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Satellites to supplement VWRP

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
tgboswell
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Satellites to supplement VWRP

#431502

Postby tgboswell » July 30th, 2021, 3:20 pm

Hello

I'm 28 years old and considering switching from VLS100 to VWRP (VANGUARD FTSE ALL-WORLD UCITS ETF (USD) ACCUMULATING) as my core holding. I'm wondering what satellites would be suitable alongside VWRP.

My current portfolio in my SIPP:

Vanguard LifeStrategy 100% (Core holding)
BMO Global Smaller Companies
JPMorgan Emerging Markets Investment Trust
Scottish Mortgage Investment Trust
Worldwide Healthcare Trust

I'm switching from VLS100 because after some research, I discovered it has a home (UK) bias. However, if I hold VWRP as my core holding, is it suitable to also have an active Emerging Markets Investment Trust as well as a global smaller companies trust alongside VWRP? Or should I just ditch the rest except for Scottish Mortgage and Worldwide Healthcare Trust?

Urbandreamer
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Re: Satellites to supplement VWRP

#431515

Postby Urbandreamer » July 30th, 2021, 4:22 pm

tgboswell wrote:I'm switching from VLS100 because after some research, I discovered it has a home (UK) bias. However, if I hold VWRP as my core holding, is it suitable to also have an active Emerging Markets Investment Trust as well as a global smaller companies trust alongside VWRP? Or should I just ditch the rest except for Scottish Mortgage and Worldwide Healthcare Trust?


Well I hold similar trusts. My choice was

TEM (emerging markets)
IBT (biotec rather than healthcare)
SMT
& BMO Global smaller Companies.

I also hold
Civitas (a social housing trust)
Pacific Horizons
TRIG (renewable energy)
F&C
Murray International
Henderson Far East Income
and CTY..

But then I don't have a index tracker, though it has been argued that CTY performs similar to a FTSE100 tracker.

To some extent it depends upon your attitude to index trackers. If you are a strong proponent of passive investment then investing elsewhere is simply wasted effort. If you believe that active choices can produce good results then obviously tilting your portfolio is the way to go. I view the core and satellite model as an attempt at a half way house. Ie the core tracker does most of the work and keeping the satellites small means that the investor can have some "fun" without doing too much damage.

On the subject of fun, I recommend seeing if you can't find Video's replacing the AGM during covid or portfolio update of the trusts that interest you. I enjoyed SMT & IBT's offerings.

kempiejon
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Re: Satellites to supplement VWRP

#431529

Postby kempiejon » July 30th, 2021, 5:17 pm

tgboswell wrote:Hello

I'm 28 years old and considering switching from VLS100 to VWRP (VANGUARD FTSE ALL-WORLD UCITS ETF (USD) ACCUMULATING) as my core holding. I'm wondering what satellites would be suitable alongside VWRP.

My current portfolio in my SIPP:

Vanguard LifeStrategy 100% (Core holding)
BMO Global Smaller Companies
JPMorgan Emerging Markets Investment Trust
Scottish Mortgage Investment Trust
Worldwide Healthcare Trust

I'm switching from VLS100 because after some research, I discovered it has a home (UK) bias. However, if I hold VWRP as my core holding, is it suitable to also have an active Emerging Markets Investment Trust as well as a global smaller companies trust alongside VWRP? Or should I just ditch the rest except for Scottish Mortgage and Worldwide Healthcare Trust?



As you hold in a SIPP VWRP is a better choice than the distributing VWRL as you're not paying to re-invest. If you look at the country distribution you'll see VWRL is something like 50/60% USA.
Here's a slightly different version.
I made a pick and mix VWRL copy with with other vanguard ETFs for a slightly lower ongoing costs I chose USA-(VUSA), Europe -ex UK (VERX), Emerging markets (VFEM), Asia Pacific exJapan (VAPX)and Japan (VJPN) it does allow me to balance my weightings to other global areas but I see the tilt's you've ticked are something quite different.

mc2fool
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Re: Satellites to supplement VWRP

#431531

Postby mc2fool » July 30th, 2021, 5:25 pm

tgboswell wrote:Hello

I'm 28 years old and considering switching from VLS100 to VWRP (VANGUARD FTSE ALL-WORLD UCITS ETF (USD) ACCUMULATING) as my core holding. I'm wondering what satellites would be suitable alongside VWRP.

My current portfolio in my SIPP:

Vanguard LifeStrategy 100% (Core holding)
BMO Global Smaller Companies
JPMorgan Emerging Markets Investment Trust
Scottish Mortgage Investment Trust
Worldwide Healthcare Trust

I'm switching from VLS100 because after some research, I discovered it has a home (UK) bias. However, if I hold VWRP as my core holding, is it suitable to also have an active Emerging Markets Investment Trust as well as a global smaller companies trust alongside VWRP? Or should I just ditch the rest except for Scottish Mortgage and Worldwide Healthcare Trust?

