way down the list looking for a decent fund size, suitable domicile, Acc/Inc and then drill down into the details for the best 2-3 options. I skip over those I don't like the look of for whatever reason. It does not need to be a massive job, and rarely to I go with the absolute cheapest. I have been known to go with the most expensive due to it tracking a better quality index.
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It is also worth noting that Ireland's tax treaties are as good as the UK's but Luxenbourg's are not. Be careful that you understand the withholding tax implications of selecting Luxembourg domiciled funds. It will matter for some funds, but not for others.
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Some Stocks, shares show Accumulating, then others have Yield; is there 1 of these that is the better choice for profits?
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They both provide the same return.
I always go with income units as its cleaner. However, the platforms I use don't charge for reinvesting income. Some platforms do.
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.0
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