I only use one portfolio, as I manually allocate.
If you want to auto-invest/auto-rebalance, and have flexibility over how much goes into a ‘money market’ ETF - you would need to set up multiple portfolios.
You can include the same ETF in multiple portfolios, if needed. This might be necessary if looking to be able to quickly switch funds between ETFs - given IE’s ring-fencing of portfolios.
In the linked Help, it implies you have to await settlement before moving cash between portfolios.
Time to sell then buy
Note though, for anyone considering tactically switching between investment options: the evidence shows most are best off selecting an asset mix that suits their risk tolerance and sticking to it.
Set-aside cash is for unexpected eventualities; or for up-coming spending if you are living off your capital.
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HI
A followup if i may i have setup savings plan and auto invest / re-balance to automate the process.
Question i have done a weekly invest is this better that monthly or not?
I was told doing it weekly helps spread the fluctuation of the dollar price even though have a £ ETF’s
VHVG & VFEG i was told verything is effected by dollars.
With the difference in the buy sell ratio that investment companies use do a weekly or monthly make any difference?
It does make sense, but you will be paying more on bid-offer spreads…albeit a lower percentage. I have personally put money when I have it available, usually twice per month.
Is there any formula to work this out approx i am doing £1125.50 each week but on mine and my partners account.
We could do £450 a month each but how do you work out the cost?
My maths skills are not that advanced
Hi, my understanding :-
History says investing a lump-sum in one go is more profitable over the long-term than drip-feeding the same amount in. It is not guaranteed though, something like 2/3rds of the time.
The problem is the risk of regret - putting a lump-sum in and watching its value fall significantly might put you off investing any more. Drip-feed in and the price paid is averaged out.
So, history says put the money to work as soon as you have it - if paid monthly, subscribe monthly. But, if inclined to be depressed watching the value fall, maybe drip-feed more frequently.
Currencies are constantly fluctuating so there is little point trying to time them. The divergences tend to average out over the long term. A fund may be $ based but the underlying companies are trading in local currencies generally, so the $ is just a basis for the fund.
Buy/Sell ratios are used in shorter-term trading to try to outperform, but active traders don’t beat the market on average, so I wouldn’t be inclined to try to emulate them. Given IE trades once/day timed strategies are not workable on IE anyway.
Some platforms charge a fixed price per transaction (not IE) - then it can make sense to bulk up trades from a total-cost perspective.
Only history can really say whether weekly or monthly investing will turn out to be more profitable.
Lump Sum vs drip-feed
accepting currency risk in Equities can help
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