@@RickSanchez-dn6rd Are there any charges if you have a stocks & shares isa with trading 212. Can you just open an account and put some money in with your debit card easily without Internet banking or open banking like investengine require, and easily set up monthly savings with small amounts if required
Not necessarily though there is a fair amount of overlap but that’s not necessarily a negative. Most important thing is to get started and build your income over time to continue investing more as time goes on. I just surpassed 500K from an initial deposit of 85K nineteen months ago
I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I’m invested in ETFs, equity index funds, and individual stocks and use a CFA. On average, she takes 10% off earnings, but using *Lina Dineikiene's* system makes it much more hands-off. I conservatively follow her recommendations and market entry and exit points, and tbh this makes it fairly simple for me...
0:17 FTSE ALL WORLD VWLR INCOME AND RP FOR ACCUMULATION 2:42 FTSE GLOBAL - MUTUAL NOT EXCHANGE, you buy by £ not by share 4:59 S&P 500 UCITS ETF VUSA- VUAG ( reinvest) 7:01 FTSE DEVELOPED WORLD ETF- EXCLUDING EMERGING MARKETS 8:42 FTSE EMERGING MARKETS ETF-China , India, Brazil 10:30 FTSE ALL WORLD HIGH DIVIDEND
I’ve started with 8k and I’m depositing 500 a month possible 600-700 some months, S&P 500 baby here we go! let red days come as I see it as on sale lol all the best investors 😅
Would like to see the difference between investing in Vanguard paying fee’s from the portfolio and fee’s from the bank ( over a lifetime ) ISA might be capped at £20K but fees don’t have to be part of that 20K limit
Almost 9% up across my investments so far since I started investing in May, pretty damn good compared to cash savings. Probably gone and jinxed it now and it will all start tumbling downwards, lol. I prefer Invesco and iShares over Vanguard as they tend to be cheaper, but hey that's just me 😊 Happy new year to you, Toby.
Well done on your gains! Are the OCF fees comparable to VG funds? Vanguard always screams low fees compared to funds like these so I don’t understand how they are cheaper unless you are referring to share price but vanguard funds can be bought fractionally so that would not be a valid statement.
Thanks for the video. It’d be great if one of the videos you indicate the real return of the money with famous indexes considering the inflation impact
Just started a couple weeks ago, made a split between 4 of these ETFs, s&p 500, developed world, ftse 100 and emerging markets might add the all world high dividend too
Only just realised 3 days ago they added accumulation to the S&P 500 and Developed World. Quickly swapped everything over hate having 16 quid sitting around doing nothing as cash
Glad to help, Vanguard are rubbish at marketing these things. Agreed that all te little bits of money adds up over the years and I'm glad they have the accumulation versions now.
You don’t have to buy vanguard. Could buy FTWG distribution or FWRG accumulation which are Invesco FTSE all-world UCITS ETF. Has charge 0.15% its 0.07% cheaper than vanguards all world ETF. Great video.
Thanks Toby, your videos are so informative & easy to follow. I'm a 57 year old man with about £50k to invest. I've just opened a trading 212 account & I'm going to put £20k into an isa, I'll probably split it between four or five of the etf funds you've talked about here.
Really helpful video, clearest I've seen on the topic, thanks! Would love to see a video about dealing with past financial regret and moving forward with investing - I believe it's such a barrier for many, including myself.
I’m about to start investing on vanguard on trading 212 but on the fence which to choose between vuag and vwrp. Anyone here got an advice?. Thanks in advance
I invested in ftse developed world ex uk index should i switch and if so how do i do it on vanguard ? Have a bit of money in my isa towards it so if i move my monthly investments to a different fund such as all cap or s&p would it be pointless?
I have s and p 500 but in concerned that the mag 7 may reverse and drag it down just as it’s pushed it up , if the nvidia bubble was to burst for instance ,
I have shares on robinhood with amazon, apple, nvidia, meta and microsoft. I also have a vanguard account that I put money should I move thr above stocks money to my vanguard or leave them in robinhood please
Really good video Toby. I’m New to investing in my 50s and thinking about maxing out a S&S ISA this year. Would ideally prefer to use an Index fund on one of the app based platforms, Why did you prefer the FTSE Vanguard funds rather than the S&P in this video? Would one or all of these be suitable for a buy & forget for 10years or so ISA?
I like owning the whole global stock market (for the majority of my investments at least) to ensure I capture the growth of the world. As amazing as US stocks are, that make up 60% of the global market, that still leaves 40% outside that I don;t want to leave out. In the past US vs International has been a back and forth and who knows what the future holds Saying this, I don't think anyone will go far wrong with the S&P 500 over any long time period :) - after all I own all of the stocks inside of it, just at different weights!
I'm really struggling to find an answer on this one...will I be able to buy fractional shares in all Vanguard ETFs on Vanguard UK platform in 2024 in my SIPP and ISA? Thanks
No Vanguard does not support fractional shares right now on their platform directly. However other platforms like Trading 212 and InvestEngine do allow you to buy fractional Vanguard shares on their platform. Hope that helps
@@TobyNewbatt Amazing, thanks! I believe HMRC are changing some rules in April. Do you know if I will be able to buy fractional share in VG UK ETFs in, say, May onwards?
@@battj1 no idea if vanguards platform with change to allow fractional shares. Unlikely to be honest but my last comment still applies you don’t have to use vanguards platform to invest in vanguard funds 👍
Just my opinion but, for funds held outside of a tax-free SIPP or ISA wrapper, I hate accumulation funds because even though the dividends are accumulated within the fund HMRC still treats them each year as if they were paid out to you as part of your taxable income so you have to keep "feeding" your investment with cash every year to pay HMRC the tax due on that year's accumulated dividends. And then to add insult to injury when you come to sell your, capital gains tax calculation becomes more complicated because you have to strip out the part of the sales proceeds attributable to all accumulated dividends (already taxed as income) in order to get the correct (lower) adjusted sale price to be used for the CGT calculation. Within tax wrappers I agree, accumulation funds are a great option, but outside of that the downsides mentioned above are enough to make me go for distribution versions every time and manage the income stream and additional unit purchases myself.
