LS100 to FTSE Global All Cap...?
Discussion
The long-running LS range is becoming less UK biased. Also they've introduced an LS Global range, with no UK bias: https://www.vanguardinvestor.co.uk/investments/van...
I suppose one difference between both types of LS and the FTSE Global All Cap is that I understand that Vanguard actively determine the geographical allocation to sub-funds for the LS ranges, whereas I think you'll just get market cap weighting with the FTSE Global All Cap.
I suppose one difference between both types of LS and the FTSE Global All Cap is that I understand that Vanguard actively determine the geographical allocation to sub-funds for the LS ranges, whereas I think you'll just get market cap weighting with the FTSE Global All Cap.
If you move to a fund like VWRP be aware the base currency of the fund is USD. This means fluctuations in the exchange rate between GBP/USD will impact performance. This can be either a good thing or a bad thing depending on which direction you think the exchange rate will go long term.
I think LS100 to All-Cap is now definitely worth considering since this IRAN conflict is hurting UK / Europe more than most other countries. The lag effect (not yet felt in full) *could* sting for a good year or so.
Timely, but Vanguard who was previously bullish on UK vs US has now reversed their thoughts. It is only a prediction, but look at the volatility & returns of equity vs bonds..
Timely, but Vanguard who was previously bullish on UK vs US has now reversed their thoughts. It is only a prediction, but look at the volatility & returns of equity vs bonds..
Toyota-MR23 said:
I want some.. it s the concentration that worries me slightly
Remember It s the concentration that fuels equity gains. The smart answer is own the world (global index) and let it do its thing like it has for the past 100 years. If you want to reduce the concentration think about diversifying into other asset classes, like bonds. A portfolio of 50% equity and 50% bonds contains much less tech than being 100% in a market cap weighted global equity index portfolio.
Toyota-MR23 said:
Phooey said:
Toyota-MR23 said:
Would probably look to reduce exposure to mega cap us tech so possibly need something else that isn t based on market cap.
eh? So you don't want a global tracker then..I'm fairly new to this so no advice to offer.
I put last year's 20k ISA allocation into Vanguard LS80 and global LS80, equally split.
Just put another 20k in and have gone for 10k in the global LS80 with the other 10k yet to invest. The LS funds are only risk level 4 out of 7 and I'm comfortable with that. The remaining 10k I fancy going slightly higher risk and am looking at ftse all world and ftse emerging markets with 5k in each.
I put last year's 20k ISA allocation into Vanguard LS80 and global LS80, equally split.
Just put another 20k in and have gone for 10k in the global LS80 with the other 10k yet to invest. The LS funds are only risk level 4 out of 7 and I'm comfortable with that. The remaining 10k I fancy going slightly higher risk and am looking at ftse all world and ftse emerging markets with 5k in each.
Phooey said:
Vanguard who was previously bullish on UK vs US has now reversed their thoughts. It is only a prediction, but look at the volatility & returns of equity vs bonds.
What a work of art. "Everything's going to perform about the same, with a bit more equity return from North America and a chunk less volatility from bonds." Brilliant.ChrisH72 said:
I'm fairly new to this so no advice to offer.
I put last year's 20k ISA allocation into Vanguard LS80 and global LS80, equally split.
Just put another 20k in and have gone for 10k in the global LS80 with the other 10k yet to invest. The LS funds are only risk level 4 out of 7 and I'm comfortable with that. The remaining 10k I fancy going slightly higher risk and am looking at ftse all world and ftse emerging markets with 5k in each.
Genuinely a little surprised that LS80 is classed as 4/7 on the risk scale.I put last year's 20k ISA allocation into Vanguard LS80 and global LS80, equally split.
Just put another 20k in and have gone for 10k in the global LS80 with the other 10k yet to invest. The LS funds are only risk level 4 out of 7 and I'm comfortable with that. The remaining 10k I fancy going slightly higher risk and am looking at ftse all world and ftse emerging markets with 5k in each.
Usually a balanced fund tends to be the "middle of the road" option.
For example this is how one of the risk profiling services used by advisors scores the LS range.
Only highlighting it because to me 4/7 makes LS80 sound a little tamer than it actually is
butchstewie said:
Genuinely a little surprised that LS80 is classed as 4/7 on the risk scale.
Usually a balanced fund tends to be the "middle of the road" option.
For example this is how one of the risk profiling services used by advisors scores the LS range.
Only highlighting it because to me 4/7 makes LS80 sound a little tamer than it actually is
Usually a balanced fund tends to be the "middle of the road" option.
For example this is how one of the risk profiling services used by advisors scores the LS range.
Only highlighting it because to me 4/7 makes LS80 sound a little tamer than it actually is
Risk 4 of 7.
Seems to have averaged around 8% over the last 5 years.
Fuse All world ETF (VWRP) is rated 6/7 for risk. That have averaged 10% in 5 years but fluctuations are greater.
Edited by ChrisH72 on Sunday 3rd May 09:53
Yes I get that I'm just saying I'm surprised it's 4/7 on any scale given it's 80% equity.
Don't get me wrong it's a brilliant fund and I'm absolutely not trying to put anyone off it - but I was honestly a bit surprised to see it promoted as 4/7 on a risk scale
Their own PDF factsheet shows some of the other risk ratings.
Don't get me wrong it's a brilliant fund and I'm absolutely not trying to put anyone off it - but I was honestly a bit surprised to see it promoted as 4/7 on a risk scale
Their own PDF factsheet shows some of the other risk ratings.
So if it’s time to sell US equities, where should we go? A year ago, he was moving into underpriced markets such as Japan, the UK and Europe. He’s a bit vague about what to do now.
“You just have to get into the cheapest thing. Is cash the most sensible thing? Maybe in 1929, cash looked pretty good. But in 2000, there were plenty of opportunities. Real estate, you could buy a house for less than the cost of building it.”
“You just have to get into the cheapest thing. Is cash the most sensible thing? Maybe in 1929, cash looked pretty good. But in 2000, there were plenty of opportunities. Real estate, you could buy a house for less than the cost of building it.”
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