Can you create Vanguard's Global All Cap in T212 (Newbie Friendly)

Ah yes that’s a good shout. I’m happy to tweak and I love others “nit picking” ideas :grin: it’s highly beneficial. VUSA has a lower OCF and the dividend yield is currently less than VNRT.
They really are both pretty much the same. I think I’d choose VUSA.
Curiously which would you choose? Not sure now why I have them both (despite all the research I’ve done)

Okay that sounds interesting too, I’m not heavily weighted in the UK so could afford to spread a little.

I will do some more research on the Vanguard fixed income.

That’s great info thanks so much. You’ve given me lots of food for thought. A well spent 2p.

Sorry @Donald_Duck I’m always crashing your threads :rofl:

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It’s a toss up between the cheaper one (VUSA) and the one that includes Canada (VNRT). Not a lot in it, just depends whether you mind paying a little more for exposure to Canada really.

I can’t quite see from the screenshot whether you hold VEUR or VERX; the latter would be better if you want to hold separate UK funds, like VUKE and/or VMID, as it avoids duplication.

If memory serves, VERX does have a slightly higher spread though as does VMID, so, again may be down to if you’re willing to pay a little extra. Much of a muchness really.

If you mainly hold UK stocks, you may want to go simply with VERX, especially if you hold a wide sample of Ftse 100/250 firms – otherwise, you may be more exposed to the UK than you intend.

Another thing worth noting: you may not want to hold only Vanguard funds. Although I’ve never really seen much of a problem with it, others do.

If you do decide to swap some out for alternatives, such as from the likes of iShares etc, it is worth noting that the underlying indicies are often different.

Vanguard tends to track Ftse indicies whereas most others track the MSCI equivalents and the components of those indicies sometimes differ.

For example: I can never remember which way round it is, but mixing and matching Vanguard and iShares funds for the pacific and emerging markets can/could preclude or double up on Korea.

While it’s on my mind…

One thing that caught me out intially when I started about trying to construct the cheapest way of tracking the world a few years back: you should look at the weighted cost. There’s a great explanation here: https://monevator.com/how-to-work-out-your-portfolios-cost.

I did do this on my medium post :grin:

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Glad to hear it, easy mistake to make though.

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That’s what brings the price down so much. The vast majority of it is CSP1 and VEUR which are a super cheap etfs.

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Exactly, 'twas such a pleasant surprise when I first realised!

I do hold VERX. I wanted to hold a fund excluding the UK for some reason didn’t fancy holding Europe and UK in one pot. I’m just sussing it out as I go along but it felt like the right thing to do :woman_shrugging:t2:

I hold VUKE but I like your advice of holding VMID too. Gives my portfolio a nice healthy slice in the UK with the two ETF’s (excluding single stocks but that’s only a really small handful) RR ext. Just ones I personally believe in. Nothing that would leave me too exposed.

I’m trying to build mainly ETF portfolio and reduce my invested hours to move onto other things in life. Where I can watch them but feel confident to leave them and not check as much as I have with volatile stock. I’ve not enjoyed that. I enjoy this route much more.

I think I’m quite happy to pay that little more.

I guess there’ll always be a problem in every portfolio, subjective perhaps. What do others say about Vanguard? Just curious.

I currently own just iShares UK property and MSCI world health care. Not too diverse from Vanguard there ha.

I’ll end up in a real tangle if I change too much :exploding_head:

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There’s nothing especially wrong with Vanguard funds, some just don’t want to put all their eggs with one provider, but I think it’s overly cautious. If Vanguard runs into troubled water, I’d suggest Blackrock/iShares would be in a similar boat.

I hear you: I actually gave up on this strategy after a few years and just bought the all-cap fund every month in my Sipp and Isa. I decided it wasn’t worth the hassle to rebalance etc – that’s the beauty of the pie feature, it makes it so much easier and more worthwhile.

It doesn’t need to be all that complicated, my bad for bombarding you with information; if you want an easier life, it may be worth just going with VWRL!

Yeah you’d think if one specific fund is sinking they’ll all sink being the same “type” but what do I know, pure rooky.
Just been drawn to Vanguard through watching videos etc but could equally be the wrong thing to do.

Long as those with more experience thing it’s a decent looking portfolio that makes my hard work all worth it. Just nice to have feedback when you’re finding your feet :slightly_smiling_face:

I can’t wait to move all these into pie, takes so much future work out the equation.

No not at all. You’ve been great. Each day I take a step towards my goals and you’ve helped me take some more :raised_hands:t2: Thank you

If a major etf like VWRL or VUSA (or iShares equivalent) fails there’s bigger issues in the world and money likely doesn’t mean anything anymore.

End of the world!

Well long may they continue to keep doing what they’re doing. I’m happy with that. Very happy with my updated portfolio too.

Thank you

Is there any chance you could post the link to the VWLR portfolio composition? I’ve spent ages trying to find it on Vanguard but having zero luck. I can asses VUE but finding VWLR isn’t working.

Thanks so much.

I just want to have a look at how they weigh out that specific portfolio :slightly_smiling_face:

Sure. You can look a the Vanguard page here

Essentially,

image

I treat that at 60% US, and from the table below see that Pacific contains Japan 7.9% and Europe contains UK 4.3%. So rounding a bit I come up with these. I think it will make very little difference to make the percentages more exact. These numbers are nice because when you invest £100 you get nice whole figures.

image

Or excluding USA, £100 is distributed as

image

Here I use the fact that VEUR is about 1/4 UK. One could omit the VEUR in place of VUKE+VERX (+VMID), or visa versa.

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Ah that’s so good of you to share that.
Thank you :grinning: that’s brilliant to help me work off and just to see other people’s comparisons.

Honestly best people on this forum! Making my journey as a newbie so enjoyable. Thank you :raised_hands:t2:

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Glad to help. If VX5E were fractional I would use that. This STOXX 50 tracker has performed better for me than VERX.

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Vanguard (and co) have so many varying stocks (that to the new and untrained eye) do seem quite similar, between VERX, VX5E and STOXX50 tracker. I see the countries weight, sectors and exposures vary but in an honest question - how do you decide upon the one for you? Being that they are similar.
Sorry if that’s a naive question but it’s all steps towards learning. Sifting through everything and eventually ending up with a decent portfolio.

Justetf.com is a good place to do research. If you are looking for basic trackers, prefer those with low OCF and large size (assets). These are popular ones that many other people use.

The websites of Vanguard and iShares are also good for learning about what the ETFs contain, yields, past performance, distribution dates and tax reporting information. Vanguard has only 26 ETFs, with only one choice for each region or strategy. iShares has over 700, but label 28 as Core to help you. Decide whether you want a distributing or accumulating type.

When I was starting out I bought my first ETFs as world market ones, VWRL and SWDA. It was only to avoid US market (where I already had shares) that I bought ones like ISF, VERX, VJPN, VAPX, VFEM, EMIM, SJPA, etc.

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How do you avoid the US withholding tax?

You don’t, But if US company dividends are received in a taxable account then the US 15% withholding tax is deductible against the 32.5% UK tax (higher rate taxpayers) and so you end up with no greater tax bill than you would have done if there had been no US withholding. For an ETF there is no deduction allowed so you end up paying 15% (taken within the ETF before it pays dividends) plus 32.5% (on what is paid out).

If you are a lower rate UK taxpayer paying 7.5% on company dividends then the US withholding of 15% will reduce your UK bill to 0%. But not if the dividends are from an ETF, when you will still owe 7.5%.

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