Stock market tracker funds

rubberduck · 1 Jul 2021 at 23:28

Hi

Going to look at investing in to one of these as not really interested in investing in individual companies. Which providers should I look at?? We aren't talking huge amounts of money, maybe £5k to start and then adding £2-3k per year.

Surveyor · 2 Jul 2021 at 00:33

Hi

Did you forget about the big thread?

Trading the stockmarket (NO Referrals)

Tefal · 2 Jul 2021 at 03:00

rubberduck said:
Hi

Going to look at investing in to one of these as not really interested in investing in individual companies. Which providers should I look at?? We aren't talking huge amounts of money, maybe £5k to start and then adding £2-3k per year.

Depends where you want to focus.

NASDQ 100 trackers is the "tech" sector (top 100 companies on nasdq exchange)

S&p500 is the top 500 companies in the USA.

There's various trqckers for world, I have the ishares quality and momentum world funds as they have very little correlation (there is little link between them) and both typically outperform the total world fund.

They're traditionally the safe bets but tech is really high atm potentialy if it goes down for a few years you may have to wait for it to rise.

Ishares (blackrock) and vanguard are 2 of the biggest etf suppliers.

You want to look at the expense ratio or ongoing recurring expenses ie the % fee they will charge you.

The bigger the fund usually the lower this is where as something very specific (and so dynamic requiring changes) can be quite high.

Lartyconshayo · 2 Jul 2021 at 04:14

FTSE global all cap accumulation at vanguard is my main bread and butter.

Uther · 2 Jul 2021 at 08:38

Lartyconshayo said:
FTSE global all cap accumulation at vanguard is my main bread and butter.

This, and cheap too. I also have a large chunk in Fundsmith, who have horrendous fees but the gains more than make up for it...

Uther · 2 Jul 2021 at 08:39

Surveyor said:
Hi

Did you forget about the big thread?

Trading the stockmarket (NO Referrals)

Tbh thread that seems to be more for short term trading.

Surveyor · 2 Jul 2021 at 08:48

Uther said:
Tbh thread that seems to be more for short term trading.

There's often discussion of trackers.

mid_gen · 2 Jul 2021 at 10:10

Uther said:
Tbh thread that seems to be more for short term trading.

There's a full mix in there, from boring old retirement savers (joke), to GME meme retards.

I'm in the middle ground personally, mainly interested in industry-specific actively managed funds.

dlockers · 2 Jul 2021 at 10:11

Lartyconshayo said:
FTSE global all cap accumulation at vanguard is my main bread and butter.

Isn't there a £10 buy fee for this?

Edit: Actually do you mean VAFTI?

I was looking at VWRP but that was the one with the £10 charge. I guess because it is a different class?

Clarkson · 2 Jul 2021 at 12:28

I have a S&S ISA directly with Vanguard and invest in the LifeStrategy 100% Acc and as of this moment my holdings are worth a bit over 23% more than what I've put in, which to be honest for doing nothing but drip feeding money in and low cost is alright for me.

alx · 2 Jul 2021 at 12:41

If you're looking for long term investing, consider VWRP or VWRA, both Vangard ETFs which typically get recommended. Invest through a stocks and shares ISA so you don't have to pay any tax on gains (can invest up to ~£20k per year tax free in S&S ISA).

Also worth reading 'Expat Millionaire' if you get the chance.

dlockers · 2 Jul 2021 at 12:45

alx said:
If you're looking for long term investing, consider VWRP or VWRA, both Vangard ETFs which typically get recommended. Invest through a stocks and shares ISA so you don't have to pay any tax on gains (can invest up to ~£20k per year tax free in S&S ISA).

Also worth reading 'Expat Millionaire' if you get the chance.

If it is long term then why an ETF and not a regular Index Fund/Mutual?

Edit: The reason I ask is because the VAFTI (Vanguard FTSE Global All Cap Index Fund) has no buy fee where as the VWRA (Vanguard FTSE All-World UCITS ETF USD Acc) costs me £10.

DireEmblem · 2 Jul 2021 at 12:48

dLockers said:
I was looking at VWRP but that was the one with the £10 charge. I guess because it is a different class?

It all depends what platform you use to trade. You can buy VWRP without any trade or platform fees.

As an alternative, you could also look at HMWO with its 0.15% fees, so 0.07% cheaper.

https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000RYLW

dlockers · 2 Jul 2021 at 12:50

DireEmblem said:
It all depends what platform you use to trade. You can buy VWRP without any trade or platform fees.

As an alternative, you could also look at HMWO with its 0.15% fees, so 0.07% cheaper.

https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000RYLW

Where are you buying VWRP with no fees? It is an ETF which I was under the impression always had a transaction fee. I'm not talking about the underlying fund fee just to be clear

LiE · 2 Jul 2021 at 12:51

My go to is Vanguard US Equity Index, performance has been fantastic.

https://www.hl.co.uk/funds/fund-dis...sults/v/vanguard-us-equity-index-accumulation

Tom_ed1987 · 2 Jul 2021 at 12:55

Easiest/least confusing way is probably to sign up for a ISA directly with Vanguard, deposit cash, buy funds like the All-World UCITS ETF (VWRL) or FTSE 100 UCITS ETF (VUKE), or the combined Life-strategy funds that you might already be invested in via your workplace pension,

Only Vanguard options are available obviously but the average person really doesn't gain much by investing outside of those IMO

Kreeeee · 2 Jul 2021 at 13:01

Macky · 2 Jul 2021 at 13:04

Planning to open a Vanguard account and dump some of my savings into the S&P500 ETF fund soon. Would it be better to buy shares say every quarter to minimise buying fees or just dump an amount in every month?

dlockers · 2 Jul 2021 at 13:09

Tom_ed1987 said:
Easiest/least confusing way is probably to sign up for a ISA directly with Vanguard, deposit cash, buy funds like the All-World UCITS ETF (VWRL) or FTSE 100 UCITS ETF (VUKE), or the combined Life-strategy funds that you might already be invested in via your workplace pension,

Only Vanguard options are available obviously but the average person really doesn't gain much by investing outside of those IMO

Why ETFs for long-term holding? I don't get it. There are mutual funds with the same index tracking ability that are transaction-fee free?

LiE · 2 Jul 2021 at 13:09

Kreeeee said:
Once I hit my FIRE number I will stop accumulating aggressively and I’ll be moving into a standard 2 or 3 fund portfolio and living on the market returns using the above funds.

As someone who is pretty uneducated in this, would you be able to give some details about this approach?

Currently all my savings and pension are in Vanguard US Equity Index and it's been doing very well.