I'm a fan of Lazy ETF portfolios, and have a couple delivering 10-12% XIRR over 15 years now. I'm just building a new one and the availability / ongoing charges have changed a bit, so I'd welcome comment on the following. The objective is inflation + 4% (say 7% annual growth) over a 10+ year horizon for a UK investor with quarterly dividends reinvested to rebalance periodically.
Description | ETF | Target | TER | Yield
FTSE100 UK Shares | ISF | 15% | 0.07% | 3.30%
FTSE250 UK Shares | VMID | 10% | 0.10% | 2.02%
World Shares (Developed) | VEVE | 50% | 0.12% | 1.45%
Emerging Markets World Shares | VFEM | 15% | 0.22% | 1.90%
Corp Bonds | SLXX | 10% | 0.20% | 2.10%
Total | | 100% | 0.13% | 1.92%
Reasons as follows:
ISF is cheaper than VUKE
VEVE is VWRL minus Emerging Markets - I've been using VWRL for years but it has 0.22% TER and I have VFEM anyway
SLXX just because I don't like Gilts
Some nuisance with witholding taxes on the dollar denominated VEVE/VWRL and VFEM above, but I've lived with that for years (this isn't a tax-sheilded account).
All comments welcome and helpful.
Nathan