Alternative to vanguard life strategy

Alternative to vanguard life strategy

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xyz123

Original Poster:

987 posts

128 months

Saturday 29th April 2017
quotequote all
hi

i have some money in vanguard 60%. I am looking for some more alternative for additional funds (circa £5k). Aim is to keep it in market for 10 years. i am looking for alternatives to vanguard as i feel that vanguard has too much UK exposure which in my opinion is not good for next 2-4 years....

so does anyone know off any similar low value multi index funds but without so much UK exposure ....

ta

Edited by xyz123 on Saturday 29th April 15:45

Pheo

3,324 posts

201 months

Saturday 29th April 2017
quotequote all
Monevator has some good articles on homebrew versions of the Vanguard. I would say though that the whole point of a passive fund like Vanguard is fire and forget (ie you are assuming UK market will do badly in the next 2-4 years but this would have been priced in already?).

mdianuk

2,890 posts

170 months

Saturday 29th April 2017
quotequote all
xyz123 said:
i feel that vanguard has too much UK exposure which in my opinion is not good for next 2-4 years....
Why does that matter if you have a lump sum to put in for 10 years?

Sorry I can't offer any alternatives, as I'm in VLS myself (60% for pension, 100% for isa) but interested in what others come up with.

xyz123

Original Poster:

987 posts

128 months

Saturday 29th April 2017
quotequote all
mdianuk said:
Why does that matter if you have a lump sum to put in for 10 years?

Sorry I can't offer any alternatives, as I'm in VLS myself (60% for pension, 100% for isa) but interested in what others come up with.
I

My thinking was that out of 10 years u don't want to possibly lose 3-4 years.

Pheo

3,324 posts

201 months

Saturday 29th April 2017
quotequote all
It's an understandable feeling - but the problem is you are trying to time the market. If you could do that then everyone else would be.

You are on average better off just investing for the longer term and leaving the diversification of VLS to it. Statistics show we are fallible, and tend to buy high ad sell low - again and again and again. So stick it in VLS and forget.

For instance I was +20% after Brexit due to the current changes... even though the UK market dipped. That's VLS 80/20.

You could choose a higher bond ratio as a more
Conservative approach but even then some argue the bond market is overpriced / shot to hell at the moment.

The other thing to think is if one of the markets does dip in the intervening period any regular contributions you might make have more room to grow!

Highly recommend you read up on passive investing. Also consider your overall risk profile - perhaps you should take on less risk overall rather than trying to time the market?

mdianuk

2,890 posts

170 months

Saturday 29th April 2017
quotequote all
xyz123 said:
My thinking was that out of 10 years u don't want to possibly lose 3-4 years.
Then you may not wish to invest; I expect the market to suffer a number of downs over the next couple of years if history tells us anything. As a long term investment, you simply have to take the rough with the smooth to maximise the long term potential; what you should never do is try to time the market, but if you are concerned of pending dips, just contribute towards a fund in stages (pre-set, again, don't try to time it) which will average you out over the long term plan.

So for example, I'm only just invested in VLS (and in fact, any fund!) and believe I'm buying in on a toppy market, but I'm just avoiding putting in too much right now and instead will pay in monthly and only pay more if target drops are met.

xyz123

Original Poster:

987 posts

128 months

Saturday 29th April 2017
quotequote all
Thanks for your replies. I understand about risk and perils of trying to be timing the market. But I was just thinking this brexit and 3-4 years timescale is a bit different than conventional timing the market as I am looking to avoid something for considerable time.

I am already invested in VLS and am not going to change that. Was just thinking of more diversification away from UK. Thanks again..

Viper

10,005 posts

272 months

Sunday 30th April 2017
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There will be plenty to choose from but have a look at Fundsmith Equity, 62% of the fund is US based, 21% in the U.K. and the rest in European countries