The Only Vanguard Portfolio You'll Ever Need
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- เผยแพร่เมื่อ 9 ม.ค. 2024
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Great video and reminder, fan of the simple approach 👍
Great examples. Here in the US, I am experimenting with Vanguard ETFs, which have expense ratios as low as 0.04%. With a Vanguard brokerage fund. I can buy as little as one dollar at a time. I have a professional, financial planner handling most of my retirement funds, so I'm doing this on the side. Vanguard has a variety of E.S.G. ETFs
Excellent content Toby. Really well explained. You’re getting very good at this. Thanks. 🙏
Thank you!
Set and forget works perfectly for me, i dont want to be falling into the habit of checking my portfolio every day, i know im in it for the long run so less checking less stressing 😂
That’s a great way to be! Easier said than done for most people I have to admit I love a good peak….but then it’s my job 😂
If you're anything like me, I have a diversified 'set and forget' etf portfolio and still check it multiple times a day! 😂
I have most of my savings in a very boring, but very low cost, S&P 500 index fund and I can’t help but look 3-4 times a week 🤣
Most investors just need to sit tight and get on with life let the money work :)
And that’s how most wealth is created. It’s unsexy and boring, but that’s how it’s done!
Thanks for the tip on VWRP. I'm in VWRL but, really wanted dividends re-invested.
Yep no worries! VWRP makes things a lot easier!
Very good video! Thank you, you’re always very helpful in your videos, effective and super clear 🙏👏
Thank you Oscar!!
amen
This is a really helpful. Only really started investing during covid and have been learning on my feet so to speak.
I’m pretty happy with what I’ve ended up with in terms of a set and forget (I’m not too fussed about emerging right now):
70% MXWS (MSCI world)
29% SPXP (S&P 500)
1% SGLN (Gold)
Thanks again for the vids !
Good luck David and thanks for watching
Really great this, big thanks 👍👍
Thank you 🙏
Thank you
I already have VWRL so I might sell off the others and plough the money back in as I just want to set & forget.
VWRP - 3664 stocks.
VHVG - 2141 stocks.
VFEG - 2105 sticks.
So 2nd portfolio is not only cheaper it's more diversified.
Nice spot Josh! Now whether more diverse means better performance who knows, lots of smaller companies inside that might not move the needle, who know! :)
Great video as always Toby
Glad you enjoyed it
On the "set and forget" option are there any issues with replacing VWRP/L with VAFTAG? This provides small cap exposure too. Let me know if I am missing something
Great video Toby
Thanks as always mate!
Just started dipping my toe into usd etfs so I'm in the set it and forget it portfolio, only VXUS and VTI for now tho 😅 great video Toby!
Hi Toby. Great video as always, really explained well and definitely helpful. Gone for two ETFs - one for the S&P 500 and one for FTSE 100 - one is iShares and the other is Vanguard. Thanks for your content👍
Investing in the FTSE 100 is a terrible idea. It's barely moved over the past few years.
And, someday, the S&P 500 could become like the FTSE 100.
Better to just invest in VWRP.
What's your thoughts on my 3 fund portfolio.. SCHD which has 100 US Dividend growth stocks, BIL - which is a short term treasury bond 1-3 month maturity. And VXUS - total international stocks. Am i diversified enough with 3 funds? I was thinking I could even split them equally at 30% invested in each, and the remaining 10% of my portfolio i could buy individual companies if I wish to. Or keep as cash
Excellent content ! Even with a portfolio in the millions, you can't to better than that.
My only sadness is that Vanguard as a broker isn't available in the EU
Hi Toby, long time viewer, first time commenting.
I've settled with the FTSE developed world and S and P 500, 50/50 so it gives me approximate fees of 0..1%
Cheers, David.
Worth checking the overlap as it must be substantial and counterproductive when it comes to diversification.
@@carlaspmgraca Good point, it's heavy in the US but also has some exposure elsewhere.
I'm not complaining,up 9% since May so I'll just keep with it for now.
May use invest engine for the new tax year.
