The Only Index Fund I'm Buying Now.

I am going to be changing what I invest in each month and in this video I will run you through what I am buying and the considerations I made to come to this decision.
I put together a cheat sheet for those of you that are looking to get to grips with index funds, brokers, complicated jargon and more. You can get it here: financialinterest.com/index-f...
The brokers I use:
InvestEngine
investengine.pxf.io/eKR40z
Get a Welcome Bonus of up to £50 when you invest at least £100 with InvestEngine
Trading 212
trading212.com/promocodes/DAMIEN
If you do not get your free share after depositing £1. Use promo code DAMIEN, you will find it in the section with the three lines in the bottom right corner of the app.
Vanguard
www.vanguardinvestor.co.uk/
This is not an affiliate link
Links from video:
Failure of Active to beat the market www.nytimes.com/2022/12/02/bu....
The shape paper: www.sciencedirect.com/science...
Ramin’s video: • Best Index Funds For L...
Liquidity info - freetrade.io/learn/what-is-li....
Timestamps:
00:00 - Changing
01:33 - Shopping
02:06 - Passive
03:25 - Global
06:27 - Currency
06:32 - Options
08:11 - ACC vs INC
08:30 - Fees
10:36 - Risks and concerns
11:42 - Platform
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and none of the content on this channel is financial advice. All information is provided for educational/entertainment purposes. If you are making investment or other financial decisions and require advice, please consult a suitably qualified licensed professional.

[@DamienTalksMoney]

I did not discuss the HSBC fund in great detail here and i probably should have, I am sorry for this! It is an index fund and the brokers I use are primary ETF only. In my experience, the fee savings on this funds is offset by other fees charged by platforms that provide the fund. However, below is a sheet I have compiled. It goes through some of the major brokers and their fund options in a bit more detail, in case you are considering options outside of those I have listed in my description and which I personally use. handy cheat sheet together: financialinterest.com/index-fund-cheat-sheet/ It has an overview of leading brokers, their fees, their most popular funds, a glossary to simplify complicated jargon, and more!

[@philgosling]

Fantastic and much appreciated - Well done.

[@donkeyshorn]

I'm with ii and have the 'Vanguard FTSE Glb All Cp Idx £ Acc' and the fee is .24%. Has it gone up or am I looking at the wrong one? Damion has 'Vanguard FTSE Global All Cap' as .23%

[@philgosling]

@@donkeyshorn FTSE Global All Cap Index Fund (VAFTGAG) Accumulation 0.23% Reinvests any dividends with the aim of growing your investments over time Income Distributes any dividends to you, to take as an income Overview Price & Performance Portfolio Data Distributions Costs & Minimums NAV price (GBP) As at date 30 Jan 2024 £195.58 Change -£0.03 -(0.02%) Number of stocks As at date 31 Dec 2023 7,108 Stocks Ongoing charge (OCF) 0.23% Transaction costs apply Risk 5 5 out of 7

[@timcooper1841]

@@donkeyshorn i think the ETF version is slightly cheaper for some reason

[@dennishuizenga7366]

Dude… tnx

[@AG-so4gl]

VOO is all you need

[@BrainHarrow]

@@ReyanBenson I recomend Svetlana Sarkisian Chowdhury

[@CatherineAlas-ys8rn]

@@BrainHarrow WOW!! My advisor for 4 years now has been this same "Svetlana Sarkisian Chowdhury😊

[@BrainHarrow]

I found her on Bloomberg where she was featured, but you can easily look up her name on the internet.

[@tommyleejohnson7308]

Nicely done, well taught. As a retired finance/economics prof, your teaching skills are much superior to mine.

[@blottonthelandscape]

You’ll need to consider tracking error and also how they might add performance at the margin eg: stocklending, trading around index announcements, corporate actions for example.

[@stuarth9359]

Re Vanguard fees, I believe the Vanguard US parent company is a mutual co, owned by and for the benefit of their US investors. Charging higher fees in their non US jurisdictions (UK & AUS) enables them to keep the US fees artificially low 😢

[@kiesviswa7665]

1. Why 2. What and 3. How. Proper video! Great work and more of these please.

[@elliot5504]

Cathie Wood'er, should'er, could'er. Great line. Find your videos always have great writing 👍

[@DamienTalksMoney]

Thank you so much! I spend the most time on the writing side of things so really appreciate the nod to the script.

[@Gold.Circle.]

Crashy wood is

[@DanKohan]

Great video, Damian! I completely agree with your approach to investing in passive, low-fee global index funds. It's all about keeping things simple and cost-effective. Fees can eat away at our returns over time, so I appreciate your diligence in finding the most cost-efficient options. Thanks for sharing your insights!

