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actuallyxy

SPDR MSCI USA Small Cap Value Weighted (ZPRV) is only traded in USD or EUR, not GBP. Check what exchanges fees your broker will charge you every time you buy it sell it. It may not be worth holding. An alternative may be Wisdomtree US Small Cap Dividend (DES). Thank you for your reply. My broker do...

actuallyxy

SPDR MSCI USA Small Cap Value Weighted (ZPRV) is only traded in USD or EUR, not GBP. Check what exchanges fees your broker will charge you every time you buy it sell it. It may not be worth holding. An alternative may be Wisdomtree US Small Cap Dividend (DES). Thank you for your reply. My broker do...

actuallyxy

SPDR MSCI USA Small Cap Value Weighted (ZPRV) is only traded in USD or EUR, not GBP. Check what exchanges fees your broker will charge you every time you buy it sell it. It may not be worth holding.

An alternative may be Wisdomtree US Small Cap Dividend (DES).

actuallyxy

Hi, It is interesting to look at the Vanguard and iShares ETFs in Morningstar, and compare them with a market cap weighted global fund. The Vanguard ETF sticks to the global country allocations, but drifts to a significantly different sector allocation. The iShares ETF sticks very closely to the glo...

actuallyxy

There was a recent long thread about a similar product recently. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=312870&p=5207134 From what you say it sounds like your annuity offers 25% downside protection ("when the market is down 30% - the people in this annuity have only lost 5%"). But you ...

actuallyxy

actuallyxy, thank you for breaking it down that way. With 15% of dividends forfeited over 6 years, the 20% "buffer" doesn't seem so great. 40ish % of his portfolio is in a 2025 target date. It's down about 10% from February highs. That said, it's still above where it was 2019. The chances of it bei...

actuallyxy

A lot of words, a lot of [expletive deleted by moderator oldcomputerguy] . Now they have admitted that the 10% product is an outright scam, because the dividends will always be higher than the downside protection. Let's look at the 20% product it from the point of view of the insurance company, know...

actuallyxy

Oicuryy and neurosphere, I think you both shined a lot of light on the issue. The confusion seems the advisor is interchanging “fund” and “index”. I wrote him back, I’ll keep you guys updated. Yes, please keep us updated. But, an honest question. Is there any possible answer you could get which wou...

actuallyxy

Nate79 wrote: ↑
Thu Apr 23, 2020 8:03 am
Strange that there has been a large number of threads on these and similar products all in the last few days. Insurance agents must really be pushing them hard.

Prices going down, dividends going (relatively) up. Best time to sell them!

actuallyxy

So, it looks like the prospectus says the Price indices do not reflect dividends paid. If that’s what he’s invested in, then lincoln would have to manually reinvest the dividend.... No, Lincoln would have to do no more than what they say in the prospectus: credit the account based on the price inde...

actuallyxy

These companies are forced by regulators to produce a prospectus in order to protect consumers.

Trust what the prospectus states, not whatever drivel their salesmen spout.

actuallyxy

They said they make their money when people want to diversify from the straight index and opt to invest in sub-accounts with different funds that have fees of 1+% and add riders. They lied to you. They make the majority of their money by keeping the dividends. IMO, that is reason enough to ignore e...

actuallyxy

When you say that it tracks the S&P500, is that with or without dividends? My understanding is that annuities often track the S&P500 but without dividends, and that's one of the ways they get you. Dividends may represent 50% or more of your returns, and not only that but they are the least volatile ...

actuallyxy

Hi, it might be an idea to have a read of the Bogleheads Wiki here: https://www.bogleheads.org/wiki/Investing_from_Ireland There is nothing wrong from your perspective of investing in an ETF however as you build up your portfolio and if you are in a higher tax bracket then you might want to reconsi...

actuallyxy

whodidntante wrote: ↑
Sat Feb 15, 2020 7:49 am
B is important because Vanguard has shown they are perfectly willing to change their funds based on slight indigestion.

Please can you tell us more about this? I hold the Vanguard Global Value Factor ETF and I wouldn't like to see it change its factor exposures.

actuallyxy

whodidntante wrote: ↑
Sat Feb 15, 2020 7:49 am
B is important because Vanguard has shown they are perfectly willing to change their funds based on slight indigestion.

