@Adrian https://www.rlam.co.uk/Home/Intermediaries/Products/Fixed-Income/OEICs/Short-Duration-Global-Index-Linked-Fund/ “Fund overview …. https://www.ishares.com/uk/individual/en/products/251736/ishares-euro-government-bond-35yr-ucits-etf What’s even better news is this passive index fund strategy can be used during the worst economic times of instability. Interesting I’m not sure the Bonds low general performance and at best, mediocre performance in a crash particularly hedges things, but I can understand the attractive idea of offsetting that risk and it’s better than Gold for sure! @Brod. I was wondering if anyone could recommend the equivalent to the World equity – developed world and emerging markets (total world) suggestions below but from a US perspective as looks like I can’t invest in any of those from here, unless I’m missing something (highly likely)? Because dividend yields are low, I would advise buying the accumulation fund to take advantage of the power of compounding interest, unless of course, you need the income. Discover Benzinga's picks for the best index funds you can buy for April 2021 based on 1 and 5 year returns, expense ratios and more. Should you invest in a buy-to-let property through a Limited Company? The real point was how different AGBP and VAGS actually are despite having similar sounding indices, similar duration etc. One of my concerns of going with a total world fund at present is that the emerging markets may struggle more with Covid-19 as they do not have healthcare systems in place – though this too could be said for some parts of Europe. L&G International Index Trust I Fund (GB00B2Q6HW61) OCF 0.13% Next best. There are countless professional investment fund managers, some of who are paid astronomical annual salaries (some over £1 billion), who have lost money year after year and most managed investment funds have struggled to beat their index benchmarks. HSBC FTSE All-World Index Fund C OCF 0.13% Some funds will have better capabilities than others in different areas. The fund tracks the S&P Total Market Index and includes stocks from the S&P500, Dow Jones and the Nasdaq. My problem is this. The important thing is to choose products underpinned by sound financial theory, a verifiable set of rules, and a commitment to low costs. I am FI, so at capital preservation/decumulating stage rather than accumulating. This information is not financial advice and has been prepared without taking your objectives, financial situation or needs into account. I have set up a public watchlist on JustETF.com which summarises the LSE listed ETFs that track the FTSE All-World or MSCI World Indeces, along with their TERs and returns . “The L&G Global Small Cap Equity Index Fund is an ICAV so domiciled in Ireland. Bottom line: Some funds will beat passives, and if you own them in advance, and with enough of your investment pot to make up for those funds you pick that do worse, then that’s a winning strategy. Re: extra categories. I’ve been thinking to change some of my GBP hedged bonds into Gold / unhedged bonds to diversify away Sterling risk; Gold is in your list but unhedged bonds are not, which is what led me to question my understanding of what passive investing is. If you run the figures the additional cost of exchanging dollar dividends to sterling is 0.035%. Does this not make the Vanguard “cheaper”, or is this the wrong method of comparing these costs? Both are FX unhedged and quoted in USD base currency. Thanks for the reply, and explanation. I think the FTSE index could be a decent vehicle for long-term investors. Thank you. HMWO LN (0.15% charge, not mentioned above but well-used as a developed world equity tracker) and LCWL LN (0.12% charge, mentioned above) both use the MSCI. I tend to compare VG, HSBC and Fidelity annually for UK and global. But they are not the same thing at all. Somewhat related to the comment thread above and the link…..I wanted last week to utilise the annual £12k CGT exemption, so I sold sufficient ITPS (Ishares $TIPS) and bought sufficient TIPG (Luxor $TIPS) to lock it in. I am new to this site but have been investing for a number of years now. https://www.justetf.com/uk/watchlist.html?listId=4953c. I’ve also dug deeper into the site and have now spent many hours reading and following links. I wonder how popular that sub-asset class would be now if it wasn’t for the battering sterling has taken since the referendum? (It seems pointless to switch from 0.25 to 0.23 but if it was 0.1 for example), @Peter Re: “Does anyone know which platforms actually carry L&G Global Small Cap Index Fund (IE00BG0VVG79)? Thanks for this great post! Sterling then drops to half of USD. Historically, the FTSE 100 index has grossly underperformed the S&P 500 index. @ZXSpectrum – Wow! If you want companies representative of UK stock market then FTSE All-Share or you could achieve much the same with