Loved this video. I currently only invest monthly in the Vanguard S&P 500 Acc. I really fancy the Global FTSE fund so thanks for covering this as well.
Being 50, I’d recommend you live your life first, don’t get me wrong use the 40% or 45% tax allowance on pensions to build your pension, but don’t not live your life at 22. Invest in your skills and qualifications, if you are 22 you have 28 years of work if you want to retire at 50.
@JamesKerr-z4oI agree I’m 55 and really didn’t get started investing till around 30s and have over 1 million in investments. In my 20s I had a great time and enjoyed my life within my means. No student debt but enjoyed holidays and nights out. I went to university at 24 quite late but got a decent degree in Computer Science and have worked since then. Invest a little and you’ll be retired early. I doubt there will be state pensions when you retire so make sure you invest a bit each month without going mad. The first 100K is the hardest as they say then it snowballs.
ACWI is another All World option, with a OCF of 0.12%. The long name is State Street Global Advisors Morgan Stanley Capital International All Country World Index. It's been around for a while but had its OCF reduced relatively recently.
@@TobyNewbattdo you personally prefer the FTSE index over the MSCI index for all world option ! If so is it because of the amount of holdings & how each index classifies some countries as developed or non-developed/emerging? For instance, South korea being classified as emerging in one index yet the other index classifies it as developed ?
@@blueskies362 I don't spend too much time worrying about FTSE vs MSCI tbh but I'm more familiar with the FTSE Index :) You are correct MSCI is the one that classifies SK as an emerging country.
@@TobyNewbatt after some reading around I think i prefer the invesco FTSE all world despite a slightly higher fee compared to the SPDR MSCI ACWI fee only because invesco FTSE has slightly more in emerging markets compared to MSCI, but overall has more holdings compared to MSCI too and covers slightly more of the global equity market. At the moment I'm considering the invesco FTSE all world FTWG as its distrubuting and i'd like to auto-reinvest it - this way i get notification as to when i get dividend & I think I can have some control over changing the percentage weigthing in my portfolio before the auto-reinvest kicks in - is the latter correct? But I see the fund size for FTWG is 60 millon compared to its accumulating counterpart - FWRA which has a fund size of 638 million. Do you think the value of the fund size here outweighs the flexibility features of changing the % of your portfolio to manage dividend reinvestment and being alerted when & how much dividends is being made by an ETF? or not? I presume the fund size indicates how easy it would be to sell the EFT later and/or how much updake people have invested in the fund?
Hi Toby it's 12:25am and i've just opened an IE through your link, you inspied me to get trading with Vanguard last year, with their fees, it was time to jump ship to IE, happy investing for 2025
Another great video! Very convenient for me right now because I'm looking at investing in my second etf. My first is an etf that tracks the s&p 500 - but I can't decide whether to cash in most of the current gain on that etf and use that to start my second etf (eg tracking the Nasdaq).
On the one hand, cashing in some gain and using it to start a new ETF is timing the market, on the other the gain could disappear within 24 hrs. Can you see any other negative/positives to cashing in some of my s&p gain? (Not really expecting an answer, I know you don't give advice but it's more giving both sides than advice.)
Another good video Toby never harms to go over these essential steps when choosing an ETF. While following the video I couldn't find for the life of me how to get to the stock exchange display you were showing? I shall however persevere it must be in there somewhere!
If you want security, fixed term bonds accounts appear to be offering the higher savings rate in the UK, some are offering 5-6%. But you can’t access it for the term. In the end I decided to just hold my emergency funds in cash and the rest I will be investing over time.
Trading 212 have a flexible cash ISA paying 4.9% at the moment. You can withdraw it all at any time and put it back by April 5th if you can to keep tax free status. You probably can transfer it if not already with them. Another option is the CSH2 ETF inside a stock and shares ISA which currently returns a similar amount with little risk. Investing in stocks is your choice and risk and since 2025 may be 'choppy', you can always invest next year when hopefully things will be more stable if you are risk averse. HTH. Not financial advice!
I think the clue is it's called low cost index tracking investing so I personally look to see if the fee is justified by any reduction in volatility or the performance over time edging other similar products.
Thanks Toby for this. One bit I wasn’t aware of so much and be great to dive into is the ongoing charges like transaction costs. I found that although invest engine had no charges and I had an etf collection of 0.09% but I ended up with transaction charges which nearly tripled my fees. I’ve since found Prosper - which oddly seems not to be mentioned by anyone. Yet they refund ongoing charges and transaction fees. I have no affiliation to Prosper.
@@JHBEM interesting looks like they are doing this to attract new customers it’s certainly not industry standard. You are correct that transaction costs are a bit of a hidden fee that isn’t included in anyone’s TER. I have covered this before but I will do this again in another fees video 😇
@ No worries, I don’t know if the Transaction Cost(TC) from IE is comparable to the costs I’d incur if I was with T212 or other platforms. I just got surprised by it in my IE annual statement as I had only factored the visible TER. Look forward to new video and I will search for your previous video discussing TC - although if you have chance to ping a link that would be super grateful. As ever thank you and best of luck with all your future videos - much appreciate them.
@@TobyNewbatt sorry, I think I meant FX fees, but could easily be something else. I’m just not very familiar with all these fees/costs that might or might not be incurred and it does seem that TER isn’t the only thing to consider when thinking about total costs and long-term impact on your investments as a whole.
ETF’s are great for lower risk income generation.The S&P has returned on average over 10% since launch in 1957. This does hide major crash or boom years so entry point is important. Very few fund managers beat the index so finding a low cost tracker is best. These are not get rich quick - time in the market is essential to allow compounding to take effect. Great as an an investment for your kids who have many decades to see the investment grow.
HSBC FTSE all world is only 0.13% OCF. Even though it's an index fund and not an ETF, have still yet to find something better which is cheap and globally diverse.
Yes true a great mutual fund - you just have to factor in the cost of the platforms you are using and don't forget to keep track of transactions costs which are hidden :)
@@TobyNewbatt Only paying £40 per year flat fee, with free regular investing. Only costs me £1.50 if I make a transaction which doesn't go through the regular investing service. Calculating the platform costs with the OCF, it only comes to a total 0.16% which is a fart in the wind compared to some platforms.
