Vanguard UK Release New Funds & Why I’ve Changed My Portfolio

Vanguard in the UK has just made thirty of its accumulation ETFs available on its platform. While it didn’t make a big song and dance about it (well this is Vanguard after all!) I think this makes its UK offering more attractive because it now covers the basics very well. I have also changed my own portfolio as a result of them adding these funds and at the end of this video I show you what I have done and discuss my reasons behind it.
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Timestamps
00:00 Introduction
00:35 Kitchen Cupboard Essentials For Investing
05:24 Accumulation vs Income
08:04 Vanguard's 30 Accumulation ETFs
12:12 What Still Needs to Change
13:46 My Core Portfolio
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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

[@Pensioncraft]

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[@cameronmmj9291]

Questions on the accumulation and distributing funds (VWRP and VWRL), is the VWRL black line based on how the fund grows, without reinvesting? Or is it taking into account reinvestment, but only on the quarterly basis it is paid? I currently hold VWRL and VEVE, and want to work out if its worth changing over.

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams.

[@agilouzochukwu9193]

​@@fuwaking001is true

[@minimad8793]

Funnily enough, I have just swapped my Vanguard fund from Distribution to accumulation. I did note that there wasn't much in the way of money in the fund but I am sure that will grow as soon as other see the offerings.

[@andrewtweedy3150]

Excellent video and very well thought out as always! Personally though, choosing a developed market only is moving away from the point of picking a global index tracker fund - investing in all of the markets and not making a bet on which you think will perform best. Excluding EM is making that bet from my point of view. The savings in fees will be much greater impact over time by moving to a provider that has lower platform fees.

[@alexm7310]

VHVG for me too! Thanks Ramin! 🙂

[@juttley72]

thanks for the video, it was just the prompt I needed to make changes to my investment isa with Vanguard. For the last 3 years I have been investing a regular sum of money into the vanguard 100 life strategy fund. The one thing that was bothering me about it was the heavy 25% it invested into the UK. This seemed too large considering we are not the 4th largest economy. Moreover, the UK economy has been pretty naff for a while, not helped I am sure by Brexit. I have now stopped my contribution to the 100 life strategy and changed to the one you reference on this video which seems a much better option, plus I have reduced my 0.22% charge to 0.12. thanks again. John

[@mikerodent3164]

Same thinking about UK and "ex-UK" funds. However, a lot of a larger UK companies are really worldwide cos. The thing to avoid would then be less-than-large-cap (i.e. Brexisuicide-exposed) UK companies. Global/All-world funds will generally fit the bill pretty well. I have squillions in HSBC FTSE All-World Index Fund Accumulation C. OGC 0.13%... and apparently so does Ramin.

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams.

[@agilouzochukwu9193]

Makis55 The username.

[@union310]

Does that not make the UK an emerging market then?

[@jaedickson]

Thanks for the video. It is very helpful! Could you please let me know how to switch in between funds? I currently have 'Income' version of the fund but after watching this video, I would like to switch it to 'Accumulation'.

[@coderider3022]

I transferred to vanguard a few months back and this makes it better.

[@VoiceOfThe]

I’ve been in the Global All Cap since end of 2020 and sticking with it.

[@barnstar2077]

I too have bought the FTSE Global All Cap fund for many years. I think swapping now would be a mistake as I have been buying those smaller companies and a slice of the emerging market held in the fund cheaper because of the Ukraine war etc. I think there is a good chance that the returns will catch back up when the Ukraine war ends. Also, I don't like the idea of chopping and changing to chase returns. My original decision is still sound.

[@VoiceOfThe]

@@barnstar2077 Exactly. You can start second guessing yourself with all of this. Best advice is stick to your original plan. It was a toss up between VWRL and the Global All Cap for me. I wanted the extra exposure to emerging markets it gives.

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP losses

[@drcerbera5455]

Thank you. With the FTSE Developed World UCITS ETF you have chose, what impact on returns will the fact it trades in USD rather than GBP have? Will this erode the 0.02% fee difference when compared to you previous fund choice? Thanks.

[@ade4018]

Hi Ramin, thanks for a great video as always. Sorry I’m not caught up recently, what are you doing to cover emerging markets in light of your change to the new fund not covering it? Do you have emerging funds elsewhere? Thanks!

[@kirsten121]

This is very helpful thanks. When you are approaching or in retirement, why do you need bonds? Why couldn't you just cash in a little of your index fund say once a month for your living costs? (Assuming you have a cash cushion to use if the market is down).

[@trucker_lukew]

Great video as always! I invest each month into Vanguard S&S ISA & Vanguard SIPP, both payments are split between VUSA and VEVE as they're the most appealing when I ran the numbers & checked fees vs VWRL for example.

