Passive investing a.k.a Rate My Portfolio :)

[rl4engc]

Hi all,

I was using the quiet times on my last gig to heavily research this area, and this is what I've come up with.

Any observations, thoughts, good, indifferent skeptical or hostile all appreciated!

Investment horizon: realistically 25 years but I'm treating it as 30
Vehicle: 2xS&S ISAs
Asset Class: 100% Equities, so there's no dampening from Commodities, property, government bonds etc. (yet, will add this in gradually later)
Strategy: Buy and hold, accumulate. Regular investment (no market timing, I'd buy even (especially) if they were plummeting) I never intend to sell unless e.g. partial house deposit in a few years, but I'll do so knowing this willshould have a better rate of return than a savings account.
Target: FI as soon as possible..

The last two are a bit of a 'side bet', and tilts/duplicates towards these sectors, I'll probably move these into the others quite soon. This all assumes good health i.e. human capital to drive it all, there's a cash buffer if things go patchy for a few months.

55% GB00B59G4Q73 Vanguard FTSE Developed World ex UK Equity Index A
10% GB00B80QG052 HSBC FTSE 250 Index C Acc
18% IE00B3X1NT05 Vanguard Global Small Cap Index Fund Class Accumulation
7% GB00B84DY642 BlackRock Emerging Markets Equity Tracker D Acc
5% GB0001955532 L&G Global Health & Pharmaceuticals Index Trust I Acc
5% GB0001955755 L&G Global Technology Index Trust I Acc

Thoughts?

[diseasex]

Too much analysis unless you paid me lol

[IR35 Avoider]

You seem to be shunning companies in the FTSE 100?

Regardless, you will be fine with that.

You would also be fine with any similar portfolio that didn't shun FTSE 100.

You would additionally be fine if you just went 100% VWRL, or 100% VHYL (my personal favourite.)

[Paddy]

Hi all,

I was using the quiet times on my last gig to heavily research this area, and this is what I've come up with.

Any observations, thoughts, good, indifferent skeptical or hostile all appreciated!

Investment horizon: realistically 25 years but I'm treating it as 30
Vehicle: 2xS&S ISAs
Asset Class: 100% Equities, so there's no dampening from Commodities, property, government bonds etc. (yet, will add this in gradually later)
Strategy: Buy and hold, accumulate. Regular investment (no market timing, I'd buy even (especially) if they were plummeting) I never intend to sell unless e.g. partial house deposit in a few years, but I'll do so knowing this willshould have a better rate of return than a savings account.
Target: FI as soon as possible..

The last two are a bit of a 'side bet', and tilts/duplicates towards these sectors, I'll probably move these into the others quite soon. This all assumes good health i.e. human capital to drive it all, there's a cash buffer if things go patchy for a few months.

55% GB00B59G4Q73 Vanguard FTSE Developed World ex UK Equity Index A
10% GB00B80QG052 HSBC FTSE 250 Index C Acc
18% IE00B3X1NT05 Vanguard Global Small Cap Index Fund Class Accumulation
7% GB00B84DY642 BlackRock Emerging Markets Equity Tracker D Acc
5% GB0001955532 L&G Global Health & Pharmaceuticals Index Trust I Acc
5% GB0001955755 L&G Global Technology Index Trust I Acc

Thoughts?

Why don't you spend your time wanking at work like other contractors?

[Cirrus]

Asset Class: 100% Equities, so there's no dampening from Commodities, property, government bonds etc.

You seem to be saying that equities are a better investment than other categories. I wouldn't support that as a guiding principle. Personally I follow the theory that you should spread your investments more or less evenly. Maybe you already have a good property representation in the form of your home, so concentrate on adding in some fixed income. Hedging your bets won't make you rich but it is more likely to protect you from unpredictable turns of events.

