Thank you so much! Glad you enjoy the editing I sometimes watch them before launching and think Damien… what the hell you playing at here. This is a finance video
But if you invest in say ftse dev world, msci world or ftse all world index etc you are still getting a large exposure to the US and currency fluctuation risk. Plus the UK hasn't exactly done well since about 2009. Plus the UK hasn't exactly done well since about 2009
If you invest in a ftse all world index, ftse dev world or msci world etc you are still getting a large exposure to the US and currency fluctuation risk
That’s exactly what Japanese like. They want to get foreign exchange exposure (without paying big spread). Japanese are escaping from their own currency
That final point you made about what is and isn't actually in your control was a really good one. People, myself included, get sucked into that trap too often. Great video as always Damien!
Would be great to see a video going over all the aspects of VWRL as I’m sure many people will be using or considering this fund. Things like past performance, geographical spread, how often it pays out and how that process works, etc. for people that find the info on Vanguard’s website confusing.
I love how you really focused on the psychology and strategy versus your own self and what works for you at the end. Great insight, really similar to myself I have to say. Thanks Damo mate.
Thank you for your honest opinion. I agree with you on 90% in global index for a better sleep and remaining 10% you can enjoy in putting on some individual stocks, gold or crypto.
I didn’t even know anything about the S&P500 or Vanguard or Index Funds until I saw your channel. I’ve been consistently investing every month in the S&P500 and a lifestrategy fund. I can’t believe amidst all my investments the S&P500 ALWAYS outperforms everyone else. The others bring a profit, but S&P500 brings the biggest profits. I still keep my hand in the globe because I think as economies grow they tend to make foreign partnerships and this boosts other economies. That’s my basic theory. I think it’s a more reliable idea of a pension than the state pension because the maths is real and the returns are potentially enormous Plus, just because USA has been great who’s to say that won’t change? Anything can happen, as we have seen many changes happen across the world
I also didn't know anything about these things but have been trying to learn through watching this channel. Can I ask you how you got started investing? Even if I have money to invest, I don't physically know how to do it, beyond using one of the apps I'm constantly being target advertised?!
I've only been investing for a couple of years and I've seen on many UA-cam channels the advice to diversify by going 50/50 S&P500 and Global, but, as you point out, by doing this the portfolio is heavily weighted towards US stocks and the cost of the Global fund is quite high (by Vanguard's standards). What I have done is to invest 50% in the S&P500 but then invested the rest in funds which together make up the rest of the world, Developed Europe ex UK, FTSE 100, Emerging Markets and Developed Asia/Pacific. This keeps the US stocks down to 50% and also reduces the charges. Like I said, I'm a Newbie so if I'm missing something please let me know. Great channel by the way.
I had a very similar portfolio up until recently, with 5 ETFs covering S&P 500, Developed Europe ex UK, FTSE 100, FTSE Japan, and emerging markets. I really liked that way of doing it and it is nice being able to clearly see which regions are doing well at any given time! Now I have decided to just do the same with 2 funds. A developed markets index ETF and an emerging markets index ETF. The first 4 ETFs I mentioned above are all covered by a developed markets index, whilst still keeping emerging markets separate allows me to control the proportion I want between developed and emerging. Also, there are some very low fee developed markets indexes out there when you shop around!
Correct 50/50 creates a massive overweight in US stocks. The only issue I see with your strategy is you will need to often rebalance your weighting to ensure there’s not any over exposure etc. effectively timing the market which historically is not good. Personally a set and forget is ideal for most small investors and to focus their time on improving skill sets to earn more money to invest more capital. Instead of wasting time worrying about a few basis points. Just to be clear I understand your reasoning and strategy 👊🏽
Always great videos! Watching them from someone who failed miserably at Maths at school. Now at 44, you’ve got me engaged about investing. So thanks 👏👏👍
Solid advice as usual. I do Life Strategy 100% and s&p ETFs. Seems to be doing the job. Pay it and forget it and if I'm lucky enough to be alive in 30 years I'll spank it all like a 90s stockbroker.