[@Mckennie61751]

a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. I remember some years back, during the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m

[@Me-ll4ig]

Damiens videos are always so interesting, never thought talking about stock markets could be so interesting but Damien is a total expert.

[@gabrielstevens2679]

I’m looking to investment monthly into my trading 212 isa, what percentage of your investment would you designate to each of the funds?

[@mevishmushtaq-ahmed9130]

Damien - this fund is sampling though and on one of your videos you advised that wasn't great when compared to the vanguard?

[@nicofit3656]

Since I came across your page I’ve made some big progress in terms of investing. Thank you sir.🙏

[@naomicgabriel]

Your editing is so good! So engaging and witty.

[@raydaveyrd]

do you have a video that walks you through setting up a stocks and share isa, which provider you go with etc? does it matter?

[@LEWIS1992]

Great video! It's worth remembering that fees can change, so I don't think it's worth the faff of moving everything to a new platform unless the fees are SIGNIFICANTLY different. Gonna stick with Vanguard for now.

[@pistopitpit]

If customers stick with Vanguard, then the fees on that platform are unlikely to change.

[@markwingfield7704]

Thanks for making this video mate . Can I ask where do you read up on the markets and how do you find the info about the fund ? Thanks in advance

[@gregoneill990]

New subscriber here. These are great videos. Very well presented with useful, practical advice.

[@DamienTalksMoney]

Welcome to the channel and thank you for the lovely comment 😊

[@festerarl6653]

Good reminder for me. I'm moving more to passive with global OEIC's - V/g and HSBC - on a zero cost platform. I am keeping a small percentage in active funds but that suits my personality. KISS springs to mind. Keep it simple stupid!

[@sebastianchatt5960]

Thanks Damien, struggled for a couple of weeks now to actually get my head around what fund to use and how to finally start investing properly and regularly, lots of great videos about how important it is to make use of compounding but none that help with the nitty gritty of finding the right way to unlock that. Appreciate all your insights and very supportive of your channel.

[@user-hp9eg3gf6s]

If you add a little more small cap and exclude small cap growth you do expect higher returns LONG TERM but also higher risk BUT better risk to reward ratio ! You might want to look at factor investing!

[@RakanXYZ]

I've been giving this alot of thought today. I am personally looking into the US index funds and was looking into something ex-top 7 market weight stocks. Something to hedge against the huge gains of the big cap stocks and bets on small caps medium caps making come backs.

[@RickMyBalls]

alot

[@user-md6ec7wp4m]

Thanks for the heads up! Always good to review and check your investments are competitive. I think the differences between funds, as you mention, within the same category/type is minimal, they tend to have similar performance (they are doing the same thing). Looking for the "perfect" fund/etf etc is just not that feasible and wastes a lot of time. The most important thing for me is to make a decision and execute, so you start/keep investing. I think the 85% rule works well here and is helping me to make decisions and not procrastinate in the spreadsheets.

[@davidriley2784]

what's the 85% rule?

[@LEARjsy]

I relate to your comments a lot. Too much time spent reading, researching, analysing trying to 'get it right / not make a mistake', when I should just not try to overcomplicate things. Looking presently at stripping things back - making a sensible decision based on a few good all-round global equity funds and then sitting back and doing nothing other than an occasional review!

[@emiliodeltessandoro2980]

Thank you for explaining you thought process and providing a few concrete examples, very useful!

[@joshwheeler9732]

I'm new to the channel, work in finance, and love hearing different opinions. While I agree with you on the passive v active debate. I don't think this is too prevalent on smaller cap funds. (AIM listed UK stocks.) There is a clear track record of active (multiple funds) being better than passive...However, I always think passive is better than active majority of the time.

[@mattsennett]

Nice one Damo. I have been adding more to VHYL recently but will take a closer look at FWRG myself 👍🏻

[@vinylwarmth]

Why do you use an app to buy your funds and not in a Vanguard Stocks & Shares ISA directly?

[@kevinu.k.7042]

Thank you - Excellent video - Very helpful to me. Cheers.

[@jakkuwolfinsomnia8058]

My take on it is like this: Low risk (safety orientated) => index funds (exposed to all companies worldwide) Moderate-High risk (return orientated) => Stocks/Shares (willing to take the risk for the potential for higher returns) Keeping it simple while having some structure to my approach. That’s what makes sense to me at least. It doesn’t matter if an investment brings back a 10% return if it costs you 1-2% in fees

[@IAMMARTICUS1470]

I would probably add that index funds aren't completely low risk, as the stock market does fluctuate a lot. I'd probably have them as medium risk, with low risk being bonds/gilts, possibly precious metals or just plain old savings accounts now that interest rates are higher.