[@williambaker427]

As of 11 March 2024 cheapest S&P500 ETF for UK investors is SPDR S&P500 UCITS Unhedged (Accum) Ticker: SPXL with ongoing charge/TER of 0.03%. Launched November 2023. 🙂👍🏻

[@mixerman8]

Great vid and fantastic choice of your sole holding in Vanguard. The ftse developed world is the one I’ll also be rotating into once I feel the time is right. For now I’m sticking with Vanguards sustainability 80/90 which I went all in 2022 and it held up with slight gains whilst markets crashed 20% or more so it’s more than proved it’s .48 fee. It hasn’t had much of a run this year as it contains a lot of defensive health care/undervalued stocks. To say it’s equity heavy it’s very safe as proven in 2022 as undervalued stock out of everything was the only asset that held up even over gold that year. It’s paying us a nice 2.2 dividend end December. But going forward after what I believe I might be wrong due a good correction from the magnificent 7 then I’ll rotate back into pure equity indexing using the ftse developed world with its low .12 fee and 1.89% dividend payed quarterly. The markets got way ahead of itself and the time for putting large amounts of capital in indexing right now way too risky I believe in this current climate.

[@raymondwedderburn168]

Thanks for your diligent work

[@Pensioncraft]

So nice of you @raymondwedderburn168

[@Probity100]

Well explained, thank you. I am new to investing and new to your channel

[@Pensioncraft]

Glad it was helpful! @Probity100

[@joshhorton6281]

Hi Ramin - When selecting a fund is the TER as important as the historic tracking difference? If one fund exceeds the index but has a higher TER to another fund that falls short of the index is that not what’s most important? I have the vanguard ftse all world and am debating moving across to Invescos new offering.

[@paulmussett94]

Thanks Ramin. The bulk of my portfolio is with Vanguard UK. Pity that there Sterling Money Market Fund is income which i utilise. I have to use HL to take advantage of an accumulation MMF. I will look at these “new” accumulation ETFs and de-risk some of my portfolio which has been on ice for 13 months whilst i looked to reinvest. Have tinkered with VJPN as i believe there is upside. Im 5 years from retirement, what would you suggest , bonds?

[@vishk123]

Brilliant video again. Quick Q, why have you not thought of adding the vanguard emerging market fund to your VHVG? Then you won’t have missed out on anything.

[@pistopit7142]

Nice video Ramin. The only thing that could be added to this video is to use example portfolio and show how much money investor would save by switching to funds with cheaper fees. Cutting 0.1% in fees does not sound as convincing as X number of pounds saved over time.

[@Pensioncraft]

Hi @pistopit7142 that's a good way of explaining the difference in fees, thank you! Ramin.

[@lentosh6287]

​@@PensioncraftHi Ramin, I have a question about switching? I'm invested in the Global Ftse All Cap accumulation, should I wait for the dividend date before switching or does it not make a difference as the value will lower as the dividends go out?

[@Oasisfan432]

Excellent video as always Ramin. As you mentioned sometimes it's cheaper to hold vanguard funds on different investing platforms - could you do a platform comparison video? Your previous video about this is a few years old now and fees/charges have changed.

[@mikerodent3164]

VHVG ETF looks attractive. But if he wants a global fund (not just Dev world), why hasn't he mentioned HSBC FTSE All-World Index Fund Accumulation C OGC 0.13%? People have pointed out this fund to him before. Why is he still banging on about Vanguard so much? Is he sponsored by Vanguard either here or somewhere else? Vanguard platform charge capped at £375. Why isn't he recommending for example Lloyds Investment, £40 a year flat rate? I paid £1.20 transaction charge there a few days ago to buy more of the above HSBC. I think Vanguard have become too expensive, at least in the UK (most of their funds tend to have MUCH lower OGCs in the US, hyper-annoying). So, again, why isn't Ramin more interested in other, hungrier and less ostentatious investcos?

[@fredatlas4396]

​​@@mikerodent3164 because it's more expensive to use those platforms that provide the HSBC open ended fund, because their platform charges are significantly higher than Vanguard, or they are charging to buy and sell said HSBC fund. Vanguard ftse dev world etf, Acc share class ongoing etf charge just 0.12%, plus vanguard platforn charge 0.15%. Hl charge 0.45%, Fidelity UK 0.35%, aj bell 0.25% plus charges for buying and selling open ended funds etc. I'm using Fidelity UK for a sipp, I had a reasonable amount of money from previously frozen pensions. So put into Fidelity sipp, platforn charge capped at £90 per annum and £7.50 per dealing fees, but I'm not regularly contributing to this and keeping dealing to a bare minimum. So I also have a Vanguard sipp for regular monthly pound cost averaging with 2 index funds Acc class, no buying fees, simple. If you want pound cost average with etfs there maybe dealing charges, plus bid arse spreads and not possible to buy fractional shares of etfs on most platforms. So for monthly, regular investments open ended index funds are more efficient and cheaper

[@JC-welliz]

This is about Vanguard releasing new funds, not what similar funds are available from other providers. In fairness to Ramin, he does at 12:30 begin to mention other providers and that the Vanguard offering is not perfect. Sorry, but your comments are unnecessarily harsh.@@mikerodent3164

[@vkman34]

@@mikerodent3164 Ramin has mentioned the HSBC fund in the past, that's how I found out about it. IWeb (where you can buy all the Vanguard funds and other global trackers, money market funds, and single gilts as well) has a platform fee of zero.