Hi Toby, I have a question regarding the Acc & Div shares. if you have the acc version your volume of shares do not increase like it would when reinvesting your Div payments to buy more, so if the Acc reinvest automatically wouldn't it be more expensive to buy more shares in the long run as the Acc shares don't fluctuate as much ad the Div version? Thank you 😁
I've also wondered this - how does the Accumulation version improve and grow your share count - or 'Units' as Vanguard call them. The quarterly payments are normally paid out at say (december 2023 for example) $0.3362 for every 1 share held. Do you not get "Unit's Held" in accumulation versions?
You have to pay tax on dividends. Acc shares mean no tax as long as you dont sell and so should grow faster. I don't get why anyone would buy Div shares and then re-invest, even if within an ISA...What am I missing? You can B&B or B&ISA each year to minimise CGT.
@@steve6375 Even accumulation funds do in fact have to pay dividend tax. It's called notional distribution. The amount that would be paid out and automatically reinvested in the accumulation fund is still liable to tax, and outside of an ISA has to be declared if over the yearly allowance.
@@steve6375 Well, if u are located in europe, then u will be taxed on the reinvested unrealized amount every start of the year, its called the vorabpauschale. Yes, it sounds illegal and yes we hate it but what can u do... The European countries want to keep you poor so u are dependent on them... We also don't have a 401k or any help.. For me personally, I would rather have dividends taxed and hold the etf forever than have the acc version which I would have to sell at retirement and have a double taxation ^^
I’m fairly new to investing and own FTSE Global all cap index and the S&P. I’m looking for a good third index fund or ETF to invest in that’ll diversify my portfolio further. Any suggestions?
Hi Toby to get started I’m interested in started a ftse global allcap index , can you advise me where I go to set it up? Also can you pull your money you have invested out at any time or once it is in is that it ? Thanks
Great video as always! Is it wasteful investing into the FTSE global all cap & VUAG? Just to invest a bit more into S&P 500 companies but still keeping it diverse?
Thanks! So it’s not wasteful…but you are overweighting the S&P 500 when you already have all of those stocks in the FTSE GAC. Is that good or bad…who knows as we don’t know future performance. Personally I’d stick to one but really just do what works for you 👍👍. Maybe the GAC then some picks on the side?
Thanks Toby for such a helpful video. I am invested only in the ftse global all cap index fund that you mentioned, and you are right no one knows the future, so I did have a hard time deciding in November 2023 when I started investing. But because I am new to all of this. I feel safe with this fund because the whole world is included, and like you say any company that stops performing well will be replaced by another one that is. So fingers crossed for the whole world for the future 😊
Hi great video I have got all these index funds you have said in this video just starting out and the only other index funds are from the UK Fft 100'and 250. I am using trading 212 and have £100 in the s&s 500 and £1 each on the other index funds you have said in this video, would you let me know what else I could add or take out, Any advice would be appreciated thank you
VOO is a US listed index fund for US investors VUAG/ VUSA - are UCITS ETFs (basically they are for UK/ EU investors to use) as they adhere to the reporting rules we have. Both invest in exactly the same things. We can't buy VOO in the UK (unless you go via CFDs which is not something I reccomend)
Great video. I guess the question I'm left with is what is the cheapest All World Index Fund and which platform is the cheapest to manage such fund. I currently hold a HSBC FTSE All World Index on HL.
hint...it's not going to be on HL :) Although some mutual funds on HL have lower front end costs theres more costs to consider in the back end and the platform costs on HL are very expensive. This is why I use Trading 212 and Invest Engine.
can i just ask,is it safe to keep more than 85k in etfs with one trading platform ,i understand 85k would be protected by fscs but is that referring to cash or investments should the trading platform go bust?
Hi Toby, thanks for the informative video! What’s your thoughts on splitting my investments as the following: VEVE 70% VUSA 25% VFEM 5% The fees work out quite a bit less when splitting the all world into VEVE & VFEM as opposed to buying VWRL. Cheers!
I have very similar situation and now I am thinking about consolidating everything into the second one from the list in this video 😊 also thinking about S&P 500 - did you ever think about it.
Sorry if this is not clear - Vanguards platform does not support buying fractional shares of ETFs. You would need to use a platform like Trading 212 or InvestEngine to do this. BUT you can buy whatever amounts of the mutual funds you want - you would have to filter them on their website to see what is a mutual fund and what is an ETF.
@TobyNewbatt Vanguard's platform in US allows fractional shares in ONLY the Vanguard suite of ETFs. You just put in dollar amount instead of shares. For non Vanguard ETFs you are correct, they do not allow fractional shares in non Vanguard products or individual stocks
Ahh cool good to know thank you. Maybe they will apply this to the UK one day too. Seems like the US side Vanguard has a lot more choice available and clearly they've focussed well on it!@@TheSmartLawyer
any chance you could do a comparison video talking about the Australian market for 2024. pleeeeeeease. Most if not all of these are available on the Australian vanguard (or just have different names).
I have the 60% life strategy fund. What is your opinion on that? I also have the S&P and VWRP with Freetrade which has made me a lot more money then the 60% life strategy
I don't like the Lifestrategy funds because they are massively weighted to the UK when there is no good reason for it. Also 60% means there is only 60% stocks inside. For me as a long term investors I dont want any bonds at this stage. Always up to you :)
Forgive me as I'm new to this world, I'm looking to invest my money over long term with as little management as possible. I have a T212 account and don't know if I should go for VWRP with T212 or if I should open up Vanguard account and put my money in VAFTGAG. Do you have any recommendations? Regards
So, looking quickly, VWRP is a global index fund it has everything in the world (almost!) therefore if you add anything on top you are just overweighting (concentrating) your money into certain sector. For example VUSA at 60% is about correct for what the US market is Adding on 20% of VWRP, which is basically 60% US, means that you will be leaning towards the US over 70% (20% of 60%) hope that kinda of makes sense! Truth is there is no way to know if this is good unless we know the future, keep it simple and stick to something though!
Hi Toby, I wanted to ask, I was trying to buy some vanguard S&P 500 shares off trading 212 in my stocks and shares ISA and when I searched it multiple different ones came up and I don’t know the difference between them or which on to choose, please help!
@@TobyNewbatt please do if you don’t mind as it’s quite confusing when trying to buy stocks. I use trading 212 and there’s so many abbreviations and letters that’s I don’t understand
Is the difference between VAFTAG and VWRP that the former also invests in small cap? For the longer term, is VAFTAG a better best as far as global funds are concerned? Thanks for all the great content you provide.