[@michaeloneill151]

Damien, you mentioned choosing a fund listed in GBP, is the VWRL listed in USD with Vanguard?

[@marklydon435]

That Invesco ETF has an indicative spread of 0.27% so factor that in as well, but at least that is only one hit when money goes in and not yearly.

[@H.I.T.E.N.]

Another great video mate! Production is getting even better. Well done Damien!

[@SJ_W1864]

what are your thoughts on the fidelity global shares index? thanks

[@daleholden]

@DamienTalksMoney hi great video as always but could i ask for a little clarity please? At the start of the video you say you are going to change this each month! As it takes several days to sell and buy and 30 days if you transfer i do not see how this makes sense? Or did i misunderstand what you said ?

[@cuteandfunnyearthlings2863]

The fee for 0.15% per annum for invesco will that stay the same for 30 years or can it change or increase in 2 years time and then the fee costs more than vanguards?

[@anjena]

Why a fund vs ETFs like VWRL or a mix of VEVE and VFEM? Seems like a cheaper option.

[@gjcroudace]

Love your channel, you give great advice, thanks so much, I really appreciate it.

[@DamienTalksMoney]

My pleasure! I hope the videos help you with your own research. Have a lovely weekend! Damo

[@michaeljeffries1920]

i started investing in this fund also, monitoring over a few other etfs it is out performing so far but early days yet.

[@yevpt]

Hi Damien! Good video. What about LGGG? I just moved my vanguard to here using the same kind of reasoning

[@jonathanbates154]

Can you suggest where to look for world index funds available to the Canadian Market?

[@sdavis7096]

Would the invesco fund be affected by the new hmrc proposed changes?

[@georgios9384]

Great video Damien and thanks for all the information provided! It is worth mentioning that 0 research + low investment risk = low returns. Before investing either to index funds or to individual stocks I have to consider the pros and cons and what best fits to my personal situation.

[@michaelfearn83]

Is the invesco fund available on HL. Thank you.

[@user-cx8sw9fv4r]

Great Vidoe!! If I have 10k would you advice to put it as whole in FTSE developed world or monthly pay?

[@DarkoFitCoach]

I would say as a whole at once. Its for long term anyway

[@zoe440]

Thank you Damien 😊

[@my7username7is]

I think if you live and work in the UK, it makes sense to invest in funds that exclude UK. If you look at your finances as a whole (salary and house etc), you're probably relatively overinvested in UK

[@lechprotean]

@@Gjudxdkjyzddhjnr7091 yeah, I do not live in the UK and the strategy worked great for me too

[@83craigshag]

Provably best not to take financial advice from a youtube post... my uk investments have done really well the the past few years

[@roccostiff2444]

@@83craigshagcan I ask how you invest in the UK coz the only thing that makes sense for me In this poxed country is Bonds 🤷‍♂️ lol

[@MatthewMills.]

Great looking video, they’re getting better all the time.

[@dar1e]

Aren't there some higher taxes on all overseas funds as opposed to UK funds since you are a UK resident. Is it not better to find the UK index that is closest performing to a global index and invest in that in order to save on taxes?

[@alf_lim]

Thanks Damien, once again, for this informative video. Btw, love your studio set-up and the new visual effects you used on your video!

[@DamienTalksMoney]

Thank you mate glad you appreciate the recent upgrades!

[@TheRealMerl]

My favourite youtuber is back with more fantastic content - such a Legend

[@DamienTalksMoney]

Thank you!

[@richardmcgreary6368]

Great video! I'm new to all of this but I followed along just fine 😊❤

[@FinancialThing]

Great video Damien. Lower fees are always better. The only downside to the Global Tracker is my Fidelity Global tracker has under-performed my Fidelity US tracker by 14% over the last 4 years. They both have very low fees (Global 0.12% and US 0.07%).

[@AndrewGill73]

OK, just be careful of the tracking errors. Sometimes a ETF with a low fee is because their sampling methodology/technology is inferior resulting in significant underperformance to the index it's designed to track. Importantly Invesco FWRG has 799 holdings whereas Vanguard VWRP holds 3,633 holdings. So this explains why the fee is lower - it's the sampling methodology. Time will tell.

[@n00bstar1994]

Hey Damien, recently came across your channel and love the content. Was wondering about how you manage with regards to having multiple investment platforms. How do you decide which to use for your ISA? I use two and very conflicted in which one to focus my efforts on. Would be interested to hear your approach

[@jimjam2783]

I watched this video but don’t remember the names of the funds he recommends. Can someone please list the fund names?

