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Post by dan1 on Apr 30, 2018 20:48:44 GMT
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. Ahhhh but you can't beat gold for that purpse... unless it's all been eaten by the gloopers 
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Post by GSV3MIaC on May 2, 2018 15:16:06 GMT
Personally I am quite happy with trackers as well as trying (and failing) to pick some winners, but I'm a bit selective (as other have said) about WHAT to track. The old 80/20 rule applies in spades, and if you are not careful you wind up with way too many eggs in the top few (mostly US, some EU) companies. If I'm gonna track, I'd rather track emerging markets, the FTSE250 (rather than the 100) or something else which has the potential to go up, as well as down .. The ones sat on the peak are (IMO) bound to head back into the pack at some point, and I'd rather not be selling them out as they exit the FTSE100, I'd rather be selling them out as they enter. As ever YMMV .. volatility and risk are probably higher in the junior leagues!
If you look at what your 'world tracker' is actually tracking, you might be surprised (HOW many % FANG?)
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hazellend
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Post by hazellend on May 2, 2018 15:24:28 GMT
Personally I am quite happy with trackers as well as trying (and failing) to pick some winners, but I'm a bit selective (as other have said) about WHAT to track. The old 80/20 rule applies in spades, and if you are not careful you wind up with way too many eggs in the top few (mostly US, some EU) companies. If I'm gonna track, I'd rather track emerging markets, the FTSE250 (rather than the 100) or something else which has the potential to go up, as well as down .. The ones sat on the peak are (IMO) bound to head back into the pack at some point, and I'd rather not be selling them out as they exit the FTSE100, I'd rather be selling them out as they enter. As ever YMMV .. volatility and risk are probably higher in the junior leagues! If you look at what your 'world tracker' is actually tracking, you might be surprised (HOW many % FANG?) The world trackers hold the exact market weight of FANG stocks, US equities etc. I believe in efficient markets so am happy to hold 50% US which is the correct global market weighting. The argument is that if you think FANG, US or whatever is too expensive, then you also think you know something that all the other market investors don't.
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macq
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Post by macq on May 2, 2018 17:01:37 GMT
while i understand the point that by mixing your own trackers you distort the market weightings there are good active funds that are not closet trackers that do know something other market investors don't (he says hopefully having both  ) |
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hazellend
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Post by hazellend on May 2, 2018 18:17:43 GMT
while i understand the point that by mixing your own trackers you distort the market weightings there are good active funds that are not closet trackers that do know something other market investors don't (he says hopefully having both ) There is plenty of good research showing that the vast majority of active managers do not beat their index after costs.
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macq
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Post by macq on May 2, 2018 18:47:28 GMT
possibly - but to be fair i would not want an active fund that is following an index.At the moment i would guess none of the trackers in my pension are beating my ISA active funds and i would expect the majority to be better in a falling market (feels like i'v come over all MSE forum now!)
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hazellend
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Post by hazellend on May 2, 2018 19:13:56 GMT
possibly - but to be fair i would not want an active fund that is following an index.At the moment i would guess none of the trackers in my pension are beating my ISA active funds and i would expect the majority to be better in a falling market (feels like i'v come over all MSE forum now!) Many have the same mistaken expectations. It’s all marketing but active funds don’t even outperform in a down market. In case you can’t tell, I am a die hard passive low cost index tracker :-)
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macq
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Post by macq on May 2, 2018 19:34:23 GMT
yep could tell  but if its a mistake the figures on my funds must be wrong  (i'm not a die hard & have a mix but hopefully we both do well) |
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but if its a mistake the figures on my funds must be wrong 
(i'm not a die hard & have a mix but hopefully we both do well)