cwah
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Post by cwah on Apr 7, 2019 16:21:39 GMT
Hello I was looking at Vanguard FTSE ETF and just realised that it gives between 4 and 5% dividend yield. The FTSE 100 large cap has 4.3% yield, low P/E ratio (11) and decent return on equity (14.7%): www.vanguardinvestor.co.uk/investments/vanguard-ftse-100-ucits-etf-gbp-distributing?intcmpgn=equityuk_ftse100ucitsetf_fund_linkSo I'm thinking to move my ££ into this ETF instead of leaving it in things like Growstreet, Loanpad or other similar short term loans at 4-5%. Reason is... if the market were to tank, all stock, loan and property asset will tank as well. Default will rise and money will be stuck forever during recovery (like for Lendy) What do you guys think? The only reason to put it in short term loan is to have the guarantee of liquidity & price staying the same. But it seems the risk may not worth it?
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Post by gravitykillz on Apr 7, 2019 16:25:42 GMT
If you believe the stock market will tank buy gold back investment trusts.
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cwah
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Post by cwah on Apr 7, 2019 16:34:39 GMT
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hazellend
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Post by hazellend on Apr 7, 2019 17:52:42 GMT
Equity yield is very different to P2P income.
Remember when an ETF, equity, IT pays a dividend the capital valuation immediately drops by the same amount
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Post by gravitykillz on Apr 7, 2019 18:05:33 GMT
I prefer actual physical gold bárs and bp shares when times are bad.
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cwah
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Post by cwah on Apr 7, 2019 18:05:43 GMT
Equity yield is very different to P2P income. Remember when an ETF, equity, IT pays a dividend the capital valuation immediately drops by the same amount I know that dividend comes out of retained profit. So valuation would drop by the amount of dividend paid. However, business still keep growing so normally there is also capital gain. My point is that equity ETF are safer than p2p SHORT loans because when the market crash happens, the ETF will drop but will still be liquid. And when you sell the losses can be at max 50% if it's the worse crisis. And theoritically, if you wait long enough it will recover. But for p2p loans you funds will be stuck for years waiting for recovery with almost capital losses guaranteed. Risk of losing 100% is possible and recovery fees killing any long term recovery.
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hazellend
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Post by hazellend on Apr 7, 2019 18:36:59 GMT
Yep, I prefer equities by far. I think all ISAs should be equity.
I have mid 6 figures in VWRL
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