Cheers.👍
80% VUAG/20% VWRP and some old pension is on the way to be transferred as well to VUAG
As always a great video Toby. Ive gone for the Invesco FTSE All-World (FWRG). 0.15% fees on Invest Engine. Started it in October and its 4.38% up and seems to move in line with the Vanguard one so fingers crossed its the right one for me. Set and forget........ althoigh i check it 20 times a day lol
Sounds good, I think I should do a video on best ETFs from all providers as a bit fo a round up and I'm sure that one would feature
@@TobyNewbatt please do a video on all providers.. bdw great content and keep up the good work.
Very useful video, been sitting on the fence with making my first investment for far too long now. After researching and watching countless videos - VWRP set and forget it is. Then get back to my day job.
Welcome aboard Tom :)
Great video. I own vanguard ftse global all cap and vhyl in my sipp.
Great video, I just have a quick question, I’ve set up an ISA for my granddaughter on Vanguard, I was going to purely invest £100 a month in the S&P 500 but would I be better with set and forgot. Any help would be great
Great video - Thankyou for the content. Can I ask where you get the information for the percentages of each ETF for option 3?
Thanks. If you go and find the factsheet for the FTSE all world Index fund you will see all of the countries and regionals weights there 👍
Great thanks so much!
Excellent video Toby ! I really bugged me the 0.22% fee on global funds when most is USA that you can buy for 0.07%. This post prompted me to “tinker” as per your 3rd option. Thank you
Good luck :)
Hi Toby I like the 2nd opinion and the 3rd options. My question is could I have both and make to pies on trading 212. What's your thoughts 🤔
It'll be interesting to see if Vanguard try and match/beat Invesco's 0.15% fee FTSE All-World or if they'll just hope hope they remain the preferred choice as they're the bigger and more discussed name.
I think that’s an interesting one Tom, I’d certainly like to see them reduce fees but you are spot on that a brand is also worth something!
Would love you to do a series of videos comparing Vanguard ETFs against other similar ETFs from other providers.
great suggestion thank you!@@mohamedpatel3978
@@TobyNewbatt I think relying on the brand will only work for so long! There's so many more great options out there...
@@TomsPersonalFinance I started in October and ive gone for the Invesco All World. Seems to be going ok so far (in line with the Vanguard one) but i did think long and hard about it as the Vanguard name was a pull for sure. £4.50 a share and 0.15% fees thought it was worth a go
Hi Toby, another great video, you are so good at this 😀
Could I make a request please ? I am about to retire and have started to think about what to do with my investments. Would it be possible for you to do a video where you zoom forward and pretend you were about to retire in 2025 and what your portfolio would possibly look like?
E.g keep it the same as per this video but just change to income ! Or swap to less risky ETF’s
Nice suggestion thank you!
Hi toby great Vids! Just one question incase you decide to answer :), so when you open a Van guard ISA account can you invest both in FTSE All-World UCITS ETF (VWRP) and S&P 500 UCITS ETF (VUAG) or do i have to pick one? for each Calendar year? sorry i am very new to this, thank you
As many funds as you like, there is no limit :)
The only limit is the amount of money you can put in.
Another great video Toby! Could you do something on the most cost effective SIPP platforms to use and if consolidation of pensions is recommended.🙏
Thanks a great video suggestion!
Yes great idea we are really looking forward to your views on this please..great content Sir@@TobyNewbatt
Literally started my journey yesterday after watching your videos. I’ve gone 75% VUAG and 25% VWRP, silly question, is this safe to set and forget for the next 25/30 years?
Nice video mate, I’ve recently gone from 100% VWRL to 100% Global all cap in my ISA & SIPP, makes it easier for set n forget which helps as i’m in it for the long run also i dont have to faf about with the change left over after investing. Also gives me that small cal exposure which helps to not miss any future apple/microsoft type businesses.
Isn't T212 guaranteed 5% cash or a 5% savings account safer and guaranteed better returns than VWRP % wise?
Thanks for making things so simple! I’m 26 and have just started my investment journey for my retirement and for my children’s junior ISA’s!
What’re your thoughts on the developed world ESG ETF?
Great video and great content. I love the fact that you state that you’re in the UK and not a financial advisor. As a financial advisor in Australia for over 20+ years and an accountant I think your content is great and you should be well applauded. Well done
Many thanks Mark!
Toby, thanks for these vids - really useful. What's a good 'one-stop' ETF for adding a few bonds into the mix, for example to get us an ETF equivalent of the Lifestrategy funds?