[@jackt5965]

Hi Ramin, I currently have money invested into the FTSE Global All Cap on the vanguard platform in a SIPP. Is there a way to transfer that money into one of these new vanguard funds without having to sell them and reinvest it into a new fund or would it be a better idea to leave the money in the existing fund and simply start putting future investments into the new fund? Thank you, Jack

[@pmw3839]

You say that you now invest in only the one fund with Vanguard. Does that mean you invest in other funds with other providers? Thank you for the video. It is very helpful.

[@martingibbs1869]

Moneymarket funds are not protected and not zero risk. I heard someone warning they would be vulnerable if there was a sudden move away from MMFs if interest rates dropped. Yellen I think.

[@danesesse]

They do have 0 risk of loss. But you might make essentially no money and might lose money against inflation. Which is a different form of risk.

[@miltonbates6425]

The time to sell stocks and buy MM funds was in 2021. It's an overbought market now with a lot of downside risk as interest rates begin to normalize over time.

[@jimbojimbo6873]

They do not have a zero risk of loss If enough investors remove their money then the fund manager has to force sell the commercial paper / bond it has to pay investors back Once the market sees this the value of those bonds goes down and hence the other investors in the fund lose money. It’s not possible to just hold until maturity in this case.

[@djayjp]

No, there will be nearly zero change in value if interest rates change. This is because they're ultra short term bonds (months) and considered functionally equivalent to cash. The yield paid out will drop however if rates drop. You saw the line increase, thinking it might decrease just as well, but that's wrong because it's an accumulation fund, meaning it automatically reinvests its interest payments.

[@FRANK_DYK]

I heard that only about 30% of liquidity in some money market funds. When interest rates fall which they will, might not go back to 0.50% but will fall, people will want out of these MM funds and there is a possibility that it might be hard to get all the cash out.

[@crispyduck1706]

Still can’t believe they don’t have REITS available - you can buy plenty more Vanguard funds with other providers - absolute madness

[@RealStAndrews]

Ramin did you use the Switch option in the Vanguard interface to move from VVDVWE to VHVG. How long are you out of the market for using this approach? Thank you ... Andy

[@PAZPERDEE]

Thanks for another informative video

[@Pensioncraft]

Our pleasure! @PAZPERDEE

[@dominicroe2261]

Hooray! They must've been listening to the pod ;)

[@Pensioncraft]

You might be right @dominicroe2261 8-) Thanks, Ramin

[@mmabagain]

Indeed. My Vanguard money market in the USA is paying 5.3%. I will retire next March and as long as this pays above 4%, I'm leaving it right there. I will receive a pension and social security as well so I don't need it to gain a lot.

[@username.charles]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams..

[@agilouzochukwu9193]

Makis55 The username..

[@tcb106]

It's worth noting that you still have to pay income tax (at dividend or interest rate) on accumulation ETFs or funds if held outside a tax wrapper (ie. ISA).

[@mikerodent3164]

Yes, that has become an issue since this irksome div tax came in. But some ETFs will tend to hold primarily "growth" companies, where dividends will be kept to a minimum. You can then be exposed to CGT potentially, and take-up of CGT allowance should be maximised by selling and rebuying in March each year: but div tax won't be charged on growth. Outside a wrapper these details are pretty thorny ... and important.

[@TopazDr]

wasn't it mostly Emerging Markets and UK that hurt the Global All Caps fund, not the small Cap tilt? Because the Global Small Caps funds returned a solid 12% past 10 years, but Emerging Markets and UK didn't

[@tc9634]

I don't think you can call that fund tilted, it's just a very complete global index.

[@zkkrhfhska]

where do you hold your gilts? can you recommend a platform?

[@elliotdeware87]

How can I extract the fund performance comparison on those 3 funds on excel?

[@garyrooke9582]

interesting stuff thanks, In Investor are soon bringing out their own SIPP no platform fees and if you split your portfolio 90% VHVG & 10% VFEG you get ultra low fee (lower than VWRP) and world investment in a ACC fund

[@conradknightsocksknight1590]

Link please

[@giuseppe641]

Romin thanks for the video. However you should mention Global all cap is in GBP vs VHVG is in USD. It’s an extra currency risk on top, which ok maybe long term does not matter much but still..😊

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams..

[@agilouzochukwu9193]

Makis55 The username.

[@JivanPal]

There is no currency risk, because you are not holding the currency (USD), but instead are holding other assets (shares in company stock) that are simply being evaluated for you to look at in USD. If such a tracker fund's value is/was ever not equal to a GBP-denominated tracker fund holding the same distribution of underlying shares in company stock, then an arbitrage opportunity would exist and would quickly be capitalised on until the arbitrage opportunity disappeared.