[@kenny6744]

Hey guys I’m just new to investing and a lot said on this video went over my head. Is it still safe to invest in vanguard and how much would you recommend putting down monthly

[@daniel_melo]

Good insight. What is your take on factor investing?

[@gabrielchu9752]

Hi Damien, it would be interesting if you make a video about the mechanisms/tools that you use to compare funds or other securities. For example, from this video I was able to learn about FTSE Russell and FT's fund comparison tool.

[@seftongreene7682]

Hi Damien which platform should I buy on ? thanks

[@kaiseroscar101]

What platform can you buy the invesco ftse all world ucits etf on? Couldn't find it on ii 🤔

[@lalalar8434]

Trading 212

[@overripe]

Somehow, I like this chap and what he says.

[@DamienTalksMoney]

😊

[@karinekarano]

Great content as always. I looked on 212 for the invesco fund and it came up with three different ticker symbol options ? Which one is the distribution option ? Many thanks.

[@NightElff88]

The one with (Dist) in the name.

[@karinekarano]

@@NightElff88 it didn't state dist or Acc. On 212 ?

[@andrewheron2399]

Are some of these USD base funds cheaper because they loan stock?

[@andrewtweedy3150]

Another gr8 video damien as usual :) I'm a big fan of VWRL/VRWP but i was leaning toward the invesco etf for the 0.07% saving. I was also looking into VHVG/VFEG @ 90/10% which works out at 0.13% for pretty much the same regional allocations as VWRP. The invesco has approx 3% more allocated to US for an extra .02% against using the 90/10 split so for some that might be worth it. You can go on forever though! splitting down by region to shave off that extra .0000000001% :)

[@brianaaustin9484]

Thanks!

[@COOLARUL]

From Australia. I spread over 3 funds 25% ASX 200, 25% S&P 500, 50% all-world ex US.

[@NoNonsenseJohnson]

Sounds like a future headache of rebalancing and unnecessary risk / admin. Just use a global fund

[@jamiewinstanley1881]

great video damien. i found out about this video from ramin a while back this year! put the majority of my isa spend this year into this fund so far this year. keep it up

[@lawrencer25]

Fabulous video. Thank you ❤❤❤

[@J-gw5sb]

Great video! So when you say you've got VWRL and FTSE global all cap. The all cap is direct with Vanguard and the VWRL fund is via Trading212. Have I understood that correctly? Out of interest, why not have everything through Vanguard?

[@ahmadsheikh351]

Same question

[@zzhughesd]

Great clear video Damian. Thanks. I’m annoyed seeing VanG US customers can mess around at 0.03 and 0.07. Ripped off again us Brits

[@DamienTalksMoney]

It does feel that way doesn't it

[@mineepiccash1493]

What would you do if you have 100k spare? Mortgage/housing out of the question. Thanks.

[@Jay-hy1si]

I really want to invest. I thought the idea is to rely on compounding using one fund to really maximise your return?

[@epicchess2021]

Great video thank you. One comment at the end MASSIVELY caught my attention - invest engine do ‘business investing’ - any way I can learn more about that and if you recommend me is there anything in it for you when I join?

[@househussain786]

Does anyone have any recommendations om what app/business to use for Stock? 🙂

[@DR00002008]

So why does VWRL consist of 3688 stocks but FWRG consist ‘only’ of 1745?

[@peteturner8493]

FWRG appears to be at a high point so would it be better to wait for a price drop...am new to ETF's?

[@matthewstoner610]

Hi Damien, love the videos and have really gained more confidence in my financial decisions following them! Using IE for my S&S ISA this year, what are your thoughts on their upcoming SIPP? Like Vanguard, they are to follow suit with 0.15% platform fee but a lower cap at £200!

[@chasey2327]

great video - at 7:50 though you're either tricking us or i'm colour blind as that looks blue not green to me lad...was that a 'peer pressure test'?!

[@benedictvanheems]

Really helpful Damo, cheers for this!

[@DamienTalksMoney]

Thank you!

[@glennwhitlock1272]

Interesting. I especially liked those turquoise dresses.

[@DamienTalksMoney]

Haha!

[@mxmus08]

Didn’t know about Invesco launching a new global fund. Interesting take overall.

[@DamienTalksMoney]

Thank you!

[@lIRhYsUKIl]

Watching your channel grow has been brilliant, love the editing.

[@DamienTalksMoney]

Thank you! Glad you enjoy the editing it’s what I spend 80% of my day doing 🤣

[@eccles0974]

Interesting video Damien. Would L&G Global Equity UCITS ETF (LGGG) be a comparable option to the Invesco ETF mentioned in the video.

