What are your opinions on solely holding the FWRG Invesco FTSE all world ETF, which is diversified with both global developed and emerging markets in 1 fund. OR holding 2 individual funds separating the developed and emerging markets with balanced investment weights? For example investing in 90% VHVG and 10% VFEG. Interested to know your opinions, all tbe best.
Did anyone else decide on a single etf portfolio, if so how has that been?
I’ve done both.
I like the fee savings and additional diversification too much to stick with one ETF. I also enjoy keeping an eye on things so can check the balance remains okay.
Anyway there is not much in it.
i find the best way to check a funds performance over 1, 6, 12 months and 3 or 5 years is to use google finance and just etf or Invest engines fund page, compare all 3 = why not?
i think of fwrg/vwrp/ssac as a safe and secure ok fund which will cover everything the markets can and will happen (world/euro wars, economic crash etc) with less risk.
hope this helps.
So I think there are two reasons to go beyond just sticking things in an “all world” fund.
The first is that you can usually get lower fees by trying to “do it yourself”.
The second is that you retain greater control, and can try to tilt your investments towards countries you expect to do well and away from countries you expect to do badly. Personally, I like investing in the US, as well as the leading emerging markets (specifically India, Brazil, Mexico, and Indonesia) more than Europe, East Asia, Australia and Canada.
Whether those factors are enough is an individual decision.
You save ÂŁ20 a year for every 100k, so it only worthwhile for larger portfolios.
I have done this with my SIPP elsewhere as my portfolio is much bigger, but I started going down this route not to save cost but because I did some research around historic CAPE ratios and wanted a tilt towards Asia Pacific, Korea etc. which looked cheaper - it hasn’t worked out so far. I have since just changed to buying just these two.
I did some trails with this last tax year. In my ISA I used both VHVG (90%) and VFEG 10%), whilst in my GIA I held funds in FWRG. Over the period VHVG performed the best and when combined with VFEG within the portfolio, it still out performed FWRG. This wasn’t under scientific conditions and just an experiment on my part but I found it interesting all the same.
The real test I was doing was to have two portfolios in my GIA, one with FWRG and another with a mix of funds. These I did invest the same amount at the same time throughout the year and FWRG was the clear winner.
This tax year I’ve just invested in VWRP within my ISA to see how that goes. Within my GIA I will just stick with FWRG to hold funds for next years ISA.
This is a very interesting input, thank you very much for sharing. What did you discover was the statstical difference when comparing the combination of VHVG and VFEG with FWRG?Was the difference largely unnoticeable or was it considerable? I do realise at the same time that FWRG is still pretty unestablished, being around for less than a year.
I really couldn’t say as the amounts and time invested was so different between the two so it was just observational that the percentage growth was higher with the combined two Vanguard funds.
My personal conclusion is to use Vanguard in my ISA where I intend to leave the funds for long periods and the Invesco fund in my GIA. As you say it is still new but so far its performing well and the fee is low.
I sometimes hear opinions that FWRG is too new and illiquid but hasnt it gained some popularity by now?
Obviously its still early to have historic 1y 3y or 5y+ data on it but thats a separate issue.