[@daniyalbehiyat6291]

Dear Ramin, Great Video. I noticed that the trading currency of this VHVG is USD whereas for the FTSE Developed World ex-UK the currency is GBP. What about the costs associated with currency conversion? Would that eat into the 0.02% of reduction of fee that you would be saving?

[@n.s.5278]

Good question

[@Alan7997]

My SIPP with Vanguard is all accumulation funds, but my S&S ISA is all in income funds. I personally enjoy the process of reinvesting the dividends plus if I ever lose my job, I will have a small amount of money coming in from my ISA without having to sell anything.

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending..

[@username.charles]

She's on telegrams..

[@username.charles]

Makis55 The username..

[@carlyndolphin]

Love watching your channel

[@dharmendravekaria9198]

Great Video Ramin. I've only been invested in the OEIC Dev World Ex-UK. Before you switched to the ETF giving 2 bips away in charges, did you consider the spread on the ETF which currently is 1.5 bips and could be wider during the day. Given such can you expand on this a little either with a reply to my comment or a short video update.

[@im_that_guy]

Is Trading212 still the cheaper option for the same funds on Vanguard? VWRP for instance

[@barnstar2077]

I too have bought the FTSE Global All Cap fund for many years. I think swapping now would be a mistake as I have been buying those smaller companies and a slice of the emerging market held in the fund cheaper because of the Ukraine war etc. I think there is a good chance that the returns will catch back up when the Ukraine war ends. Also, I don't like the idea of chopping and changing to chase returns. My original decision is still sound.

[@phillipthompson9809]

I too are in the same fund (VWRL) although I have just transferred it over to invest engine to save on the platform fees and I find invest engine is streets ahead of vanguard as they have a phone app, auto balancing and reinvesting etc. I have stopped adding to this fund though and instead started the Invesco etf instead as it has lower fees and is pretty much the same as mentioned in the vid. I was going to sell my VWRL and put it all into the Invesco but I have changed my mind in that and just going to hold it. As mentioned in the vid they may drop the fees in future but overall it's been a good fund despite the slightly higher fee.

[@drthots4576]

why do you choose VWRP/L compared to ALL-CAP?@@phillipthompson9809

[@fredatlas4396]

​@@phillipthompson9809 Why not the Acc version VWRP. And does the invesco fund have a big buy, sell price spread

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP withdrawal pending

[@fuwaking001]

She's on telegrams..

[@rhyscook5908]

Hi there, thank you for the great videos! Isn't VHVG currency in USD?? Shouldn't you stick with FTSE Developed World ex-UK simply because it's in GBP? Or will the lower charge offset the exchange charges? Thanks

[@thevahandbook]

I have invested in Vanguard FTSE Developed World ex-UK Equity Index Fund Acc (VADEA) for years via Fidelity's platform. I didn't see it on the list though.

[@robelsey2931]

VHVG comes with currency risk as it is in USD?

[@massafelipe8063]

I struggle to find any additional allure of Vanguard funds compared to Ishares or Xtrackers, speaking from non UK, european investor perspective. Ishares seems much more liquid and less prone to fund closure. SWDA costs 0,2% and CSPX 0,07%, factor versions 0,2-0,3%.

[@gavgreen10]

Good video. Does it matter to the layman / passive investor that one you are moving from is an Index Fund & the one you are moving to is an ETF & what are the implications? Thanks.

[@daviddoink872]

Nice vid , have you got one about buying gilts directly for uk residents ?

[@Pensioncraft]

Hi @daviddoink872 "Why UK Government Bonds Are a Great Investment Choice" kzbin.info/www/bejne/aHbKhq2rlseIgM0 Thanks, Ramin.

[@HandsomeJak]

How easy it to change your fund from the FTSE developed world ex UK to the developed world and how do you do it?

[@katscotty]

Thanks Ramin I really appreciate your knowledge and your generosity to share it.

[@Pensioncraft]

I appreciate that! @katscotty

[@jake4236]

Hi Ramin, thanks again for another great video. Since watching Pensioncraft I've similarly simplified my approach to investing. Is it simple to swap from one fund to another? Did you have to sell all of the fund to buy the new find you mentioned in the video?

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP withdrawal pending

[@fuwaking001]

She's on telegrams..

[@fuwaking001]

Makis55 The username.

[@RajaseelanGaneswaran]

On your bookhelf - Numerical Recipes in C - Damn you're a real OG!!!!

[@Pensioncraft]

Hi @RajaseelanGaneswaran I love that book! Nowadays I use R so a lot of the methods in Numerical Recipes (and lots more) are available in R packages. Thanks, Ramin.

[@boombustinvest]

Surely if you're in drawdown, you only declare in the SA return what you physically take as income out of the fund? If there is capital gain and income paid within the fund still in drawdown (or uncrystallised for that matter), that isn't declared in the SA return?

