Which Vanguard FTSE 100 fund?

[Phooey]

I can see two FTSE 100 funds in the Vanguard shop - FTSE 100 Index Unit Trust - Accumulation, and FTSE 100 UCITS ETF (VUKE)

VUKE is 0.09% and the Index Unit Trust is 0.06%. If someone wanted a simple FTSE 100 tracker which would be most representative of a FTSE 100 passive tracker?

Cheers

[bitchstewie]

One's an ETF and one's a OEIC.

Both are cheap but the cost to you may depend on the platform you use as there may be different costs around buying or holding.

The Accumulation fund reinvests dividends whilst it looks like the ETF pays them out.

[Phooey]

bhstewie said:

One's an ETF and one's a OEIC.

Both are cheap but the cost to you may depend on the platform you use as there may be different costs around buying or holding.

The Accumulation fund reinvests dividends whilst it looks like the ETF pays them out.

Cheers. I have a Vanguard account for this years ISA so it's just another 0.15% to add ^^^ to either fund price. I was reading an article last week where some analyst from an investment company (can't find it now or remember which it was ) was saying although he thought the US markets would continue to rise this year, he also said he thought the UK market (particularly 100) would out-perform the US - simply because of the nature of the stocks within them. It made sense (to me). I have some allowance left so was just going to drop an extra chunk on the FTSE 100. I normally buy a mixture of VWRL, LS80, and FTSE Global All Cap Index between mine and the missus's ISAs.

[VR99]

Phooey said:

I normally buy a mixture of VWRL, LS80, and FTSE Global All Cap Index between mine and the missus's ISAs.

Just out of interest, do you invest in all 3 equally or in specific portions of your total investments?

I only invest in VLS 100 but I think the FTSE All CAP better represents a 'global' fund. However I also think now is a good time to have exposure to the UK so I would prefer not to get rid of the VLS 100 but adding the FTSE All CAP might result in too much overlap....first world problems I know but it got me thinking should I have a bit in both...

[Phooey]

VR99 said:

Phooey said:

I normally buy a mixture of VWRL, LS80, and FTSE Global All Cap Index between mine and the missus's ISAs.

Just out of interest, do you invest in all 3 equally or in specific portions of your total investments?

I only invest in VLS 100 but I think the FTSE All CAP better represents a 'global' fund. However I also think now is a good time to have exposure to the UK so I would prefer not to get rid of the VLS 100 but adding the FTSE All CAP might result in too much overlap....first world problems I know but it got me thinking should I have a bit in both...

No science involved in my investing strategy I just throw a bit into each - the costs are simple to understand on the Vanguard platform. I invest monthly by direct-debit an equal amount into both LS80 (The missus's ISA) and VWRL (My ISA). I like the LS80 because of the UK bias - which I've been holding onto in the hope it will spring back. In hindsight i should of perhaps gone LS100 (you've prompted me to switch ) as I'm not sold on holding bonds. Occasionally I throw an extra few quid into something like either the S&P 500, FTSE 100 tracker, or All-Cap. I like VWRL because it's a bit of an old-school favourite amongst investors, but the downside is you have to manually reinvest dividends on the Vanguard platform.

eta - LS80 now ditched in favour of LS100 - I'm blaming you if it all goes tits up

eta2 - just done a quick performance check YTD (17th Jan 2019 to 17th Jan 2020) and I am +15.18%. I'm quite happy with that considering I've been tinkering with it a bit. Would of been interesting to see what it would of been if had left it solely to LS80 and not added any ETFs etc

Edited by Phooey on Sunday 17th January 17:59

[xeny]

Phooey said:

I like VWRL because it's a bit of an old-school favourite amongst investors, but the downside is you have to manually reinvest dividends on the Vanguard platform.

Have you looked at VWRA ?

[VR99]

Phooey said:

VR99 said:

Phooey said:

I normally buy a mixture of VWRL, LS80, and FTSE Global All Cap Index between mine and the missus's ISAs.

Just out of interest, do you invest in all 3 equally or in specific portions of your total investments?

I only invest in VLS 100 but I think the FTSE All CAP better represents a 'global' fund. However I also think now is a good time to have exposure to the UK so I would prefer not to get rid of the VLS 100 but adding the FTSE All CAP might result in too much overlap....first world problems I know but it got me thinking should I have a bit in both...

