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.
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!