So so grateful for this one, Damo! These are the questions I really needed answers to, but I was too stupid to actually formulate the question 😁 It was also really reassuring from 09:50 onwards to feel like I'm not the only person in the world to do daft things. THANK YOU 🥰
I think Vanguard is being a bit naughty with the management fee for VWRL/VWRP. The developed world ETF VEVE/VHVG has a fee of 0.12%. Their emerging market ETF VFEG/VFEM has a fee of 0.22%. VWRL/VWRP is approximately 90% VEVE/VHVG & 10% VFEG/VFEM so the fee should be around 0.13% really, not the 0.22% they charge.
What an absolutely fantastic vid. Great to get your mindset and see the reason behind your choices, even if in the moment they may lead a slightly lower number. The logic around the no touch approach.
In the first 25 years of your investing life, the amount you save and invest has a far bigger impact on the growth of your wealth than your returns. Global index is the way to go.
Really appreciate the effort, i would definitely say that the quality of your videos actually encouraged me to start investing journey in UK ..Thanks Damien for telling the stuff so calmly yo avoid this panic behaviour in investment strategy
Damo, you might not realise it yet but you are a modern day prophet. Thanks for your help in spreading honest information to those who may never receive it.
Great video with Your style of editing! Awesome work Damien! Over 2 years ago I didn't know anything regarding investing. I was thinking investing is for people who have a lot of money. With your help I have started investing and slowly diversyfy my portfolio. Thank you so much for what you do! 👏👍🖖
I do only FTSE Global All cap, but it's more for my peace of mind, the fact that I can rest knowing that if an economy collapses I'll be relatively covered. Ultimately trying to game to get the best return is a bit futile, just invest in something that you can sleep at night and do it regularly
Good to see you’re doing well Damian. Interesting topic. Looking at global index funds outside of Vanguard the HSBC FTSE All World looks good with a low fee of 0.13%.
@@tazzer6959 Interesting, I’ll have to look into that one. Edit: ok so the difference is that PRWU is developed world only while the HSBC is a true All-World fund (developed world & emerging markets)
Also going for the global index here. What would you say for their big TER discrepancy though? The S&P is significantly cheaper. Thanks for the content!
Thanks damo great helpful video and i am now investing in global all cap and not going to tinker or worry about what etfs to invest in etc, sold all my etfs and now going all im on one fund as same as you its easy to over complicate things, simple and easy 😊
Nice one Damien. I am very similar to you in how I think and its good to see I have already come to the same conclusion as you and stuck with the global index vanguard!
This video is excellent. The honesty and transparency is quite unique here. Personally, the way I made peace with my decision is thinking that I am a working class person, investing some money in the stock market but nothing that would be life changing in terms of returns. At this point in life, I’m better off using my time to make more money than overthinking the very little I’m able to invest. This strategy meant that I managed to grow my anual income by £10k in the past year. I’ve been putting all my investments in S&P500 and don’t even look again or think about it. When I get to a point that I have a significant amount of capital to invest, then it will be the time to spend more time and effort to study my options. I see my investments as a top up on my retirement in 30 years, I simply don’t have enough to invest with mortgage and all life shenanigans to get any life changing returns, so it doesn’t seem worth to overthink it.
Excellent mindset. Invest in yourself first to maximise your income instead of worrying about percentage points on small amounts of money. Invest hold and forget… good luck I’m sure you will prosper greatly with your mind frame 👊🏽🤝🏽
I opted for a s&p 500 etf, an EU and a "developing" rest of world fund. This way I can control the percentage invested in each region myself. But .. its hard to see the EU region performing well over the next 10 years and events in America will hugely impact the EU anyway so it's not great for diversification either. So I opted to reduce the amount i invest into the EU region and increase the rest-of-world investment.
Your outlook on the economies you're investing in is completely irrelevant. If you can't see the EU performing well so does market which will price European equities accordingly. That's why Europe has a lower P/E ratio than the US. That does not mean that those markets will underperform
Hi Damian , what’s your thoughts on 50% portfolio on snp500 and the other 50% on vwrl ? That should surely solve the problem. Another great video tho mate
Damn ..that last point can not be underestimated. By pulling the focus to what you do have control over financially it builds a habit far more worthy of our time than checking graphs.