I just love me some Vanguard....and now that I've got it I don't want to lose the peformance history. I'm not going to fight over tiny cost percentages, just wanted to highlight it for new people :)
What about bitcoin tracking etf's? Bitcoin seems to have had a large browth recently, are there bitcoin focused etf's so we can join the growth party without so much of the risk? perhaps I mean cryto not bitcoin.
Another great video. Thank you Toby . After watching your video yesterday I gain more confidence and signed up with your code , though still finding my way 😂 the problem is my screen after signing up in trading 212 did mot came up like yours .. the round pie or something. Is that a problem . I have money up in 212 but haven’t invest , just trying to be sure before buying
Great video Toby. Thank you for demystifying everything for beginners like me! Can I ask why you don't use a stocks and shares Lifetime ISA as part of your portfolio?
Thanks Chris! I've answered this many times before. But it's way more tax efficient for me to use my SIPP as a ltd company director. And I prefer to max out my stocks and shares ISA instead with my full ISA allowance. Which I've just done :)
@TobyNewbatt Ah ok cool. Still new to all this. It seems like a good way to grow an additional retirement pot if you already pay into a workplace pension over a SIPP with that 25% bonus? Just trying not to mess it all up haha
if you're self employed (not part of a ltd company) then my SIPP vs ISA video will apply :) - go back and watch that. SIPPs are very good for higher rate tax payers and you get tax relief :)
Thanks for another great video. Is the SPX5 the equivalent of SPXL but just distributing? Im just looking to make sure everything else is exactly the same
I looked at some of these global funds and for beginners they are great but when I looked at a US fund and a Developed world ex UK fund I found that they were virtually identical for example outside the US the next was Japan and one might have 5% and the other 6% then it might be Canada or the UK but by then we are talking 1 or 2% so I think most investors may find they don't need a global fund/ETF and the TER was usually higher too. This was my conclusion when I looked for myself but for a one fund portfolio they are ideal.
Great video thanks! I have been investing in a couple of accumulating etf’s and I’ve always wondered how the dividend payouts are automatically invested back into it. Is there a way I can see the amounts it’s grown by or will it just happen in the back ground and there’s no way to see it. I’m using trading 212 by the way. Thank you
Great question - and there is no specific date or time that you will 'see' the dividends being reinvested. All that happens is that over the long run the fund value will grow - at least when compared to an identical fund which does not pay a dividend out. If you ever want a good example, compare VUAG with VUSA over a few years and you will see the difference :)
Brilliant video! I’ve heard Vanguard charges will be going up on the 31st of January... I don’t know how true this is, have you heard anything about this Toby?
@ Thanks. The only one I’ve come across so far is XUKS… . I’m not sure about the concept in general as an ETF has always been a long term investment option in my opinion… whereas shorting anything is usually the opposite… but no expert so just wanted to broaden my understanding.
I don't understand your point about ETF liquidity. My understanding is that unlike stocks, ETFs are flexible since they can create or redeem shares to match demand. This process helps keep the fund’s liquidity stable and what really matters is actually the liquidity of the underlying assets that the fund is trading. In that logic a fund with 1 billion AuM won't be more liquid than a fund with 10m of AuM. Am I wrong?
When I say ETF liquidity, I'm more referring to it's effect on the spread. You are absolutely correct that an ETF provider is able to make more shares if needed, which is a great feature. It can still be an issue when wanting to make lots of trades or very large trade in a short space of time (I'm not aware of the exact mechanics of share creation if it can be instant, or issued at a later date)
@@TobyNewbatt True it might be different for large trades of big super wealthy individuals or institutional investors but that's far away from my league and my knowledge :)
Hi Toby, great advice as always. What do you think of XNAQ over EQQQ, as it is 0.2% vs 0.3%? XNAQ is also accumulating. Are there other factors you think make EQQQ better?
can you explain please on the vanguard vuag and other investments i,ve looked at says its Base currency of fund is USD when you buy in GBP how dose this affect tax as is it based on usa dollar tax, this bit i don,t understand i dont want to buy into the fund a find out i,ll have to pay tax through the dollar not uk tax
VUAG is listed and sold in GBP. If you buy it inside an ISA or a pension then you do not pay any taxes. The base currency doesn’t affect anything for you. They need dollars to buy those US stocks.
@@TobyNewbatt ok thanks for your reply i would be buying them through my dealing account to which i buy shares in the umbrella company that owns the company i work for
I see XAI303K moving right along side all the Alt's you mentioned! Plus I see all the Alt's plus XAI303K moving in lock step in the charts! My point is XAI303K is cheap! Retail likes buying cheap! Especially when that cheap item is on the verge of becoming expensive
ETFs are index funds (at least these ones are) :) - I'm not sure what you are trying to do here :). You can't buy fractional ETFs on the Vanguard platform and it costs you more money to do so
@ you can’t invest inside a cash ISA but you can move money from a cash ISA to a stocks and shares ISA. Really it doesn’t matter too much about platforms but they are all different and offer different things with different costs.
Ahhh 🙂that was a typo, I didn't mean to type cash Isa, I meant to type within my stock Isa or best to avoid the vanguard S and P 500 on t212 and just pick another ETF due to overlap between the GAP and S and P 500?
Your videos are so genuine and honest. I wanted to invest, but wasn’t sure where to start. After watching your videos and putting my goals I am now in to investing. Thank you Toby! Looking forward to your new videos and definitely will be following you on my way in to more investments.
So it's always up to you - but just remember that all of those funds have the same stocks in them so you just end up with a slight overweighting to the same stocks :) A question to ask yourself is how do you know how much to put into each one when you put money in every month? :)
@@TobyNewbatt thanks for the response Toby. I weight more towards the Nasdaq 100 50% with 25% on the others, £500 pm. My logic was that the weighting would soften any big blows on the Nasdaq if there was any sudden turbulence. I am new to this though so im open to some constructive criticism! :D
@@JackHewes It's all good - the thing with investing is nobody knows what will be best for the future for your timescales and level of risk. Most important thing is to stick with this for the very long term whatever you decide to do.