Please can you tell us more about this? I hold the Vanguard Global Value Factor ETF and I wouldn't like to see it change its factor exposures.

actuallyxy

Jumping from fund to fund to chase performance rarely goes well because you end up selling funds cheap and buying others expensive. You need to choose an allocation that you can live with and stick with it. Target date funds are reasonable options. Otherwise the default portfolio is global total mar...

actuallyxy

I'm not sure about analysis reports, but if you search each fund at the Morningstar UK website you can get an overview. Look particularly at the 'portfolio' heading to get an idea of what they hold, what country exposures they have, how much diversification, and what size and value metrics. Other th...

actuallyxy

Vanguard Global Value Factor ETF - It's a value fund, but it holds about half large, half small cap Wisdomtree Europe/US/EM Smallcap dividend ETFs - They are dividend rather than value funds, but they have exposure to value SPDR MSCI Europe/US Small cap value weighted ETFs - The Euro one is availabl...

actuallyxy

Vanguard has a global all cap that is a great one stop fund. I also like it's global bond fund. One possible problem here may be that this is a fund (OEIC), not an ETF. And Fidelity charges an additional 0.35%-0.2% platform fee for holdings, capped at £45 for ETFs but not for unit trusts and OEICs....

actuallyxy

The difference between VEVE and VWRL is that VEVE is only developed markets and VWRL includes emerging markets.

The Vanguard Global All Cap fund that Mors mentioned is great because it includes developed and emerging, and large and small cap.

actuallyxy

Withholding dividend tax happens at the level of the fund. You pay it even inside a SIPP or an ISA. Indices are great not just to park the money, but for long term investing. If I understand correctly, your reason to invest only in the USA as opposed to a world index appears is that the USA has outp...

actuallyxy

As it stands I am 100% in US funds which are not currency hedged and I have considered moving to a world fund such as Vanguard's VEVE or VWRL but when I chart them against the S&P500 they're highly correlated and don't perform as well. So it's difficult for me to see the benefit, if the US tanks th...

actuallyxy

It looks like the main difference between those two is that HMWO excludes emerging markets. Personally I use the Vanguard Developed Markets, Vanguard Emerging Markets and Vanguard FTSE 100 ETFs. I have a slight home bias but nowhere near what you plan. The UK may be undervalued, but for me it's not...

actuallyxy

Are you holding 40 UK / 20 World? That's a lot of home bias. not yet - still have a big warchest - it's the current plan though. I have faith in the UK, like the yanks have faith in the SP. Over longer term, back down the percentage, I guess to the point where international diversification no longe...

actuallyxy

Are you holding 40 UK / 20 World?

That's a lot of home bias.

actuallyxy

actually, it seems to me that you might as well just go with VWRL or HMWO, which includes about 5% of FTSE in it. So if, for example, you had it split 40 domestic /20 world, you'd actually be holding 41 domestic or thereabouts, hardly enough difference to matter. Or just scale back the world by 1%....

actuallyxy

Xtrackers FTSE All-World ex UK UCITS ETF

It has fees of 0.4%, so a bit more expensive than the fund you currently hold.

actuallyxy

60/20 is reasonable. It's more or less the proportion in the Lifestrategy funds, so you could go for one of them

If your expenses are in GBP, it makes sense to have your bonds in GBP too. You could just have UK gilts, but most people choose to have a global bond fund hedged to GBP.

actuallyxy

Equal parts national and international makes sense for US investors because the US is half the global market anyway.

The UK, on the other hand, represents about 6% of the global market. Some home bias may make sense, but half of stocks in the UK is too much.

actuallyxy

Make sure this mentor is not trying to rope you into an MLM, a pyramid scheme or another type of scam.

actuallyxy

http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P00014IUJ http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P00014IUH http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P00014OAB http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P00015EO6 http://w...

actuallyxy

Thanks to everyone who has posted on this thread It has been very interesting to say the least. An allocation I have considered for a while for my whole equity allocation rather than Global cap weighting (U.K based) is 25% Developed Large Cap 25% Developed Small Cap 25% Developed Value 25% Emerging...

actuallyxy

Most investors like to overweight their home country. A lot of American investors here in bogleheads invest 100% or 80% of their stocks in the US. If you look up the Lifestrategy fund in www.morningstar.co.uk or in the UK Vanguard website and go to the portfolio section, you can find more informatio...

actuallyxy

Vanguard Lifestrategy is as great fund-of-funds designed to constitute your whole portfolio. The main criticism some people have is that it has a significant UK overweight, because it holds 25% of its stocks in UK companies, while the UK market weight is about 7%. Another smaller problem is that som...

actuallyxy

Invest in Berkshire Hathaway. It's one stock that doesn't pay dividends but it behaves like a mutual fund.