Yes the VAFTAG includes small caps where the VWRP does not - there's no way to know if this will be a good thing or a bad thing in the future as we have no idea what small caps will do. But it is nice having some exposure in my view. Will it make a difference in the really long term - probably not, so it's all a personal choice. Maybe a good video subject :)
One of the best video that answered a lot of my questions. Great work Would you do a video of the best Junior iSA and cheapest that invest in something like "Vanguard Funds Plc FTSE All-World UCITS ETF (USD) Accumulating (VWRP)" ?
So how does acc will work ? Because vanguard does not allow to buy fraction of shares and if your divs supposed to be like 30£ for example it does not cover full price of share, do i need to have extra cash in vanguard to cover the difference ?
In the ACC funds you never receive any dividends. They are kept by the fund and reinvested by the fund. Its done automatically without any distributions 👍👍
Thanks Toby, I am clear with ISA now. I am fulltime employee and have some savings to invest funds for long term (beside ISA). What sort of account/ platform do I need for it? Thanks
Depends on the platform, assuming you are using Vanguard, then yes - but you technically sell one to buy the other. Vanguard let you do this on their site it's super easy. On other platforms you just sell one and by the other.
Hi Toby S&P had a cracking year unfortunately I sold all my holding and bought BAT shares as they had a bad day and the price was very good, they pay 4 times a year and can cover dividends twice over, my plan is wait for the shares to rise and I will sell and buy back into VUSA I think the S&P might correct as well.
@@TobyNewbatt Cheers Toby it is not about luck that is something you do on a roulette wheel, it is about moats something uncle Warren talks about a lot.
@@timlodge8267moat in a massively declining industry that's heavily regulated and the Western world governments are cracking down on thus again impacting growth. It's fortunate that it has big margins and ability to raise prices and those addicted will pay it. But it's growth isn't really coming from new users. At some point that has to hurt the company?
Income vs accumulation? Is that like only a UK thing. Here in the USA that would just be one version and you can choose whether or not to reinvest the divs. And partial shares are very much a thing too here.
Yes and it's weird to see, I'm not aware of any US ETFs that accumulate. I guess it's probably for tax reasons? I suppose that is why mutual funds can sometimes make more sense in the US but here in the UK the lines between a mutual fund and an ETF are blurring. We are also very lucky to be able to invest £20k ($26k ish) per year in a tax free account which is loads more than a US ROTH IRA which is $6k if I am not mistaken :) Thanks for watching, always interests me the US and UK comparisons!
@@TobyNewbatt perfect mate. saw that handsome face and knew it was you. If I was looking at investing in the S&P 500 what is a good amount to invest ongoing ?
@@samv5876 I’ve done loads of videos looking at this might be worth going back through some when you get the time as there’s not really a simple answer 😎
I think I've said it before but I'll say it again: there's no point buying the vangaurd (VWRP) all world fund with a 0.22% fee. Just buy the developed world (VHVG) fund and allocate 90% of your portfolio to that (as the fee is 0.12%) and buy the emerging market fund (VFEG)and allocate 10% of your portfolio to that (as the fee is 0.22%). That way you are saving massively on fees over the long run. Great video!
I am a beginner and would like to know how many ETFs or index funds one should have in portfolio Just thibking if we diversify in all suggested one we will end up paying more expense ration in total . Any reply would be highly appreciated as i have just opened my trading212 and planning to invest in ETFs suggested in this video :)
As i did say in the video, you don't need to be choosing all of these. A great portfolio would be made up from a single fund that covers the whole world such as VWRP. I've got loads more videos on my channel, take your time and get through all of the basics no rush :)
I have downloaded the Vanguard Australia app but can't find the FTSE All World UCITS ETF or the S&P 500 as available products that I can buy - do you know why this is? IS this video only for UK viewers? Thanks very much
Hello! Yes sorry these are funds for UK investors but I’m sure you will Have something extremely similar in Australia it just might be named a little different! Look for a global passive index fund
Doesn’t apply to mutual funds firstly and secondly the autumn statement said that fractional shares are to be reviewed for ISAs I did a video update on it a while ago 👍.
Hi Toby, great video and Happy New Year! Thank you for sharing!!! What is your thought about FTSE Developed World ex-U.K. Equity Index Fund (VDWXEIA)? You did not mention this fund in your video. Is there any particular reason ? Its not expensive like the FTSE GLOBAL ALL CAP but I understand it does not have the emerging market part in it. Thank you.
@@GenuinePlukowrong. It does not outperform Vanguard Global Developed World (VHVG). The UK is doing better than the Euro markets at the moment so excluding it makes no sense unless you also exclude Europe and just focus on the US.
I'm not familiar with the details but do be aware you are probably paying higher fees, I just googles them and the platform fee is 0.45% a year which is quite pricey.
@@TobyNewbattoh wow I didn’t even realise that appreciate you finding that out, definitely gonna look at other apps and platforms see who the best, I’m a total beginner so appreciate the reply as well 👌
Hey Toby, great video thanks for the info. I was wondering if you know where I could buy the Vanguard value etf (VTV) please. Can't see it anywhere on the vanguard UK website. Think a VTV fund would be good to have alongside FTSE Global All Cap Index in a portfolio for diversification as VTV I believe focuses on value stocks and the other one more on growth...? thanks
Yes thats right. VT is a US-listed index fund not a UK listed one. We can't buy VT as UK citizens inside an ISA. The equivalent would be the FTSE GLobal All capu mutual fund or the FTSE All world ETF :)
IMPORTANT: AMC is back in play same set up as last time if you remember it. Trading today under $5…buy & keep holding until $100 later this year 😁 You’re welcome - only tell those who deserve to x20 their investment.
I use Trading 212 and Invest Engine and they both allow you to invest as regularly as you want and for any amount as they allow fractional shares. Have a look around and see what you reckon.