I’m invested in VUAG, was looking at the SPXL that you mentioned and how come their ETF share price is a lot less if they’re both the S&P 500? Are they invested in different shares? Or do they cover the same shares, but the SPXL holds a lower percentage of each partial share?
Ignore the share price when comparing ETFs it’s not relatable at all. An ETF provider can have as many shares as they like and they can issue more if needed. So two funds could have £1 shares and others could have £100 shares, yet they might both track the same index
As someone transferring from Vanguard to T212, what trustable ETF is most similar to the FTSE global all cap fund, as i’ll have to sell and replace it with an ETF? What are the key differences between the fund and VWRL/FWRG if thats the closest?
FTSE Global all cap includes small companies too, there's not an exact ETF copy, so VWRP/ VWRL or FWRG are good alternatives that will almost certainly perform closely as they track the vast majority of stocks in the same way.
Toby, what you think of combining these 3 etf(acc) for long therm investment- ftse all world, eqqq and smh. S&P instead of ftse is maybe to overlaping witg qqq or do you think s&p would be better.
Adding in more S&P 500 and QQQ to the All world fund just overweights big tech a lot - totally up to you :) but you already get a lot of big tech in the all world.
It’s a US etf it’s not something you can invest in from the UK. Why not just invest in a low cost index fund? He’s likely to underperform the market long term
I use CSPX for s&p 500. Since justetf includes the TER, I just look at the performance. What i am not sure about is whether justetf accounts for the 15pc withholding tax on us dividend shares or not.
@@TobyNewbattbut justetf shows the US version of the ETF, not the UK/Ireland version. So how does it know to deduct withholding tax and show it in graph and performance figures? Would the sire show different figures for someone in the states or using a VPN set to USA?
Hi Toby, I'm new to 212 this year and have opened a small portfolio. I'm a little confused between the ACC and dist versions of etfs. I understand dividends are returned to you with the dist, but I'm wondering how the ACC version works. Is the reinvestment reflected in the slightly higher price of the ACC, or do you receive extra shares? I'm sorry if this seems a stupid question.
Not a stupid question. In the Acc versions of funds your dividend is reflected in the price. No new shares are given to you and it’s not done on a specific date. However you should see this when you compare two of the same ETFs with acc and dost using a performance graph. I hope that helps 👌
Hi, love your videos but when I tried to set up an account I've stumbled ar the first hurdle. I have a Virgin bank account and a 10 digit customer number. The site asks for a 6 digit number. Virgin say type in Clydesdale or Yorkshire instead but these are nit sn option
I'm confused :) Your bank account number is 8 digits, everyone in the UK has the same number of digits. Then your sort code is 6 digits. Customer number is not relevant :) - I hope that helps.
difference between the vanguard and the invesco one is that the vanguard one has 1000 more companies in it, i'm torn between the invesco and vanguard over the 0,07% fee difference.
You are right, however it's all a question of whether those 1,000 companies will make any difference to the returns, it's likely they won't but its all up to you :)
@TobyNewbatt yes, I heard and I completely understand that. I was just curious if you had less of a preference for it compared to those mentioned in the video. Thank you very much for your reply!
This is what I do .keep it simple some think they will become millionaires by investing in 5 or 6 ETF,s fact is keep it simple and keep the fee low. Its a long game with being constant
That’s something you’d need to look a bit more into. Things like spread, tracking error can all play a part - although nobody knows the future. Personally I’d just pick whatever your comfortable with and focus on the most important thing which is being a long term investor and getting as much in as possible inside tax protected accounts 👍
"HL charges .45 pa to hold ETF" yes this is expensive on its own, however, "capped at 45 GBP" can make it cheap depending on how much you invest. A £45 charge per year to hold say £100k + I would say is cheap. Note there is no charge cap on investments in funds, which is why I no longer invest in funds via HL.
Hey all! Can I have a few of your opinions please! I have 10k lump sum to invest! I'm new to this, and I plan on adding every month for many years. Would you deposit the 10k right away today and add monthly or start adding monthly and slowly add the 10k in the event of dips in the market?
3:58 How do you actually know the etf reinvested dividends? I’d expect the difference between VUAG (accumulation) and VUSA (distribution) to be somewhat big but they are very close, surely the reinvested 1.3% dividends or so compounds and you’d expect a much bigger price gap???
@@RRedmondiy43 it’s in the description and factsheet of the fund. The fund pays a very small dividend. Compare it over a longer time frame and you’ll see the effects
I think justetf includes the dividends on a distribution etf. The chart for a single ETF has a checkbox that allows you to plot performance with or without dividends.
@@pdaniaful Trumps attitude seems to be to not care about less fortunate people or climate change, to deregulate and have no thought for the rest of the world, but make $ out of US oil and gas, US tech and invest in US industry whilst 'taxing' overseas businesses and encouraging US monopolies. Much as I don't like it, I can see US business and finance doing very well at the cost of all other countries. I do have global ETFs as well though!
@@steve6375 I totally agree with you but it's still all speculation, the VWRP has a 67% lean towards N Ameria anyway so I'm still covered somewhat, I just want to spread my wings wide. Don't ignore the rest of the world is what my mind is telling me. BRICS is a serious threat and in no small way. It's a case of watch this space I guess.
I'm currently buying the dips or looking for momentum. Overall, I have long since realized profits and am now relaxed and waiting for the next bear market. Bought XAI303K yesterday -> 27% up right now. A good start to the New year.
If you are already invested in an SP500 ETF, such as Invest S&P 500 (SPXP) with a charge of 0.05%, is it worth selling and buying the SPDR S&P500 ETF (SPXL) with a charge of 0.03%? Do you lose something during that sell/buy transaction which mitigates the lower on-going costs? Assuming this is done on a fee-free platform like T212, and investing for the long term (10 years+).
Regarding the AI/Robotics/Automation ETFs, what would be the difference, lets say if you got a custom made AI stocks pie from Trading 212, as opposed to investing in an AI ETF? Thanks.