It's good to be reminded about this stuff. I don't retain everything I read/learn about as I'm not 'in it' every day, so this was really valuable. Cheers!
Insightful perspective. A global index fund would be less stressful. I'd also be wondering in hindsight whether I should've gone with the S&P 500. But given the US federal government's militarism and interventionism abroad, forcing countries to de-dollarize, I think you've made a very wise choice in going with a global index.
Recently retired and looking at options on where to invest my pension pot. Getting advice from professionals but have decided to keep some pocket money back to do a bit of investing. These videos have been interesting and entertaining. I’ve started off by buying some S&P500 and a global index. Thanks for making what I thought was a dull subject that I thought I’d never get my head around something I can dabble with and enjoy.
VWRL for the win - I've been building this one up for MONTHS because I too am an idiot. The hands off approach, being a rational optimist and expecting the world to grow makes this ETF an obvious choice! 📈
It’s worth mentioning the exchange rate implications here.. When investing in overseas markets a strengthening pound will reduce your returns. A weakening pound improves your return
In your video you say that investing in a global fund means you don’t have to worry about FX rates… but from what I’ve seen most global funds are not hedged so are subject to FX fluctuations… the weak pound helped my portfolio a lot last year (btw love your videos, thank you for the content)
@@mdubaj Yes sorry i should have clarified this more, FX impact is there especially exposure to the dollar with a 65% allocation to that market, what i meant was I am exposed to all manner of currencies through a global approach and I really just work on the basis of it will all average out in the end. I don't change my investment strategy as a result. Also long term the pound has fallen against the dollar and if that trend continues i do ok anyway.
Maybe FX could be a topic discussed in a future video… after all, Argentinian stock market returns have smashed the S&P 500 (just a shame their currency tanked too 😂)
Funds will usually offer the ability to invest in the currency you want to take the investment in. Could you not just pick the currency share class of the fund in your home currency and remove the fx fluctuation on your investment?
Surely though, while a global fund (such as the FTSE all caps) is heavily weighted to the US at the moment, if in the future the US does slide significantly and other economies take over, the fund will automatically rebalance? Therefore a 50/50 split between an S&P fund and an All World fund only overweights the US at the moment, but that won't necessarily always be the case?
Agreed. This comment supports just going for a FTSE All World, with the peace of mind knowing it'll balance if macroeconomic factors move things. I just need to calculate how much more it'll cost in fees. (Not financial advice)
Loved this video, so helpful! Would appreciate a video covering your thoughts on a SIPP/the pots you have going for your retirement. Thanks for the great content as always
Thank you for this, it really is nice to see the perspective of an investor who is not based in the US. As a US investor I often feel a bit crazy buying our equivalent of the total world index VT. So many people around me fall victim to home country bias and see no point in buying the world market when the US has done so well. It's not that I think the US won't do well going forward.... I just don't know. What I know is the world SHOULD do well.... My IRA and workplace 401k are split between US/International to match market cap weights... it's just nice to see there are others out there in other countries who share the same idea as me.
Home bias is a thing here in the UK also even with our market not doing well! In the same way the "America is all i need" approach is heavily touted by many here. I think you have put it really well. We don't know if America will do well but the world should. If it doesn't well we are screwed anyway haha
Home country bias is not all that bad. There’s research showing that people in developed countries achieve best risk adjusted return when they invest 35% in home country. Think about Canada’s stock market represents only 3% of global value, that’s 30% higher. For Americans where the U.S. stock market is 60% of global market, 30% on top of 60% is 90%. And so all in S&P really isn’t bad investment if you are American.
I'm a bit older than you and started late so I'm gonna go for the (currently) higher return of the Vanguard S&P for my SIPP, but if things change I'll move it into the global Index. I'll cross that bridge when I come to it.
Think carefully what you are saying? You have limited Time and are going to have a punt on past performance in the hope for future profits and if it goes wrong you will potentially sell a badly performing fund at a low and exchange it for a potentially better fund at a higher cost. That’s called timing the market. Keep researching and come up with a more balanced approach strategy.
