I am fairly new to investing and currently have investments in the Vanguard VUSA ETF, Renew Holdings and ASML. I wish to diversify my portfolio with investments in ETF’s and have been looking at the ishares FTSE All world ETF in addition to the Nasdaq QQQ. I would like any advice on whether this is a good strategy as I am a bit conscious that all 3 ETF’s have similar stocks within them. If there are any alternative ETF’s which you can also suggest that would be worth looking into, that would be much appreciated.
No one can tell the future, so having a diverse investment base is good.
Google the average stock market returns, and how many fund managers can beat the general market - most don’t.
Keep things simple would be my view and have a core holding of the FTSE or MSCI World indices.
To my knowledge, FWRG, HMWO or VWRP are all decent choices re scale and costs, justetf.com is a good resource to compare. Potentially even FCIT (Investment trust), it’s practically an all world proposition trading at a discount.
All in all would say your going in the right direction.
An MSCI World ex-US tracker such as EXUS would give you the rest of the developed world without the overlap. You could also add ETFs for emerging markets and small caps. Whether that’s worthwhile is another question.
I just buy the cheapest S&P tracker plus what I think are the best stocks in the rest of the world such as ASML, MELI, ADYEN and TSM.
You can simply your investments and life by buying VWRL, or you can do what I did and buy VEVE(Developed world) and VFEM(Emerging markets) it is the same as VWRL but lower ongoing charges and just Mimick the VWRL by setting the allocation the same, or if you choose you can put a bit more either way.
Keep in mind that, from a taxation perspective, depending on the type of investment product you plan to use for the ETF, the accumulating or distributing version may be more suitable.
Personally I go with VEVE and VFEM it’s basically VWRL, (P) with lower ongoing charges, obviously you can go accumulation as well with that, I just like being paid out, personally.
