stevio
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Post by stevio on Apr 29, 2018 15:18:54 GMT
I have invested what I feel is my comfortable limit in passive trackers and was wondering if their are any recommendations on a type of product to progress too after trackers?
I realize this is subjective, but I imagine others might have reached a similar internal limit at some point and would be interested in what they looked at next
Yes, everyone's circumstances are likely different, but I am just looking for ideas to research and make up my own mind
I would prefer capital growth to income and looking at long term potential
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hazellend
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Post by hazellend on Apr 29, 2018 16:25:32 GMT
I have invested what I feel is my comfortable limit in passive trackers and was wondering if their are any recommendations on a type of product to progress too after trackers? I realize this is subjective, but I imagine others might have reached a similar internal limit at some point and would be interested in what they looked at next Yes, everyone's circumstances are likely different, but I am just looking for ideas to research and make up my own mind I would prefer capital growth to income and looking at long term potential Hi stevio, Quite the opposite. For me, I ended up only investing in a global passive tracker after years of trying different strategies ( and failing )
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stevio
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Post by stevio on Apr 29, 2018 17:13:34 GMT
I have invested what I feel is my comfortable limit in passive trackers and was wondering if their are any recommendations on a type of product to progress too after trackers? I realize this is subjective, but I imagine others might have reached a similar internal limit at some point and would be interested in what they looked at next Yes, everyone's circumstances are likely different, but I am just looking for ideas to research and make up my own mind I would prefer capital growth to income and looking at long term potential Hi stevio, Quite the opposite. For me, I ended up only investing in a global passive tracker after years of trying different strategies ( and failing ) Thanks Hazel
Maybe there's value in knowing what didn't work then and to what level?
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macq
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Post by macq on Apr 29, 2018 17:26:11 GMT
Do wonder what you mean by comfort level as trackers will save you time in research etc (i have active & passive investments so don't get involved in the debate as to which is best  ) Are you looking long term for income or non equity ? maybe an IT or property REIT Are you looking for more risk in Tech or Bio Tech etc or just an active global fund.If looking Global i would look for a fund which does not have the same old companies as in your tracker. The other option could be to look into private equity funds such as Pantheon among others which tend not to move in the same way as listed equity & with the IT's tend to trade at a discount (as they are a bit less liquid but should be fine as a long term holding) or some IT's such as Witan or F&C invest in them as well as normal stocks in the same fund for a mix |
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stevio
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Post by stevio on Apr 29, 2018 19:32:44 GMT
I feel like I should be diversifying, but maybe that is a feeling leftover from P2P. Trackers seem to generally be well diversified with over 500+ shares and almost self rebalancing
Once decided on, do trackers not really need an upper limit?
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macq
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Post by macq on Apr 29, 2018 20:43:24 GMT
I feel like I should be diversifying, but maybe that is a feeling leftover from P2P. Trackers seem to generally be well diversified with over 500+ shares and almost self rebalancing Once decided on, do trackers not really need an upper limit? Probably is no upper limit if your happy but with global trackers i would want one with more then the 500+ shares (at least 5 to 10 times more) .I started investing before trackers started but while i have used them due to the choices within my pension i have still kept my active funds.The active's have done really well and seem to have fallen less in down times using them along with ETF's also gives me more investment choices (someone may tell me thats a bad thing but so far so good) Some people like to buy a high conviction fund due to the fact that a tracker will buy the market so ending up with good as well as bad. You could try a cheap multi asset fund like VLS,L&G,HSBC or something like Baillie Gifford managed fund which has low fees if that is an issue.I also prefer property trusts to the P2P style of PP or PM etc and have had regular payments being reinvested every month for quite a few years with growth as a bonus
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bigfoot12
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Post by bigfoot12 on Apr 29, 2018 23:29:14 GMT
stevio , I think that trackers have much to offer, and there are so many of them I can't imagine reaching a limit. Do you use your full capital gains allowance? If not there are funds that target a very low income but aim for capital growth. The fees are generally higher than trackers, but to make use of the CGT allowance they can be worthwhile. Also I have largely sold all trackers with a significant USA allocation and bought those in markets that using CAPE seem cheaper. Another thing I do, not sure it is good, and I wouldn't recommend it to most people I know, but you asked, so I buy investment trusts and venture capital trusts at a discount to NAV. I have some experience in this world and I have been lucky, but my guess is it is much higher risk than being entirely invested in a few trackers. (There are also trackers that track bond markets. But at these levels I don't think that the diversification makes sense - but I am often wrong.) (I am replying after midnight and a few drinks, so don't do anything until I have had a chance to reread this in the morning!)
