UK - Best boglehead 100% global equity unit trusts

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Topic Author
glorat
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UK - Best boglehead 100% global equity unit trusts

Post by glorat »

Per another thread, I might need to switch my ISA to 100% equity. If I'm going to switch anyway, may as well optimize the choice a bit. My ISA provider only supports unit trusts, not ETFs.

Looking at https://www.bogleheads.org/wiki/UK_inve ... ck_indexes , the wiki is clearly grossly out of date. I'm more than happy to update the wiki (I'm an editor) but let's see if we can get the right options in there - and then I'll pick one for myself.

Doing a search at one platform provider https://digital.feprecisionplus.com/OMW, the obviously good options are:
Any other relevant options to the above?

As for choosing... Vanguard as usually seems to be the no-brainer option but there is temptation to go with Fidelity and find an EM fund to supplement. (A bit like the commonly discussed IWDA/EIMI trick that lowers costs)
Last edited by glorat on Sun Aug 11, 2019 9:49 am, edited 1 time in total.
TedSwippet
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Location: UK

Re: UK - Best boglehead 100% global equity unit trusts

Post by TedSwippet »

glorat wrote: Sun Aug 11, 2019 5:40 amLooking at https://www.bogleheads.org/wiki/UK_inve ... ck_indexes , the wiki is clearly grossly out of date. I'm more than happy to update the wiki (I'm an editor) but let's see if we can get the right options in there - and then I'll pick one for myself.
Yes please! -- feel free to update this list. As you mention, it's now out of date.

I've edited this page a lot over the years, having sort-of taken it over from its previous author/maintainer. Some years ago, the choice of cheap index tracking funds for UK investors was a bit thin, so tabling them in here made sense. Over time though, a lot of things have changed. There are now many more acceptable options, with new ones arriving almost monthly it seems, and the charges on the existing ones regularly drop to compete. The page now represents a wall of text and enough of a maintenance workload to keep updated that I've been wondering if its entire set of suggested funds could now be replaced with appropriate links to a screener such as JustETF or Morningstar UK.

Thoughts or ideas for improvement? This page is ripe for reworking I think. I'm just not yet sure what form that ought to take.
Topic Author
glorat
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Re: UK - Best boglehead 100% global equity unit trusts

Post by glorat »

TedSwippet wrote: Sun Aug 11, 2019 6:10 am Thoughts or ideas for improvement? This page is ripe for reworking I think. I'm just not yet sure what form that ought to take.
Right now, the page looks to try to be a comprehensive reference of all options, when in fact it is very out of date. Keeping it up to date is a pain.

I take the view that investment can and should be simple. Trying to be a comprehensive reference is counter-productive because only an advanced investor would know what to do with all that information when in fact we should be helping beginners.

I think the ideal outcome is for the wiki page to be a guide, not a reference. In other words, you follow it through and you end up with an outcome of what you need to do. But wikis are better at references than guides. That's why I spun up the idea at viewtopic.php?f=22&t=286518 , although there isn't any UK specific content there. But there could be. And the boglebot would need serious community help to be useful but it it isn't as accessible as a wiki for modifications.

Anyway, in the short term, since it is only you and me making changes in the last 2 years, I think we can afford to be aggressive on making changes we see are right. I'll go do a pass of updates now and in general let you know if I do anything major. Per normal wiki guidelines, better to be too aggressive on changes and revert them, than not make them at all.
Topic Author
glorat
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Re: UK - Best boglehead 100% global equity unit trusts

Post by glorat »

Okay - I've gone and done it. The stocks section has been massively modified to
  • Remove all funds costing more than 0.25% TER
  • Add the items discussed in this thread
  • Move down to an advanced section anything I personally think only advanced investors should worry about, leaving the main stock section beginner friendly
Feedback welcome! And if someone doesn't like that, wiki retains all history - just fix it or revert it, I won't mind.
msk
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Re: UK - Best boglehead 100% global equity unit trusts

Post by msk »

Global equity including Emerging Markets by free float market weight:
US situs/based: VT (pays dividends but non US taxpayers may get exposed to 30% withholding tax on dividends). Holds 8000 stocks, charges 0.1%
Ireland based: VWRD (pays dividends) holds some 3000 stocks. 5 year performance virtually identical to VT per my checking.
VWRA (accumulative, dividends reinvested) otherwise seems identical to VWRD, launched just a couple of weeks ago.
Both VWRD and VWRA charge 0.25%, more than VT, but if you are saving on withholding tax... As a yardstick, dividends are currently at around 1.8% but please check the fact sheets for precise data on charges, etc.
Topic Author
glorat
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Re: UK - Best boglehead 100% global equity unit trusts

Post by glorat »

msk wrote: Sun Aug 11, 2019 9:43 am Both VWRD and VWRA charge 0.25%, more than VT, but if you are saving on withholding tax... As a yardstick, dividends are currently at around 1.8% but please check the fact sheets for precise data on charges, etc.
Thanks, I forgot to clearly note that my ISA provider only supports unit trusts, not ETFs. I've updated my OP.