I've made some money out of property. 25 years hard slog. I'm fed up with conmen out there flogging overpriced courses to gullible souls promising them get rich strategies. You need a side income for investments, that's why they sell their snake oil. Difficult to find people that are authentic and genuine but my initial impression of this channel is that this gentleman seems honest. I want to invest in something else but don't know anything other than property. Too much hassle and returns are not great.
Great video as always. One comparison I’ve wanted to see is the Global All Cap vs 100% life strategy. Is there any point moving across to the all cap? Or take the bet on the UK weighted market with the LS.
Well said at the end, applies to everyone. Bonds : no one appears to talk about these and makeup of their portfolio but appreciate the common theme is 20yr+ strategy.
Great vid! Didn’t you say All world has avg return of 10% over the years? But then mentioned at the end an avg return of 8.3%? Was that just factoring in inflation rates?
I went for VUSA and VWRL. Otherwise I'm also building up my portfolio of TSLA shares, and I have a small account for daytrading. I mainly do momentum trading with that.
Another excellent and thoughtful video. Good sound advice (OK not 'advice' - but insight 👍😉😀) As an older investor, close to retirement, I've still got a good few years to keep invested and I hope sustain and grow my funds, it's good to have some diversity, and loved your comments about keeping the monkey brain busy with a small active % of the porffolio, while the bulk is in the index (be it All world or S&P)
You see things so clearly Damien, superb video For myself, I’ve always been an avid saver & investor throughout my life and done quite well I think being 67 in a week! But I’ve always been surrounded by nay sayers saying invest in domestic property, which has also done well. So my question is have your peers been saying similar and how do you respond?
Thanks Damien, great video. What are your thoughts on the LifeStrategy Vanguard funds? Im considering the 100% equity one. Have you ever considered these and if so, what would put you off from picking it? It has similar exposure and fees to the FTSE Global index fund you described in the video. Your thoughts would be really appreciated, thanks
The great advantage in investing in world indexes is that whichever countries wins, we win: we don’t know if and when China will take over the US dominance, or maybe there is a sudden change of balance and Indonesia suddenly becomes the leader in a few years, or Canada, The UK, Australia and New Zealand unite and form a new super productive superpower…. in any case, a global index will adapt, so if in 50 years from now US stocks will be worth nothing compared to Indonesian stocks, then your index will be full of them. If nothing changed and the US stays the leader, then your index keeps following the US. You are always siding with the winner, therefore winning yourself every time
This concept of the fund constantly rebalancing without any emotion and to a degree cost to the holder is probably the most important reason to invest in world indexes, that and diversity. The only downside is the dividends aren't that great.
Glad to see youve recovered and your video quality is still S tier 👌 Im gona try and create a gobal portfolio with lower fees. 60% SPXP fee .05% S&P500 4.28% ISF fee .07% FTSE 100 0.72% VMID fee .11% FTSE 250 10% XUEK fee .09% EURO 7.5% VJPN fee .15% Japan 7.5% VAPX fee .15% Asia 10% HMEF fee .15% Emerging Kinda follows VWRL though its a little more work, the fees are quite a bit less. Not gona lie though invested into single stocks during the bull run 😅 still super heavy into UK right now. Looking to trim down if things get better.
Great video! I’m looking to transfer my pension to a SIP. Is the best time to do this when the market is low or when the market is high? Does it make a difference?
Really good video and it's on par with what I was thinking recently too... I've always bought MSCI Global Islamic and their USA counterpart but I suspect things are about to shift but realising over 60% of Global is still USA is good to know so thank you once again Damien.
This was a video I didn’t know I needed. Been thinking about my portfolio being heavily dependent on US stocks, but didn’t feel there was a worthy solution till this vid. Thanks!
Great video and very valuable information, as always. Just to get your opinion, what is really the difference between the FTSE All-World UCITS ETF (VWRL) and the FTSE Global All Cap Index Fund Accumulation? Why do prefer the dividends of the VWRL over the autocompound of the Global All Cap? Thank you so much for your advice!
I'd love to see a global index fund that doesn't include Apple, Alphabet, Microsoft, Amazon, Nvidia and Tesla, does one exist? These names always seem to come up in the top 10 when ordered by weight, all my efforts to add a bit of diversity to my investments always seems to be thwarted by the same names at the top of the list.