But in two other very recent posts you said that Vanguard Target Retirement 2055 is your core holding!?!

viewtopic.php?f=8&t=30581
viewtopic.php?f=8&t=30489

And indeed in both of those posts, which are very similar to this one, you ask about "satellites" to your core holding, so maybe it might be an idea to consolidate your threads?

tgboswell
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Re: Satellites to supplement VWRP

#431534

Postby tgboswell » July 30th, 2021, 5:34 pm

mc2fool wrote:
tgboswell wrote:Hello

I'm 28 years old and considering switching from VLS100 to VWRP (VANGUARD FTSE ALL-WORLD UCITS ETF (USD) ACCUMULATING) as my core holding. I'm wondering what satellites would be suitable alongside VWRP.

My current portfolio in my SIPP:

Vanguard LifeStrategy 100% (Core holding)
BMO Global Smaller Companies
JPMorgan Emerging Markets Investment Trust
Scottish Mortgage Investment Trust
Worldwide Healthcare Trust

I'm switching from VLS100 because after some research, I discovered it has a home (UK) bias. However, if I hold VWRP as my core holding, is it suitable to also have an active Emerging Markets Investment Trust as well as a global smaller companies trust alongside VWRP? Or should I just ditch the rest except for Scottish Mortgage and Worldwide Healthcare Trust?


But in two other very recent posts you said that Vanguard Target Retirement 2055 is your core holding!?!


And indeed in both of those posts, which are very similar to this one, you ask about "satellites" to your core holding, so maybe it might be an idea to consolidate your threads?



I have very recently switched from Vanguard Target Retirement 2055 to VLS100 and now I am considering another switch, after further research. Yes all of those posts are similar, however, I'm asking different, yet similar questions for different answers to obtain different information. I'm therefore refining my questions rather than asking the same questions

mc2fool
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Re: Satellites to supplement VWRP

#431547

Postby mc2fool » July 30th, 2021, 6:03 pm

tgboswell wrote:I have very recently switched from Vanguard Target Retirement 2055 to VLS100 and now I am considering another switch, after further research. Yes all of those posts are similar, however, I'm asking different, yet similar questions for different answers to obtain different information. I'm therefore refining my questions rather than asking the same questions

Two days ago you posted you held Vanguard Target Retirement 2055 as your core holding, and between then and now you've switched it to VLS100 and now you are considering switching to VWRP ...

And five days ago you posted you were thinking of investing in satellites of Global Smaller Companies, Emerging Markets, Global Property, Global Technology, Infrastructure and Health, and two ago ago posted you held BMO Global Smaller Companies, JPMorgan Emerging Markets Investment Trust, Scottish Mortgage Investment Trust and Worldwide Healthcare Trust, and you are now asking if you should ditch half of them ...

May I suggest that you, in the words of Eisenhower, Don’t Just Do Something; Stand There!

Itsallaguess
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Re: Satellites to supplement VWRP

#431550

Postby Itsallaguess » July 30th, 2021, 6:07 pm

mc2fool wrote:
tgboswell wrote:
I have very recently switched from Vanguard Target Retirement 2055 to VLS100 and now I am considering another switch, after further research. Yes all of those posts are similar, however, I'm asking different, yet similar questions for different answers to obtain different information. I'm therefore refining my questions rather than asking the same questions


Two days ago you posted you held Vanguard Target Retirement 2055 as your core holding, and between then and now you've switched it to VLS100 and now you are considering switching to VWRP ...

And five days ago you posted you were thinking of investing in satellites of Global Smaller Companies, Emerging Markets, Global Property, Global Technology, Infrastructure and Health, and two ago ago posted you held BMO Global Smaller Companies, JPMorgan Emerging Markets Investment Trust, Scottish Mortgage Investment Trust and Worldwide Healthcare Trust, and are now asking if you should ditch half of them ...


Bloody hell - have they finally made pickering an Olympic event?

Cheers,

Itsallaguess

NotSure
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Re: Satellites to supplement VWRP

#431584

Postby NotSure » July 30th, 2021, 9:08 pm

mc2fool wrote:
tgboswell wrote:I have very recently switched from Vanguard Target Retirement 2055 to VLS100 and now I am considering another switch, after further research. Yes all of those posts are similar, however, I'm asking different, yet similar questions for different answers to obtain different information. I'm therefore refining my questions rather than asking the same questions

Two days ago you posted you held Vanguard Target Retirement 2055 as your core holding, and between then and now you've switched it to VLS100 and now you are considering switching to VWRP ...

And five days ago you posted you were thinking of investing in satellites of Global Smaller Companies, Emerging Markets, Global Property, Global Technology, Infrastructure and Health, and two ago ago posted you held BMO Global Smaller Companies, JPMorgan Emerging Markets Investment Trust, Scottish Mortgage Investment Trust and Worldwide Healthcare Trust, and you are now asking if you should ditch half of them ...

May I suggest that you, in the words of Eisenhower, Don’t Just Do Something; Stand There!


It happens - I went through a similar process when I started my ISA. I was with Vanguard, so no frictional costs while you climb the steep part of the learning curve and settle on a strategy that suits your aims and confort levels. I don't 'fiddle' anymore, but hold almost nothing I did in month 1.

Genghis
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Re: Satellites to supplement VWRP

#431743

Postby Genghis » July 31st, 2021, 6:54 pm

Given your tendency to fiddle, I’d settle on one global equity fund then if your risk tolerance requires it, dilute with some bonds. Fin.

I used to have a slice and dice approach and I’d read something and feel the need to do something. I simplified and now I don’t.


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