Nice one, Ryan, great summary of these investments. They are pretty similar but the Global All-Cap contains small caps which are more volatile but may result in better returns in the long run. Again, both are still very good options for maximum diversification. Nice crib btw!
"May result in better returns" realistically it's miniscule, same in the US when you look at comparison of VOO Vs VT... The small caps are such a small weighting that any outperformance is barely reflected, by the time the weighting is big enough to move the needle they are ultimately already then bought up by the other fund. Hence returns are so similar between them
Great video, thanks. The only other point I would add for consideration is platform fees. HL charge fees on the funds you hold differently from equities (such as ETFs). Last time I looked, HL’s fees on funds were uncapped but they were capped on equities (at a total of £45 pa). That may have changed now. If it’s still the case then as your funds investment pot increases your fees might be more on HL then elsewhere. Platform Fees make a big difference in the long run. Happy investing!
Thanks for the video and the podcast too. I'm a bit late to this party but with Vanguard, can you make variable monthly lump sum deposits to avoid the fractional/cash hanging around issue? Thanks
Great video Ryan! I'm currently investing in the FTSE Global All Cap, but have recently been looking at the FTSE Developed World and FTSE Developed Word ex. UK funds. Both seem to outperform the All Cap, and also have lower fees. What's your views on these funds vs. the All Cap?
Thanks for watching Sonny! That’s a great question, I didn’t know that, so assume that either the small cap stocks or the emerging markets stocks (or both) in the All Cap are bringing the performance down. As I imagine the two funds you mentioned include neither/less. Ultimately, I think it’s impossible to predict what will perform well, especially over the long term, so I want to be as diversified as possible. Which is why the All Cap works for me! 🌎 I think also using less funds makes managing your investments easier. Just my opinion though!
Good vid. can i have some advice? I want to start investing using vanguard but i'm not sure how many fund i should invest in. i was thinking of investing in the FTSE Global All Cap Index Fund but should i add other ones too? if so which other funds do you recommend?
I was debating in my head what to invest into before I opened my vanguard account. Came across your video and it helped my clear my head on what I wanted to invest in. Previously I was looking at the S&P 500 ETF on Vanguard but with the global all cap index being more diverse geographically I decided on this although the ETF has less fees. Would you think it was could be a good idea to invest in both? Like 80% Global versus 20% S&P for example. Interested to hear your views. Great content btw 👍
Thanks for watching the video Glynn, glad it was helpful! Both of those funds are good options but I use the All Cap, as you said, so I’m more diverse. You could do that, up to you, but you would then be ‘overweight’ US stocks compared to the proportion they make up of the global stock market. Nothing right/wrong with that, just something to be aware of!
Hi so I wanted to invest in the FTSE global all cap in an ISA. However, most of the cheap ISA providers do not provide this fund they only have VWRL as you mentioned. Im not sure about opening a vanguard ISA as I will not have any exposure to any other ETFS I want to invest in. Your take please?
Hey Dan, I recently uploaded a ‘how to choose a platform’ video which should help with this question in detail. But yeah - if you’re wanting to invest in other funds/stocks, and not just Vanguard funds, then it is likely that another platform will be better for you 🙌
Hey! Enjoy your vids. A Q..........? Excuse my ignorance, but is that an annual distribution (DIV/CASH) of 1.29% as of Apr'21 or quarterly for the AW? (So essentially 5% over the year). Cheers Personally Im not an investor, but I like to educate myself from time to time.
@@dejviddejvich573 You're correct - as a dividend will increase the number of shares this will act to 'dilute the book value per common share', essentially meaning the ETF/stock price is reduced by the amount of the dividend.
Invest in the global all cap accumulation myself, is it right that the dividends get paid out annually? I know they are reinvested with the accumulation fund
Likewise! I believe so, even though companies inside of the fund will pay out dividends throughout the year. Regardless, all of the dividends are reinvested 💪
Hi Ryan I am new to investing and I have 3k to invest with Vanguard. I am looking to invest 1k each on ;- Lifestyle 80/20 S & P Ftse global all cap accum I know you are not a financial advisor but what do you think ? Thanks Ray
Hello Ray, thanks for the question! There is a lot of overlap between those funds. The LS funds and the All Cap essentially already include the S&P 500, as they are both global funds. If you did use those 3 funds then you would be ‘overweight’ US stocks. This is fine if you intend to do that but make sure it’s a conscious decision! Personally I just use the All Cap for reasons in this video and to keep my approach simple. I hope this helps slightly?
