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Junior ISA - Fund Selection

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
AsleepInYorkshire
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Junior ISA - Fund Selection

#474223

Postby AsleepInYorkshire » January 18th, 2022, 9:29 pm

My daughter and I have been reviewing options for her first purchase into a fund. She has £9K to invest before tax year end in March.

We're looking at S&P 500. Though different funds seem to have different weightings. Who's S&P 500 seems to have the best record (noting I know past performance is no guarantee of future performance)

After the fund has been purchased we will add £750/month to the fund for the next 3 years.

I'd welcome any thoughts on other possible funds that we should consider please.

Thank you

AiY(D) & Daughter

AleisterCrowley
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Re: Junior ISA - Fund Selection

#474228

Postby AleisterCrowley » January 18th, 2022, 9:48 pm

We're looking at S&P 500. Though different funds seem to have different weightings

You've lost me a bit there - the S&P 500 is an index of US stocks, so the only(?) variations between providers are going to be
Tracking errors
Fund costs/ongoing charges
Something ekse I've probably forgotten (forex/currency risk?)



Are you set on investing only in the US market?

Newroad
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Re: Junior ISA - Fund Selection

#474229

Postby Newroad » January 18th, 2022, 9:48 pm

Hi AiY.

You can get an Invesco synthetic ETF with a 0.05% expense ratio, or iShares/Vanguard physical replication ETF's for 0.07%.

https://www.justetf.com/uk/how-to/sp-500-etfs.html

Seem as good as anything, IMO, if that's the exposure desired. I'm more of a physical replication guy myself (and prefer Vanguard over Blackrock/iShares) but won't foist my preferences on others.

Regards, Newroad

AsleepInYorkshire
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Re: Junior ISA - Fund Selection

#474230

Postby AsleepInYorkshire » January 18th, 2022, 9:52 pm

AleisterCrowley wrote:We're looking at S&P 500. Though different funds seem to have different weightings

You've lost me a bit there - the S&P 500 is an index of US stocks, so the only(?) variations between providers are going to be
Tracking errors
Fund costs/ongoing charges
Something ekse I've probably forgotten (forex/currency risk?)



Are you set on investing only in the US market?

No we're not.

I'm just trying to find the fund I saw earlier today which was I think a variation on S&P 500 (but don't quote me - been tired today)

Thanks

AiY

AleisterCrowley
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Re: Junior ISA - Fund Selection

#474232

Postby AleisterCrowley » January 18th, 2022, 9:56 pm

Best not do anything when tired ! (oddly I just posted to this effect about a minute ago on a different thread...)

AsleepInYorkshire
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Re: Junior ISA - Fund Selection

#474234

Postby AsleepInYorkshire » January 18th, 2022, 9:59 pm

Newroad wrote:Hi AiY.

You can get an Invesco synthetic ETF with a 0.05% expense ratio, or iShares/Vanguard physical replication ETF's for 0.07%.

https://www.justetf.com/uk/how-to/sp-500-etfs.html

Seem as good as anything, IMO, if that's the exposure desired. I'm more of a physical replication guy myself (and prefer Vanguard over Blackrock/iShares) but won't foist my preferences on others.

Regards, Newroad

Many thanks

AiY(D)

swill453
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Re: Junior ISA - Fund Selection

#474237

Postby swill453 » January 18th, 2022, 10:32 pm

AsleepInYorkshire wrote:After the fund has been purchased we will add £750/month to the fund for the next 3 years.

Rather than invest a £9000 lump sum now you could drop feed it in, by investing say £1000 a month for the 3 years.

Scott.

AsleepInYorkshire
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Re: Junior ISA - Fund Selection

#474243

Postby AsleepInYorkshire » January 18th, 2022, 10:47 pm

swill453 wrote:
AsleepInYorkshire wrote:After the fund has been purchased we will add £750/month to the fund for the next 3 years.

Rather than invest a £9000 lump sum now you could drop feed it in, by investing say £1000 a month for the 3 years.

Scott.

Scott I couldn't agree more. The plan was to start investing and pick a fund when we came back from holiday on 6th September last year. Our departure was delayed by 10 minutes. During that time we received a call that my Mum had fallen and was in hospital. Before Mum died on the 1st December we were occupied in organising her care, which was difficult. The investment thoughts were lost in that

A junior ISA is only allowed £9K per year. It's a bit risky investing a lump sum ... but I'll drip it in over two months at about £1K per week. Best I can do given the circumstances. But after that she's on pound cost averaging :roll:

AiY

swill453
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Re: Junior ISA - Fund Selection

#474244

Postby swill453 » January 18th, 2022, 10:49 pm

Can't she/you put it in as cash just now and invest at leisure?

Scott.

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Re: Junior ISA - Fund Selection

#474274

Postby Urbandreamer » January 19th, 2022, 7:05 am

swill453 wrote:Can't she/you put it in as cash just now and invest at leisure?

Scott.


Yes, no need to rush investing the cash once it's in the ISA. The deadline on the allowance is on contributions to the ISA.


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