The Lemon Fool

My daughter and I have been reviewing options for her first purchase into a fund. She has £9K to invest before tax year end in March.

We're looking at S&P 500. Though different funds seem to have different weightings. Who's S&P 500 seems to have the best record (noting I know past performance is no guarantee of future performance)

After the fund has been purchased we will add £750/month to the fund for the next 3 years.

I'd welcome any thoughts on other possible funds that we should consider please.

Thank you

AiY(D) & Daughter

We're looking at S&P 500. Though different funds seem to have different weightings

You've lost me a bit there - the S&P 500 is an index of US stocks, so the only(?) variations between providers are going to be
Tracking errors
Fund costs/ongoing charges
Something ekse I've probably forgotten (forex/currency risk?)



Are you set on investing only in the US market?

Hi AiY.

You can get an Invesco synthetic ETF with a 0.05% expense ratio, or iShares/Vanguard physical replication ETF's for 0.07%.

https://www.justetf.com/uk/how-to/sp-500-etfs.html

Seem as good as anything, IMO, if that's the exposure desired. I'm more of a physical replication guy myself (and prefer Vanguard over Blackrock/iShares) but won't foist my preferences on others.

Regards, Newroad

AleisterCrowley wrote:We're looking at S&P 500. Though different funds seem to have different weightings

You've lost me a bit there - the S&P 500 is an index of US stocks, so the only(?) variations between providers are going to be
Tracking errors
Fund costs/ongoing charges
Something ekse I've probably forgotten (forex/currency risk?)



Are you set on investing only in the US market?

No we're not.

I'm just trying to find the fund I saw earlier today which was I think a variation on S&P 500 (but don't quote me - been tired today)

Thanks

AiY

Best not do anything when tired ! (oddly I just posted to this effect about a minute ago on a different thread...)

Newroad wrote:Hi AiY.

You can get an Invesco synthetic ETF with a 0.05% expense ratio, or iShares/Vanguard physical replication ETF's for 0.07%.

https://www.justetf.com/uk/how-to/sp-500-etfs.html

Seem as good as anything, IMO, if that's the exposure desired. I'm more of a physical replication guy myself (and prefer Vanguard over Blackrock/iShares) but won't foist my preferences on others.

Regards, Newroad

Many thanks

AiY(D)

AsleepInYorkshire wrote:After the fund has been purchased we will add £750/month to the fund for the next 3 years.

Rather than invest a £9000 lump sum now you could drop feed it in, by investing say £1000 a month for the 3 years.

Scott.

swill453 wrote:

AsleepInYorkshire wrote:After the fund has been purchased we will add £750/month to the fund for the next 3 years.

Rather than invest a £9000 lump sum now you could drop feed it in, by investing say £1000 a month for the 3 years.

Scott.

Scott I couldn't agree more. The plan was to start investing and pick a fund when we came back from holiday on 6th September last year. Our departure was delayed by 10 minutes. During that time we received a call that my Mum had fallen and was in hospital. Before Mum died on the 1st December we were occupied in organising her care, which was difficult. The investment thoughts were lost in that

A junior ISA is only allowed £9K per year. It's a bit risky investing a lump sum ... but I'll drip it in over two months at about £1K per week. Best I can do given the circumstances. But after that she's on pound cost averaging

AiY

Can't she/you put it in as cash just now and invest at leisure?

Scott.

swill453 wrote:Can't she/you put it in as cash just now and invest at leisure?

Scott.

Yes, no need to rush investing the cash once it's in the ISA. The deadline on the allowance is on contributions to the ISA.