Investing more in the UK

ShinyStarlight1

Hello All

I’ve been thinking that I’d like to lessen the amount of my money that’s invested in the US, and increase the amount that’s invested in the UK. I’m motivated by my values, and realise it will most likely cost me financially.

Can anyone suggest where I might move my money to?

Most of my £ is currently in VWRP. I’m not an experienced investor so am likely to favour a simpler option rather than ones that are highly sophisticated, though I’m open to learning.

Worried_fool

Personally, I have been avoiding the USA for the last year or so. I am motivated purely by self-interest: US markets are at historically high levels (when you compare share prices with earnings and with earnings over a five-year period, the measures known as P/E and CAPE) and many commentators suggest that this situation is unsustainable and likely to be followed by a correction. So I do not believe that your decision is likely to "cost you" financially.

Your choice of investment, even within the UK, depends on your objective and your feeings about risk. Note that Gilt yields are at unusually high levels, so you could lend money to HM government with zero risk and earn more than five per cent, or choose index-linked gilts so that you would be protected from inflation. You could buy an ETF that tracks the FTSE 100 and so invest in the largest companies listed in London, although most of these companies operate mainly outside the UK. You could included some smaller companies by tracking the FTSE250, and so invest more in operations within the UK and potentially earn higher gains but at the cost of increased risk. You could combine these approaches, or there are many more options.

EthicsGradient

The Institutional version of the HSBC FTSE All Share Index Fund https://www.assetmanagement.hsbc.co.uk/api/v1/download/document/gb0030334345/gb/en/kiid has an OCF of only 0.03%, if your platform offers it (ii does, for instance; being "institutional", I think the platform has to amalgamate enough holdings to meet HSBC's minimum, so check if yours does).

Albermarle

https://forums.moneysavingexpert.com/discussion/6688347/investing-more-in-the-uk

Which investment platform/pension provider are you using?

ShinyStarlight1

https://forums.moneysavingexpert.com/discussion/comment/82184018#Comment_82184018

I’m using Vanguard.

EthicsGradient

https://forums.moneysavingexpert.com/discussion/comment/82184160#Comment_82184160

If that restricts you to Vanguard funds, there is the Vanguard FTSE All share fund (ie an OEIC, not an ETF) at 0.06% OCF: FTSE U.K. All Share Index Unit Trust GBP ACC | Vanguard UK Investor

ShinyStarlight1

Really appreciate everyone’s thoughts on this.

Btw - although I’m with Vanguard I am open to hearing suggestions outside of there.

kempiejon

I have vanguard ETFS to cover USA, Emerging, Asia, Europe, UK 100 and 250. Sold down half my USA to swap into a global value index. Cost or potential cost be blowed it helps me sleep at night.

GeoffTF

Scottish Widows Share Dealing is cheaper than Vanguard's platform. It also offers a much wider range of investments, but that is not likley to help. Vanguard uses its FTSE U.K. All Share Index Unit Trust for UK exposure within its LifeStrategy 60 fund:

https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-60-equity-fund-accumulation-shares/portfolio-data

In the US, Vanguard is recommending a 30/70 portfolio rather than the traditional 60/40 portfolio for the next ten years:

https://www.youtube.com/watch?v=kaKwK4Ztx88&t=8s

Far be it from me to say what will turn out to be best. Nobody knows.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82185074#Comment_82185074

IIRC from past years, the ability of Vanguard to forecast the future is pretty much as bad as everybody else.

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82185333#Comment_82185333

I expect that to be true. Nonetheless, it is a judgement that we cannot make. It takes ten years to get a single data point. Whether or not Vanguard's predictions were accurate or not in decades past has no meaningful bearing on whether they will be accurate in the future.

It is, however, interesting that Vanguard is halving its equity allocation when many others do not want to touch bonds at all. It is also interesting that Vanguard is overweighting the US when others are underweighting it. That is how a market works.