Is it completely pointless to invest in 2 different global funds? Or is there a strategy to choose one for a SIPP and one in an ISA, or just pick one and hold your guns? I kinda hate having all this choice 😅
If a fund is tracking the same index - then theres no reason you need two different funds. There can be minute differences in tracking error/ spread costs. However you could also make the argument that you want to diversify between providers...purely up to you really :)
Surely you are better off in UK buy $ Or € ETFs rather than £? If you buy in £ then you get hit with 0.5% stamp duty but certainly on T212 , maybe others, the foreign exchange fee is less than 0.5% so you are better off buying $ or € traded funds? Obviously you introduce foreign exchange rate risks to the investment but that works both ways - win or lose. Or have I missed something?
Great video! Would you focus on bonds and specifically bonds on trading 212, I think they do a etf style product for them which makes thinking about their long term valuation more complicated
Hi Toby, enjoy your content which is always straightforward and engaging. One other global ETF I like and use for even greater diversity is V3AB, the Vanguard ESG Global All Cap, which provides some exposure to emerging markets and small caps with over 5.7k holdings in total.
Hey Toby, What is your teleprompter setup? I’m really impressed at how subtle your eye movement is because usually you can tell when TH-camrs are reading directly from a script. Nice work man!
Great video, Toby! Always on the ball! One question I had is why is SPXL so low at £11 but VUAG is £91? They cover the same stocks. Is it because SPXL is a newer ETF?
The price of the ETF is totally irrelevant and not connected to others in anyway. It's like comparing the price of Apple and Paypal, it's not connected :)
@ I’m sure he’s wondering why one is priced at £11 and the other is at £91 even though they cover the same stocks, I assume he wants to know why the big difference in share price.
Loved this video. I currently only invest monthly in the Vanguard S&P 500 Acc. I really fancy the Global FTSE fund so thanks for covering this as well.
Vanguard also has a total stock etf too.
Solid advice as always. I use your pie and chuck £2 in a day and forget about it.
Great insights! Excited to see which ETFs will shine in 2025!
I’m 22 and just started investing in the Fidelity all world Acc world index, planning to retire at 50. Great vid!
Being 50, I’d recommend you live your life first, don’t get me wrong use the 40% or 45% tax allowance on pensions to build your pension, but don’t not live your life at 22. Invest in your skills and qualifications, if you are 22 you have 28 years of work if you want to retire at 50.
@ thanks mate appreciate it!
Yeah dont forget to live
@JamesKerr-z4oI agree I’m 55 and really didn’t get started investing till around 30s and have over 1 million in investments. In my 20s I had a great time and enjoyed my life within my means. No student debt but enjoyed holidays and nights out. I went to university at 24 quite late but got a decent degree in Computer Science and have worked since then. Invest a little and you’ll be retired early. I doubt there will be state pensions when you retire so make sure you invest a bit each month without going mad. The first 100K is the hardest as they say then it snowballs.
@pataleno that great to know I saved 90k befor I educated myself on investing via TH-cam just started 😎
ACWI is another All World option, with a OCF of 0.12%. The long name is State Street Global Advisors Morgan Stanley Capital International All Country World Index. It's been around for a while but had its OCF reduced relatively recently.
Yes that works for the MSCI index a great choice
@@TobyNewbattdo you personally prefer the FTSE index over the MSCI index for all world option ! If so is it because of the amount of holdings & how each index classifies some countries as developed or non-developed/emerging? For instance, South korea being classified as emerging in one index yet the other index classifies it as developed ?
@@blueskies362 I don't spend too much time worrying about FTSE vs MSCI tbh but I'm more familiar with the FTSE Index :)
You are correct MSCI is the one that classifies SK as an emerging country.
@@TobyNewbatt after some reading around I think i prefer the invesco FTSE all world despite a slightly higher fee compared to the SPDR MSCI ACWI fee only because invesco FTSE has slightly more in emerging markets compared to MSCI, but overall has more holdings compared to MSCI too and covers slightly more of the global equity market. At the moment I'm considering the invesco FTSE all world FTWG as its distrubuting and i'd like to auto-reinvest it - this way i get notification as to when i get dividend & I think I can have some control over changing the percentage weigthing in my portfolio before the auto-reinvest kicks in - is the latter correct? But I see the fund size for FTWG is 60 millon compared to its accumulating counterpart - FWRA which has a fund size of 638 million. Do you think the value of the fund size here outweighs the flexibility features of changing the % of your portfolio to manage dividend reinvestment and being alerted when & how much dividends is being made by an ETF? or not? I presume the fund size indicates how easy it would be to sell the EFT later and/or how much updake people have invested in the fund?
Invesco FTSE All World 🤙🏻
Thanks for the advice mate👍
Always such great videos Toby
weeeeeeeee Val! :)
Hi Toby it's 12:25am and i've just opened an IE through your link, you inspied me to get trading with Vanguard last year, with their fees, it was time to jump ship to IE, happy investing for 2025
Good luck and welcome aboard 😇
Another great video! Very convenient for me right now because I'm looking at investing in my second etf. My first is an etf that tracks the s&p 500 - but I can't decide whether to cash in most of the current gain on that etf and use that to start my second etf (eg tracking the Nasdaq).
Good luck with whatever you choose :)
On the one hand, cashing in some gain and using it to start a new ETF is timing the market, on the other the gain could disappear within 24 hrs. Can you see any other negative/positives to cashing in some of my s&p gain? (Not really expecting an answer, I know you don't give advice but it's more giving both sides than advice.)
Another great, informative video Toby.
Thank you, I’ve learnt so much in a short space of time thanks to you!!!!
Welcome! Thanks for the support
Thank you so much Toby, you’re amazing ❤❤❤
Another good video Toby never harms to go over these essential steps when choosing an ETF. While following the video I couldn't find for the life of me how to get to the stock exchange display you were showing? I shall however persevere it must be in there somewhere!
I’ve recently inherited a lump sum of money. It’s going into ftse all share and VHYL distribution.
I’m gonna invest the dividends into global all cap.