[@Unclebob726]

Thanks for this video. I have been investing for 5 years now, when I first started out I was less interested in fees and more interested in past returns ! Over the last few years I have changed my style and think Im more disciplined and balanced. I have just opened a Junior Sipp for my six year old and have an account with Fidelity. I have been considering moving it to Vanguard as the fees seem cheaper, but the choices seemed limited may be time for a second look. I plan to Max it out this year and invest in cheap index funds like the ones you pointed out. I want something I can set and forget ie accumulating funds. If the market does crash or correct I will double down in the following tax year, if it does not I will leave it alone. This pension will have over 50 years to compound so hopefully it will give here a little boost up the ladder. Do you think a green energy fund would be prudent to add for a 50 year investment horizon ? Regards Tim

[@fredatlas4396]

There is no service fee on junior accounts with Fidelity UK, so free up until age 18yrs old. And no buying or selling fees for open ended funds, plus £7.50 per deal for etfs. So if you stick with open ended index funds it's free, cheaper than Vanguard junior sipp unless they've changed their fee structure. If so I think better leave the junior sipp with Fidelity for now unless they change

[@Unclebob726]

@@fredatlas4396 ah great thanks I will leave her set with Fidelity then.

[@mikehardwicke23]

Marvellous presentation as usual. You are my usual Keynseian GoTo; (shame that Keynseians are always wrong long-term). Lots of questions/comments (as usual) - not adjusted for CPI, Gold (RMAP)- the ultimate preservation of wealth made +27% since beginning of 2020. And are your holdings rebalanced and on what schedule? In addition HMWO is cheaper 0.15 v 0.22%?

[@Pensioncraft]

Hi Mike, I only have one fund (VHVG) so no need to rebalance (at least, not by me!). HMWO is an income fund which I avoid personally as I prefer the simplicity of accumulation funds. VHVG, an accumulating developed market fund, is 0.12% management fee so lower than HMWO. Gold is still in drawdown, in real terms, since January 21st, 1980 i.e. its real price is down by 42% over those 41 years. From January 2020 to yesterday's close (January 16th 2024) the price of gold is up 12%. Clearly, the starting time for these return calculations is important but I'd argue that gold is a very poor store of wealth given its volatility and drawdowns. Thanks, Ramin

[@mikehardwicke23]

@@Pensioncraft Yes indeed - stupidly I made the comments well before the end of the video; apologies :-/

[@simon88uk]

Why not VWRP? Just because of the 0.22% fee? Then, why not VHVG+VFEG in proportion say 90/10?

[@williambaker427]

Would like the Vanguard Lifestrategy ETFs to be offered in UK in GBP

[@Luisiramone]

Hi Ramin, great videos, thanks for your work! I am thinking of opening a vanguard account and would go for an accumulation fund. Were you saying in the video that these accumulation funds require self assessment in UK? Can I protect the need to do a self assessment if I open a Vanguard ISA account and choose the same accumulation fund? Thanks!

[@Mass1987]

Because it's an isa no need for self assessment.

[@Luisiramone]

@@Mass1987 thanks!

[@beyond92five]

whats the Invesco accumulation fund tickerFTSE All World?

[@lmrpereira]

Why leaving out emerging markets ? Just because of the fee ? Would you complement the portfolio with an emerging markets one ?

[@magnets1000]

Vanguard also charges a hidden "transaction fee" on their funds. The Invesco etf doesn't but it samples fewer companies also

[@danesesse]

Where is the transaction fee. Only if you want the bought right now. But if you just set it to buy next day. I dont see and perhaps obviously the hidden fee

[@magnets1000]

@@danesesse it's a fee to cover the buying and selling of the underlying shares, on top of the 0.22% and on top of the vanguard platform fee. It's an annual fee not per etf transaction. It's properly hidden but show on your checkout document

[@danesesse]

@@magnets1000 you mean the account fee. Thats nit hidden pretty much every account has a fee. Except the new ones like trading 212

[@fredatlas4396]

Where's my comment gone!!!

[@GenuinePluko]

​@magnets1000 so does this make the change in this video.of ramins sole fund worth it?

[@kevinu.k.7042]

Hi Ramin - Any chance of covering shorter term investments. I have retired and have a number of portfolios. I don't need the money for income, at the moment, but I don't have more than ten years in mind. Or, should I just follow the advice here? Thanks.

[@dougiemclaren]

Great video! Won't you need to pay an exit fee to switch from your previous fund to this new ETF that essentially negates the saving in ongoing costs?

[@stevem9754]

Exactly what I was wondering. I'm relatively new to investing and I assume that Vanguard charge for switching your investment from one fund to another - or is that included in their annual platform charges? If they charge, then presumably after a certain time the lower fees outweigh the fee for changing?

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP losses

[@fuwaking001]

She's on telegrams..

[@fuwaking001]

Makis55 The username

[@thomasmyers2288]

What is the name of the Invesco Fund? I cant find it on their website.