Hi Toby, great video and just subscribed. I note that you are not mentioning any allocation to bonds? I'm currently leaning heavily into bonds (mix of strategic managed funds, gilts and global bonds and money market) with only about 12% allocated to shares via the LS 20 and 40 funds. I use ii as my platform for the low fees, but am paying higher fund fees currently for the volatility managed funds that I'm invested in. I know higher fees are to be avoided if possible, but in the current climate, I think the added costs of having volatility managed funds and a much higher bond allocation and lower shares allocation helps me to sleep at night - especially as I have a 40% cash allocation in money markets that can be invested into low cost index funds when the opportunity arises.
Thanks for the comment! As a long term investor I am not interested in bonds, they have never had a long time horizon where they outperform stocks and will never (assuming that their reward is always adjusted for risk). Your needs may differ of course and If you want short term gains and income then bonds might be the way to go. Some good money market funds available too, but what if the market has another good year? MIssing out is costly :)
@@TobyNewbatt Hi Toby, yes I'm semi-retired and turn 60 this year, so, I am being cautious. The converse is also true, what if stock markets dive this year? Not being heavily invested will benefit :).. On another more serious note: I think it's worth pointing out that the Vanguard ETFs are domiciled in Ireland, and are therefore not protected by the FSCS £85K compensation scheme. The maximum I believe is £20K.
This makes a lot more sense indeed :)
Also on the FSCS point I made a video on this a few weeks back discussing exactly what the protections are for. Something you might enjoy :)
@@Phil_f8andbethere
Would you be able to make a video on funds focusing on ESG? I don’t feel comfortable investing in oil companies etc.
Thanks for the idea 👍
Hi, since FTSE Global All Cap Index Fund (VAFTGAG) base currency is GBP, isn't it a better option than VWRP which is USD?
Ive come to realise i have quite alot of vanguad etfs i wonder if i should sell some and keep it more simple ive got s and p 500 which is the majority around 70 oercent and the rest in ftse 100 ftse japan and ftse devloped europe
Hi Toby
Thank you so much for these videos, I have just started investing and VWRL is the only etf I have in my Vanguard portfolio which I want to keep for life:).
After watching this video I now know I should have bought VWRP , can you please tell me how to change this?
If you are with Vanguard it's very easy. You go into your account find the investment and then there are 3 dots to the right of it. One of the options is Buy, switch or sell. You can then switch and it will place a new order for you.
Do they have this option on trading 212 as I sold mine and gone with the 2nd opinion in your video toby
Sorry this is such a basic question. Can I do everything with Vanguard or do I need a platform with someone else? I haven’t started yet, and I was thinking of doing VWRP or just the Developed World one (because it is cheaper) as a Stocks and Shares ISA. But I thought it was a one stop shop. Do I need a separate platform? Really useful video.
You are able to invest in Vanguard funds/ETFs on Vanguard's own platform. This can be done in their personal pension offering, their S&S ISA offering or their general investment account offering.
You can also invest in Vanguard funds/ETFs (as well as similar and sometimes cheaper options by the likes of HSBC and Fidelity) at numerous other platforms. Again, this can be done in any particular account (pension/ISA) they offer.
Really, both ways are 'one-stop shop' as you set up your ISA with the platform and choose what to invest in. Neither incur any more work than the other. Thus people do whatever will save them money in costs once they've chosen what investment they will be using and the way in which they'll invest (lump sum/monthly).
@@adrianl5899 Thank you so much!
Great video as always Toby, i was wondering how you managed to calculate the fees of 0.13 @5:32, i want to try and do the same with my portfoilo
Just some quick maths.
If 90% of your fees are in a fund with 0.12%
And then 10% has fees of 0.22% you end up with 0.13%
You just have to multiply your proportion by the fee and then add the fees hope that helps. Invest engine does this for you you could also use that 👍
@@TobyNewbatt cheers Toby!
Hopefully I have my maths correct (Yes it is "maths" not "math".)
0.22%×10=0.022 0.12%×90=0.108
0.022% + 0.108% = 0.13%
Hope this helps
Hi Toby, I have Vanguard funds but my company pay into my Sipp on AJ Bell, what fund would you recommend?
AJ Bell has all these ETFs
5:59 9% !!!