Being closer to retirement I decide to do 50 50 on sp500 and vwrl, the reason being I will be taking money out so will simply take out of the one that's doing the best. I get to benefit from the lower fees on the sp500 on half the amount. Vanguard platform fee should be reduced vastly because I can get the same funds through hargreeves landsdown but with a fixed fee of £45 per year no matter how much I have in there and the vanguard fee is limited to £375 so that is a big saving each year
Here to say I am also an idiot
Me too 😊
We know 😂.
*also puts hand up*
I am also an idiot. If I think I’ll probably get it wrong
Virgin British finance youtuber: Buy the World
Chad American finance youtuber: USA USA USA!!!!!!
I was thinking about this very issue lately and came across your video - very helpful, thank you!
I look forward to these videos, the quality of production and the content is always epic! Great job!
Thank you so much! Glad you enjoy the editing I sometimes watch them before launching and think Damien… what the hell you playing at here. This is a finance video
Wonderful direction and music
Fantastic production value and brilliantly concise and wry delivery of good content.
@@DamienTalksMoneyahh mate don’t change, you have the perfect balance of humour to quality seriousness
Great
Outside of the US, with S&P500 you're also taking exchange rate risk. It can work in your favor or against you.
But if you invest in say ftse dev world, msci world or ftse all world index etc you are still getting a large exposure to the US and currency fluctuation risk. Plus the UK hasn't exactly done well since about 2009. Plus the UK hasn't exactly done well since about 2009
If you invest in a ftse all world index, ftse dev world or msci world etc you are still getting a large exposure to the US and currency fluctuation risk
That’s exactly what Japanese like. They want to get foreign exchange exposure (without paying big spread). Japanese are escaping from their own currency
I am all in on S&P500.
If I am going to heavily invest in the American market either way I might as well go all in.
Same.
Loving the new editing and big fan of the podcast. Keep it up!
That final point you made about what is and isn't actually in your control was a really good one. People, myself included, get sucked into that trap too often. Great video as always Damien!
Great video! I go all on VWRP, every month. The set it and forget it nature works best to distract me from those 'shiny things'
I was thinking about VWRP as well. Does the dividend go automatically back to the investment?
Would be great to see a video going over all the aspects of VWRL as I’m sure many people will be using or considering this fund. Things like past performance, geographical spread, how often it pays out and how that process works, etc. for people that find the info on Vanguard’s website confusing.
Yes I would love that tooo...
Do you invest into the VWRL?
Isnt VWRP better?
I've just been investing in the S&P500 for the past 18 months now
I love how you really focused on the psychology and strategy versus your own self and what works for you at the end. Great insight, really similar to myself I have to say. Thanks Damo mate.
I’m all in the FTSE Global all cap. Great video!
Me too
So am I. Have we made the right choice?
Yeah good choice if you can accept losing some performance
Your content is fire bro. Take a bow. Smashed it.
My man! Hope you are well mate
Thank you for your honest opinion. I agree with you on 90% in global index for a better sleep and remaining 10% you can enjoy in putting on some individual stocks, gold or crypto.
I didn’t even know anything about the S&P500 or Vanguard or Index Funds until I saw your channel. I’ve been consistently investing every month in the S&P500 and a lifestrategy fund. I can’t believe amidst all my investments the S&P500 ALWAYS outperforms everyone else. The others bring a profit, but S&P500 brings the biggest profits. I still keep my hand in the globe because I think as economies grow they tend to make foreign partnerships and this boosts other economies. That’s my basic theory. I think it’s a more reliable idea of a pension than the state pension because the maths is real and the returns are potentially enormous
Plus, just because USA has been great who’s to say that won’t change? Anything can happen, as we have seen many changes happen across the world
I also didn't know anything about these things but have been trying to learn through watching this channel. Can I ask you how you got started investing? Even if I have money to invest, I don't physically know how to do it, beyond using one of the apps I'm constantly being target advertised?!
