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Timak

Numpty investment question

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I have a Halifax share dealing account and have happily been buying and selling individual shares for the last couple of years.

I want to diversify into a simple tracker with dividends.

The problem I've got is how to do it.

I've googled and seen the name of funds and shares you can buy that do this but it seems very confusing. 

Can anyone recommend a simple FTSE tracker I can just buy and forget?

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Vanguard All World ETF (VWRL) is as good as any. Hugely diversified and low management charge.

iShares MSCI World ETF (SWDA) is another although it excludes emerging markets (which VWRL has).

The dividends in ETF's don't get reinvested automatically so check how much that costs to do.

There may be unit trust equivalents but I haven't ever looked. They have accumulation units which takes care of the reinvestment but platform costs are higher.

You don't want a FTSE 100 tracker - UK is only ~7% of world stock market.

Whatever you choose check the charges. 

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12 hours ago, Timak said:

Can anyone recommend a simple FTSE tracker I can just buy and forget?

VUKE for FTSE100, VMID for FTSE250; ETFs from Vanguard. Vanguard and iShares seem to have a good selection of reasonably-priced ETFs. If you want OIECs, maybe consider one of the Lifestrategy funds?

10 hours ago, Wudolf said:

Vanguard All World ETF (VWRL) is as good as any. Hugely diversified and low management charge.

iShares MSCI World ETF (SWDA) is another although it excludes emerging markets (which VWRL has).

The dividends in ETF's don't get reinvested automatically so check how much that costs to do.

SWDA reinvests automatically btw.

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Thanks all. I think I'll go for the Worldwide one. Not that I think they are great value at the moment but I'm 80% in cash at the moment and I'd rather be 50/50.

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Before buying also understand the interdependencies between the wrapper (ISA, SIPP, trading account), as I don't know Halifax, you're buying and the product you're buying (ETF, OEIC) as the sum of the expenses can vary wildly.  You also might be better off away from Halifax, again you'll need to DYOR.

I've just been through this with my YouInvest SIPP changing its charging structure.  I was holding a FTSE All Share Tracker in the form of the Vanguard FTSE U.K. All Share Index Unit Trust with a TER of just 0.08% but my SIPP wrapper charges were about to get silly.  I sold this and built my own "All Share Tracker" using VUKE and VMID as highlighted by Inoperational Bumblebee above.

The full story is here if you're interested.

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On 29/10/2016 at 10:55 AM, wish I could afford one said:

Before buying also understand the interdependencies between the wrapper (ISA, SIPP, trading account), as I don't know Halifax, you're buying and the product you're buying (ETF, OEIC) as the sum of the expenses can vary wildly.  You also might be better off away from Halifax, again you'll need to DYOR.

I've just been through this with my YouInvest SIPP changing its charging structure.  I was holding a FTSE All Share Tracker in the form of the Vanguard FTSE U.K. All Share Index Unit Trust with a TER of just 0.08% but my SIPP wrapper charges were about to get silly.  I sold this and built my own "All Share Tracker" using VUKE and VMID as highlighted by Inoperational Bumblebee above.

The full story is here if you're interested.

Excellent reading and a very well number crunched analysis. I'm managing the wife's SIPP and to avoid fund charges built my own porfolio that (reassuringly) mirrors that of VUKE and others. Holdings include the likes of GSK, BP, Esure, HSBA, Carillion, Sainsbury's to name a few (all in all 18 dividend paying stocks with an average value of £6k per holding). Dividends are roughly 4.5% and now it's over the £100k mark it's starting to snowball. That's ~60% of the portfolio with the remainder in small cap, mining or oil plays or gambles. Some of my losses have been spectacular - £10k on one and £2.5k on another but there have been multibags too. £900 sains dividend (when holding was much larger) became £3k and I turned £2.5k into £10k with Hochschilds mining. The dividend income has saved my shirt on a number of occasions and as chaotic as my trading style is I've grown the portfolio 40% using this risky strategy. Taken profits on a platinum miner from last week (still invested) and today bought Legal and General, Bloomsbury Publishing, Centrica, Stage Coach and Debenhams (either £5k, £2.5k or £1.25k in the case of Debs). They aren't recommendations but what I have learned is that managing your own portfolio gives you a very good idea of the direction your income (it's not some made up projection mentioned at the bottom of a very expensive pension statement) is heading as today's investment income is tomorrow's pension income (i.e. the point where you no longer reinvest in shares but use it for diapers and werthers originals instead). 

My one golden rule is to only invest in companies that I use either directly or in some way (infrastructure). 

Edited by longtomsilver

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13 minutes ago, Timak said:

My global tracker is doing OK.

Obviously the individual shares I sold to buy it are up 35%!

 

Thats what diversification does, the more over diversification the lower the profits will be.

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On 29/10/2016 at 10:55, wish I could afford one said:

Before buying also understand the interdependencies between the wrapper (ISA, SIPP, trading account), as I don't know Halifax, you're buying and the product you're buying (ETF, OEIC) as the sum of the expenses can vary wildly.  You also might be better off away from Halifax, again you'll need to DYOR.

I've just been through this with my YouInvest SIPP changing its charging structure.  I was holding a FTSE All Share Tracker in the form of the Vanguard FTSE U.K. All Share Index Unit Trust with a TER of just 0.08% but my SIPP wrapper charges were about to get silly.  I sold this and built my own "All Share Tracker" using VUKE and VMID as highlighted by Inoperational Bumblebee above.

The full story is here if you're interested.

Glad I read that.  Thanks.  Yes, it's well-worth looking at changes to T&Cs.  And here, with how fund fee changes, and how you went about minimising and improving the costs you were paying.

Although my own approach is with individual shares for the moment, in my Sipp.

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