Hello, new hear and just after some advice on investing long term. I am currently looking to buy into the Vanguard S&P 500 ETF. But am also considering the Vanguard All World High Dividend Yield.
The goal is to build a bit of a nest egg for the future but given I am almost 50, this may be a little late. My question is if I have say £200 extra a month to invest and given my goal would I be better off investing £100 into each or just putting the whole lot into the one. I undestand that diversification is good, but given the that both are index tracked, and consist of numerous companies they should be pretty diverse.
I suppose the question comes down to will splitting the funds do more harm than good to achieve the goal.
I am 54 so age isn’t an issue. A part of my portfolio follows the Bogleheads philosophy. However not all of those ETFs are available in Europe. I chose two funds S&P 500 (80%) and US Treasury bonds (20%). This will give you an average return around 10% a year long term.
A good one to backtest your allocation is Portfolio Visualizer. Enter your tickers and different allocation percentages and it will give you the best options.
Thanks. I’ll take a look at the boggleheads and visualiser.
Everyone’s goals and aims are different, and no one can predict the future otherwise we would all be rich
Personally myself I go for VWRL and HMWO in most part across my accounts , and the LifeStrategy 100( practically an ICVC version of VWRL).
You mention £ so assuming you are in the UK, why not try some of the robo investing companies out there? They encourage new customers to join by offering some good incentives - I see them as a boost/head start that normally more than offsets your fees until you grow your balance.
They ask you a series of questions to determine your goals/risk appetite and then manage your investment for a small fee. InvestEngine used to do a £75 signup bonus for investing £100 for a year, Wealthify £40 for investing £400 for 6 months, then there’s MoneyFarm and Nutmeg as well. Just a thought!