I love how Damien can create such educational content so entertaining! Thank you Damien :)
I've only been investing for a couple of years and I've seen on many UA-cam channels the advice to diversify by going 50/50 S&P500 and Global, but, as you point out, by doing this the portfolio is heavily weighted towards US stocks and the cost of the Global fund is quite high (by Vanguard's standards). What I have done is to invest 50% in the S&P500 but then invested the rest in funds which together make up the rest of the world, Developed Europe ex UK, FTSE 100, Emerging Markets and Developed Asia/Pacific. This keeps the US stocks down to 50% and also reduces the charges. Like I said, I'm a Newbie so if I'm missing something please let me know. Great channel by the way.
I had a very similar portfolio up until recently, with 5 ETFs covering S&P 500, Developed Europe ex UK, FTSE 100, FTSE Japan, and emerging markets. I really liked that way of doing it and it is nice being able to clearly see which regions are doing well at any given time!
Now I have decided to just do the same with 2 funds. A developed markets index ETF and an emerging markets index ETF. The first 4 ETFs I mentioned above are all covered by a developed markets index, whilst still keeping emerging markets separate allows me to control the proportion I want between developed and emerging. Also, there are some very low fee developed markets indexes out there when you shop around!
Correct 50/50 creates a massive overweight in US stocks.
The only issue I see with your strategy is you will need to often rebalance your weighting to ensure there’s not any over exposure etc. effectively timing the market which historically is not good.
Personally a set and forget is ideal for most small investors and to focus their time on improving skill sets to earn more money to invest more capital. Instead of wasting time worrying about a few basis points.
Just to be clear I understand your reasoning and strategy 👊🏽
Always great videos! Watching them from someone who failed miserably at Maths at school. Now at 44, you’ve got me engaged about investing. So thanks 👏👏👍
As long as the US keeps vacuuming up young, ambitious, exceptional people from all over the world, they'll keep dominating the technological sectors.
I use the HSBC All World at 0.12 fee in my pension. I use the Invesco FTSE All World in my ISA at 0.15 fee. Its a no brainer.
Do you invest in hsbc via the app or on a trading platform?
Solid advice as usual. I do Life Strategy 100% and s&p ETFs. Seems to be doing the job. Pay it and forget it and if I'm lucky enough to be alive in 30 years I'll spank it all like a 90s stockbroker.
What's the TER for a Lifestrategy fund?
So so grateful for this one, Damo! These are the questions I really needed answers to, but I was too stupid to actually formulate the question 😁 It was also really reassuring from 09:50 onwards to feel like I'm not the only person in the world to do daft things. THANK YOU 🥰
My whole life is one daft decision to the next just some of them pay off
I think Vanguard is being a bit naughty with the management fee for VWRL/VWRP.
The developed world ETF VEVE/VHVG has a fee of 0.12%. Their emerging market ETF VFEG/VFEM has a fee of 0.22%.
VWRL/VWRP is approximately 90% VEVE/VHVG & 10% VFEG/VFEM so the fee should be around 0.13% really, not the 0.22% they charge.
Just found your channel, its brilliant. All u say totally makes sense
Thank you!
Now that was just brilliant in many different ways. Nice one mate.
Thank you!
What an absolutely fantastic vid. Great to get your mindset and see the reason behind your choices, even if in the moment they may lead a slightly lower number. The logic around the no touch approach.
In the first 25 years of your investing life, the amount you save and invest has a far bigger impact on the growth of your wealth than your returns. Global index is the way to go.
You said it better than I did
Good to see you back 🫡
Fantastic, as always! Always end up pausing a few minutes in to stop and like the video because of how good I can tell the content is going to be.
You legend thank you
Wonderful quality video. Impressive how these improve over time
Really appreciate the effort, i would definitely say that the quality of your videos actually encouraged me to start investing journey in UK ..Thanks Damien for telling the stuff so calmly yo avoid this panic behaviour in investment strategy
Damo, you might not realise it yet but you are a modern day prophet. Thanks for your help in spreading honest information to those who may never receive it.
By saying the US won't always be a superpower?
