New to investing.
I built something I want to pay around ÂŁ200-ÂŁ300 a month into. Based on a bit of research, is this okay?
Decent start, you definitely don’t need the ACC and DIST versions though. Pick one which best suits the style.
But generally what you’ve done here is pick an all world index which is heavily tilted to the US (around 70%) and tilted it even more towards the US. If that’s what you intended to do then, thats great - if not, maybe consider changing it.
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Does this matter that it is tilted towards the US? What would the other options be?
Based off of what I’ve read recently, I thought this would be ok for long term and investing monthly.
Or would it be worth just putting 100% into one, rather than 25% between 4?
Sorry I am new to this and learning as I go.
Thank you
Depends how you feel about US exceptionalism. If the US continues to do very well you’ll do very well, if they don’t you wont. One of the ideas that makes global ETF’s so popular is you win no matter who wins - although the huge skew to the US in recent years has made that thought somewhat spottier.
It might be, it’s really impossible to tell.
This is up to you. I certainly wouldn’t have this many ETF’s in a set and forget, hold your nose, long term investment pie that I created.
Pairing an All-World ETF with an S&P 500 or Nasdaq-100 ETF may not be the best approach, as it can skew your portfolio toward the U.S. more than intended. Many investors lose track of their overall allocation when adding additional U.S.-focused ETFs on top of an already U.S-heavy global index.
Good package of index investing here.
Hey there and welcome to the world of smiling at the green numbers and frowning at the red ones.
As you learn what it is all about and research things you will see that no one can predict the stock market, it is all a risk. Some are bigger than others and all have the potential to make or lose money. It is not always true that the bigger the risk the higher the reward, so don’t be too tempted.
Lots of people on here think they are Warren Buffet, but in reality are not well informed, always do your own research, using multiple sources. The Motley Fool (can be a bit clickbaity), Yahoo Finance, The Financial Times are just a few out there, but you may prefer others.
Do not rely on youtubers for the next hot tip, they do not have the next hot tip or they wouldn’t be doing youtube, they’d be on a yacht.
One thing I would say is be patient, if the ETF/stock is down, don’t rush to sell. You only lose the money when you sell and in 24 hours it might be back up or even in profit.
One other thing, and I am sure you are already doing this. Do not invest more than you can afford to lose. So if your entire portfolio collapsed (unlikely I know) You can be annoyed, but can just walk away from it and just carry on with no lasting effect.
Good luck.
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What do you do if the Youtuber is giving hot tips from his yacht?
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That’s a huge US overweight. Are you sure you want that?
Also why have two NASDAQ 100 funds? Pick one.
Thank you for all your replies.
Is this looking better in terms of not leaning too heavily towards the US.
Or is this the same?
It’s essentially the same problem you had last time - but with less funds. I use problem lightly, if you intend it to be like this its not a problem.
What the person above was trying to say is: The Invesco hold 64.22% of US already, so you’re trying to do is 100% US (s&p 500) + 64.22% from the Invesco. There’s is really no need for this
Did you read the page I linked you? If you want to invest into SP500 (btw Vanguard is not the best SP500 performed), drop the all-world and build your own portfolio: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.
Hey.
Essentially it is about spreading the risk.
If you had a basket called USA and one called EU, if you buy 10 eggs you put 5 in each, therefore if you drop one, you only lose 5 eggs.
That’s is what all the replies are about.
It is risk minimising that is all.
If you are happy with a risk leaning one way, then carry on.
Also, keep in mind, ETFs carry stocks that might be listed on the NYSE but are actually a world wide company, so exposure is spread anyway for that stock.
At the end of the day, no one on here should tell you to do one thing, as unless they are a registered financial advisor, they should not be telling you what to do with your money.
I understand you are researching, but as I said before, no one knows what is going to happen and every investment comes with a risk.
It’s getting less US’y
Grab yourself a copy of Tim Hales Smarter Investing. If you spend a couple of days reading that you’ll get a much better idea of how to do this properly and avoid the early mistakes.
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Too complex. Just choose one fund, the invesco FTSE All-World you had earlier. Done.
VWRP, FWRG and HMWO all good tickers imo.
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It is fine, at least now you are not investing to same stocks/areas via different ETFs. Putting more money into home markets is also OKAY.
I still think most people are best off with one equity ETF, whether it’s an S&P 500, developed world or all-world tracker.
It saves having to rebalance or come up with what are often pretty arbitrary allocations.
Plus the point of passive investing is to guarantee the same return as the broad market minus a small fee.
By mixing/matching and making various active plays, you could outperform or – perhaps more likely – underperform which would defeat that point.
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Isn’t the State Street one regarded as the best now?