[@nickdinnen4667]

Thank you for another great video. You show Invesco’s FWRA. I’ve got FWRG. I know the difference is the former is in USD and the latter is GBP. Have I made the right choice as a UK investor? I’m a bit unclear on it. Thank you

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams...

[@agilouzochukwu9193]

Makis55 The username..

[@beyond92five]

I have the same question, as a UK investor should we be investing in FWRG? I understand our exposure will be GBP than USD? Is that the only difference?

[@danilocampolo4498]

Does anyone know what Ramin uses to compare and show different ETFs returns during the years?

[@philpaston6374]

I just noticed that Vanguard are offering an accumulation version of their money market fund. Does it matter at what point in the month you switch or is it just swings and roundabouts ?

[@martinfarrow2825]

is the fund in your isa or sipp ? thanks

[@chrisp4170]

Excellent video! I was very interested in the graph that compared various bond / stock performance over time at 4:15. Clearly for the data set chosen, bonds didn't justify their inclusion, leading you to conclude that 100% bonds were preferable.seemed not to be able to compete or even. I'd be interested to know if you have looked at any other time periods, pls?

[@Pensioncraft]

Glad it was helpful @chrisp4170

[@lystraeus-]

Vanguard's VWRP is actually free, even slightly positive. According to trackingdifferences, 2022 had a tracking difference of 0 - it perfectly followed it's index. In fact since 2014 the tracking difference (for the income class) is -0.01, showing it actually returned slightly more than the index. Please, cover tracking difference & stop focusing on TER!

[@MultiformeIngegno]

What do you mean? Over the long term fees are super important, more than the 0.01 difference of tracking the index perfectly or not

[@lystraeus-]

Fees, like TER, but also transaction costs, all contribute to the tracking difference. However, a fund can counteract this drag. They might negotiate better deals, use securities lending, more accurate measurements of market cap, and so on. The difficulty is that this is rarely advertised, and can only be reliably calculated after the fact. And it changes over time as fund managers improve, or slacken, standards. You need 3-5 years' data to see how a fund truly performs. TER is forward-looking, but it's only one aspect. It's marketing. Everyone piling into e.g. Invesco's "cheaper" world tracker could be making an expensive mistake. We won't know the true performance drag (or gain) for 3+ years.

[@union310]

Can you buy a Vanguard etf on H and L? The invest £100 then a monthly payment

[@MrHotrod79]

Modest as you are Ramin, I would say there is a reasonable chance your calling for these funds for the last couple of years could be behind Vanguard UK launching them…. Thank you

[@Pensioncraft]

Thank you @MrHotrod79

[@pauljohnbridge]

Hi Ramin. Great video as always. However, can you tell me if there is a charge if you switch from one Vanguard product to another by selling one and buying another?

[@SteveDuts]

I’m pretty sure there isn’t a fee associated to it and you don’t have to sell as there is a switch function.

[@pistopit7142]

No fee. You can use switch option that Vanguard offers. The switch will take some time, might be a bout the week. If during that week market is volotile then you might gai/or loose substantialy. I would still ignore this risk if you ahve a rational reason to switch funds, such as reducing fees.

[@gordonjames8233]

I wasn't sure about this. I am currently moving out of the target retirement 2030 fund ( I understand more about funds selection now). I was under the impression a transaction charge was incurred.

[@danesedgwick2058]

With individual GILTs not being liable for capital gains tax is it worth holding the VGOV in general accounts (if you have excess money above ISA allowances) i guess the downside would be then the dividends are treated as income i believe.

[@Pensioncraft]

Hi @danesedgwick2058 personally I'd hold single gilts, particularly in a general investment account (one with a low coupon to minimize income and maximize capital gain). The good thing is that you know the return on your gilt investment the day you buy it assuming you hold the bond to maturity. I love that certainty! With a bond fund you never know what the price or income will be in future. Thanks, Ramin

[@tcb106]

Income ETFs such as VWRL for example, still generate Excess Reportable Income (ERI) so they are also a headache when doing your self-assessment tax returns.

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP withdrawal pending

[@fuwaking001]

She's on telegrams.

[@fuwaking001]

Makis55 The username..

[@mihail4391]

Has anyone located the VVWDC money market accumulation fund on the platform? I’m struggling to find that.

[@nigeltrivass4128]

Hi Ramin, for my understanding, are you holding UK government bonds in one SIPP/ISA and then you have another SIPP with the global ETF?

[@Pensioncraft]

Hi @nigeltrivass4128 I've got an ISA with Interactive Investor where I hold my single gilts. But I'm 100% invested in that global equity fund in my Vanguard SIPP and Vanguard ISA. Thanks, Ramin.

[@nigeltrivass4128]

@@Pensioncraft Many thanks for being so candid about your investments, and for creating such quality videos.

[@ianseward9928]

Do you have any information on a typical fund for people who are retired and need to withdraw . So not in the accumulation phase .