With thanks to your videos (and a few other fellow TH-camrs) I have taken on board the information you’ve shared and using Invest Engine to create my own “Fund” which is very similar to your Tinkerer allocation. Have to say knowing that IE will take of keeping it balanced is a real help. The plan is to invest and forget for the next 20-25 years.
Hi there, I’m fairly new to investing. It’s just a question regarding VWRP. Is this fund completely set and forget or do you have to rebalance it at all? Great video and thanks for your content.
Directly on Vanguard can you buy VWRL fractionally or do you have to buy a whole share? I've looked but i cant tell?
VWRL on vanguard only allows you to buy an entire share.
I've simplified my portfolio in the last five years. It used to be 90% ftse100 plus ragtag.
Now I'm 60% FTSE, 40% s&p. I'm not adding new money, so my balancing strategy is where to draw down from.
I've decided only to sell FTSE 100 units so my portfolio mix will get more US centric over time
Hi I enjoyed your video. I had a question. Why don’t you have your pension on VWRP instead of All Cap? Thanks
Good question! So VWRP was not around when I invested first on Vanguard and then secondly remember as VWRP is an ETF I’d end up with a tiny bit of spare cash! VWRP is loads better on platforms where you can buy fractional shares hope that helps 👍👍
@@TobyNewbatt very good point. 🙏
@@TobyNewbatt do you not think saving 0.01% in fees on your pension pot over decades would not offset the opportunity cost of not being able to invest the spare change leftover by vanguard not allowing fractional shares?
Simple, precise and perfectly explained for a newbie like myself. Closer to 40 than I'd like. Very comfortable in life but, just starting (and kicking myself for leaving it so late) with my investment journey.
Good luck Mike 💪
It seems to be cheaper to buy and hold the Vanguard All-World on Trading 212 instead of on Vanguard itself. Is this correct?
Indeed, no platform cost on Trading 212
Hi Toby, love your content, it's extremely helpful! I was wondering if you could help me (or anyone for that matter)
I'm starting my portfolio soon and looking to choose the VHVG (DM) + VFEG (EM) option simply for reduced fees instead of the VWRP all world option. I've seen many people talk about this across the internet over different forums and have similar questions although no clear answer. The main concerns seem to be surrounding tax, commission/extra fees and specifically rebalancing with the weight of each fund changing over time (although I don't understand the issue entirely).
I plan on using Trading212 for my portfolio with an ISA + GIA so tax is a concern of mine, although commission/extra fees I don't see being a problem. I thought if I just used Trading212's pie feature putting 90% into VHVG (DM) + 10% into VFEG (EM) or even a 95/5 split, I could set it and forget it and all should be okay? Wouldn't my portfolio remain to that split over time using that feature, i.e. 90/10, 95/5? What are the main practical concerns/implications of using the 2 fund method versus the VWRP all world?
Many thanks for any thoughts
2 things.
1. Anything inside an ISA is tax-free, there is nothing to worry about. But in a GIA you will be liable to taxation if you go above and beyond your annual allowances.
2. In regards to weighing DM and EM. If you put in £1000 and set it to 90%/10% and left it then yes, technically the market will adjust and over the long run you don't need to do anything. BUT if you consistently put money IN then this is where the weights cause you an issue as DM might become 95% and EM might become 5% in your portfolio and might need to be rebalanced (assuming you want to keep market weights) So this portfolio does need extra work to make sure you keep the weights as you like.
@@TobyNewbatt Legend! Thank you Toby, it is much appreciated!
my current portfolio is 50% VUSA and 50%VWRP but I'm not sure if I should go all in on VUSA. I am 24 so I feel like I have time on my side but just not sure if I should continue 50/50 split or go all in on VUSA?
Personally I would not stress too much about this, if you are investing for the super long term I dont think you will go wrong with S&P500 or world, or some kind of mix. Just bear in mind that any mix means you overweight the US.
Hi Toby, recent subscriber here and love your videos, very informative! Have you done any videos on AI ETF's? Would be interested to hear your views on this market and any funds that could be of interest.
Thanks Simon! I’ve not done anything in depth on ETFs like that personally I’d say if you want to play around in stocks just pick your own. These funds seem to me to just attract new investor money on whatever the hottest topic is on the day so I steer clear
@@TobyNewbatt cheers, Toby! Sounds sensible, I’ll keep an eye and research a bit more.
