Financial advisors for index tracker funds
Discussion
menousername said:
Whats wrong with low cost actively managed funds via an ISA instead?
Is an element of active risk management not best given the last few years - trackers might be topping out and you might want more docus on capital preservation?
What sort of 'low cost actively managed' funds are you thinking about?Is an element of active risk management not best given the last few years - trackers might be topping out and you might want more docus on capital preservation?
Active management and low cost are not normally compatible!
Mezger said:
from personal experience I'd recommend reading Millionaire Teacher by Andrew Hallam - its on Amazon.
I'm not advocating this is best for you, but the approach I've taken is the following;
VUKE - tracks FTSE 100 - gives me exposure to UK market (yes I know many of the FTSE 100 generate income outside of UK and we're benefitting from weaker pound when they report earnings)
VWRD - approx largest 3000 companies globally, giving you lots of exposure to different markets - 52% is US.
IGLS - UK Government bonds
I re-balance once per year to my original % allocation, ie I sell what is high and buy what is low to get back to my original allocation.
Simple, cost effective and in theory over the long term 15 years+ should provide me with a decent return.
You're on the right the track to look at indexes, tax and on-going fees are two huge anchors on total performance when you factor in the compounding effect. Indexes help reduce your costs, Pensions/SIPP/ISA can help with tax.
Good luck.
Out of interest what is your allocation in each and (approx.) 5 year return? Be interesting to see how it compares against the wealth manager survey resultsI'm not advocating this is best for you, but the approach I've taken is the following;
VUKE - tracks FTSE 100 - gives me exposure to UK market (yes I know many of the FTSE 100 generate income outside of UK and we're benefitting from weaker pound when they report earnings)
VWRD - approx largest 3000 companies globally, giving you lots of exposure to different markets - 52% is US.
IGLS - UK Government bonds
I re-balance once per year to my original % allocation, ie I sell what is high and buy what is low to get back to my original allocation.
Simple, cost effective and in theory over the long term 15 years+ should provide me with a decent return.
You're on the right the track to look at indexes, tax and on-going fees are two huge anchors on total performance when you factor in the compounding effect. Indexes help reduce your costs, Pensions/SIPP/ISA can help with tax.
Good luck.
https://www.ft.com/content/3c5c6114-5103-11e7-a1f2...
80% equities, split 50:50 between the two and 20% Bonds.
Performance so far is VUKE up 5.2% (not including Dividends), VWRD 7.8% (not including Dividends)
IGLS - (.79%)
I have only had this set up for just under a year so no 5yr performance yet. For me, this is for a 20yr+ horizon, if I can stay disciplined, re-balance once a year, contribute regularly, over time it should do ok - anything over 5% compounded is enough for me.
The main thing for me is that fee's are low and it's simple not time consuming.
Performance so far is VUKE up 5.2% (not including Dividends), VWRD 7.8% (not including Dividends)
IGLS - (.79%)
I have only had this set up for just under a year so no 5yr performance yet. For me, this is for a 20yr+ horizon, if I can stay disciplined, re-balance once a year, contribute regularly, over time it should do ok - anything over 5% compounded is enough for me.
The main thing for me is that fee's are low and it's simple not time consuming.
Derek Chevalier said:
Surely getting the best returns for a given level of risk is most important?
Of course.
I fall into the camp that the majority of my investment is best tracking the market with costs minimized to ensure the best possible return. The fact that many active managers who are professionals still don't beat the market tells me my chances as an amateur to consistently beat it over 20yrs are somewhat limited. Hence, why I'm comfortable with index trackers.
Mezger said:
Derek Chevalier said:
Surely getting the best returns for a given level of risk is most important?
Of course.
I fall into the camp that the majority of my investment is best tracking the market with costs minimized to ensure the best possible return. The fact that many active managers who are professionals still don't beat the market tells me my chances as an amateur to consistently beat it over 20yrs are somewhat limited. Hence, why I'm comfortable with index trackers.
You mention returns not including divis - do Vanguard not offer accumulation ETFs (I'm not that familiar with their setup) to save you having to manually reinvest?
Out of interest, as your investment horizon is >20 years, what made you hold 20% bonds rather than 100% equities?
Derek Chevalier said:
I don't think the passive and index camps will ever agree!!
You mention returns not including divis - do Vanguard not offer accumulation ETFs (I'm not that familiar with their setup) to save you having to manually reinvest?
Out of interest, as your investment horizon is >20 years, what made you hold 20% bonds rather than 100% equities?
You mention returns not including divis - do Vanguard not offer accumulation ETFs (I'm not that familiar with their setup) to save you having to manually reinvest?
Out of interest, as your investment horizon is >20 years, what made you hold 20% bonds rather than 100% equities?
The ETF's I have are not accumulation so I manually re-invest, would be easier if they were.
The reason for the bonds allocation at 20% is so when I do my annual re-balance I can buy low sell high in theory to get back to my original % allocation.
cqueen said:
I'm trying to find these on vanguard, can you provide a link? Thanks 
VUKE - https://www.vanguardinvestments.dk/portal/instl/dk...VWRD - http://www.morningstar.co.uk/uk/etf/snapshot/snaps...
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