If you had £10K to invest

[blueskies]

If you had £10K to invest looking at a return over 20 years what would invest the money in, shares, ETFs, Trust funds?

[monabri]

Global ETF fund such as Vanguard VWRL / iShares SWDA ...

Country Weight ( VWRL)
United States 51.10%
Japan 8.06%
United Kingdom 5.37%
France 2.86%
Switzerland 2.80%
Canada 2.75%
Germany 2.65%
Hong Kong 2.31%
Direct Property and REITs 2.01%
Australia 1.95%

plus

A few £ k in Vanguard VFEM
Country Weight
Hong Kong 13.55%
Taiwan 12.75%
China 12.15%
India 11.71%
Brazil 9.09%
United States 7.78%
South Africa 7.18%
Russian Federation 4.29%
Thailand 3.66%
Mexico 3.15%

[Lootman]

Global ETF fund such as Vanguard VWRL plus

A few £ k in Vanguard VFEM

I feel sure that you know this but about 8% of VWRL is in emerging markets, so VFEM will effectively double the emerging markets exposure relative to a neutral weighting.

One other comment. VWRL has an expense ratio of 0.25% a year. That's not bad but you can certainly do better for areas like the US (50% of VWRL) and Europe (30% or so), where trackers can be found for 0.1% or less. So another idea is to buy separate ETFs for the US and Europe, and then only pay the higher charges for Asia and Emerging Markets ETFs where costs are typically higher anyway.

[monabri]

It was a deliberate increase in % holding in China, HK as I believe VWRL is "too light" in these areas, especially in China, which is the 2nd biggest market.

[Hariseldon58]

@monrobi

Little bit cheaper Vanguard Developed World VEVE ( 0.18%) PLUS Vanguard Emerging Market VFEM choose your own ratios.

[OLTB]

@monrobi

Little bit cheaper Vanguard Developed World VEVE ( 0.18%) PLUS Vanguard Emerging Market VFEM choose your own ratios.

Hi all - this structure is part of my passive portfolio.

Cheers, OLTB.

[TUK020]

If you had £10K to invest looking at a return over 20 years what would invest the money in, shares, ETFs, Trust funds?

Blueskies,
slightly different way of answering the same question:

Asset class: 20 years means that equities are the answer - more volatile, but over this time scale likely to give superior returns. 20 years also implies global to mitigate UK economy specific risk.
Wrapper: Over this timescale, definitely want to make sure that this investment is protected from tax. Needs to be in an ISA or SIPP.
Investment: £10k is not sufficient to get diversification in individual stocks, so need to go for a collective investment. 20 years means that low costs of holding are paramount. You have not mentioned income as a necessity, so some form of low cost global equity index.

The above reasoning leads to answers like VWRL, VEVE as the other posters are suggesting.
tuk020

[Ashfordian]

If you had £10K to invest looking at a return over 20 years what would invest the money in, shares, ETFs, Trust funds?

How old are you? thirties, forties, etc?

Is there a chance you will require access to this money before the end of the 20 year period?

[blueskies]

Thanks all for your replies.

I'm in my 40's and looking to use this investment to fund my retirement. I don't plan on having to access the money before then.

[77ss]

Thanks all for your replies.

I'm in my 40's and looking to use this investment to fund my retirement. I don't plan on having to access the money before then.

I would split it between FCIT and Fundsmith. Both winners after the past 5 years - beating VWRL. Always a gamble of course.

I hope you have other ways of funding your retirement. Even after 20 years, I doubt that an initial £10,000 will go that far. A whole heap better than nothing though!

Good luck.

[TUK020]

Thanks all for your replies.

I'm in my 40's and looking to use this investment to fund my retirement. I don't plan on having to access the money before then.

If you are a higher rate tax payer, and are sure that you will not need access to the money prior to retirement, then a SIPP may well be the answer.
Worth looking at the Monevator site to get an idea of what sort of account to go for, likely costs etc.
https://monevator.com/category/investin ... investing/
Have a good read of the whole passive investing section, and take a close look at the online broker comparison table

[Ashfordian]

Thanks all for your replies.

I'm in my 40's and looking to use this investment to fund my retirement. I don't plan on having to access the money before then.

If you are a higher rate tax payer, and are sure that you will not need access to the money prior to retirement, then a SIPP may well be the answer.
Worth looking at the Monevator site to get an idea of what sort of account to go for, likely costs etc.
https://monevator.com/category/investin ... investing/
Have a good read of the whole passive investing section, and take a close look at the online broker comparison table

I second this suggestion and hence why I asked your age.

Even if not a higher rate tax payer, you will still get a 20% tax rebate on your initial investment or maybe even a 40% rebate if higher rate tax rate payer or you could split it over tax years to make it most tax efficient.

This is quite a boost on your initial investment that any other option has to play catch-up on

[BlackKettle]

With £10k long term, I could be very tempted with:-
30% FTSE tracker
30% S&P tracker
(Vanguard ETFs?)

20% Foreign & Colonial IT
20% Scottish Mortgage IT

with any dividends reinvested back into the investments.

So a mix of security of index tracking with a little extra from the two investment trusts.

[hiriskpaul]

4 way split, equal weight, between developed world, developed world value, developed world small caps, global emerging markets. For best results, put in an ISA (or SIPP) and use accumulating funds to avoid dividend reinvestment costs. e.g. iShares ETFs:

SWDA Developed World
IWFV Developed World Value
WLDS Developed World Small Caps
EMIM Global Emerging

In 10 years rebalance and add an investment grade bond fund into the mix, GBP or GBP hedged, such as AGBP.

After 15 years consider how much risk you want/are able to take going forward and reallocate accordingly.

[blueskies]

A bit late, but thanks all for your responses!

[Gadgeisbackagain]

Not been on here for ages but VWRL was my choice for Grandsons. Low cost Global ETF from Vanguard.

Youre going to ,"need a bigger boat" than 10k to fund a retirement, especially if you're already in your 40s. Assume you know that though.

I like and hold CHDVD ETF.
This invests in high yielding Swiss stocks in Swiss Francs.

I also like and hold MVOL.
This invests in minimum volatility shares in USA in dollars.

But with only 10k to invest, just bang it all in one global ETF

Gadge

[Pastcaring]

Thanks all for your replies.

I'm in my 40's and looking to use this investment to fund my retirement. I don't plan on having to access the money before then.

That is the usual dream,virtually no chance it will happen.Compound it at 10% and in 21 years you will have £80,000.Not a lot of money now ,less in the future depending on inflation.

The more you diversify, the lower the return in general,and the higher the costs.

One fund,choose your own,the lowest cost fund.Or a few shares that you think have a reasonably predictable income stream,reinvest the dividends.

Double up with a loan of 10K,then you have £ 20 K compounding from day one .A possible pot of £ 160K ,still nowhere near enough.

Just work out a future value at reasonable growth rates and there you go.Do a reasonable yield on it and it is very easy.A yield of say 5% will mean £4K per year annual income

If you retired tomorrow how would you feel if you had your pension,possibly a company pension,and an extra £ 3 -- £4K from investments.