Great video!! I am a beginner and thinking of investing in Isa via Vanguard. I am thinking £200 to invest per month. Can I choose both S&P 500 and ftse all world all world etf together?
That's a perfect combination. I already invest in FTSE all world and s&p 500 in trading 212 app. I think that's all you really need to diversify your portfolio. I have a mixture of UK and USA stocks but the bulk of my money is those 2 vanguard stocks.
I am doing something like this:
VUAG - 70%
VFEG - 20%
VHVG - 8%
VUKG - 2%
I like the ability to adjust the weighting.
I started doing the tinkerer when it was it vs VWRL/Global allcap. Now with the invesco fund up,Im at a bit of a crossroad since mine still works out cheaper but not quite enough to matter.
Same position here. But because I have a bigger portion on the S&P 500, about 70%, I think I'll stick to the 6 ETFs for now.
TOP video
Thank you!
thanks for the video but a question the last(tinker) version which has 6 etf's when you add their fees like s&p500 which is 0.7 and then others when calculated its definitely more than 0.9 ? or i misunderstood it?
Misunderstanding it but don't worry! :)
Fees are charged as a percentage of the TOTAL you have invested into EACH fund.
They are NOT added up :)
So for example - lets say you have £100 invested in two funds.
Fund A: Fee 1% - You Invest £10 here.
Fund B: Fee 0.1% - You invest £90 here
Your total fees are NOT 1.1%...
Your fees are based on the amount invested.
Fund A = 1% of £10 = 10p
Fund B = 0.1% of £90 = 9p
total fees = 19p - which is the equivalent of 0.19% average. I hope that makes sense
@@TobyNewbatt thanks very much Toby.. makes sense now you could tell I am fairly new to this hence a silly question..please keep up the good work
Hey Toby - thanks for the video really helpful! Whats the difference between VHVG and VEVE? the platform I use isn't returning anything for VHVG
there is a VHVE which looks very similar to VHVG...
so VHVG is the accumulating version of VEVE. It does NOT pay a dividend that is the only difference. Weird that your platform would not allow it? What platform are you using?
@@TobyNewbatt SAXO - VHVE is also accumulating - it looks identical to VHVG
@@user-ec2hk4yc3f dollar denomination rather than GBP. This will mean it can’t be put inside an ISA fyi. Does saxo allow ISA accounts?
@@TobyNewbatt You can request an ISA account - is there an advantage to this?
Definitely a thinker with US at 35% for this year
Interesting!!! Would love to see how this pans out, wonder if anyone else is tilting away from US as well
Why that particular global fund and not the FTSE Global All Cap? Whats the big difference?
The FTSE GLOBAL ALL CAP (which I love and have money in) is a mutual fund and not an ETF 👍.
ETFs are available on more platforms and this means more people have access to them
@@TobyNewbatt OK, I struggle to see the big difference between them as don't they basically perform very similarly? I invest £125 every 2 weeks at the moment into the All Cap. Would changing to the ETF make much difference in the long run?
@@danielfarrell3534 there’s just a few differences but in short no need to change what you’re doing! I forget which video I have that explains them but I do have it somewhere on the channel 👍
Dear Toby, thanks for the video, very helpful as always. I've a question about your 3rd method. What do you think the better strategy is: 1. DCA all 6 ETFs independently of the market situation, metrics, etc 2. Buy always the ETF/ ETFs with the lowest P/E, and try not to over-weigh any of them in the long term, I mean try to reach the percentages you mentioned in the video? Because with this strategy there is the risk that VJPB and VFEG or VUKG will be always the cheapest in the next 10 years (for example)? Maybe a more sophisticated version would be to compare the ETFs to their 10-year CAPE ratio and buy the ones that are not far away from their averages... Thanks in advance
Is the VWRP similar to the lifestrategy 100?
Kinda - but the big difference is Lifestrategy is massively UK weighted. In my view too much so for no good reason.
Can you do a few videos on some of the most popular DC funds that people might not know what to choose from.
I am with the AON master trust through work and all the funds are named different things. I want the closest thing to vanguards global all cap, but don't know what fund would replicate it...
Is there a reason why those Ticker reference don't appear to be on Trade republic?
They might not have access to the UK stock market? Are they owned by a German bank?