For ETFs, yes agreed, it is VWRD/VWRA/VWRL all the way.
minimalistmarc
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Re: UK - Best boglehead 100% global equity unit trusts

Post by minimalistmarc »

glorat wrote: Sun Aug 11, 2019 9:51 am
msk wrote: Sun Aug 11, 2019 9:43 am Both VWRD and VWRA charge 0.25%, more than VT, but if you are saving on withholding tax... As a yardstick, dividends are currently at around 1.8% but please check the fact sheets for precise data on charges, etc.
Thanks, I forgot to clearly note that my ISA provider only supports unit trusts, not ETFs. I've updated my OP.

For ETFs, yes agreed, it is VWRD/VWRA/VWRL all the way.
Does anybody know if there is going to be an accumulating version of VWRL soon?
Topic Author
glorat
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Re: UK - Best boglehead 100% global equity unit trusts

Post by glorat »

minimalistmarc wrote: Sun Aug 11, 2019 10:01 am Does anybody know if there is going to be an accumulating version of VWRL soon?
I just did some searching and found VWRP!
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Tourne
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Re: UK - Best boglehead 100% global equity unit trusts

Post by Tourne »

Many thanks to you both for taking the time to update the wiki! I'm in the process of helping my UK-based mother-in-law move away from her high-cost adviser, so the updated information is helpful. It's a bit like learning to be a Boglehead all over again. :D
Plans are nothing; planning is everything - Dwight D. Eisenhower
TedSwippet
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Re: UK - Best boglehead 100% global equity unit trusts

Post by TedSwippet »

glorat wrote: Sun Aug 11, 2019 9:42 am Okay - I've gone and done it. The stocks section has been massively modified ...
Thanks for the update. Moving a heap of stuff to the end as an 'appendix' seems like a good idea. It might even be worth putting this into a separate page entirely at some point, just to keep the main page clear of complexity.

I have uncollapsed the tables now that there's less of a wall of text here. It might just be me, but collapsed tables not only obscure potentially useful information, but they seem to render poorly in our wiki, particularly when they include a |+ Title element. Shrug. Anyway, for now I prefer not using them.
minimalistmarc
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Re: UK - Best boglehead 100% global equity unit trusts

Post by minimalistmarc »

glorat wrote: Sun Aug 11, 2019 10:32 am
minimalistmarc wrote: Sun Aug 11, 2019 10:01 am Does anybody know if there is going to be an accumulating version of VWRL soon?
I just did some searching and found VWRP!
Cool. Looks like it is brand new. It’s not available on hl yet.
danielbird193
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Re: UK - Best boglehead 100% global equity unit trusts

Post by danielbird193 »

glorat wrote: Sun Aug 11, 2019 5:40 am ...there is temptation to go with Fidelity and find an EM fund to supplement. (A bit like the commonly discussed IWDA/EIMI trick that lowers costs)
I like this idea. Halves the expense ratio and gives you the flexibility to select an EM fund which meets your needs (you might want plain vanilla, but I think there are some good reasons to go for a 'value' or 'dividend' strategy in EM).

Lifestrategy 100 is a good fund as well, the home bias will have hindered performance over the past three years, but who knows what the future holds. If you want 'one and done' then this could be a nice choice.
cjking
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Re: UK - Best boglehead 100% global equity unit trusts

Post by cjking »

Surely L&G plus a UK tracker would be a more mainstream approach than Fidelity plus Emerging?

And probably cheaper?
Mors
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Re: UK - Best boglehead 100% global equity unit trusts

Post by Mors »

cjking wrote: Mon Aug 12, 2019 3:57 am Surely L&G plus a UK tracker would be a more mainstream approach than Fidelity plus Emerging?

And probably cheaper?
Ι agree. I had found an iShares fund that followed the FTSE All-shares index that fitted the bill while being cheap.
cjking
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Re: UK - Best boglehead 100% global equity unit trusts

Post by cjking »

One thing to look out for when combining indices is what index provider is being used, it's best to use the same through-out. For example, Vanguard UK use MSCI for some of their funds at least, but their ETFs are FTSE. I thought there would be a large difference, but I've just checked for emerging, and the allocations to the largest element (China) don't appear too different, so maybe it's a non-issue in this case.

Looks like it was Asia-ex-Japan where I previously found MSCI is very different from FTSE. In the Vanguard ETF, Australia is 41% of the fund, in the Pacific-ex-Japan index fund it is 56%. It looks like Korea is the difference, FTSE includes it and MSCI doesn't.
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