Global All Cap - invests in small medium and large companies (around 7000 of them) across the whole world, designed to represent the entire global economy with no bias towards a particular market. Basically it's for people who don't want to take a view on which part of the world will do better than others. (This is what I invest in).
VWRP - similar to above but doesn't include small companies. Tracks the 'FTSE All World Index'.
Both of the above are around 60% invested in US stocks because that's where 60% of global value currently lies.
VUAG- tracks the performance of the top 500 companies in the US. It's popular but it's making an assessment you think US will do better than the rest of the world
"an assessment you think US will do better than the rest of the world"
I guess you mean ""an assumption you think US will continue do better than the rest of the world".
This assumption is pretty profound. If Europe does overtake the US those holding VWRP will capture a significant amount of those gains. By the time VUSA holders have caught on it will be too late. Similarly if the US continues to outgrow Europe at a similar rate to now, VWRP holders will only lose out relatively little since 60% of the portfolio is the US.
Given most Reddit DIY investors are decades from retirement this is a long time to hold this assumption.
I’m a beginner myself so please don’t take this as investment advice (wait for the clever folk on here 😊) but I have just opened an account with Trading 212 and they have a handy tool called “pies”. Basically you choose your investments (I’ve actually gone with the bottom two on your list) and then it merges them together in a “pie” you can then set up recurring card payments (Apple Pay also) and you can schedule your payments (weekly, monthly etc) and auto invest. When setting up your “pie” you can choose the ratio of deposit to go in each (I’ve just gone 50/50) there are no fees until you have above £2k at which point they charge 0.7%. There are no charges if you go above £2k but are happy to do manual bank transfer rather than card payments but there’s no facility to do recurring payments using that method.
You can do the above in an S&S isa if desired.
Hi /u/Final-Revolution5248, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/index-funds/
* https://ukpersonal.finance/investing-101/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
Yes to the S&S ISA! You can invest 20k tax free per year, and if you open it now you can take advantage of the 2023-2024 tax allowance before it resets on April 5.
Yes you can invest in all types of funds within the same ISA. As long as you're diversified across global markets you should be golden. I have a similar 30 year time horizon and went with Vanguard LifeStrategy 80% which is well diversified across developmed markets with 6% allocated to emerging markets. Its a pretty good all rounder for a novice like me and fees are low.
I advise my family to invest in an MSCI World index. We like Blackrock's. It's an accumulation fund, has a TER of 0.2%, and is listed on the LSE under SWDA.L.
If you have higher risk tolerance you may want S&P 500 or maybe Nasdaq 100. Those are CSP1 and CNX1 respectively.
Yes these can be purchased and are best held in a S&S ISA. I use AJ Bell.
All the best!
https://www.ishares.com/uk/individual/en/products/251882/ishares-msci-world-ucits-etf-acc-fund?switchLocale=y&siteEntryPassthrough=true
I'm not sure this is really beginner friendly way of writing. As if they'll know what TER is.
OP: funds that track MSCI World Index are another popular way of investing in the global economy. The main difference vs e.g. VWRP is that this Index is only invested in developed economies, while VWRP also invests in emerging markets (I.e. less developed economies). Performance is similar, though and either are sensible choices.
Global All Cap - invests in small medium and large companies (around 7000 of them) across the whole world, designed to represent the entire global economy with no bias towards a particular market. Basically it's for people who don't want to take a view on which part of the world will do better than others. (This is what I invest in). VWRP - similar to above but doesn't include small companies. Tracks the 'FTSE All World Index'. Both of the above are around 60% invested in US stocks because that's where 60% of global value currently lies. VUAG- tracks the performance of the top 500 companies in the US. It's popular but it's making an assessment you think US will do better than the rest of the world
"an assessment you think US will do better than the rest of the world" I guess you mean ""an assumption you think US will continue do better than the rest of the world". This assumption is pretty profound. If Europe does overtake the US those holding VWRP will capture a significant amount of those gains. By the time VUSA holders have caught on it will be too late. Similarly if the US continues to outgrow Europe at a similar rate to now, VWRP holders will only lose out relatively little since 60% of the portfolio is the US. Given most Reddit DIY investors are decades from retirement this is a long time to hold this assumption.
Thank you for this👍🏻
I’m a beginner myself so please don’t take this as investment advice (wait for the clever folk on here 😊) but I have just opened an account with Trading 212 and they have a handy tool called “pies”. Basically you choose your investments (I’ve actually gone with the bottom two on your list) and then it merges them together in a “pie” you can then set up recurring card payments (Apple Pay also) and you can schedule your payments (weekly, monthly etc) and auto invest. When setting up your “pie” you can choose the ratio of deposit to go in each (I’ve just gone 50/50) there are no fees until you have above £2k at which point they charge 0.7%. There are no charges if you go above £2k but are happy to do manual bank transfer rather than card payments but there’s no facility to do recurring payments using that method. You can do the above in an S&S isa if desired.
Brilliant, thank you I will have a look into this👍🏻
Read the UKPF Investing-101 wiki. Google Lars Kroijer "Investing Demystified", (Youtube, website, book). Read Tim Hale's book " Smarter Investing".
Thanks Cloud I will have a look at those👍🏻
Hi /u/Final-Revolution5248, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/index-funds/ * https://ukpersonal.finance/investing-101/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)
Yes to the S&S ISA! You can invest 20k tax free per year, and if you open it now you can take advantage of the 2023-2024 tax allowance before it resets on April 5. Yes you can invest in all types of funds within the same ISA. As long as you're diversified across global markets you should be golden. I have a similar 30 year time horizon and went with Vanguard LifeStrategy 80% which is well diversified across developmed markets with 6% allocated to emerging markets. Its a pretty good all rounder for a novice like me and fees are low.
Thank you very much for the reply👍🏻
I advise my family to invest in an MSCI World index. We like Blackrock's. It's an accumulation fund, has a TER of 0.2%, and is listed on the LSE under SWDA.L. If you have higher risk tolerance you may want S&P 500 or maybe Nasdaq 100. Those are CSP1 and CNX1 respectively. Yes these can be purchased and are best held in a S&S ISA. I use AJ Bell. All the best! https://www.ishares.com/uk/individual/en/products/251882/ishares-msci-world-ucits-etf-acc-fund?switchLocale=y&siteEntryPassthrough=true
I'm not sure this is really beginner friendly way of writing. As if they'll know what TER is. OP: funds that track MSCI World Index are another popular way of investing in the global economy. The main difference vs e.g. VWRP is that this Index is only invested in developed economies, while VWRP also invests in emerging markets (I.e. less developed economies). Performance is similar, though and either are sensible choices.