First Thoughts of Funds Portfolio please

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LULULU1
LULULU1 Posts: 460 Forumite
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in Savings & investments
Hi all,

I am looking to buy some exchange traded funds and trackers, funds etc (mainly passive) and would appreciate any thoughts as to the following:

Emerging Markets ETF 10%
Emerging Funds small caps ETF 10%
Asia Excluding Japan ETF 10%
Asia small Caps Tracker 10%
World large Caps Tracker 20%
UK Small companies Tracker 20%
India Tracker large cap 10%
Woodford Capitol Trust 10%

It is a very very early draft so I would be very happy to receive any thoughts at all.
«1345

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  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    edited 12 May 2018 at 9:11PM
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    What is the portfolio trying to achieve....long term capital growth?
    I like that you have kept your allocations at 10% and above. You might think about a bit more US exposure and there might be some overlap in the asia/emerging markets funds. Why no fixed income? Your portfolio could show a lot of volatility as it is currently structured with all the small cap and emerging markets/asia.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • LULULU1
    LULULU1 Posts: 460 Forumite
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    Thank you for your comments. Yes it is for capitol growth. I have deliberately stayed clear of America as I think its already pretty high.

    I can see now about the Asia/e,erging markets is to heavy.

    Can you explain a little about fixed income.

    Thank you
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    LULULU1 wrote: »
    Thank you for your comments. Yes it is for capitol growth. I have deliberately stayed clear of America as I think its already pretty high.

    I can see now about the Asia/e,erging markets is to heavy.

    Can you explain a little about fixed income.

    Thank you

    Ignoring 50% of the world's market cap because it seems expensive today isn't a good long term strategy IMHO.

    A little fixed income will dampen volatility and provide some stable returns. You probably don't want to be long term duration as interest rates are probably going up. You can also rebalance between equities and bonds which some people think is useful....even if it might be more psychological than anything.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • LULULU1
    LULULU1 Posts: 460 Forumite
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    When you say Fixed include are you suggesting Bonds, gilts or something else ?

    Have made a few adjustments to include USA.

    North America Large Caps ETF10%
    North America small caps ETF 10%
    Emerging Funds small caps ETF 10%
    Asia Excluding Japan ETF 10%
    Asia small Caps Tracker 10%
    World large Caps Tracker 20%
    UK Small companies Tracker 20%
    India Tracker large cap 10%
    Woodford Capitol Trust 10%
  • Alexland
    Alexland Posts: 9,668 Forumite
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    edited 12 May 2018 at 9:54PM
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    If you want 100% equities it would be simpler, cheaper and probably smarter to just buy a FTSE All World tracker.

    US stock covers many internationally successful companies which have historically and continue to deliver excellent returns so not something to be completely avoided.

    Alex
  • LULULU1
    LULULU1 Posts: 460 Forumite
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    The FTSE All world tracker would not give me the balance I am after. I am looking for a fair bit of exposure towards India/ Asia emerging markets but I am possibly going "to many eggs in one basket".

    Can you explain your reasoning a bit more please re the simpler and cheaper thoughts. Most of the funds have an annual charge of approx 0.5%.

    Its great to hear peoples views and thoughts. I really appreciate all of the responses.
  • El_Torro
    El_Torro Posts: 1,479 Forumite
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    LULULU1 wrote: »
    When you say Fixed include are you suggesting Bonds, gilts or something else ?

    Have made a few adjustments to include USA.

    North America Large Caps ETF10%
    North America small caps ETF 10%
    Emerging Funds small caps ETF 10%
    Asia Excluding Japan ETF 10%
    Asia small Caps Tracker 10%
    World large Caps Tracker 20%
    UK Small companies Tracker 20%
    India Tracker large cap 10%
    Woodford Capitol Trust 10%

    Better, though what jumps out at me is 10% in an Indian fund. Especially since you have exposure to India in other funds. I can see the logic of wanting to be overweight in India, though personally I would not put more than 5% there.
  • Alexland
    Alexland Posts: 9,668 Forumite
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    edited 12 May 2018 at 10:06PM
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    LULULU1 wrote: »
    The FTSE All world tracker would not give me the balance I am after. I am looking for a fair bit of exposure towards India/ Asia emerging markets but I am possibly going "to many eggs in one basket".

    If those markets grow then the FTSE All World index will increase the proportion of those regions.
    LULULU1 wrote: »
    Can you explain your reasoning a bit more please re the simpler and cheaper thoughts. Most of the funds have an annual charge of approx 0.5%.

    HSBC's attempt to track the FTSE All World index (tracking is never perfect) has an OCF of 0.16% and depending on your platform (and future contribution strategy) you would incur only one trade for setup and there would be no need to incur trades rebalancing the portfolio.

    Alex.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
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    LULULU1 wrote: »
    The FTSE All world tracker would not give me the balance I am after. I am looking for a fair bit of exposure towards India/ Asia emerging markets but I am possibly going "to many eggs in one basket".

    You could use a cap weighted Global Equity tracker as a core fund and then add some Asia and Emerging Markets to give you the allocation you want.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • LULULU1
    LULULU1 Posts: 460 Forumite
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    Can you explain a bit about a "cap weighted Global Equity tracker" and who would do these.

    Sounds pretty good.
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