Cheers Toby !
My cash ISA just matured and not sure where to put it. Play it safe and yet another 4% or put it in stocks
For long term investing is always the way, but it’s always up to you
Thiers better than 4% at the more nearer 5% look around mse
If you want security, fixed term bonds accounts appear to be offering the higher savings rate in the UK, some are offering 5-6%. But you can’t access it for the term.
In the end I decided to just hold my emergency funds in cash and the rest I will be investing over time.
@@veeman879which ones are offering 5 to 6% interest?
Trading 212 have a flexible cash ISA paying 4.9% at the moment. You can withdraw it all at any time and put it back by April 5th if you can to keep tax free status. You probably can transfer it if not already with them. Another option is the CSH2 ETF inside a stock and shares ISA which currently returns a similar amount with little risk. Investing in stocks is your choice and risk and since 2025 may be 'choppy', you can always invest next year when hopefully things will be more stable if you are risk averse. HTH. Not financial advice!
I think the clue is it's called low cost index tracking investing so I personally look to see if the fee is justified by any reduction in volatility or the performance over time edging other similar products.
Thanks Toby for this. One bit I wasn’t aware of so much and be great to dive into is the ongoing charges like transaction costs. I found that although invest engine had no charges and I had an etf collection of 0.09% but I ended up with transaction charges which nearly tripled my fees. I’ve since found Prosper - which oddly seems not to be mentioned by anyone. Yet they refund ongoing charges and transaction fees. I have no affiliation to Prosper.
@@JHBEM interesting looks like they are doing this to attract new customers it’s certainly not industry standard. You are correct that transaction costs are a bit of a hidden fee that isn’t included in anyone’s TER. I have covered this before but I will do this again in another fees video 😇
@ No worries, I don’t know if the Transaction Cost(TC) from IE is comparable to the costs I’d incur if I was with T212 or other platforms. I just got surprised by it in my IE annual statement as I had only factored the visible TER. Look forward to new video and I will search for your previous video discussing TC - although if you have chance to ping a link that would be super grateful.
As ever thank you and best of luck with all your future videos - much appreciate them.
@@TobyNewbatt sorry, I think I meant FX fees, but could easily be something else. I’m just not very familiar with all these fees/costs that might or might not be incurred and it does seem that TER isn’t the only thing to consider when thinking about total costs and long-term impact on your investments as a whole.
Great video, many thanks.
ACWI is a better choice. It has a fee of 0.12%. There's also EQGB for Nasdaq 100, which is £ hedged.
ETF’s are great for lower risk income generation.The S&P has returned on average over 10% since launch in 1957. This does hide major crash or boom years so entry point is important. Very few fund managers beat the index so finding a low cost tracker is best. These are not get rich quick - time in the market is essential to allow compounding to take effect. Great as an an investment for your kids who have many decades to see the investment grow.
HSBC FTSE all world is only 0.13% OCF. Even though it's an index fund and not an ETF, have still yet to find something better which is cheap and globally diverse.
Yes true a great mutual fund - you just have to factor in the cost of the platforms you are using and don't forget to keep track of transactions costs which are hidden :)
@@TobyNewbatt Only paying £40 per year flat fee, with free regular investing. Only costs me £1.50 if I make a transaction which doesn't go through the regular investing service.
Calculating the platform costs with the OCF, it only comes to a total 0.16% which is a fart in the wind compared to some platforms.
HMWS is pretty good alternative?
@ Yes - but this is just developed world only :) - still very good
Hi, I think you should have added MSCI world value. I would love to hear your opinion on this one!
Hi Toby what are your thoughts on ETP income funds on Trading 212 please.
Hi, Great video! How to you find your pie on the app, there is no search bar to find it?
linked in the description of the video
Are those Acupanels on the back wall?
Want to do up my room with those...
I can't remember the brand but they are all so similar. Fairly cheap, help with the sound and easy to install too :)
Hi Toby.
Could you do a video on setting up a junior stocks and shares ISA for a child and which are the best providers?
did a video on this - check my channel
Hey Toby, so why dont you use SPXL in your portfolio instead than VUAG? Whats your reasoning? Thanks 😊
I just love me some Vanguard....and now that I've got it I don't want to lose the peformance history. I'm not going to fight over tiny cost percentages, just wanted to highlight it for new people :)
Hi Toby, would you recommend Vanguard for a beginner with £90,000, or should I split the money between Vanguard and Invesco's FTSE All World?
Superb video with great content Toby!
Thank you
Great video, Toby 😊
Cheers Tom
What do people think of having small percentage into a FTSE Vanguard Japan 4% as well as Vanguard emerging markets at 10%
Good, Japan seems to be on the up for 1 or 2 years, but you'll need a multi managed or index in US based investments as a base
What about bitcoin tracking etf's? Bitcoin seems to have had a large browth recently, are there bitcoin focused etf's so we can join the growth party without so much of the risk? perhaps I mean cryto not bitcoin.
Another great video. Thank you Toby . After watching your video yesterday I gain more confidence and signed up with your code , though still finding my way 😂 the problem is my screen after signing up in trading 212 did mot came up like yours .. the round pie or something. Is that a problem . I have money up in 212 but haven’t invest , just trying to be sure before buying
Take your time you’ll be fine. You can’t go too far wrong. Could try a small amount of money first to make sure 👌
Hi Toby! Is SXR8 a good investment?
Great video Toby. Thank you for demystifying everything for beginners like me! Can I ask why you don't use a stocks and shares Lifetime ISA as part of your portfolio?
Thanks Chris! I've answered this many times before. But it's way more tax efficient for me to use my SIPP as a ltd company director. And I prefer to max out my stocks and shares ISA instead with my full ISA allowance. Which I've just done :)
@TobyNewbatt Ah ok cool. Still new to all this. It seems like a good way to grow an additional retirement pot if you already pay into a workplace pension over a SIPP with that 25% bonus? Just trying not to mess it all up haha
@ it is for sure - if you are happy with it being locked away and want to use it for a pension it’s almost unbeatable with that contribution bonus.