Is it easy to change the phone number on your vanguard account over the phone? I’ve had to get a new number no way of retrieving the old one but since it sends a text code to get in your account I’ll need to change my number over the phone 😬 hoping it is easy
@@TobyNewbatt *Update: spoke to a very helpful guy from vanguard customer services who changed my number after a few questions, can now log in to my account 🙏
Can I please ask you, can I swap from Acc to Income when I retire ? Ie I will be looking to invest into an isa soon for my retirement in 10 years time. I therefore want to initially want to passively invest then if allowable I want to switch my investments / portfolio to income/dividends Is this allowable within an isa
You can buy and sell whatever you want inside an ISA. Vanguard make it very easy to switch funds - there is a button with 3 little dots on the right of the investment line that allows you to do this if you want to move from acc to income for example. There is no tax to pay ever inside an ISA :). FYI - if you want to just use an ACC fund you can then just sell whenever you want instead of using dividends. Be aware that dividends are only paid quarterly. Hope that helps, as usual do your own research and do what works for you :)
@@TobyNewbatt thank you. I think you may be trying to provide a video to do so but if not I’d love some information on how to best draw down investments , (stock and Shares)as to maximise any potential further growth. Ie do you flip them to dividends, sell them in monthly , quarterly, yearly etc etc. Does selling them off in regular short intervals do more damage than selling say in 1 annual sale? Is there a recommended formula for this ?
Hello Toby, need some advice. I want to buy into the S&P 500 accumulated with Vanguard and I want to buy a fund for All world excluding the USA. How do I do that and what are your thoughts?
There’s no fund for all world ex US you have to make your own portfolio if you want to do that. Those funds are only for US investors because they might want to diversify.
Thanks for tjhe video, it's been really helpful. What about Vanguard Target Retirement 2035 Fund - Accumulation? I am 50 years old and plan to retire around 62 years of age.
As a side pot fair enough - remember the stocks inside the Nasdaq are all the same ones inside the global fund BUT the Nasdaq is overweighting massively to big tech. Long term will probably be a good bet, but as with any investment...past performance isnt a guide etc. :)
Thanks just started my journey with £300 in Vanguard S&P 500. It's a start! Planning on £150 a month.
Welcome aboard the investing rollercoaster :)
Still don't know how to open the account, how do I know these companies are safe I feel like I could lose my money in a click
@@sonnyjuke Start small. Trade 212 seems like a good place.
@@RickSanchez-dn6rd Are there any charges if you have a stocks & shares isa with trading 212. Can you just open an account and put some money in with your debit card easily without Internet banking or open banking like investengine require, and easily set up monthly savings with small amounts if required
How you getting on bro?
I have a 3 fund portfolio but I have finally decided to invest in ETFs, alongside. I’m looking at SCHD, VOO, XLK or SCHG.
Awesome picks! I like XLK and SCHD equally!
@@VanillaCherryBread thank you! Actually would it be silly to have both?
Not necessarily though there is a fair amount of overlap but that’s not necessarily a negative. Most important thing is to get started and build your income over time to continue investing more as time goes on. I just surpassed 500K from an initial deposit of 85K nineteen months ago
I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I’m invested in ETFs, equity index funds, and individual stocks and use a CFA. On average, she takes 10% off earnings, but using *Lina Dineikiene's* system makes it much more hands-off. I conservatively follow her recommendations and market entry and exit points, and tbh this makes it fairly simple for me...
0:17 FTSE ALL WORLD VWLR INCOME AND RP FOR ACCUMULATION
2:42 FTSE GLOBAL - MUTUAL NOT EXCHANGE, you buy by £ not by share
4:59 S&P 500 UCITS ETF VUSA- VUAG ( reinvest)
7:01 FTSE DEVELOPED WORLD ETF- EXCLUDING EMERGING MARKETS
8:42 FTSE EMERGING MARKETS ETF-China , India, Brazil
10:30 FTSE ALL WORLD HIGH DIVIDEND
I’ve started with 8k and I’m depositing 500 a month possible 600-700 some months, S&P 500 baby here we go! let red days come as I see it as on sale lol all the best investors 😅
Would like to see the difference between investing in Vanguard paying fee’s from the portfolio and fee’s from the bank ( over a lifetime ) ISA might be capped at £20K but fees don’t have to be part of that 20K limit
Almost 9% up across my investments so far since I started investing in May, pretty damn good compared to cash savings. Probably gone and jinxed it now and it will all start tumbling downwards, lol.
I prefer Invesco and iShares over Vanguard as they tend to be cheaper, but hey that's just me 😊
Happy new year to you, Toby.
Well done on your gains! Are the OCF fees comparable to VG funds? Vanguard always screams low fees compared to funds like these so I don’t understand how they are cheaper unless you are referring to share price but vanguard funds can be bought fractionally so that would not be a valid statement.
Thanks for the video.
It’d be great if one of the videos you indicate the real return of the money with famous indexes considering the inflation impact
Just started a couple weeks ago, made a split between 4 of these ETFs, s&p 500, developed world, ftse 100 and emerging markets might add the all world high dividend too
Only just realised 3 days ago they added accumulation to the S&P 500 and Developed World. Quickly swapped everything over hate having 16 quid sitting around doing nothing as cash
Glad to help, Vanguard are rubbish at marketing these things. Agreed that all te little bits of money adds up over the years and I'm glad they have the accumulation versions now.
You don’t have to buy vanguard.
Could buy FTWG distribution or FWRG accumulation which are Invesco FTSE all-world UCITS ETF.
Has charge 0.15% its 0.07% cheaper than vanguards all world ETF.
Great video.
Yes that’s right. This video is just for Vangaurd funds to keep things simple. 👍
Excellent summary - just the right amount of detail.
Thank you kindly!
Thanks Toby, your videos are so informative & easy to follow. I'm a 57 year old man with about £50k to invest. I've just opened a trading 212 account & I'm going to put £20k into an isa, I'll probably split it between four or five of the etf funds you've talked about here.
Stick it all in S&P 500 and watch it grow 💪
Great video thanks for sharing currently invested in VANGUARD INV FDS FTSE GBL ALL CAP INDEX
Really helpful video, clearest I've seen on the topic, thanks! Would love to see a video about dealing with past financial regret and moving forward with investing - I believe it's such a barrier for many, including myself.
I’m about to start investing on vanguard on trading 212 but on the fence which to choose between vuag and vwrp. Anyone here got an advice?. Thanks in advance
More best funds to buy hallelujah
amazing video mate, very informative appreciate it 👍
Glad it was helpful!
Any opinion on the VWRP etf?
Thanks for the video, I am leaning towards 90% developed world and 10% emerging 😄
I invested in ftse developed world ex uk index should i switch and if so how do i do it on vanguard ? Have a bit of money in my isa towards it so if i move my monthly investments to a different fund such as all cap or s&p would it be pointless?