Sounds like a plan Colin! Although they're very similar and have almost identical performance, so may be simpler to stick to one or the other, but up to you!
Excellent description and thanks. I've just joined Vanguard and wonder if you have to pay a trading fee when you invest as you do on other platforms usually about £5.I think Hargreaves is about £11. I use iWeb where I think it's £7. Oh dear ! I've just noticed your video is a year old.
Thanks for watching! There is a transaction fee but it's a very small %. If you google 'Vanguard full costs and charges' you'll be able to see the exact fees you'll pay per fund
Excellent summary; All-Cap for me.
Thanks for watching! Nice one 💪
Nice one, Ryan, great summary of these investments. They are pretty similar but the Global All-Cap contains small caps which are more volatile but may result in better returns in the long run. Again, both are still very good options for maximum diversification. Nice crib btw!
Thank you very much! That’s completely right mate, I use the All Cap for more diversification but both have pretty much identical returns 👌
"May result in better returns" realistically it's miniscule, same in the US when you look at comparison of VOO Vs VT... The small caps are such a small weighting that any outperformance is barely reflected, by the time the weighting is big enough to move the needle they are ultimately already then bought up by the other fund. Hence returns are so similar between them
Great video, thanks. The only other point I would add for consideration is platform fees. HL charge fees on the funds you hold differently from equities (such as ETFs). Last time I looked, HL’s fees on funds were uncapped but they were capped on equities (at a total of £45 pa). That may have changed now. If it’s still the case then as your funds investment pot increases your fees might be more on HL then elsewhere. Platform Fees make a big difference in the long run. Happy investing!
Thanks for the comment and info Gordon! As you say, it’s important to know/understand/factor in all costs/fees you may need to pay! Happy investing 🤑
Thanks for the video and the podcast too. I'm a bit late to this party but with Vanguard, can you make variable monthly lump sum deposits to avoid the fractional/cash hanging around issue? Thanks
Thanks for watching/listening! You can make lump sum investments whenever you like - yep 👌
Great video Ryan! I'm currently investing in the FTSE Global All Cap, but have recently been looking at the FTSE Developed World and FTSE Developed Word ex. UK funds. Both seem to outperform the All Cap, and also have lower fees. What's your views on these funds vs. the All Cap?
Thanks for watching Sonny! That’s a great question, I didn’t know that, so assume that either the small cap stocks or the emerging markets stocks (or both) in the All Cap are bringing the performance down. As I imagine the two funds you mentioned include neither/less.
Ultimately, I think it’s impossible to predict what will perform well, especially over the long term, so I want to be as diversified as possible. Which is why the All Cap works for me! 🌎
I think also using less funds makes managing your investments easier. Just my opinion though!
Great summary of the differences. Really appreciated! Thanks for sharing!
Anytime! Thank you very much for watching 🙏
Great video on the differences between the two! I genuinely thought they were the same 😂
Cheers mate! Haha, VERY similar but a few differences! 😅
Top video summarising the differences, really helpful!
Cheers Josh! 🙌
Good vid. can i have some advice? I want to start investing using vanguard but i'm not sure how many fund i should invest in. i was thinking of investing in the FTSE Global All Cap Index Fund but should i add other ones too? if so which other funds do you recommend?
I’m not a financial advisor, but personally I just invest into 1 single fund which is the All Cap. This is all I need to be globally diversified!
thanks for that explaining diff between index a
No worries Russell! Thanks for watching 😄
I was debating in my head what to invest into before I opened my vanguard account. Came across your video and it helped my clear my head on what I wanted to invest in. Previously I was looking at the S&P 500 ETF on Vanguard but with the global all cap index being more diverse geographically I decided on this although the ETF has less fees. Would you think it was could be a good idea to invest in both? Like 80% Global versus 20% S&P for example. Interested to hear your views. Great content btw 👍
Thanks for watching the video Glynn, glad it was helpful! Both of those funds are good options but I use the All Cap, as you said, so I’m more diverse. You could do that, up to you, but you would then be ‘overweight’ US stocks compared to the proportion they make up of the global stock market. Nothing right/wrong with that, just something to be aware of!
Thanks for the great video. I was wondering what's the difference between Global and All world.. now I'm quite clear about it :)
Perfect! Glad the video helped 💪
Thanks for this you have answered exactly what questions I have
Perfect, glad to hear that!
Extremely helpful, thanks!
Anytime Jack!
This video was so helpful- thank you.
No problem at all, thank you very much for watching!