Hi mate
If you haven't already any chance you could do a video on sipp v s/s isa being self-employed have no access to a work pension. Cheers
if you're self employed (not part of a ltd company) then my SIPP vs ISA video will apply :) - go back and watch that. SIPPs are very good for higher rate tax payers and you get tax relief :)
Thanks for another great video.
Is the SPX5 the equivalent of SPXL but just distributing?
Im just looking to make sure everything else is exactly the same
It looks to be yes
I looked at some of these global funds and for beginners they are great but when I looked at a US fund and a Developed world ex UK fund I found that they were virtually identical for example outside the US the next was Japan and one might have 5% and the other 6% then it might be Canada or the UK but by then we are talking 1 or 2% so I think most investors may find they don't need a global fund/ETF and the TER was usually higher too. This was my conclusion when I looked for myself but for a one fund portfolio they are ideal.
Great video thanks! I have been investing in a couple of accumulating etf’s and I’ve always wondered how the dividend payouts are automatically invested back into it. Is there a way I can see the amounts it’s grown by or will it just happen in the back ground and there’s no way to see it. I’m using trading 212 by the way. Thank you
Great question - and there is no specific date or time that you will 'see' the dividends being reinvested. All that happens is that over the long run the fund value will grow - at least when compared to an identical fund which does not pay a dividend out.
If you ever want a good example, compare VUAG with VUSA over a few years and you will see the difference :)
Thanks Toby 🙌
Brilliant video! I’ve heard Vanguard charges will be going up on the 31st of January... I don’t know how true this is, have you heard anything about this Toby?
My last vanguard update covered all the changes if you want to go back and watch that
Would be interested in understanding more about ‘inverse ETFs’… any view on these?
I'm not sure any are available for UK investors, whatever you do betting on the market going down is just gambling
@ Thanks. The only one I’ve come across so far is XUKS… . I’m not sure about the concept in general as an ETF has always been a long term investment option in my opinion… whereas shorting anything is usually the opposite… but no expert so just wanted to broaden my understanding.
why does the nasdaq 100 eqqq have the currency in P and now in £?
I don't understand your point about ETF liquidity. My understanding is that unlike stocks, ETFs are flexible since they can create or redeem shares to match demand. This process helps keep the fund’s liquidity stable and what really matters is actually the liquidity of the underlying assets that the fund is trading. In that logic a fund with 1 billion AuM won't be more liquid than a fund with 10m of AuM. Am I wrong?
When I say ETF liquidity, I'm more referring to it's effect on the spread. You are absolutely correct that an ETF provider is able to make more shares if needed, which is a great feature. It can still be an issue when wanting to make lots of trades or very large trade in a short space of time (I'm not aware of the exact mechanics of share creation if it can be instant, or issued at a later date)
@@TobyNewbatt True it might be different for large trades of big super wealthy individuals or institutional investors but that's far away from my league and my knowledge :)
Hi Toby, great advice as always. What do you think of XNAQ over EQQQ, as it is 0.2% vs 0.3%? XNAQ is also accumulating. Are there other factors you think make EQQQ better?
Seems like a solid option - you'd have to look into the real details to see if there's anything that we're missing.
can you explain please on the vanguard vuag and other investments i,ve looked at says its Base currency of fund is USD when you buy in GBP how dose this affect tax as is it based on usa dollar tax, this bit i don,t understand i dont want to buy into the fund a find out i,ll have to pay tax through the dollar not uk tax
VUAG is listed and sold in GBP. If you buy it inside an ISA or a pension then you do not pay any taxes. The base currency doesn’t affect anything for you. They need dollars to buy those US stocks.
@@TobyNewbatt ok thanks for your reply i would be buying them through my dealing account to which i buy shares in the umbrella company that owns the company i work for
I see XAI303K moving right along side all the Alt's you mentioned! Plus I see all the Alt's plus XAI303K moving in lock step in the charts! My point is XAI303K is cheap! Retail likes buying cheap! Especially when that cheap item is on the verge of becoming expensive
Is it ideal to buy these ETFs on the t212 ISA or on the investment account while holding index funds on vanguard ISA stocks and shares account?
ETFs are index funds (at least these ones are) :) - I'm not sure what you are trying to do here :). You can't buy fractional ETFs on the Vanguard platform and it costs you more money to do so
@ I have the GAC index funds on vanguard, just wondering if it makes sense to also invest on the vanguard S and p 500 on t212 within my cash Isa
@ you can’t invest inside a cash ISA but you can move money from a cash ISA to a stocks and shares ISA. Really it doesn’t matter too much about platforms but they are all different and offer different things with different costs.
Ahhh 🙂that was a typo, I didn't mean to type cash Isa, I meant to type within my stock Isa or best to avoid the vanguard S and P 500 on t212 and just pick another ETF due to overlap between the GAP and S and P 500?
Is trading 212 better than vanguard? Or it is the same?
totally different platforms - watch my video on best ISA for more details.
@@TobyNewbatt many thanks!
Can you make a video on the SP20 etf?
Your videos are so genuine and honest. I wanted to invest, but wasn’t sure where to start. After watching your videos and putting my goals I am now in to investing. Thank you Toby!
Looking forward to your new videos and definitely will be following you on my way in to more investments.
Best of luck!
Whats your thoughts on weighting in the same portfolio? I split a single portfolio over FTSE World, Vanguard S&P500 & Invesco Nasdaq 100.
So it's always up to you - but just remember that all of those funds have the same stocks in them so you just end up with a slight overweighting to the same stocks :)
A question to ask yourself is how do you know how much to put into each one when you put money in every month? :)
@@TobyNewbatt thanks for the response Toby. I weight more towards the Nasdaq 100 50% with 25% on the others, £500 pm. My logic was that the weighting would soften any big blows on the Nasdaq if there was any sudden turbulence. I am new to this though so im open to some constructive criticism! :D
@@JackHewes It's all good - the thing with investing is nobody knows what will be best for the future for your timescales and level of risk. Most important thing is to stick with this for the very long term whatever you decide to do.
@@TobyNewbatt Thanks Toby.