I have s and p 500 but in concerned that the mag 7 may reverse and drag it down just as it’s pushed it up , if the nvidia bubble was to burst for instance ,
Thanks Toby for the very detailed information especially for a beginner like me.
Very welcome
Hi which fund had been paying the best dividends, is it possible to see previous years dividend results for the funds, thanks!
Can you give your view on the Vanguard Developed World ESG ETF?
I have shares on robinhood with amazon, apple, nvidia, meta and microsoft. I also have a vanguard account that I put money should I move thr above stocks money to my vanguard or leave them in robinhood please
Great video. My 2 funds in my vanguard:
Global all cap
VHYL accumulation
Get rid of vhyl u just need global all cap
@@polivios13 I totally agree. But VHYL is only 10% and gives me that psychological security
Beautifully explained. Best video I've found ever. All different Vanguard profiles were confusing me! Cheers
Glad it was helpful!
Hi Toby..question
What happens to our t212 shares if we unexpectedly die?
Will the next of kin automatically become the owner of these shares ?
Like anything else it would become part of your estate. Write a will.
Cheers mate learnt so much today. Thank you 😊
Hi Toby, is there a website you use to identify large growth funds that can give you comparative analysis of alike funds and overlap %?
Really good video Toby. I’m New to investing in my 50s and thinking about maxing out a S&S ISA this year. Would ideally prefer to use an Index fund on one of the app based platforms, Why did you prefer the FTSE Vanguard funds rather than the S&P in this video? Would one or all of these be suitable for a buy & forget for 10years or so ISA?
I like owning the whole global stock market (for the majority of my investments at least) to ensure I capture the growth of the world. As amazing as US stocks are, that make up 60% of the global market, that still leaves 40% outside that I don;t want to leave out. In the past US vs International has been a back and forth and who knows what the future holds
Saying this, I don't think anyone will go far wrong with the S&P 500 over any long time period :) - after all I own all of the stocks inside of it, just at different weights!
@@TobyNewbatt Thanks Toby, will try to get this ISA soon👍🏻
I wonder if going for an equal spread or all in on one fund is the better option? S&P500.
Great vid also, thanks!👍
What do you think of ishares or spdr or xtracker ?
I'm really struggling to find an answer on this one...will I be able to buy fractional shares in all Vanguard ETFs on Vanguard UK platform in 2024 in my SIPP and ISA? Thanks
No Vanguard does not support fractional shares right now on their platform directly.
However other platforms like Trading 212 and InvestEngine do allow you to buy fractional Vanguard shares on their platform.
Hope that helps
@@TobyNewbatt Amazing, thanks! I believe HMRC are changing some rules in April. Do you know if I will be able to buy fractional share in VG UK ETFs in, say, May onwards?
@@battj1 no idea if vanguards platform with change to allow fractional shares. Unlikely to be honest but my last comment still applies you don’t have to use vanguards platform to invest in vanguard funds 👍
Just my opinion but, for funds held outside of a tax-free SIPP or ISA wrapper, I hate accumulation funds because even though the dividends are accumulated within the fund HMRC still treats them each year as if they were paid out to you as part of your taxable income so you have to keep "feeding" your investment with cash every year to pay HMRC the tax due on that year's accumulated dividends. And then to add insult to injury when you come to sell your, capital gains tax calculation becomes more complicated because you have to strip out the part of the sales proceeds attributable to all accumulated dividends (already taxed as income) in order to get the correct (lower) adjusted sale price to be used for the CGT calculation.
Within tax wrappers I agree, accumulation funds are a great option, but outside of that the downsides mentioned above are enough to make me go for distribution versions every time and manage the income stream and additional unit purchases myself.
Hi Toby, I have a question regarding the Acc & Div shares. if you have the acc version your volume of shares do not increase like it would when reinvesting your Div payments to buy more, so if the Acc reinvest automatically wouldn't it be more expensive to buy more shares in the long run as the Acc shares don't fluctuate as much ad the Div version? Thank you 😁
I've also wondered this - how does the Accumulation version improve and grow your share count - or 'Units' as Vanguard call them. The quarterly payments are normally paid out at say (december 2023 for example) $0.3362 for every 1 share held. Do you not get "Unit's Held" in accumulation versions?
Yes it would. Acc shares will get more expensive over time faster than Dis shares. The manager will usually split every so often to manage this
You have to pay tax on dividends. Acc shares mean no tax as long as you dont sell and so should grow faster. I don't get why anyone would buy Div shares and then re-invest, even if within an ISA...What am I missing? You can B&B or B&ISA each year to minimise CGT.
@@steve6375 Even accumulation funds do in fact have to pay dividend tax. It's called notional distribution. The amount that would be paid out and automatically reinvested in the accumulation fund is still liable to tax, and outside of an ISA has to be declared if over the yearly allowance.
@@steve6375 Well, if u are located in europe, then u will be taxed on the reinvested unrealized amount every start of the year, its called the vorabpauschale. Yes, it sounds illegal and yes we hate it but what can u do... The European countries want to keep you poor so u are dependent on them... We also don't have a 401k or any help..
For me personally, I would rather have dividends taxed and hold the etf forever than have the acc version which I would have to sell at retirement and have a double taxation ^^
I’m fairly new to investing and own FTSE Global all cap index and the S&P. I’m looking for a good third index fund or ETF to invest in that’ll diversify my portfolio further. Any suggestions?
Why invest in somethinv the same as what you're already investing in? If you're investing in an all world ETF you already are diverse.
For a first time invester in the uk which one would you suggest s&p 500 or the ftse global all xap index fund pls?
should I invest in only one index fund, lets say the s&p 500 accumulating fund, or should I invest in more different index or EFT?
See a video I did comparing a global fund vs the S&P 500 this will help 👍
Hi Toby to get started I’m interested in started a ftse global allcap index , can you advise me where I go to set it up? Also can you pull your money you have invested out at any time or once it is in is that it ? Thanks
@@OP-do7ec I’ve done a recent investing for beginners video you might find useful 👍
Can anyone tell me if you can alternate between accumulation and income of dividends , and if a fee is involved with
Great video as always! Is it wasteful investing into the FTSE global all cap & VUAG? Just to invest a bit more into S&P 500 companies but still keeping it diverse?
