Global Equity ETF \ Bonds
Posted: December 15th, 2016, 1:52 pm
Stocks & Shares ISA
I am moving my existing Stocks & Shares ISA to a Global ETF 90 /10 split based on Warren Buffet's Portfolio. My existing Stocks & Shares ISA has been built over many years using Investment Trusts and OEIC Funds (sold to me in the past by an IFA)
Over the last year I have been progressively selling the Investment Trusts and Funds to build a Global ETF portfolio using individual ETFs to roughly copy the breakdown of the All World ETF (VWRL) but with a 15% UK bias. I have now completed Global Equity ETF 90% portion.
I am thinking about the remaining 10% of the portfolio following all of the recent news of Bond prices falling in value which has recently accelerated following election of Donald Trump and USA (0.25%) rate rise.
With regard to 'safe' Bond funds for the 10% portion.
How safe are these ETF's ;- Short dated gilts (GLTS @0.15 ocf) or Ultrashort Corporate Bond (ERNS @0.09 ocf) – The coupon is low < 1% before costs
I understand these are supposed to be equivalent to cash .
Alternatively I could put 5% of the cash in say 0-5 year Corporate Bond ETF (IS15 @0.2 ocf) which I understand is a bit higher return but higher risk or an index-Linked Gilt ETF ?.
Does anyone have any experience of these ETF's and the risk / reward of each or any other suggestions for the 'safe' / hedge part of the portfolio ?
Thanks in advance,
Martyn
Note: Note am 63, with Mortgage paid off. I have a Final Salary pension in payment which covers basic needs and I have a year’s emergency Cash reserve in a separate Cash ISA (0.75%). I also have a separate SIPP which is still growing and invested in ETFs with the aim of a similar 90/10 split portfolio. I plan to take the natural income from the Stock s& Shares ISA (described above) and reinvest any unused income s back into my separate SIPP with the aim of drawing down in a few years time.
I am moving my existing Stocks & Shares ISA to a Global ETF 90 /10 split based on Warren Buffet's Portfolio. My existing Stocks & Shares ISA has been built over many years using Investment Trusts and OEIC Funds (sold to me in the past by an IFA)
Over the last year I have been progressively selling the Investment Trusts and Funds to build a Global ETF portfolio using individual ETFs to roughly copy the breakdown of the All World ETF (VWRL) but with a 15% UK bias. I have now completed Global Equity ETF 90% portion.
I am thinking about the remaining 10% of the portfolio following all of the recent news of Bond prices falling in value which has recently accelerated following election of Donald Trump and USA (0.25%) rate rise.
With regard to 'safe' Bond funds for the 10% portion.
How safe are these ETF's ;- Short dated gilts (GLTS @0.15 ocf) or Ultrashort Corporate Bond (ERNS @0.09 ocf) – The coupon is low < 1% before costs
I understand these are supposed to be equivalent to cash .
Alternatively I could put 5% of the cash in say 0-5 year Corporate Bond ETF (IS15 @0.2 ocf) which I understand is a bit higher return but higher risk or an index-Linked Gilt ETF ?.
Does anyone have any experience of these ETF's and the risk / reward of each or any other suggestions for the 'safe' / hedge part of the portfolio ?
Thanks in advance,
Martyn
Note: Note am 63, with Mortgage paid off. I have a Final Salary pension in payment which covers basic needs and I have a year’s emergency Cash reserve in a separate Cash ISA (0.75%). I also have a separate SIPP which is still growing and invested in ETFs with the aim of a similar 90/10 split portfolio. I plan to take the natural income from the Stock s& Shares ISA (described above) and reinvest any unused income s back into my separate SIPP with the aim of drawing down in a few years time.