With the idea that ISA changes might bring an allowance for UK stocks, I’ve been thinking about how to incorporate them into my portfolio.
The majority of my portfolio is vanguard developed world (VEVE) and as such if we do get this additional allowance limited to individual stocks my plan is as follows.
Take the UK companies which are inside VEVE and their respective allocations. UK makes up about 4.6% of VEVE with around 110 odd companies. the biggest for example is AstraZeneca plc at 0.40% of VEVE, and scale them up to being 100% as if I were making a new portfolio and copying the weighted allocation.
In this example since UK makes up 4.6% of VEVE, I would multiply the holdings of AstraZeneca of 0.40 by 21.73 to make 8.69. repeat this until I have a new portfolio of 100% with the new adjusted weight of the VEVE holdings.
Trading 212 allows me to make a portfolio and set stock allocations to one decimal place for up to 50 companies which means I can then take the top 50 holdings and build a portfolio of them. since this will cut the low end of the 50 or so companies I then do a second round of sizing up to make the adjusted weight for the 50 companies to be 100% this will deviate from the normal exposure that I get from ETFS but close enough IMO without having to have 2- 50 stock portfolios.
I’m planning on doing this process for VEVE as well as the following other UK stock ETFs/funds as I’ll like to look at other options
FTSE 100 UCITS ETF (VUKE)
FTSE U.K. All Share Index Unit Trust
and for income option
FTSE U.K. Equity Income Index Fund
Do you have any other ideas on how a passive ETF investor would deal with a possible additional allowance for individual stocks?
Thank you for reading