Thanks! So it’s not wasteful…but you are overweighting the S&P 500 when you already have all of those stocks in the FTSE GAC. Is that good or bad…who knows as we don’t know future performance. Personally I’d stick to one but really just do what works for you 👍👍.
Maybe the GAC then some picks on the side?
Thanks man yeah I will have a think about it. Nice to see Vanguard have added some of those accumulation versions of funds 🎉
Thanks Toby for such a helpful video. I am invested only in the ftse global all cap index fund that you mentioned, and you are right no one knows the future, so I did have a hard time deciding in November 2023 when I started investing. But because I am new to all of this. I feel safe with this fund because the whole world is included, and like you say any company that stops performing well will be replaced by another one that is. So fingers crossed for the whole world for the future 😊
Hi great video I have got all these index funds you have said in this video just starting out and the only other index funds are from the UK Fft 100'and 250. I am using trading 212 and have £100 in the s&s 500 and £1 each on the other index funds you have said in this video, would you let me know what else I could add or take out, Any advice would be appreciated thank you
Whats the difference between S&P 500 VOO and VUAG/VUSA?
VOO is a US listed index fund for US investors
VUAG/ VUSA - are UCITS ETFs (basically they are for UK/ EU investors to use) as they adhere to the reporting rules we have.
Both invest in exactly the same things. We can't buy VOO in the UK (unless you go via CFDs which is not something I reccomend)
Great video. I guess the question I'm left with is what is the cheapest All World Index Fund and which platform is the cheapest to manage such fund. I currently hold a HSBC FTSE All World Index on HL.
hint...it's not going to be on HL :)
Although some mutual funds on HL have lower front end costs theres more costs to consider in the back end and the platform costs on HL are very expensive. This is why I use Trading 212 and Invest Engine.
can i just ask,is it safe to keep more than 85k in etfs with one trading platform ,i understand 85k would be protected by fscs but is that referring to cash or investments should the trading platform go bust?
Hi Toby, thanks for the informative video!
What’s your thoughts on splitting my investments as the following:
VEVE 70%
VUSA 25%
VFEM 5%
The fees work out quite a bit less when splitting the all world into VEVE & VFEM as opposed to buying VWRL.
Cheers!
I have very similar situation and now I am thinking about consolidating everything into the second one from the list in this video 😊 also thinking about S&P 500 - did you ever think about it.
Is there an easy way to see which Vanguard funds you can buy fractional shares? Doesn’t look like I can filter to them so wondering what I look for?
Sorry if this is not clear - Vanguards platform does not support buying fractional shares of ETFs. You would need to use a platform like Trading 212 or InvestEngine to do this.
BUT you can buy whatever amounts of the mutual funds you want - you would have to filter them on their website to see what is a mutual fund and what is an ETF.
@@TobyNewbatt Thanks Toby. Great content as always.
@TobyNewbatt Vanguard's platform in US allows fractional shares in ONLY the Vanguard suite of ETFs. You just put in dollar amount instead of shares. For non Vanguard ETFs you are correct, they do not allow fractional shares in non Vanguard products or individual stocks
Ahh cool good to know thank you. Maybe they will apply this to the UK one day too. Seems like the US side Vanguard has a lot more choice available and clearly they've focussed well on it!@@TheSmartLawyer
Hey Toby, have you ever thought about investing in Japanese ETFs?
any chance you could do a comparison video talking about the Australian market for 2024. pleeeeeeease. Most if not all of these are available on the Australian vanguard (or just have different names).
Thanks for the idea :)
no no... Thank you😂@@TobyNewbatt
no no... Thank you😂@@TobyNewbatt
I have the 60% life strategy fund. What is your opinion on that? I also have the S&P and VWRP with Freetrade which has made me a lot more money then the 60% life strategy
I don't like the Lifestrategy funds because they are massively weighted to the UK when there is no good reason for it. Also 60% means there is only 60% stocks inside. For me as a long term investors I dont want any bonds at this stage. Always up to you :)
Forgive me as I'm new to this world, I'm looking to invest my money over long term with as little management as possible. I have a T212 account and don't know if I should go for VWRP with T212 or if I should open up Vanguard account and put my money in VAFTGAG. Do you have any recommendations?
Regards
hi, what's the difference between FTSE Developed World UCITS ETF (VHVG) vs FTSE All-World UCITS ETF (VWRL) ?
All world = entire world, which includes US/ EU/ Aus etc + Developing Africa/ China/
Developed = Just main markets. US/ EU/ UK/ Aus etc.
Does it make scenes to invest in all 4 ETF.
VUSA (60%)
VWRP(20%)
VHVG(10%)
VFEG (10%)
?
So, looking quickly, VWRP is a global index fund it has everything in the world (almost!) therefore if you add anything on top you are just overweighting (concentrating) your money into certain sector.
For example VUSA at 60% is about correct for what the US market is
Adding on 20% of VWRP, which is basically 60% US, means that you will be leaning towards the US over 70% (20% of 60%) hope that kinda of makes sense!
Truth is there is no way to know if this is good unless we know the future, keep it simple and stick to something though!
@@TobyNewbatt thank you for explaining. Now I understand and can focus more on having just one ETF and invest
Hi Toby, I wanted to ask, I was trying to buy some vanguard S&P 500 shares off trading 212 in my stocks and shares ISA and when I searched it multiple different ones came up and I don’t know the difference between them or which on to choose, please help!
check the correct ticker symbols and make sure they are listed on the London Stock exchnage and listed in GBP £. Maybe ill do a video about this.
@@TobyNewbatt please do if you don’t mind as it’s quite confusing when trying to buy stocks. I use trading 212 and there’s so many abbreviations and letters that’s I don’t understand
All my investments were mentioned in this video and I'm up £410 since starting in September.
@hustlinhitch did you exclude any from this video?
Toby, Why do fund share price units vary. eg. S&P 500 ETFs can be £6.20, £60.70, £723.55 a share. Please do a video of the pros and cons. Thanks
Thank you for the suggestion
Is the difference between VAFTAG and VWRP that the former also invests in small cap? For the longer term, is VAFTAG a better best as far as global funds are concerned? Thanks for all the great content you provide.