[@lukestables708]

Any ideas for where to invest for UK non-resident expats? I believe Uk non-residents are not allowed to invest in these funds so where should I park my money instead?

[@GenuinePluko]

I'm currently on the FTSE Dev World Ex UK, and looking at the new option it seems there's a few downsides... 1. Its an ETF so have to buy full units, so when HMRC pay my 25% which normally auto invests, random amounts will simply sit in the account until I take action, or have enough funds to top it up to a full unit. 2. Its not natively GBP. 3. Hidden Vanguard transaction fees on ETFs, which are a faff to find, and I wonder if this offsets the % saving? 4. Comparing the performance year on year I think I prefer the FTSE Dev world thus far.

[@m4rtinjones]

I think point 1 is enough to put me off, I pay a fixed montly amount into the SIPP & S&S ISA so it would mean that every month part of money wouldn't be invested.

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams

[@agilouzochukwu9193]

Makis55 The username

[@gavgreen10]

Yes good points, are you sticking with Dev World ex-UK then as it's an Index fund & not an ETF?

[@kirsten121]

So do you sometimes sell your entire holding of a particular stock and replace it with your new favourite? Do you not get nervous during the period in limbo in case of a big price change?

[@larsenb4803]

ETF's switch the same day

[@rrw1rrw1]

Many income ETFs also have Excess Reportable Income. So one does not avoid this tax reporting complication by buying only income ETFs. This fact seems to be little known. Many investors do not know how to look up the ERI of their fund holdings.

[@enigma1000]

If you hold the ETF on a platform I think the platform reports the ERI to you. Is that not the case? I thought most income ETFs distributed all their income so they wouldn’t have any ERI? I have had a case where a platform incorrectly reported ERI on an income fund and I had to get it corrected.

[@rrw1rrw1]

I have never had an ERI report from Interactive Investor. Vanguard VERX is an example of an income ETF which also sometimes reports ERI, but not every year.

[@enigma1000]

@@rrw1rrw1 I would query that with II if you hold an ETF with them that has ERI.

[@lxpollitt]

It depends on the platform and I've found it quite hard to find out in advance what each platform will provide. (Even some expensive "do it all for you" portfolio platforms such as Moneyfarm don't do ERI for you, which I believe means that vast majority of their GIA customers are getting their tax returns wrong each year.)

[@cheepchips]

How about payment of fee's? With a an acc. Fund would Shares need to be sold periodically to cover fee's? With a Dist. Fund you naturally keep a cash balance which covers fee's so there is no need to sell shares

[@Pensioncraft]

Hi @cheepchips my Vanguard platform fees are paid with a direct debit. You can also pay them with account cash but it seems a waste of tax-invisible money to spend it on fees. I'd rather have that money compounding. Fund fees are automatically subtracted from fund returns so you never have to manually pay them. Thanks, Ramin.

[@cheepchips]

@@Pensioncraft thanks for responding 👍🏻

[@BB-bt9vj]

Great content like always, very educative and beneficial. Just a quick question, what do you think is a better choice for long term investment, LIfe Strategy 100 or Global All Cap Index ?? I have my money split between them but I would like to pick one for my future investment. I would really appreciate your opinion. Thanks.

[@GenuinePluko]

I moved from lifestrat 80 to ftse dev world ex UK. It outperforms every year on record. (Also outperforms lifestrat 100) I know past results dont guarantee future returns, but you need some metrics to make a decision 🥰

[@stevem9754]

Doesn't the Life Strategy 100 bought in the UK contain a UK companies bias (i.e. contains more than the 4% or so of UK shares that feature in a Global Fund) and therefore, because the UK has historically underperformed the US, the LF100 has underperformed Global funds?

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams..

[@agilouzochukwu9193]

Makis55 The username

[@MagicNash89]

Im the opposite, I prefer dividend etfs or stocks, lower maintenance is not an issue for me because I enjoy keeping record, but I like to reinvest dividends from one part of my portfolio into another. Also easier to hold a dividend etf, which will likely still pay some dividend during severe downturns, increasing the amount of cash I have for reinvestment at the best time.

[@alexbright7735]

I've switched to VHVG (acc version of VEVE). Global stocks without LifeS 100% without home bias.

[@CarlJones-uc8qn]

Vanguard need a small cap value fund

[@nacalle76]

Bots are attacking comments , youtube should find a way 😮

[@Pensioncraft]

Hi @nacalle76 my colleague Laura deleted them all. Thanks, Ramin.

[@MagicNash89]

KZbin should, but its been with many growing channels for as quite some time since it started

[@emelpolat4762]

I just want my momentum fund back!

[@george6977]

I believe short dated gilts are better than money market funds. When the herd of investors all want to sell MMF to buy stocks they may be gated.

[@battj1]

But, am I right in thinking that you still cannot buy fractional shares in Vanguard's ETFs on its UK platform, therefore, you may have to rebalance AND reinvest if you hold multiple funds/ETFs - which is faffy?

