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Where are your:
Index Linked Gilts
Global High Yield Bonds
Global Bonds
UK Corp Bonds
Property
If its just £50k, then perhaps a multi-asset fund would be more suitable. That would give you diversification and structure. Whereas your current selection is a bit random and lacks structure and process.
Originally posted by dunstonh
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As a newbie to investing, I don't understand the importance or difference between the types of bonds and gilts you mention. Because I'm not that knowledgeable, I'm looking for a simple, low cost portfolio that will not require much input once it's up and running.
I assigned a 1/3 split between UK, World, and gilts based on my current age: roughly 65% equity/35% bonds. As I age, I would slowly increase the bond allocation. I hope I've got that bit right.
Is it possible to buy 3 or 4 different ETFs that would give me the diversification and structure you talk about?
Or is a multi asset fund (presumably available to expats) the best option? Are these multi asset funds actively managed, hence implying higher fees? I ask this because my reading suggests passive is better than active over the long term, and a lot cheaper.
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You can go a long way on just a few broad indexes. I would not limit yourself to FTSE 250......I'd want the entire UK market even if cap weighting meant that most of your money was still in large caps and the point about the narrowness of your bond allocation is a good one. Next you need to look at an allocation ie how much in each index and you should research the taxation and the administrative mechanics of this investing. What platform will you use and will your country of residence be an issue for taxation?
Originally posted by bostonerimus
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Vanguard Global Bond Index and Vanguard UK All Share Index, plus another world share index would be a lot better than my original list of ETFs?
I'm based in the Middle East at the moment, so taxation is not really an issue. I'm looking at European based platforms that are targeted at expats. Internaxx is looking the most suitable for me at the moment.
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...replace the UK FTSE equity funds with Vanguard UK FTSE All shares...
Originally posted by bostonerimus
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I think splitting the UK equities into FTSE100/FTSE250 is better than an FTSE All Share.
Taking Vanguard, HSBC is 6.85% of their FTSE100 tracker but still 5.85% of their FTSE All Share tracker.
Originally posted by Tom99
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What's the case for going for all the FTSE rather than just the top 100/250?