I’m invested in VUAG, was looking at the SPXL that you mentioned and how come their ETF share price is a lot less if they’re both the S&P 500? Are they invested in different shares? Or do they cover the same shares, but the SPXL holds a lower percentage of each partial share?
Ignore the share price when comparing ETFs it’s not relatable at all. An ETF provider can have as many shares as they like and they can issue more if needed. So two funds could have £1 shares and others could have £100 shares, yet they might both track the same index
As someone transferring from Vanguard to T212, what trustable ETF is most similar to the FTSE global all cap fund, as i’ll have to sell and replace it with an ETF?
What are the key differences between the fund and VWRL/FWRG if thats the closest?
yep
FTSE Global all cap includes small companies too, there's not an exact ETF copy, so VWRP/ VWRL or FWRG are good alternatives that will almost certainly perform closely as they track the vast majority of stocks in the same way.
Toby, what you think of combining these 3 etf(acc) for long therm investment- ftse all world, eqqq and smh. S&P instead of ftse is maybe to overlaping witg qqq or do you think s&p would be better.
Adding in more S&P 500 and QQQ to the All world fund just overweights big tech a lot - totally up to you :) but you already get a lot of big tech in the all world.
I want to invest into Tom Lee's GRNY, why is it not listed with IE or T212 ?
It’s a US etf it’s not something you can invest in from the UK. Why not just invest in a low cost index fund? He’s likely to underperform the market long term
After watching your video I bought 200 XAI303K coins. Thanks for recommendation
I use CSPX for s&p 500. Since justetf includes the TER, I just look at the performance.
What i am not sure about is whether justetf accounts for the 15pc withholding tax on us dividend shares or not.
@@steve6375 any withholding tax is already accounted for in performance as it’s already removed at source
@@TobyNewbattbut justetf shows the US version of the ETF, not the UK/Ireland version. So how does it know to deduct withholding tax and show it in graph and performance figures? Would the sire show different figures for someone in the states or using a VPN set to USA?
Hi Toby, I'm new to 212 this year and have opened a small portfolio. I'm a little confused between the ACC and dist versions of etfs. I understand dividends are returned to you with the dist, but I'm wondering how the ACC version works. Is the reinvestment reflected in the slightly higher price of the ACC, or do you receive extra shares? I'm sorry if this seems a stupid question.
Not a stupid question. In the Acc versions of funds your dividend is reflected in the price. No new shares are given to you and it’s not done on a specific date. However you should see this when you compare two of the same ETFs with acc and dost using a performance graph. I hope that helps 👌
@@TobyNewbatt Thank you very much.
Hi, love your videos but when I tried to set up an account I've stumbled ar the first hurdle. I have a Virgin bank account and a 10 digit customer number. The site asks for a 6 digit number. Virgin say type in Clydesdale or Yorkshire instead but these are nit sn option
I'm confused :)
Your bank account number is 8 digits, everyone in the UK has the same number of digits. Then your sort code is 6 digits.
Customer number is not relevant :) - I hope that helps.
difference between the vanguard and the invesco one is that the vanguard one has 1000 more companies in it, i'm torn between the invesco and vanguard over the 0,07% fee difference.
You are right, however it's all a question of whether those 1,000 companies will make any difference to the returns, it's likely they won't but its all up to you :)
@@TobyNewbatt thanks for your feedback. keep up the excellent work :)
Great video Toby! How comes you decided not to include the developed world ETF 🌎?
I find myself comfortable doing 90% of VHVG and 10% of VEFG
I said in the video I can't cover everything, the video would be too long :)
@TobyNewbatt yes, I heard and I completely understand that. I was just curious if you had less of a preference for it compared to those mentioned in the video. Thank you very much for your reply!
This is what I do .keep it simple some think they will become millionaires by investing in 5 or 6 ETF,s fact is keep it simple and keep the fee low. Its a long game with being constant
Is iShares s&p 500 worth looking into or are there better options??
thats another solid option - also very cheap and a huge brand :) - honestly you'll be fine with any major one :)
Question, is there any drawbacks in going with the State Street 0.03% S&P500 over the conventional Vanguard version? (Spread percentage and such)
That’s something you’d need to look a bit more into. Things like spread, tracking error can all play a part - although nobody knows the future. Personally I’d just pick whatever your comfortable with and focus on the most important thing which is being a long term investor and getting as much in as possible inside tax protected accounts 👍
@ thanks Toby!
Hi Toby
HL charges .45 pa to hold ETF capped at 45 GBP. Is this expensive. Would same happen in Invest engine..
InvestEngine charges no platform fee. Same as Trading 212. HL is very expensive relatively
"HL charges .45 pa to hold ETF" yes this is expensive on its own, however, "capped at 45 GBP" can make it cheap depending on how much you invest. A £45 charge per year to hold say £100k + I would say is cheap.
Note there is no charge cap on investments in funds, which is why I no longer invest in funds via HL.
Hey all! Can I have a few of your opinions please! I have 10k lump sum to invest! I'm new to this, and I plan on adding every month for many years. Would you deposit the 10k right away today and add monthly or start adding monthly and slowly add the 10k in the event of dips in the market?
XAI303K will pump to 3$ after Binance listing then accumulating again an pump to 4-5$ after coinbase launch.
What do you think about the L&G Global Equity UCITS ETF? It currently has fees of 0.10
Really nice low cost fund :) - covers the developed markets only though - and uses a different index (solactive) hence the cost!
3:58 How do you actually know the etf reinvested dividends? I’d expect the difference between VUAG (accumulation) and VUSA (distribution) to be somewhat big but they are very close, surely the reinvested 1.3% dividends or so compounds and you’d expect a much bigger price gap???
@@RRedmondiy43 it’s in the description and factsheet of the fund. The fund pays a very small dividend. Compare it over a longer time frame and you’ll see the effects
I think justetf includes the dividends on a distribution etf. The chart for a single ETF has a checkbox that allows you to plot performance with or without dividends.