No science involved in my investing strategy I just throw a bit into each - the costs are simple to understand on the Vanguard platform. I invest monthly by direct-debit an equal amount into both LS80 (The missus's ISA) and VWRL (My ISA). I like the LS80 because of the UK bias - which I've been holding onto in the hope it will spring back. In hindsight i should of perhaps gone LS100 (you've prompted me to switch ) as I'm not sold on holding bonds. Occasionally I throw an extra few quid into something like either the S&P 500, FTSE 100 tracker, or All-Cap. I like VWRL because it's a bit of an old-school favourite amongst investors, but the downside is you have to manually reinvest dividends on the Vanguard platform.

eta - LS80 now ditched in favour of LS100 - I'm blaming you if it all goes tits up

eta2 - just done a quick performance check YTD (17th Jan 2019 to 17th Jan 2020) and I am +15.18%. I'm quite happy with that considering I've been tinkering with it a bit. Would of been interesting to see what it would of been if had left it solely to LS80 and not added any ETFs etc

Edited by Phooey on Sunday 17th January 17:59

Lol that's a vote of confidence! I actually had the VLS 80 a few years back (in a SIPP) and was reasonably happy with the performance hence ended up with the 100 in the S&S ISA. The Covid-induced drop in the market last year certainly made a man of me as I didn't sell out when it was showing -30% and instead threw a bit more in...I'm showing 20% up now but I've been drip feeding for 3 years so my return for 2020 was likely lower.
I was v close to switching out of VLS completely into the All Cap but I'm going to hold for now..I am however hesitant to fill my ISA allowance fully using VLS 100. The markets look a bit 'peaky' and it makes me nervous so.....my 'strategy' for now is to do nothing...as I don't have a crystal ball. However that won't stop me having a gander at VWRL and the ALL Cap....as you can tell I have a v coherent and clear strategy here...

[Phooey]

VR99 said:

The markets look a bit 'peaky' and it makes me nervous so.....my 'strategy' for now is to do nothing...as I don't have a crystal ball. However that won't stop me having a gander at VWRL and the ALL Cap....as you can tell I have a v coherent and clear strategy here...

lol, yes! Always best to consult with a pack of beers is my strategy


I agree though - the markets do indeed look 'peaky', but (IMO) with interest rates at near zero and very little alternatives I can genuinely only see them going higher. I see no alternative. The largest companies will just keep getting larger (again IMO).

[Squirrelofwoe]

Phooey said:

No science involved in my investing strategy I just throw a bit into each - the costs are simple to understand on the Vanguard platform. I invest monthly by direct-debit an equal amount into both LS80 (The missus's ISA) and VWRL (My ISA). I like the LS80 because of the UK bias - which I've been holding onto in the hope it will spring back. In hindsight i should of perhaps gone LS100 (you've prompted me to switch ) as I'm not sold on holding bonds. Occasionally I throw an extra few quid into something like either the S&P 500, FTSE 100 tracker, or All-Cap. I like VWRL because it's a bit of an old-school favourite amongst investors, but the downside is you have to manually reinvest dividends on the Vanguard platform.

eta - LS80 now ditched in favour of LS100 - I'm blaming you if it all goes tits up

eta2 - just done a quick performance check YTD (17th Jan 2019 to 17th Jan 2020) and I am +15.18%. I'm quite happy with that considering I've been tinkering with it a bit. Would of been interesting to see what it would of been if had left it solely to LS80 and not added any ETFs etc

I set up a monthly S/O into an LS80 fund back in October 2018 (with no changes since bar increasing the s/o from £300 to £350) and as of yesterday it is +31.35%. Makes me feel like a genius investor when in reality I set it up purely as a 'fire and forget' job for a 15+ year horizon. Very happy with that performance so far though!

[95JO]

VR99 said:

...I only invest in VLS 100 but I think the FTSE All CAP better represents a 'global' fund. However I also think now is a good time to have exposure to the UK so I would prefer not to get rid of the VLS 100...

I was thinking the exact same thing last week but came to the same conclusion. Glad to know I'm not the only one

[VR99]

95JO said:

VR99 said:

...I only invest in VLS 100 but I think the FTSE All CAP better represents a 'global' fund. However I also think now is a good time to have exposure to the UK so I would prefer not to get rid of the VLS 100...

I was thinking the exact same thing last week but came to the same conclusion. Glad to know I'm not the only one

I find it mentally exhausting at times...it's interesting and dare I say 'fun' to an extent with mulling over all the various options but we are so spoilt for choice now with funds/etf's that after a while it becomes overwhelming!
Going back to the ALL CAP fund, it might be better diversified than the VLS 100 but unless that extra diversification is going to result significantly better performance or is better at blunting the impact a big market drop will make to my overall fund value, then I came to the conclusion that it's not worth switching at this point... additionally with a higher US exposure on the ALL CAP fund ( Vs the VLS100) it will still take a big hit as with any other equities funds during a market fall. That's my reasoning not doing anything for now+ if the UK is relatively 'cheap' now then I'd rather not sell UK cheap and buy more US exposure at a higher relative price..if that makes any sense.

As an aside I've gone for a Lyxor Global Equities ETF in my LISA so again I am heavily exposed to the equities markets but drip feeding over the next few months rather than a single big bang purchase due to aforementioned nerves about the markets. Hopefully I am wrong about the markets and they keep chugging upwards to infinity and beyond...

Edited by VR99 on Monday 18th January 11:06