What about the vanguard life strategy fund 100 percent
I don't like it personally - it's an overweight to the UK, makes no sense to me (20% in the UK when the UK makes up 4% of the global market) It's going to underperform (most likely) in the long term and has done so recently too
Vanguards S&P 500 and their life strategy 100 for me at the moment
Excellent video... I wonder if you would ever consider adding a single bond fund to any of these when you approach retirement reduce volatility? Or do you plan to stick with equities throughout?
I'd certainly have to add something like that, probably a short term one or even a money market fund that I could use my 1-2 years worth of living expenses. Might be a cool video idea to run through!
I was going to ask the same. Seen it recommended that you should have 20% of your portfolio in bonds with this increasing closer to retirement. This is what the Vanguard target retirement funds do. Would be good to have a video looking at the various Vanguard bond/ gilt offerings.
From my experience I would say no. I stopped work in 2019 aged 51 and my planning is to age 95.
So I still expect to be a long term investor throughout my retirement and stocks provide that inflation proofing that bonds don't.
Even if you retire in your 60s, I think your planning horizon should still be 30 years.
(I should add that I keep a 3-4 year expenses buffer in cash to smooth volatility and to help me sleep at night)
I have a question Toby, I am going to invest a lump sum from my limited company into a sipp. I'm looking at a 10 year maximum before I retire and draw on it. What would be your recommendation for a 10 year investment into a sipp with a lump sum?
You need to expand your time horizon first. If you plan on living 25 years in retirement, then you need an investment that will continue to throw off inflation adjusted cash in 35 years time.
In my view, the biggest retirement planning mistake is thinking it's a date.
I stopped work in 2019 aged 51, and at any moment I only need a small amount of cash. The rest stays invested.
do ETF stamp duty on purchase
ETFs are exempt from any UK stamp duty. Only individual UK shares have stamp duty applied to them :).
I've just opened a T212 account and purchased £100 of the FTSE All world ETF (same one in this video). Do I just purchase £100 or whatever each month now or is there a setting somewhere that will automatically do this for me?
Good question. I think you can do this if you create a pie on trading 212 pretty much create the pie with just that fund and then you can auto invest!
@@TobyNewbatt Thank you for the very prompt reply and information. Only found your channel today, subscribed 👍
@@TobyNewbatt Hi Toby, so first day on the market today. Quick question, even though the FTSE All world closed slightly in the green, my returns are not - why is this?
Could be a number of things.
1. There is always a small spread between the buy/ sell price of ETFs that's how the market works.
2. FX currency impacts. In T212 app inside the investment, you might see this inside the investment and it will tell you how much is caused by the GBP/ USD exchange rate. @@excalibur9768
These investment channels always seem to forget the bid-offer spread (difference in buy and sell price) when it comes to ETFs e.g. the VWRP has a current indicative spread of 0.05% which is on top of the ongoing charge if you regularly invest. That's an added cost index funds don't have.
Don't forget about the hidden costs of mutual funds not included in the expense ratio :)
Overall ETFs are cheaper to hold in the long term, hence why they are so popular. Not sure what you are trying to say with this comment?
Mutual funds are also often on platforms with bigger costs? We can do this all day :)
@@TobyNewbatt I made no reference to mutual funds. You can quite easily invest into a global index tracker (e.g. the HSBC FTSE All-World tracker) on a percentage fee platform and then transfer your investment annually to a flat free broker who don't have account fees. i.e. no bid offer spread and no long term account fees.
@@TobyNewbatt I made no reference to mutual funds. You can quite easily invest into a global index tracker (e.g. the HSBC FTSE All-World tracker with an OC of 0.12%) on a percentage fee platform (e.g. Dodl with a 0.15% account fee) and then transfer your investments over to a flat free broker (e.g. iWeb with no account fees) on an annual basis i.e. no bid offer spreads and no long term account fees. 0% fee platforms like InvestEngine only offer ETFs which have these bid offer spreads and should be factored in to ongoing costs.
@@TobyNewbatt Why do you keep deleting my reply?
@@AmperSam97 I don’t but TH-cam does have some filters which get triggered. Nobody gets deleted on my channel 👍
Who else thinks it's ridiculous that you can buy a £1 share of vanguard ETFs on other platforms but if you have your actual ISA or SIPP with vanguard you can only buy whole units eg S&P 500 at around £80 currently. This is a real failing on their part. I have switched all mine to index funds instead of ETFs on vanguard. The unit price of ETFs increases over time and it will reach a point nobody can buy them on vanguard.