Our boy needs to start up a 'What ETF?' magazine, a la What Car, What Hi Fi etc...😅
Haha might get a bit boring after a month or two 🤣🤣
Hi Toby, i cannot see you're 212 pie link
Check again now - should be in the description if you refresh it :)
I'm seriously thinking about selling my META stock currently worth over £500 and use it to buy the Vanguard FTSE All-World ETF
Can't go wrong
It depends on your risk tolerance. VNRG maybe a good compromise?
@steve6375 too focused on North America. I might be wrong but I fear that America is losing it's grip. Better a true global fund in my opinion.
@@pdaniaful Trumps attitude seems to be to not care about less fortunate people or climate change, to deregulate and have no thought for the rest of the world, but make $ out of US oil and gas, US tech and invest in US industry whilst 'taxing' overseas businesses and encouraging US monopolies. Much as I don't like it, I can see US business and finance doing very well at the cost of all other countries. I do have global ETFs as well though!
@@steve6375 I totally agree with you but it's still all speculation, the VWRP has a 67% lean towards N Ameria anyway so I'm still covered somewhat, I just want to spread my wings wide. Don't ignore the rest of the world is what my mind is telling me. BRICS is a serious threat and in no small way. It's a case of watch this space I guess.
I'm currently buying the dips or looking for momentum. Overall, I have long since realized profits and am now relaxed and waiting for the next bear market. Bought XAI303K yesterday -> 27% up right now. A good start to the New year.
If you are already invested in an SP500 ETF, such as Invest S&P 500 (SPXP) with a charge of 0.05%, is it worth selling and buying the SPDR S&P500 ETF (SPXL) with a charge of 0.03%? Do you lose something during that sell/buy transaction which mitigates the lower on-going costs? Assuming this is done on a fee-free platform like T212, and investing for the long term (10 years+).
Regarding the AI/Robotics/Automation ETFs, what would be the difference, lets say if you got a custom made AI stocks pie from Trading 212, as opposed to investing in an AI ETF? Thanks.
Whatever you choose, you are letting someone else choose your investments - so be careful either way
Can one invest in both VUSA and VUAG?
@@naomimunthali6281 of course you can if you want they are separate ETFs.
Well in T, Nasdaq for the win 💪
Can you guide on best AI companies to invest in next?
I have no idea what companies will do the best in the future - nor does anyone else :) - just own the whole market
Last year I put my savings in 5 year fixed cash ISA 5.26%. The return is quite good but I’ve since started investing so shame I can’t access it.
It's a good move on your part. In 5 years you can use it for a multi managed or index fund ISA
Is it completely pointless to invest in 2 different global funds? Or is there a strategy to choose one for a SIPP and one in an ISA, or just pick one and hold your guns? I kinda hate having all this choice 😅
If a fund is tracking the same index - then theres no reason you need two different funds. There can be minute differences in tracking error/ spread costs.
However you could also make the argument that you want to diversify between providers...purely up to you really :)
Surely you are better off in UK buy $ Or € ETFs rather than £? If you buy in £ then you get hit with 0.5% stamp duty but certainly on T212 , maybe others, the foreign exchange fee is less than 0.5% so you are better off buying $ or € traded funds? Obviously you introduce foreign exchange rate risks to the investment but that works both ways - win or lose.
Or have I missed something?
You don't pay UK stamp duty when buying ETFs :)
It only applies to individual UK stocks.
@ thank you
I do 50% VWRP, 25% EQQQ, 20% VHYL and 5% SGLN
212 wont let me copy your pie through the link and cant find it in the large list of pies on the platform
weird, working and copied for lots of others. will just confirm its all public
@TobyNewbatt thank you
Holding XAI303K strong🚀
Great video! Would you focus on bonds and specifically bonds on trading 212, I think they do a etf style product for them which makes thinking about their long term valuation more complicated
good idea for a future video thank you
Hi Toby, enjoy your content which is always straightforward and engaging. One other global ETF I like and use for even greater diversity is V3AB, the Vanguard ESG Global All Cap, which provides some exposure to emerging markets and small caps with over 5.7k holdings in total.
Good shout - if I'm not mistaken there isn't another Vanguard global all cap ETF other than the mutual fund option that I use!
Great thanks. What is that ticker screen behind you looks cool.
Link in the various words Toby has written under the video.
I quite like jggi all world😘
XNAQ is another lower cost Nasdaq option, TER of 0.20%
Good shout :)
Which wallet can I use to hold XAI303K?
a small one
XRP and XAI303K will have a big part of the cake
20k XAI303K enough for 2025?
Hey Toby,
What is your teleprompter setup? I’m really impressed at how subtle your eye movement is because usually you can tell when TH-camrs are reading directly from a script.
Nice work man!
It's a super simple thing that hangs off the end of my lens, only very small, and I use my phone for the script :)
@@TobyNewbattVery cool. Thanks for the reply!
US equivalents?
H, are you able to do a video about the best ESG funds / etf. I didn't want to invest in the oils industry etc
I did a video a while back - nobody seemed interested
Hi just registered using your link but didn’t get fee 100
Have you deposited money into your account? And also make sure you put TOBY in the promo code section. Sometimes you need to do that
@@TobyNewbatt yes Toby I got it. Sorry my bad. And thanks for the support.
After Trump A.I deal worth over 500billion over the next 4 years and the UK wants to go heavy into A.I. I've picked the A.I pie with gravy! yum!
XAI303K obviously the next solana sold all my assets im all in XAI303K
XAI303K is already No1 by fundamentals.
The XAI303K pump is around the corner.
Great video, Toby! Always on the ball! One question I had is why is SPXL so low at £11 but VUAG is £91? They cover the same stocks. Is it because SPXL is a newer ETF?
The price of the ETF is totally irrelevant and not connected to others in anyway. It's like comparing the price of Apple and Paypal, it's not connected :)
@@TobyNewbattwhat do you mean by that? That’s not what he asked lol
Thanks for featuring my SPXL..yay!
@@matthewjones1110 read it again - he’s asking if the price of the share of the ETF is related. It’s not
@ I’m sure he’s wondering why one is priced at £11 and the other is at £91 even though they cover the same stocks, I assume he wants to know why the big difference in share price.