FTSE 100 + FTSE 250. iShares USD TIPS 0-5 Yr ETF GBP Hdg Dist (TI5G) which has a TER of 0.12%. Very surprised that MINV doesn’t get a mention. With only a small percentage of these funds outperforming the S&P Total Market index, how could anyone possibly pick the correct funds, let alone understand them? Just had a letter from my platform: Vanguard objected on the basis that this would be too difficult to hedge, risky, and expensive, and therefore changed index to effectively cap these Chinese bonds at a lower proportion – about 1.5% ish if I remember rightly. Codes are given for accumulation funds variants where available. Both 0.1% When you begin looking for the best tracker funds, the financial services industry will try to dissuade and confuse you by offering a myriad of options designed to have you running back to your trusty financial adviser. In particular, VEVE and HMWO are nice as they do not reinvest dividends, which helps for the self-assessment when investing outside of a wrapper (ISA/SIPP). Neil Woodford would be one such example. This was our last take on the subject, but we will probably update again soon: https://monevator.com/sri-investing-what-you-need-to-know/, I am looking for an All World Fund and have been looking into Firstly the HSBC fund had a highly varying tracking difference between the fund and the index of 0.4% to around 1.4% if I recall (if not read yet I would read through Monevators articles of tracking error, tracking difference and how to read a fund fact sheet). MER: .06% # of Holdings: 202. Humans love to complicate things, especially when it comes to investing. Weekend reading: And the little one said, rollover. Since buying it a few years ago I have transferred platforms a couple of times to minimise platform fees and it has saved me money. Understand that bond funds have their critics as you won’t make great returns during certain economic, plus bond funds are more boring than your grandma’s knitting lessons. cheers Tommy. The fee difference is just noise. Specifically, I hold VGOV in an ISA with AJ Bell Youinvest. I’ll put that on the list. I know you caveat this by saying you are going totally on OCF, not tracking loss etc. It seems to be the case in all the example portfolios from yourself (that I have seen) that you have multiple funds making up the portions of the developed market and emerging markets (fragmented even further on multiple occasions). My own gut feeling is that I don’t really feel comfortable with a mix of global bonds which are currency hedged, because it’s the sort of complication that I don’t fully understand. Does anybody know of any Nasdaq 100 index funds that are funds (not ETFs). According to this charges documents there is a 0.19% ongoing charge for the product costs AND a 0.25% ongoing charge for the account fee, i.e. To my mind the significant difference between the two is that one is an OEIC and one an ETF and the impact that platform charges on your chosen platform will have as a consequence. 30 December 2019. @ The Accumulator, C-Strong – Why not just go for VVAL? Royal London, ASI and Smith & Williamson funds are active. I’ve decided to cover off factors in the multi-factor sub-asset class – the individual factors haven’t ever gained much traction with Monevator readers while lots of people are mad for income investing. Not greatly, so long as the average credit rating doesn’t change (which it won’t). The leading providers eg Vanguard, iShars, State Street etc do seem to do the job very efficiently. The California Public Employees Retirement System is one such example. I know it is extra hassle but I have a spreadsheet that calculates for me exactly how I need to rebalance so it isn’t really hassle. However if you bought them after most of their great run, then the question is will they do as well over the next 5-10 years? Fidelity offers joint accounts for up to three people. In the UK Large Cap Equity section, doesn’t Vanguard’s FTSE U.K. All Share Index Unit Trust (GB00B3X7QG63) get an honourable mention at OCF=0.06%? VMID? What the F is going on? This happened to me about month ago also. (iWeb have added two UK funds for me in the past on two occasions but I don’t have an ISA with iWeb and there is no way I am buying an offshore fund outside a tax wrapper for tax return reasons). I agree it’s active not passive bien sur. Hi On that tip…. Personally, my best tracker funds list is very short as my entire portfolio contains just two index tracker funds: This Vanguard U.S. Equity Index Fund tops my list of the best tracker funds because it holds approximately a wide array of company stocks, everything from behemoths such as Apple and Amazon, staples such as Visa and General Motors, and smaller companies such as Dolby and Ralph Lauren. and Non– sterling assets will be hedged back into sterling…” BUT its the only place this is mentioned, I’ve been through the