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Investments

Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Index tracker funds

5 replies

Combusting · 05/01/2024 07:03

I’m in the nice position of having about £15000 to lock away for about 10 years (or more) in an S&S ISA I hold with Vanguard. This also has a regular £50 trickled into it monthly and will have for the foreseeable.

I am seeking ideas for utterly low cost, passive, cheap and cheerful index trackers with Vanguard and would like to ask if the following two are appropriate for my needs (as in needs are - automated investing, by someone who doesn’t understand or seek to understand complexities of investing, who will leave it alone for a decade at least and is simply seeking a tracker) -

  1. S&P500
  2. FTSE global all caps

Does this seem okay for it for what I describe? I know there are other trackers for eg UK FTSE 100 or emerging markets etc but for the moment if I spread the funds I have across these two they meet my needs right?

OP posts:
nannynick · 05/01/2024 07:36

Have a look at FTSE dev world.

BeccaBean · 13/01/2024 07:06

We invest in vanguard FTSE developed world ex UK equity index and very happy with long term performance

seekingasimplelife · 20/01/2024 00:00

You say you don't understand investing. I would say never ever blindly hand your hard-earned money over to something you don't understand! Research the risks; develop an understanding of your own appetite for risk; understand why index tracker funds are favoured by many; the timescales involved in mitigating the volatility, and the need to diversify.

Investing in both S&P 500 and FTSE GAC will not increase the diversification of your investment. GAC is essentially as diversified as you can achieve in terms of equities. Investing in S&P 500 alongside that increases the weighting given to US companies that are already heavily represented in the GAC. How this might affect returns is unknown.
10 years might be quite a short time-frame for investing and returns might not beat the interest you could receive on savings accounts within that window - hence the need to understand the time frames and the risks.

StuckintheRutt · 20/01/2024 23:21

What's gac??

ScandiNoirNuit · 21/01/2024 09:41

StuckintheRutt · 20/01/2024 23:21

What's gac??

Global All Caps, from the OP.

I need to check, but I think I have done a similar approach with Vanguard for the kids JISAs, but agree it is not that diversified.

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