Monthly Income ISA

big_mortgage wrote: »

Am certainly willing to take great risk for a greater return. I was hoping to get at least 5% (but as stated, the more the better :j )

If you find a low risk investment for your £25k lump sum which is likely to pay a sustainable 5% please let us know.

Alex

I've recently started a Vanguard S&S ISA.

Sticking with a very simple strategy as the amount I'm putting in is the minimum monthly for the account (£100). For me it was a choice of a single ETF such as FTSE All-World High Dividend Yield UCITS ETF (VHYL) or FTSE All-World UCITS ETF (VWRL)

Looking at the dividends for VHYL, they are spread quarterly

https://www.justetf.com/uk/etf-profile.html?isin=IE00B8GKDB10&tab=dividends

Simple calculation with that ETF at the current price of £42.40 with the full £20,000 invested would give you 471 units with last years yield (2017) of £1.34 giving £632.

https://www.justetf.com/uk/etf-profile.html?tab=returns&isin=IE00B8GKDB10

Looks like 8.44% returns for 2017.

Although the risk is rated at 5 out of 7 and the OCF is 0.29% . I was okay with this as I wanted to see how the S&S ISA worked and specifically looking for an all world ETF.

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-high-dividend-yield-ucits-etf/portfolio-data

Having said that I did put a little extra in over the last couple of months so my average unit cost is sitting at £43.07 against current value £42.32 so sitting on a -2.97% personal rate of return at the moment !

Not sure if that was due to less trading of the ETF during the summer or if it was due to currency fluctuations. I just don't know enough about how the markets work to even contemplate it. Hence sticking to low cost world trackers.

Probably worth looking through the other funds offered by Vanguard in more detail as you're likely to find something that fits your risk profile better.
https://www.vanguardinvestor.co.uk/what-we-offer/all-products

I'd also look at the other funds and platforms that have been suggested by other posters on this thread.

Good luck with the search.

Please let us know what you ended up choosing and the reasoning behind the choice.

big_mortgage wrote: »

Well, clearly look to achieve as much as possible! I have looked at the suggestions and they do seem to be a good choice, but the OCFs seem high. This ISA is likely to be added to , but only likely in fairly small sums initially and then perhaps another 20k in 4 years time.

I have been reading about the Vanguard funds on this forum. they seem great value from an ethical company with low fees, and there are some income funds there. Am certainly willing to take great risk for a greater return. I was hoping to get at least 5% (but as stated, the more the better :j )