Yes the VAFTAG includes small caps where the VWRP does not - there's no way to know if this will be a good thing or a bad thing in the future as we have no idea what small caps will do. But it is nice having some exposure in my view. Will it make a difference in the really long term - probably not, so it's all a personal choice.
Maybe a good video subject :)
Thanks again @@TobyNewbatt
One of the best video that answered a lot of my questions. Great work
Would you do a video of the best Junior iSA and cheapest that invest in something like "Vanguard Funds Plc FTSE All-World UCITS ETF (USD) Accumulating (VWRP)" ?
Check my channel I did a best junior isa video 👍
Can’t find any of these funds on vanguard
They are found under their respective categories on the 'what we offer' section. So ETFs mentioned here are under ETFs, not funds, and vice versa.
If you can't find it, you probably shouldn't be investing on your own 😮
So how does acc will work ? Because vanguard does not allow to buy fraction of shares and if your divs supposed to be like 30£ for example it does not cover full price of share, do i need to have extra cash in vanguard to cover the difference ?
In the ACC funds you never receive any dividends. They are kept by the fund and reinvested by the fund. Its done automatically without any distributions 👍👍
@@TobyNewbatt Thanks 🙏 i will switch VUSA and WVRL to acc version 😀
@@MultiLogina is it easy to switch or do you have to sell first then buy back your funds
Thanks Toby for a video 👍
No problem 👍
Thanks. can I invest more than 20k on Trading 121? or I should set up a separate account for the amounts over 20k?
£20k is just the limit you can put inside an ISA in one tax year. If it grows to £1m that’s fine. I hope that makes sense?
Thanks Toby, I am clear with ISA now. I am fulltime employee and have some savings to invest funds for long term (beside ISA). What sort of account/ platform do I need for it? Thanks
Can you switch existing monies from VUSA to VUAG without fees? Would you advise this?
I did this
Depends on the platform, assuming you are using Vanguard, then yes - but you technically sell one to buy the other. Vanguard let you do this on their site it's super easy.
On other platforms you just sell one and by the other.
Thank you Toby, really appreciate your videos and content. Yes using Vanguard but like the thought of accumulation :)
What do you think about Invesco FTSE All-World as alternative to the Vanguard one?
@@angeloorsini1764 a great fund - low cost and an amazing single global fund. It’s slightly smaller but I can see this fund growing very quickly!
Although most is known for me, that there was an acc s&p500 from vanguard available in europe was new, thanks!
Glad to help and thank you for watching!!
Hi Toby S&P had a cracking year unfortunately I sold all my holding and bought BAT shares as they had a bad day and the price was very good, they pay 4 times a year and can cover dividends twice over, my plan is wait for the shares to rise and I will sell and buy back into VUSA I think the S&P might correct as well.
Good luck Tim! no guarantee those shares will rise though :(
@@TobyNewbatt Cheers Toby it is not about luck that is something you do on a roulette wheel, it is about moats something uncle Warren talks about a lot.
@@timlodge8267moat in a massively declining industry that's heavily regulated and the Western world governments are cracking down on thus again impacting growth.
It's fortunate that it has big margins and ability to raise prices and those addicted will pay it. But it's growth isn't really coming from new users. At some point that has to hurt the company?
I only have £100, how can I put those for vanguard to divide it the funds I want to invest.??
£100 one-off (or per month) really only requires only a single fund to be used.
I invest 50 on vusa and 50 on vwrp on invest engine
Have you seen the Documentary "The Great Taking". Does that not worry you about your investments?
Income vs accumulation? Is that like only a UK thing. Here in the USA that would just be one version and you can choose whether or not to reinvest the divs. And partial shares are very much a thing too here.
Yes and it's weird to see, I'm not aware of any US ETFs that accumulate. I guess it's probably for tax reasons? I suppose that is why mutual funds can sometimes make more sense in the US but here in the UK the lines between a mutual fund and an ETF are blurring. We are also very lucky to be able to invest £20k ($26k ish) per year in a tax free account which is loads more than a US ROTH IRA which is $6k if I am not mistaken :)
Thanks for watching, always interests me the US and UK comparisons!
Great! Do you have to invest every month or is it just a one off investment? 😁
Monthly for me 😎
Great video, cheers
Great video Toby.. Cheers!!!
Toby, Why do fund share price units vary. eg. S&P 500 ETFs can be £6.20, £60.70, £723.55 a share. Please do a video of the pros and cons. Thanks
Might be worth a video thank you!
fair play mate I remember working with you at Softcat :D
😎 another lifetime ago! Hope you’re doing good!
@@TobyNewbatt perfect mate. saw that handsome face and knew it was you. If I was looking at investing in the S&P 500 what is a good amount to invest ongoing ?
@@samv5876 I’ve done loads of videos looking at this might be worth going back through some when you get the time as there’s not really a simple answer 😎
I think I've said it before but I'll say it again: there's no point buying the vangaurd (VWRP) all world fund with a 0.22% fee.
Just buy the developed world (VHVG) fund and allocate 90% of your portfolio to that (as the fee is 0.12%) and buy the emerging market fund (VFEG)and allocate 10% of your portfolio to that (as the fee is 0.22%). That way you are saving massively on fees over the long run.
Great video!
Indeed that’s a solid solution that requires a teeny bit of management and I’ve got a video I need to make on that topic very soon. Thank you!! 👍👍👍
@@TobyNewbatt can't wait for it!
I invest in VWRL and now may change! Thank you!
or buy a cheaper all world index fund from someone else
@@natedog5564 from who?
Just about to start investing, I have put a £100 direct debit on s&p500 and £150 on VWRL for a start, its not much, but its a start
Well done and welcome aboard the rollercoaster of investing!!!
I am a beginner and would like to know how many ETFs or index funds one should have in portfolio
Just thibking if we diversify in all suggested one we will end up paying more expense ration in total .
Any reply would be highly appreciated as i have just opened my trading212 and planning to invest in ETFs suggested in this video :)
As i did say in the video, you don't need to be choosing all of these. A great portfolio would be made up from a single fund that covers the whole world such as VWRP.