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stevio
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Post by stevio on Apr 30, 2018 4:47:13 GMT
stevio , I think that trackers have much to offer, and there are so many of them I can't imagine reaching a limit. Do you use your full capital gains allowance? If not there are funds that target a very low income but aim for capital growth. The fees are generally higher than trackers, but to make use of the CGT allowance they can be worthwhile. Also I have largely sold all trackers with a significant USA allocation and bought those in markets that using CAPE seem cheaper. Another thing I do, not sure it is good, and I wouldn't recommend it to most people I know, but you asked, so I buy investment trusts and venture capital trusts at a discount to NAV. I have some experience in this world and I have been lucky, but my guess is it is much higher risk than being entirely invested in a few trackers. (There are also trackers that track bond markets. But at these levels I don't think that the diversification makes sense - but I am often wrong.) (I am replying after midnight and a few drinks, so don't do anything until I have had a chance to reread this in the morning!) Drinking on a Sunday!  May I ask why you are selling trackers with significant USA allocation?
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bigfoot12
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Post by bigfoot12 on Apr 30, 2018 7:54:36 GMT
May I ask why you are selling trackers with significant USA allocation? I've mentioned in another thread that rather than owning a single global tracker I hold about 10 trackers which I re-balance from time to time. At the moment the top 500 or so US stocks seem particularly expensive, to me, when compared to most other markets. So I have sold out of much of my US holdings. Of course there are many reasons that explain that the US markets are not more expensive, and on the other hand there are other reasons to explain why it is correct that they are so priced...
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macq
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Post by macq on Apr 30, 2018 8:34:38 GMT
May I ask why you are selling trackers with significant USA allocation? I've mentioned in another thread that rather than owning a single global tracker I hold about 10 trackers which I re-balance from time to time. At the moment the top 500 or so US stocks seem particularly expensive, to me, when compared to most other markets. So I have sold out of much of my US holdings. Of course there are many reasons that explain that the US markets are not more expensive, and on the other hand there are other reasons to explain why it is correct that they are so priced... Sounds like you are passive aggressive but a genuine question - with that many trackers do you see yourself as an active or passive investor?
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bigfoot12
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Post by bigfoot12 on Apr 30, 2018 9:41:27 GMT
"I don't really like to label myself..."
There isn't a single tracker that would work for me. I want more exposure to the UK and Europe than any global tracker has. In the past I have had more exposure to Asia than the global tracker would have had (mixed success). But I hold these positions for multiple years, perhaps re balancing once or year, or slightly more often if markets are very volatile.
In my list of ETFs I include fixed income funds and commodities, though I have held very little fixed income for a few years now (just some index linked gilts and US TIPS). I think that some people just refer to their equity holdings when they hold a single fund.
If you invest in a tracker you have to be happy to track that index. If you had lived in Finland in the 1990's and bought the local tracker 60%+ of your money would have been in Nokia - hardly a diverse portfolio. Now in the UK there are lots of things I don't like about the criteria for inclusion in FTSE (all versions).
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macq
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Post by macq on Apr 30, 2018 10:45:58 GMT
Would agree about the label but you must have one to take part in some of the more rabid passive v active debates on MSE !  but really its what makes you happy and hopefully money. Have a few trackers more for monthly payments as i still prefer the active funds for market falls (gut feeling) also ETF's for a couple of more varied area's.Fair point about Nokia but that's the trouble with trackers following the Footsie 100 pushed by banks & building society's in that you end up with most money in Vodafone or HSBC etc but are told that's safer |
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hazellend
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Post by hazellend on Apr 30, 2018 16:22:13 GMT
I have low/mid 6 figures in one global passive tracker (vanguard all world etf)
Life is easy now, no stress.
Market goes up and down and I keep adding. No thought required any more.
Nothing like the head fxxk P2P can be he he!
Might harvest some tax free capital gains at some point
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Post by dan1 on Apr 30, 2018 18:16:07 GMT
I have low/mid 6 figures in one global passive tracker (vanguard all world etf) Life is easy now, no stress. Market goes up and down and I keep adding. No thought required any more. Nothing like the head fxxk P2P can be he he! Might harvest some tax free capital gains at some point But what to do with all those dividends rolling in? I couldn't take the torture😁
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hazellend
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Post by hazellend on Apr 30, 2018 20:03:46 GMT
I have low/mid 6 figures in one global passive tracker (vanguard all world etf) Life is easy now, no stress. Market goes up and down and I keep adding. No thought required any more. Nothing like the head fxxk P2P can be he he! Might harvest some tax free capital gains at some point But what to do with all those dividends rolling in? I couldn't take the torture😁 Yes it is tough for sure! All world index has a nice low dividend of 1.8% per year so good one for investing outside of tax shelters if you want to avoid dividends.
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)
but really its what makes you happy and hopefully money. Have a few trackers more for monthly payments as i still prefer the active funds for market falls (gut feeling) also ETF's for a couple of more varied area's.Fair point about Nokia but that's the trouble with trackers following the Footsie 100 pushed by banks & building society's in that you end up with most money in Vodafone or HSBC etc but are told that's safer