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending.

[@agilouzochukwu9193]

She's on telegrams..

[@agilouzochukwu9193]

Makis55 The username

[@tonygrantham3213]

These Vanguard ETFs are based in the Republic of Ireland, so I believe that if they are held outside an ISA or SIPP the dividends are to be put on the 'foreign income' section of the UK tax return, which is an added complication compared to UK based mutual funds.

[@mikerodent3164]

That's an interesting question. Often the "arrangements" (e.g. rights to work, health arrangements) between the UK and Ireland can be surprisingly cosy, even after Brexisuicide. I'd be interested to know the full details if someone has chapter and verse on this point. Also covering the question of whether **automatically re-invested** dividends from the held companies actually count as "foreign income": so whether it's preferable to buy ACC rather than INC varieties. Foreign income tax handling is usually absolutely disastrous of course. Plus some companies held in some ETFs generate more dividends (and less in the way of capital growth) than others. As you're probably aware such niceties are important outside a wrapper.

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP withdrawal pending

[@fuwaking001]

She's on telegrams..

[@fuwaking001]

Makis55 The username

[@TheRobaber]

I notice your current Developed Markets Ex-Uk fund, Risk Rating is 5 out of 7. The new Developed Markets ETF Risk Rating is 6 out of 7. Why do you think this is? Would this factor in your decision to swap?

[@GenuinePluko]

I'd like to also know this

[@coderider3022]

I think it’s because it’s ETF and traded more frequently ?

[@boradley601]

Can you cover the upcoming bitcoin etf?

[@theboltonradiocorp]

Are you not tempted at this point to switch to, say, interactive investor? Sounds like you'd save on platform fees, and you'd be able to buy the HSBC all world fund for just 0.13%, to avoid excluding EM?

[@fuwaking001]

Meet Maria she will help you recover ITP withdrawal pending

[@agilouzochukwu9193]

She's on telegrams..

[@agilouzochukwu9193]

Makis55 The username

[@thecrabpulsar]

I'm in the process of switching over my pension portfolio from HL over to Vanguard. Although HL's platform is good their charges are very expensive and their wealth fund recommendations are atrocious. Totally biased imo and promoted stuff in favour of certain players. The only minuses with Vanguard is they're currently restricted to choosing funds from their own product range. It would be nice to have the option to invest with other fund providers too. Also the fund screening service is not very good, has very limited options to choose and filter funds.

[@centurione6489]

Buying a retirement fund with over 10% allocation in a few, wildly overbought stocks doesn't seem too wise to me.

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP withdrawal pending

[@username.charles]

She's on telegrams

[@username.charles]

Makis55 The username..

[@mindcache5650]

I’ve switched completely from the U.K. £ wii be pummeled as the export balance breaks. 😮No AI all in the hands of US markets .No reason to invest in the U.K.

[@enigma1000]

Excerpt that the U.K. is unfashionable and therefore arguably cheap and arguably therefore has higher expected future returns. Depends on your risk appetite and luck….

[@gavjlewis]

I'm sticking with the Developed world ex UK fund. The ETF version you have gone for while slightly cheaper on fees will likely return me less as cash will end up sitting in my account each month with only whole ETFs being purchased. So if you only invest a little each month you might be worse off.

[@GenuinePluko]

So the ex UK (which I currently have) allows fractionals? And the new ETF must be an exact full share as such? I might stick with ex UK.if that's the case as my HMRC money appears at random and might not let me buy units if the above is the case

[@azualbet3805]

Why use vanguard at 0.15 fee when you can use t212 or Investengine at 0% for same thing?

[@thegurch7313]

The accumulation funds , if I have this and it’s outside my Isa do I still pay tax on the accumulation part?

[@tonygrantham3213]

The dividends from 'accumulation' funds are taxed in the same way as the dividends from 'income' funds. When selling an 'accumulation' fund it's more complicated to work out the capital gain or loss .. because the dividends have been re-invested into the fund, the total dividends received have to be subtracted from the current value of the holding

[@thegurch7313]

@@tonygrantham3213 many many thank yous . So I only pay tax on the dividends that have been accumulated WHEN I sell my fund or every year end?

[@MagicNash89]

I scorlled over my youtube feed and saw "Release the hounds" instead of "Release new funds"😅🤣

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP withdrawal pending

[@fuwaking001]

Makis55 The username

[@agilouzochukwu9193]

She's on telegrams...

[@euanreedie1254]

Great video, Ramin. I am a fairly novice investor and think I may follow your decision to switch to VHVG due to the lower fees etc. Is there any suggested advice on switching, though? Obviously it's impossible to time the market so is your/anyone else's advice just to switch everything all at once or do it in stages to avoid losing too much money?

[@agilouzochukwu9193]

Meet Maria she will help you recover ITP withdrawal pending

[@fuwaking001]

She's on telegrams

[@fuwaking001]

Makis55 The username