[DimPrawn]

55% GB00B59G4Q73 Vanguard FTSE Developed World ex UK Equity Index A
10% GB00B80QG052 HSBC FTSE 250 Index C Acc
18% IE00B3X1NT05 Vanguard Global Small Cap Index Fund Class Accumulation
7% GB00B84DY642 BlackRock Emerging Markets Equity Tracker D Acc
5% GB0001955532 L&G Global Health & Pharmaceuticals Index Trust I Acc
5% GB0001955755 L&G Global Technology Index Trust I Acc

Thoughts?

Charges. Find a collection of generally uncorrelated assets that have the lowest initial and annual charges.

Managed funds often fail to match the returns of robotic trackers, and the fees eat into the compounded growth.

Also, look at portfolio rebalancing (say every quarter or year depending on costs) and buy and sell assets to keep the portfolio diversification constant.

Or just buy £10K worth of bitcoins and be a billionaire in 10 years time.

[IR35 Avoider]

If shunning the FTSE 100 was unintentional, the the easiest fix would be to replace the "ex UK" fund with an all-world one.

Another tip: I prefer ETFs to mutual funds, as they can be cheaper with some account providers. (I'm with Youinvest, who will charge me a percentage for holding a Vanguard tracker as a mutual fund, but not for holding an equivalent ETF tracker. Even if your current broker charges the same for both, they may not in future, or you may want to move to a provider who charges more for mutual funds than ETFs. I held a few hundred thousand in Vanguard mutual funds, at a time when there were no broker charges for holding them, then they introduced a percentage fee.)

[motoukenin]

Hi all,

I was using the quiet times on my last gig to heavily research this area, and this is what I've come up with.

Any observations, thoughts, good, indifferent skeptical or hostile all appreciated!

Investment horizon: realistically 25 years but I'm treating it as 30
Vehicle: 2xS&S ISAs
Asset Class: 100% Equities, so there's no dampening from Commodities, property, government bonds etc. (yet, will add this in gradually later)
Strategy: Buy and hold, accumulate. Regular investment (no market timing, I'd buy even (especially) if they were plummeting) I never intend to sell unless e.g. partial house deposit in a few years, but I'll do so knowing this willshould have a better rate of return than a savings account.
Target: FI as soon as possible..

The last two are a bit of a 'side bet', and tilts/duplicates towards these sectors, I'll probably move these into the others quite soon. This all assumes good health i.e. human capital to drive it all, there's a cash buffer if things go patchy for a few months.

55% GB00B59G4Q73 Vanguard FTSE Developed World ex UK Equity Index A
10% GB00B80QG052 HSBC FTSE 250 Index C Acc
18% IE00B3X1NT05 Vanguard Global Small Cap Index Fund Class Accumulation
7% GB00B84DY642 BlackRock Emerging Markets Equity Tracker D Acc
5% GB0001955532 L&G Global Health & Pharmaceuticals Index Trust I Acc
5% GB0001955755 L&G Global Technology Index Trust I Acc

Thoughts?

Not investing in FTSE 250 until I know the details of Brexit.

Emerging markets are a good bet but are dollar economies (or dollar loans and rely on the strength of it) depends on the USA too much, my emerging market investments are down since Trump took office.

Pharms are risky as they rely on current patents, soon as they expire then the share price can drop like a stone re 2011 Pfizer crash

Others are similar to my own portfolio but you always need to diversify, remember if the world economy tanks you need some gold to keep you going cash gets whittled away by inflation which is rising, your not taking any high risks either which are not as risky as people believe due to many good companies not able to raise funds any other way, I have 5% in some riskier assets including a peer to peer lending based on futures (which is going thro the roof right now), I would stay away from Bitcoin too volatile.

[DimPrawn]

Just buy a fooking massive house. You get an investment that doubles in value every five years AND you can live in it.

HTH BIDI

[Waldorf]

I prefer Vanguard ETF's but not FTSE100, I use a couple of investment trusts for that coverage, City of London & Edinburgh IT. FTSE100 too concentrated on a few big companies. I also use Vanguard ETFs for exposure to the S&P500, advanced Asian economies and the better European companies.

Why leave equities as you get older? I'm going to stay in them, no faith in bonds long term.