I've got loads more videos on my channel, take your time and get through all of the basics no rush :)
@@TobyNewbatt Thanks a lot. Yes i am going through all videos from a month :) n planning to start in 2 etfs in one portfolio :)
I have downloaded the Vanguard Australia app but can't find the FTSE All World UCITS ETF or the S&P 500 as available products that I can buy - do you know why this is? IS this video only for UK viewers? Thanks very much
Hello! Yes sorry these are funds for UK investors but I’m sure you will
Have something extremely similar in Australia it just might be named a little different! Look for a global passive index fund
Thanks very much for the quick response, I really appreciate it. Love the videos!
Any news on holding fractional shares in an ISA, and could there be any complications holding FTSE Global All Cap if so?
Doesn’t apply to mutual funds firstly and secondly the autumn statement said that fractional shares are to be reviewed for ISAs I did a video update on it a while ago 👍.
Rapid answer.Thank you@@TobyNewbatt
Great video, thank-you
Glad you liked it!
Fantastic, so many professional people have no financial education at all. It's shocking.
Hi Toby, great video and Happy New Year! Thank you for sharing!!! What is your thought about FTSE Developed World ex-U.K. Equity Index Fund (VDWXEIA)? You did not mention this fund in your video. Is there any particular reason ? Its not expensive like the FTSE GLOBAL ALL CAP but I understand it does not have the emerging market part in it. Thank you.
the best one on Vanguard IMHO, lowest fee's and seems to outperform the rest (probably because poorly performing UK isn't in it lol)
@@GenuinePlukowrong. It does not outperform Vanguard Global Developed World (VHVG). The UK is doing better than the Euro markets at the moment so excluding it makes no sense unless you also exclude Europe and just focus on the US.
@@pedazodetorpedo what are the fees on Vanguard Dev World?
I have the Plum app to like manage and budget my money better and you can invest through that, is that alright to do on an app like that?
I'm not familiar with the details but do be aware you are probably paying higher fees, I just googles them and the platform fee is 0.45% a year which is quite pricey.
@@TobyNewbattoh wow I didn’t even realise that appreciate you finding that out, definitely gonna look at other apps and platforms see who the best, I’m a total beginner so appreciate the reply as well 👌
S&P all the way
other good ETF's - GPSA, XSTC, EQSG
Are these found in the Fidelity app?
Any ETF should be found on any good broker platform
Hey Toby, great video thanks for the info. I was wondering if you know where I could buy the Vanguard value etf (VTV) please. Can't see it anywhere on the vanguard UK website. Think a VTV fund would be good to have alongside FTSE Global All Cap Index in a portfolio for diversification as VTV I believe focuses on value stocks and the other one more on growth...? thanks
Yes thats right. VT is a US-listed index fund not a UK listed one. We can't buy VT as UK citizens inside an ISA.
The equivalent would be the FTSE GLobal All capu mutual fund or the FTSE All world ETF :)
@@TobyNewbattjvtsmx
@toby - why is it called FTSE when it’s featuring companies that aren’t listed in the FTSE but say America?
Ahh so this is because FTSE is a an indexing company short for FTSE Russell. Similar to S&P. Nothing to do with just UK
IMPORTANT: AMC is back in play same set up as last time if you remember it. Trading today under $5…buy & keep holding until $100 later this year 😁 You’re welcome - only tell those who deserve to x20 their investment.
This is NOT 2020. Also AMC reverse split. So those who bought this stock thinking it would rocket are screwed. Do not buy junk stocks.
What’s the best platform to buy VUAG on, consistently and regularly?
Vanguard
I use Trading 212 and Invest Engine and they both allow you to invest as regularly as you want and for any amount as they allow fractional shares. Have a look around and see what you reckon.
@@TobyNewbatt Cheers Toby, this is why I gave up on Vanguard. DD set up, but it wasn’t putting it to use every month.
Is it easy to change the phone number on your vanguard account over the phone? I’ve had to get a new number no way of retrieving the old one but since it sends a text code to get in your account I’ll need to change my number over the phone 😬 hoping it is easy
Good question, report back and let us know I'm sure you wont be the first!
@@TobyNewbatt *Update: spoke to a very helpful guy from vanguard customer services who changed my number after a few questions, can now log in to my account 🙏
@@Ryane994 great to hear and thank you for the update :)
Vanguard in America does not charge any platform fee and people can buy other shares eg. Apple, Microsoft.
Yes thats right they have a whole trading platform in the US, the UK really is lagging behind! I think they could make a really good one.
Can I please ask you, can I swap from Acc to Income when I retire ? Ie I will be looking to invest into an isa soon for my retirement in 10 years time. I therefore want to initially want to passively invest then if allowable I want to switch my investments / portfolio to income/dividends
Is this allowable within an isa
You can buy and sell whatever you want inside an ISA. Vanguard make it very easy to switch funds - there is a button with 3 little dots on the right of the investment line that allows you to do this if you want to move from acc to income for example. There is no tax to pay ever inside an ISA :).
FYI - if you want to just use an ACC fund you can then just sell whenever you want instead of using dividends. Be aware that dividends are only paid quarterly. Hope that helps, as usual do your own research and do what works for you :)
@@TobyNewbatt thank you. I think you may be trying to provide a video to do so but if not I’d love some information on how to best draw down investments , (stock and Shares)as to maximise any potential further growth. Ie do you flip them to dividends, sell them in monthly , quarterly, yearly etc etc. Does selling them off in regular short intervals do more damage than selling say in 1 annual sale? Is there a recommended formula for this ?
@@u10722u good video idea thank you
Toby would it be worth doing a video on the Nasdaq and Dow Jones and whether they are worth buying?
Yes might be a good video as lots of people are interested in this
Hello Toby, need some advice. I want to buy into the S&P 500 accumulated with Vanguard and I want to buy a fund for All world excluding the USA. How do I do that and what are your thoughts?
There’s no fund for all world ex US you have to make your own portfolio if you want to do that. Those funds are only for US investors because they might want to diversify.
Thanks for tjhe video, it's been really helpful. What about Vanguard Target Retirement 2035 Fund - Accumulation? I am 50 years old and plan to retire around 62 years of age.
So is the accumulation version is better?
Automatically reinvests dividends rather than sitting in your 212 account for example
What’s your opinion on Nasdaq 100? Was thinking of buying that alongside my all world etf.
As a side pot fair enough - remember the stocks inside the Nasdaq are all the same ones inside the global fund BUT the Nasdaq is overweighting massively to big tech. Long term will probably be a good bet, but as with any investment...past performance isnt a guide etc. :)
@@TobyNewbattyes good points