Question
Vanguard General Investment Account
So if I put £100 into three funds a month I get charged £7.50 per transaction per fund ? or am I reading this wrong here !!
Transaction fees
If you buy or sell an ETF through our optional quote and deal service, we will deduct a fixed charge of £7.50 to cover the fee of our nominated stockbroker.
Reading it wrong :)
Vanguard do not charge transaction costs for their mutual funds, nor their ETFs.
The £7.50 fee is an OPTIONAL quote and dealing service. This service is for people who want their order to go through immediately and not get processed in a batch. It also only applies to ETFs and not mutual funds.
Hope that helps!
All as per here:
www.vanguardinvestor.co.uk/content/dam/intl/uk-retail-direct/documents/vanguard-full-fund-costs-and-charges.pdf
@@TobyNewbatt thanks Toby …..
VWRP holds 3664 stocks. However, VHVG has 2141 and VFEG has 2105 for a total of 4246.
I thought VHVG + VFEG = VWRP in terms of which stocks are held. Can someone explain the discrepancy?
The world benchmark isn't the sum of the other two. FTSE all world aims to cover 90-95% of the market cap. The other two aim to cover 98%+ you need more stocks to achieve this.
All world
"The FTSE All-World Index is a market-capitalisation weighted index representing the
performance of the large and mid cap stocks from the FTSE Global Equity Index Series and
covers 90-95% of the investable market capitalisation."
Developed
"The FTSE Developed Index is a market-capitalization weighted index representing the
performance of large and mid cap companies in Developed markets. The index is derived from
the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market
capitalization."
Emerging
"The FTSE Emerging Index provides investors with a comprehensive means of measuring the
performance of the most liquid Large and Mid Cap companies in the emerging markets.
...
The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 99% of the
world's investable market capitalisation."
Are Vanguard LifeStrategy not mentioned due to fees?
More likely due to UK bias.
They are a mutual fund and not an ETF :)
But also as PK says below, personally I think we can do better with a tiny bit of research :)
shut up and yolo nvidia, i cannot wait for april to roll around so i can open an isa with trading 212
TO THE MOON!!!
My l and g emerging markets is down 20% over 5 years , so hsbc all world for me
I too use HSBC All World... but which L&G EM was down so bad? Their EM tracker was up over 5 years.
To all the under 25s start saving/investing NOW
Would it be too big a risk to go all in on the S&P 500 instead of spreading it across the world? What do ppl think?
Buffet and Bogle think it's a good idea, who's to argue with them
The Frugal investor is exactly what I have done.
Solid 👍
But why do you always talk about Vanguard? Are you a salesman or are there products from other providers available? Genuine question.
They are popular with one of the strongest brands in the world. Nobody pays me to make videos, when you invest your money you should be extremely careful. I've done other videos before on all kinds of funds and will be doing more in the future.
Hi.
I have aa old pension from the USS which is a defined benefit scheme. The transfer value is around £12,000 which will provide me with an annual income of around £1,000 when I retire. I left the USS after switching jobs. I am unsure if I should keep my USS pension, transfer it to my current pension provider L&G, or move it to a SIPP with Vanguard. Can you advise me on what would be the best option?
All the ones he mentioned the performance is only so so.
DB excellent - I'm envious. Please don't move. You'll watch more TH-cam videos & realise you made a mistake.
DB are worth 25 times anything you can achieve elsewhere.
Away from the usual studio, on holiday?
I wanted to try some new angles so this is the bedroom rather than the studio...don't tell the mrs :P
0.22 is better than workplace pensions but it’s still quite pricey. I guess you still pay a small bit for the convenience
I’ve found Wally!
I started putting money into vanguards life strategy fund last year but I think I’m going to split it into the S&P 500 and an all world ETF
Hi. You'll end up with a big overlap because a lot of the S&P500 will also be present in the all world etf therefore not exactly diversified.
True it’s better invest in one or the other and just go into single stocks YOU see potential in
👍
:)
None of them come near the Fidelity world Index fund
Yes this is a great fund, but its not an ETF its a mutual fund and it can only be purchased on higher-cost investing platforms. Worth bearing this in mind.
