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

[@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.

[@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!

[@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.

[@naomicgabriel]

Your editing is so good! So engaging and witty.

[@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

[@michaelh2282]

You deserve a "like" for that line.

[@nicofit3656]

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

[@Me-ll4ig]

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

[@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.

[@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!

[@emiliodeltessandoro2980]

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

[@mattsennett]

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

[@kevinu.k.7042]

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

[@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!

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

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

[@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.

[@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.

[@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.

[@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

[@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.

[@michaeljeffries1920]

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

[@MatthewMills.]

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

[@richardmcgreary6368]

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

[@zoe440]

Thank you Damien 😊

[@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.

[@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!

[@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.

[@RahellOmer]

Thank you Damien! Through you, I finally managed to understand a bit from the investment world.

[@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%).

[@gurshgill1857]

Looking to get more knowledge about investing in global funds from the uk. Good intro thanks.

[@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

[@lawrencer25]

Fabulous video. Thank you ❤❤❤

[@glennwhitlock1272]

Interesting. I especially liked those turquoise dresses.

[@DamienTalksMoney]

Haha!

[@overripe]

Somehow, I like this chap and what he says.

[@DamienTalksMoney]

😊

[@TheRealMerl]

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

[@DamienTalksMoney]

Thank you!

[@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% :)

[@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

[@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?

[@brianaaustin9484]

Thanks!

[@dobianuli2742]

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

[@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!

[@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.

[@tawood2014]

"Svetlana Sarkisian Chowdhury" 🤣How do you guys come up with these names? 🤭

[@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

[@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

[@kirsten121]

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

[@benedictvanheems]

Really helpful Damo, cheers for this!

[@DamienTalksMoney]

Thank you!

[@maltesetony9030]

Another excellent video.

[@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?

[@idontcarefuku]

A lot information and seems well researched 11:03

[@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.

[@OldGregg79]

Nice one Damo, I saw that Invesco FTSE All-World fund pop up a couple of weeks ago, I'll take them low fees! The small unit price is a bonus too for chucking in loose change at the end of each week!

[@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...

[@jmc8076]

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

[@anjena]

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

[@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

[@mxmus08]

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

[@DamienTalksMoney]

Thank you!

[@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?

[@stephen6262]

Damien fantastic video. Thank you for the great Imformation

[@stecli]

Great message Damien, but too many added in clips for me in this one . 😊

[@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 🤣

[@AgneseZagorska]

Love how you make your videos :)

[@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

[@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!

[@jackduk]

I think you're about to become my go to educator for someone who is about to become mortgage free and wants to invest!

[@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

[@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?

[@bobbysahye]

Damien ,I love all your videos.I,would love to have a beer with you in London.Cheers.

[@zeea6507]

My ISA is in Vanguard FTSE Global All Cap Index Fund

[@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.

[@ElliotCoen]

I am frantically taking notes 📝 This vid is set to be another Damo hit

[@iain777uk]

Then please learn about a physical and synthetic ETF’s

[@randomnoctis6361]

Wtf is this dude showing all for free?! This is amazing work!! Thanks!

[@Tom_murray89]

It’s very interesting how many people are risk adverse when it comes to stocks and shares investing.

[@cristobal666]

Instead of going with the Global fund, you can split you investments in sp500/europe/pacific/emerging. Like that you don't pay the whole amount at 0.25%

[@harryheavens8929]

This guys ability to frame a narrative makes his videos so engaging

[@DamienTalksMoney]

Lovely feedback thank you

[@carolmaz8675]

just found your channel...great

[@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?

[@perspective4517]

Great video. Thanks.

[@rw6039]

Great video. Regarding the fees section, where it states the vanguard fee is circa £32k on a £745k portfolio. When is the £32k charged? It is when you withdraw the portfolio from the account?

[@Dr.JubairsFinance]

I love the new home studio

[@DR00002008]

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

[@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.

[@yevpt]

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

[@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.

[@Jay-hy1si]

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

[@addj7093]

The only one I’ll buy is the BlackRock one 👍🏻

[@riverbluesky]

Another excellent video Damien. Thanks for your opinions

[@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 ?

[@daniel_melo]

Good insight. What is your take on factor investing?

[@bodycounter9386]

09:28 outside of liquidity the TD of the Vanguard ETF has been almost perfect so far. The Invesco is so young it could potentially perform slightly worse and nullify the difference in TER. There is also a chance that Vanguard reduces the TER and the Invesco dies out in the next decade.

[@TehPwnerer]

The same problem exists in Canada where the US equivalent ETF has expense ratios that are three or four times higher

[@jamesh7618]

Another fantastic video Damien

[@jimjam2783]

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

[@andybarrett9384]

I have this fund so thank you.

[@1292liam]

@9.23 HSBC All World is 0.13% via HL

[@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'?!

[@camerawatchuk]

Fantastic content Damian. Keep up good work ❤ Thank you

[@DamienTalksMoney]

Glad you enjoy it!

[@camerawatchuk]

I always do Damian :) @@DamienTalksMoney