Vanguard fund price
Discussion
I've just started a S&S ISA with Vanguard, my first one ever. Last month I put 5k into the new Global LS80 and 5k into the standard LS80. Don't ask me why I split it but it seemed a sensible thing to do!
My question is what exactly is meant by 'fund price'?
The LS80 has been going a lot longer so the fund price has gone from £134 to £368 in the last 12 years. Obviously the Global LS80 only started on 22nd January at which point its fund price was £100 and is now £102.
Is there any significance in this?
Does it suggest that one is better to invest in than the other?
Does it make no difference at all?
I ask because I'll be putting another 10k before the end of March then probably another 10k in April. I had planned to do the same split but not sure if this fund price indicates anything.
Thanks in advance.
My question is what exactly is meant by 'fund price'?
The LS80 has been going a lot longer so the fund price has gone from £134 to £368 in the last 12 years. Obviously the Global LS80 only started on 22nd January at which point its fund price was £100 and is now £102.
Is there any significance in this?
Does it suggest that one is better to invest in than the other?
Does it make no difference at all?
I ask because I'll be putting another 10k before the end of March then probably another 10k in April. I had planned to do the same split but not sure if this fund price indicates anything.
Thanks in advance.
It's just the arbitrary price for the fund. Worry about the % gains. That said Vanguards' calcs are a bit weird and imo don't represent % gains very well as I think the % you see is annualised which can skew the result.
I am fairly heavily invest in Vanguard funds through Vanguard. Just keep plugging away and don't worry about it too much. With all the turmoil in the world, the next few months could see 'discounted' markets, which will hopefully recover in time. (Better time to buy than any other imo)
I am fairly heavily invest in Vanguard funds through Vanguard. Just keep plugging away and don't worry about it too much. With all the turmoil in the world, the next few months could see 'discounted' markets, which will hopefully recover in time. (Better time to buy than any other imo)
Most funds have a starting price of 100 when they are created and an updated price is calculated every day.
In summary, the price will change when the stock prices of underlying holdings changes, when exchange rates change and with accrued income and expenses.
Investments into and out of funds don't affect the price.
In summary, the price will change when the stock prices of underlying holdings changes, when exchange rates change and with accrued income and expenses.
Investments into and out of funds don't affect the price.
ChrisH72 said:
The LS80 has been going a lot longer so the fund price has gone from £134 to £368 in the last 12 years. Obviously the Global LS80 only started on 22nd January at which point its fund price was £100 and is now £102.
Is there any significance in this?
Does it suggest that one is better to invest in than the other?
Does it make no difference at all?
It means that the fund which has had 12 years to grow has grown more than the fund which has only had six weeks to grow - as you'd expect.Is there any significance in this?
Does it suggest that one is better to invest in than the other?
Does it make no difference at all?
To compare funds like for like, see what the LS80 has done since 22 January. But really, six weeks is too short to make a meaningful comparison IMHO.
ChrisH72 said:
Obviously lots going on in the world right now but interesting that the global fund is up £75 but the standard one is down £75 so at the moment I'm breaking even!
No no no, as an Investor you publicly announce the gains but ignore the losses (because they're only paper losses aren't they). So you're £75 richer 
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