[@halamrose3372]

I've recently discovered you Danien and value your content. The Investco ETF uses sampling rather than buying all the stocks in the index. What are your thoughts on this strategy? I apologise if this question has been asked, it seems hard to search comments on a video.

[@MrOwenjames24]

What happens if the fund does close? Do you just get paid out what you invested and gains made?

[@Jose_Lima]

[Currency] You might want to consider investing in the original fund's currency because it normally has lower total expense ratio and for what I could backtest, the Performance difference comparing to local currency versions of the same fund is bigger than the exchange rate in the long run...

[@simoncorke1496]

Hi. I have a limited company and would like to use the capital in there to trade. Can I do this without taking money out of the limited company in to my personal account?? Thanks

[@martinfarrow2825]

Will you be transferring your sipp to invest engine when they open there sipp accounts ?

[@DamienTalksMoney]

I will wait to see what the offering looks like first and honestly i would want IE to be a bit longer in the teeth before i moved my biggest asset to them

[@kevinlally7653]

GOod (if a long winded) discussion. I'm in the same thinking space as you - frustrated with the UK fee structure vs US, and that my VWRL is no longer top for OCF.

[@DamienTalksMoney]

Sorry about the long winded! haha... I just can't sit here and not add something to the video i find them boring to make otherwise.

[@Desuetus]

The spread is a hidden cost. On Vanguard it's 0.03, on Invesco 0.29. What you're gaining in total expense you're loosing in spread.

[@zanmatoshin877]

What is spread??

[@Desuetus]

@@zanmatoshin877 Difference between asking price and bidding price of a stock. It indicates liquidity. Like when you buy or sell a currency, you see a small price difference.

[@rollthetape88]

HMRC doesn’t think fractional shares qualify as ISA holdings. how will thic change the practise of using T212 or Freetrade to buy the accumlilation version of an ETF?

[@blumousey]

There is actually an EVEN more inclusive index than the global allcap. It's called the 'ftse global total cap'. This also includes micro-cap stocks! Would be interesting if a fund came out that somehow included these...would it be worth it?

[@wololo4761]

Probably not. The simple reason being that any individual microcap stock would likely have such a small impact on the fund total value that it would have negligible effect.

[@dobianuli2742]

I like your videos- I don’t understand much of it but I enjoy them

[@kirsten121]

It's as if you read my mind!! Esp on the point between All World & Global and accumulation and distribution.

[@sed1991]

Invesco ETF contains only 1.945 stocks while Vanguard contains 3.665 of the 4.294 stocks inside the FTSE All WOLRD Index. This optimisation approach leads to less costs buts also less in terms of diversification and a possible higher tracking error (risk). You need to decide on your own if the 7 bps are worth holding less then 50% of the underlying stocks of the index.

[@user-zz2fq6vc1w]

Really great point, thank you for highlighting this - something to be aware of for sure

[@joashdryburgh9262]

Cheers Damo, in terms of your editing and scripting, this has been the best video yet 💪 Question for you and other viewers... Do you all focus on maxing out a S&S isa for your isa allowance or do you split your isa allowance between S&S and Cash ISA, especially now with higher interest rates? Thanks in advance.

[@johnsealy4957]

Yes, I have to agree. The video editing is slick.

[@droltd8756]

If only starting investing would the Investco be the best to all in for?

[@willadye6033]

So your telling me there’s absolutely no difference between the invesco 0.15% fee and the VWRL 0.22%, only difference at all is the fees?

[@blink182joel]

Great video, thanks. I found this one: SWLD, which has a fee of 0.12% and very high liquidity. Is there something in the ETF that you mention, that would be perhaps a better choice? Or something in SWLD that is a red flag, in your opinion?

[@jasonbrodie4827]

I've also been wondering why people don't talk about SWLD more.

[@NedFlanders39]

Watching on my phone so was too lazy to check, but did you include vanguards £375 fee cap in your fee example?

[@waynemay7327]

He's not talking about that 0.15% fee. He's talking about the ongoing charges fee which is a different charge. There are also transaction costs.

[@NedFlanders39]

@waynemay7327 ah okay. surely talking about the 375 cap is the most important part when discussing any fees for the long run though

[@sid35gb]

@@waynemay7327transaction costs are optional on vanguard. Buying a spot price you’ll be charged. If you just ask vanguard to do it as part of their daily transactions it’s free.

[@jmc8076]

David Webb’s book and videos. Ben Felix has good videos too esp one w/Prof Scott Cederburg.