North America VNRT 25%
Europe, inc UK VEUR 25%
Emerging markets VFEM 25%
Japan VJPN 12.5%
Asia/Pacific VAPX 12.5%
The thinking behind this is partially that US shares are really expensive compared to the other markets, so we have heavily cut the allocation. EM and Pacific shares have faster earnings growth than in the US, but trade on much lower valuations. If you believe CAPE has any chance of being right that must mean EM/Pacific has a higher chance of beating the US in long term growth. This is also a simple and neat allocation with a four way split between the various major regions. It is just a shame that Vanguard do not do a Pacific including Japan ETF. They do have a US listed one, but unfortunately not LSE. European shares are not showing great earnings growth, but at least they are on much lower valuations than the US.
We are now waiting for the £2k bung from the government and are thinking of putting it into the Vanguard value fund VVAL. Or perhaps splitting into a global value fund and a global small cap fund.
As these investments have a very long term horizon (we decided against withdrawing for property purchase) there are no bonds - just all out risk with charges as low as we could practically get them. Weighted TER is 0.169% and as they are broad cap weighted ETFs, turnover costs should be negligible. Not as cheap as I would have liked, but hopefully Vanguard will bring the TERs down over time.