@@TobyNewbatt
..costs are on obviously important but so is performance...and think the better return outweighs the higher charges.... Both good funds though
HSBC FTSE all world. Only costs 0.12%
This is a mutual fund not an ETF :).
It's cost might be lower but it is only available on platforms with much higher costs. Therefore your total cost as an investor is higher and this is taking away from future returns :)
@@TobyNewbatt I pay £40 flat fee and free regular investing with the Lloyds platform.
Works out that it only costs me 0.004% in platform fees.
Whilst you might be correct in the general sense, especially for smaller sums, flat fee platforms are a clear winner for larger sums.
If I used the iWeb platform where sometimes they waive the £100 sign up fee, you only have to pay £5 per trade and zero annual fees.
Evening Toby, great video has always, my current portfolio looks like the below, but I’m constantly questioning if it’s set up right with holding VUSA and VWRL, just mindful I’m heavily weighted in the US,
VUSA 50%
VWRL 40%
VFEM 5%
VMID 5%
Any input/opinion would be appreciated,
Regards,
Gary
So quick maths - 50% VUSA + (40% of VWRL which would then be (40% of 60% so about 25%) so 45%+25%) means your US exposure is about 75%. (I think that works out correctly!)
So yes slightly overweighted on market caps - but as usual we have no idea if thats a good or a bad thing unless we move into the future. Truly up to you.
@@TobyNewbatt your quick maths is exceptional, just checked the holdings world map on my Vanguard account and I’m 74% US 👏👏👏lol, but has you say who knows what the future holds especially with the AI boom on the horizon, appreciate the reply 👍🏼
@@TobyNewbatt just seen your latest video drop and I’m 74% in the US Awwww l’ll have a watch later.
I think most investors (especially if your fund is $1million+) actually dont want a money manager to ‘beat’ the market / they just want less volatility and a managed approach to risk
That's the logical thing we assume but if you look at active hedge fund performance they also lose plenty of money in the down years as well and underperform in the good years! So frankly they are taking people for a ride :)
I'm 100% Bitcoin ETF now...🚀
Zooooooommmmmmm 😂
Tinkerer... I think you spelt "timewaster" incorrectly 😂
😂😂😂😂….i love a bit of time wasting
Still 0 mention of where the money is going and what it's funding. I understand the appeal of passive ETFs but its 2024 and the shelf life of our planet is getting smaller everyday. You should at least mention ethical considerations and ESG.
Marc as you are clearly interested in this topic why not make a video about it yourself? It's not something I am interested in as I have said before you are much better voting with your dollars as a consumer and voting at the ballot boxes. There's not a single company on the public markets that does not consume oil, use energy or benefit from defence companies (directly and indirectly). Unless you can show me otherwise?
£1200 😳
Think you need a new calculator Toby
Or just invest in a lifetime equity fund
You pay more in fees and risk underperformance if you are referring to the likes of a lifestrategy?
Yes, referring to the life strategy. I’m currently 100% equity and getting 16%. Accumulation. I’m hoping that the chancellor increases the ISA allowance to 30 K per year in March!
@@jjmstudiosAs Toby said, not only are the fees high on those products, the LS100 underperformed a basic and cheaper global equity fund (say HSBC FTSE All World) 10.01% v 11.44% 5 year annualised.
Of course, if the large over-weighting to the UK pays off in future years then things may be different, but it does rely on that happening a d for the added cost to have been worth it too.
It's largely been hard to do badly investing for quite a while post QE and cheap money, so don't be misled by having done well, if it still meant doing worse than a global index and having paid more for the privilege.
Didn't you say in a recent video the S&P 500 is going down? Very irresponsible putting videos out for views rather than offer genuine assistance.
Nope never said that I hope you watched the videos all the way through 😎. I’ll wait and you can come back and let me know 👍
@TobyNewbatt I did watch it. You offered your opinion, and I appreciate the recommendation to watch. What is your opinion on funding in VUAG & VWRP however learning more weight on the VAUG (60-40), given a cheaper stock and current market leader over a 10+ Yr period?
So what you’re saying is…. Keep buying Doge coin until it hits the moon? 🚀
could i be any clearer - TO THE MOONNNNN!! LOL