As somebody already suggested, British Investment Trusts may be an option too, but they pay dividends.

actuallyxy

You could use this ETF Amundi ETF Short Govt Bond EuroMTS Broad Investment Grade 10-15 Daily UCITS ETF I wouldn't do it Thanks! I did not know it existed. The only drawback (for what I wanted to do) is that it has broad investment grade bonds, whereas I was interested in AAA bonds, which have negat...

actuallyxy

You could use this ETF Amundi ETF Short Govt Bond EuroMTS Broad Investment Grade 10-15 Daily UCITS ETF I wouldn't do it Thanks! I did not know it existed. The only drawback (for what I wanted to do) is that it has broad investment grade bonds, whereas I was interested in AAA bonds, which have negat...

actuallyxy

You could use this ETF

Amundi ETF Short Govt Bond EuroMTS Broad Investment Grade 10-15 Daily UCITS ETF

I wouldn't do it

actuallyxy

Vanguard FTSE Global All Cap is a nice option. It comes in accumulating and distributing flavours. It has fees of 0.24%, which is a bit hight, but it includes emerging markets and small caps at their market weights.

actuallyxy

Ignoring the loss harvesting aspect... Does that mean there is a viable strategy for UK investors with taxable accounts to harvest the CGT tax free gain every year, and then immediately reinvest that in a similar-but-not-same fund in order to reset cost basis? Exactly. Other options are to sell and...

actuallyxy

I would advise you to use distributing funds outside ISAs and SIPPs if you are a UK taxpayer. I have used several brokers and none of them include any information on dividends paid on accumulating units. You'll have to try to find that information from the internet or ask the fund provider. Also, yo...

actuallyxy

I would advise you to use distributing funds outside ISAs and SIPPs if you are a UK taxpayer. I have used several brokers and none of them include any information on dividends paid on accumulating units. You'll have to try to find that information from the internet or ask the fund provider. Also, yo...

actuallyxy

I think you may regret excluding the US, which represents 60% of the world markets. I say this as somebody who is underweight US and overweight EM and Europe. Why must you have accumulating funds? If you like a distributing fund, you can reinvest the dividends yourself. It may be useful to rebalance...

actuallyxy

Two other options traded in GBP with some exposure to smaller caps are: iShares EM Dividend UCITS ETF Invesco FTSE Emerging Markets High Dividend Low Volatility UCITS ETF They are dividend ETFs but quite valuey. They have interesting country compositions, with a lot of Russia, and only about 100 hol...

actuallyxy

Thanks for that explanation, TedSwippet. I didn't know about that.

actuallyxy

I've used Iweb and AJ Bell without conversion charges. I am very surprised that Interactive Investor is different. Maybe the person who answered your question was clueless it didn't understand. In terms of EM small value in the UK, I'm only aware of two options: Dimensional EM Targeted Value Fund Un...

actuallyxy

Check with your platform. My understanding is that currency conversion fees apply only to foreign shares, not to funds or ETFs traded at the London Stock Exchange, regardless of base currency What funds have you identified for EM Value? These are the ones I'm aware of: iShares Edge MSCI EM Value Fac...

actuallyxy

I would like to add the observation that stock volatility can work to your advantage at your stage in life. When stocks drop in price, you have many years to wait out their recovery. In the meantime, you are buying cheap with every monthly contribution. You want to buy cheap and sell expensive. Whil...

actuallyxy

If you don't like the UK overweigh, you can buy something like the Vanguard Global All Cap Index fund (which has the UK just at its market weight, and includes a bit of global small cap companies), and then add the bonds separately at a proportion that suits you. For example, with the Vanguard Globa...

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