Hi so I wanted to invest in the FTSE global all cap in an ISA. However, most of the cheap ISA providers do not provide this fund they only have VWRL as you mentioned. Im not sure about opening a vanguard ISA as I will not have any exposure to any other ETFS I want to invest in. Your take please?
Hey Dan, I recently uploaded a ‘how to choose a platform’ video which should help with this question in detail. But yeah - if you’re wanting to invest in other funds/stocks, and not just Vanguard funds, then it is likely that another platform will be better for you 🙌
Hey! Enjoy your vids.
A Q..........?
Excuse my ignorance, but is that an annual distribution (DIV/CASH) of 1.29% as of Apr'21 or quarterly for the AW? (So essentially 5% over the year).
Cheers
Personally Im not an investor, but I like to educate myself from time to time.
Thank you 🙏
That’s a great question - not ignorant at all - that’s the annual dividend yield. So 1.29% over the full year!
@@MakingMoneySimple Thanks for clearing that up
@@DreemDeep no problem at all!
If I use acc etf and lets say I have 10 shares, does an etf gives me dividend, and now i have 10.2 shares or that dividen go to whole etf?
You’ll get the dividend for the full shares and the fractional shares. So you’ll get dividends on the 10.2 shares in that example
@@MakingMoneySimple and when etf gives dividend to its shareholders does that not devalues a price of an etf?
Bcoz market cap÷number of shares=price?
@@dejviddejvich573 You're correct - as a dividend will increase the number of shares this will act to 'dilute the book value per common share', essentially meaning the ETF/stock price is reduced by the amount of the dividend.
@@MakingMoneySimple and with that reduce can we still expect an 7-10% return per year on long term?
@@dejviddejvich573 on average, we’d hope for around 7% per year over the long term 🙏
Great explanation! :)
Thanks Nicola 😄
Invest in the global all cap accumulation myself, is it right that the dividends get paid out annually? I know they are reinvested with the accumulation fund
Likewise! I believe so, even though companies inside of the fund will pay out dividends throughout the year. Regardless, all of the dividends are reinvested 💪
@Making Money Simple Nice try, fake.
quality explantion Ryan (Y)
Thanks! 😁🙌
Amazing and informative video. Thank you 👍🌞
No problem at all! Thank you very much for watching 😄
great vid m8, cheers, vwrp for me or ssac on IE
Thanks for watching mate. Sounds like a plan - multiple options there! I haven't heard of SSAC, is that another global fund?
@@MakingMoneySimple ishares/blackrock version of vwrp. acwi msci acc etf.
@@markusmax8068 nice one mate. Sounds good! Thanks for sharing that 👌
Hi Ryan
I am new to investing and I have 3k to invest with Vanguard.
I am looking to invest 1k each on ;-
Lifestyle 80/20
S & P
Ftse global all cap accum
I know you are not a financial advisor but what do you think ?
Thanks
Ray
Hello Ray, thanks for the question! There is a lot of overlap between those funds. The LS funds and the All Cap essentially already include the S&P 500, as they are both global funds. If you did use those 3 funds then you would be ‘overweight’ US stocks. This is fine if you intend to do that but make sure it’s a conscious decision! Personally I just use the All Cap for reasons in this video and to keep my approach simple. I hope this helps slightly?
@@MakingMoneySimple
Cheers Ryan
I understand what you mean now , I enjoy your videos and they make investing less fearful..
That’s great to hear Ray 🙌 cheers!
🙌🏽🙌🏽🙌🏽
🤝💯
great video, thank you.
Cheers Peter!
If I do 100 a month can I buy 1 share of all world then whats left put it into my all cap..
Sounds like a plan Colin! Although they're very similar and have almost identical performance, so may be simpler to stick to one or the other, but up to you!
Can you show us how to "Bed and ISA" on vanguard please :)
Sorry John, what does that mean? 😅
FTSE Global All Cap Index Fund for me. Direct debit monthly and forget about it
Love it! My approach too 💪
813
Vanguard UK is so anoying ! The us vanguard is so much better. as always Uk clients treated shit and lack of options.
Excellent description and thanks. I've just joined Vanguard and wonder if you have to pay a trading fee when you invest as you do on other platforms usually about £5.I think Hargreaves is about £11. I use iWeb where I think it's £7. Oh dear ! I've just noticed your video is a year old.
Thanks for watching! There is a transaction fee but it's a very small %. If you google 'Vanguard full costs and charges' you'll be able to see the exact fees you'll pay per fund