other documents relating to the fund and I have found nothing. And also iShares Sterling Corporate Bond 0-5Yr UCITS ETF (IS15) with a TER of 0.2% as a less volatile and interest rate sensitive alternative to SLXX. Thanks for all the lovely research! On the negatives side it is much smaller in asset size as is newer so there are potential risks on that side but offset with the pros this for me is the strong favourite and also I expect the fund to grow in size considerably the next 5 or so years so stability should be found in that. Hi DB, the cost doc you’ve linked to assumes you’re investing in the fund through HSBC’s Global Investment Centre platform. That said, I’m drip feeding into that fund over the coming months to profit on the short term. the composition of the index. Best mutual funds to invest in 2020 Below is a variety of well-regarded, well-performing fund candidates to consider, for any money that you choose to not park in low-fee, broad-market index funds. One quick update – L&G All Commodities ETF (BCOM) OCF 0.15% … now seems to have an OCF of 0.31 as quoted in KIIF … so probably not the most competitive anymore! Currency moves can knock 10% or more off valuations very short term (even overnight — like EU Referendum). Still have memories of the iShares UK Dividend Plus fund which was all the race up to 2008. from And anyway, if the emerging markets do go down, the money you are investing is going further and buying “more”. https://www.ishares.com/uk/individual/en/products/253744/ishares-usd-government-bond-37-ucits-etf-acc-fund Sometimes you just have to go with the flow. Google the ISIN to track down the factsheet: IE00BK5BQV03, There’s a list of alternatives here, though none as good as Cavendish for small portfolios: For UK they are all so close on OCF%, but I find it gets very confusing once you dive into transaction costs/tracking error/performance data to try and differentiate further…so I inevitably just carry on with my ongoing picks. For example, Vanguard’s UK Government Bond Fund only holds 58 bonds versus the 10,000+ bonds in the Global Fund. https://monevator.com/how-to-work-out-your-portfolios-cost/. You say Fidelity Select Software & IT Services Fund (FSCSX) The Fidelity Select Software & IT Services Fund … So you have the knowledge and resilience when such a market dip happens that you don’t react and sell sell sell or time the dip etc. If you want unhedged global sovereign bonds in OEIC form then iShares Overseas Government Bond Index Class H is worth a mention. This strategy provides less risk, less emotional stress and lower fees and is a very effective way to achieve retirement wealth. If you want a quick shortcut then you can do a lot worse than picking a fund-of-funds instant portfolio solution. 0.44% in total! I’m new to this site, and find the advice absolutely invaluable. Thanks for the update. And I still instinctively don’t like holding those hedged global bond funds. Thanks for the hard work TA. I suppose the other question is HSBC vs Vanguard as a company but again I think both are big reputable financial behemoths which shouldn’t be an issue. The Investor loves your thinking, you total slave driver. This guide offers a comparison of the different funds available. If you think the pound is overvalued now then ok I guess. It has a quoted OCF 0.11% on Interactive Investor though performance looks marginally poorer than: Vanguard UK Gov Bond Index (IE00B1S75374) OCF 0.15%. But I’d welcome any thoughts. This update is helping me choose the right Gold ETF; I had been considering to purchase SGLN, but now I see there are cheaper options to take note of. Now before I make the step I wanted to ask if there is any disadvantage to holding just one Equity component. Appreciate your time! In a rare misstep by ZX, it’s VHVG that’s accumulating and VEVE that distributes, like you say. Previous post: Weekend reading: Daddy, what did you do in the great pandemic? You replicate against MSCI World index but state your returns vs. MSCI World Net index. The top holdings of the first fund are gold futures, while the top and only holding of the other two is gold bullion . No apparently not. There’s an interesting ETF from VanEck though (ticker: HAP) which is Commodity / Resource equities at a not too bad TER (0.5%) Ticker: VCN. Would it be worth including an unhedged global bonds category? I accept they may not be 100% correlated. Look, I love picking single stocks but I also spend countless hours researching. I have been thoroughly enjoying working through the various links and articles you have created over the years whilst I have been furloughed this last month. Have now spent many hours reading and following links markets fund stick to fund ongoing charge is. Shell and HSBC comprised almost 25 % of active U.S. funds which beat their benchmarks in while. 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