Great video with Your style of editing! Awesome work Damien! Over 2 years ago I didn't know anything regarding investing. I was thinking investing is for people who have a lot of money. With your help I have started investing and slowly diversyfy my portfolio. Thank you so much for what you do! 👏👍🖖
So believably candid, I do appreciate your candor and wisdom. Looking forward to next time, cheers.
Thank you!
Thank you!
Feels good knowing The sun never sets on my investments
Cheers mate, good to see you're more than "back on your feet".
I do only FTSE Global All cap, but it's more for my peace of mind, the fact that I can rest knowing that if an economy collapses I'll be relatively covered. Ultimately trying to game to get the best return is a bit futile, just invest in something that you can sleep at night and do it regularly
Worth noting that 60% of the FTSE Global All Cap is USA. 3.92% of the global fund is Apple. 3.43% is Microsoft.
I also have the FTSE Global All cap, I am not sure if I am going down the right road, but at least I am investing.
My favourite comment here
Great to see you looking well Damo. Good content
This guys the real deal, love the approach. Got a subscriber!
Thank you!
Good to see you’re doing well Damian. Interesting topic. Looking at global index funds outside of Vanguard the HSBC FTSE All World looks good with a low fee of 0.13%.
Cheapest global fund in the UK
PRWU fee is 0.05%.
@@ScipioAfricanus809 indeed, the next cheapest being the Invesco FTSE All-World with a fee of 0.15%
@@tazzer6959 thanks, wasn't aware of that one.
@@tazzer6959 Interesting, I’ll have to look into that one. Edit: ok so the difference is that PRWU is developed world only while the HSBC is a true All-World fund (developed world & emerging markets)
Also going for the global index here. What would you say for their big TER discrepancy though? The S&P is significantly cheaper. Thanks for the content!
Thanks damo great helpful video and i am now investing in global all cap and not going to tinker or worry about what etfs to invest in etc, sold all my etfs and now going all im on one fund as same as you its easy to over complicate things, simple and easy 😊
Nicely said. another informative video
Nice one Damien. I am very similar to you in how I think and its good to see I have already come to the same conclusion as you and stuck with the global index vanguard!
This video is excellent. The honesty and transparency is quite unique here. Personally, the way I made peace with my decision is thinking that I am a working class person, investing some money in the stock market but nothing that would be life changing in terms of returns. At this point in life, I’m better off using my time to make more money than overthinking the very little I’m able to invest. This strategy meant that I managed to grow my anual income by £10k in the past year. I’ve been putting all my investments in S&P500 and don’t even look again or think about it. When I get to a point that I have a significant amount of capital to invest, then it will be the time to spend more time and effort to study my options. I see my investments as a top up on my retirement in 30 years, I simply don’t have enough to invest with mortgage and all life shenanigans to get any life changing returns, so it doesn’t seem worth to overthink it.
Excellent mindset. Invest in yourself first to maximise your income instead of worrying about percentage points on small amounts of money. Invest hold and forget… good luck I’m sure you will prosper greatly with your mind frame 👊🏽🤝🏽
Bingo! Too many people obsess about investing returns when that energy should be used to increase earnings because that’s the better roi.
Cheers Damien! I've been thinking about this recently so was looking forward to your take on it
I opted for a s&p 500 etf, an EU and a "developing" rest of world fund. This way I can control the percentage invested in each region myself. But .. its hard to see the EU region performing well over the next 10 years and events in America will hugely impact the EU anyway so it's not great for diversification either. So I opted to reduce the amount i invest into the EU region and increase the rest-of-world investment.
Your outlook on the economies you're investing in is completely irrelevant. If you can't see the EU performing well so does market which will price European equities accordingly. That's why Europe has a lower P/E ratio than the US. That does not mean that those markets will underperform
Great production Damo. Guilty also 😊
Like your channel, subscribed. Very balanced and differentiated analysis!
Much appreciated! Thank you for taking the time to comment
Hi Damian , what’s your thoughts on 50% portfolio on snp500 and the other 50% on vwrl ? That should surely solve the problem. Another great video tho mate
Damn ..that last point can not be underestimated.
By pulling the focus to what you do have control over financially it builds a habit far more worthy of our time than checking graphs.
It's good to be reminded about this stuff. I don't retain everything I read/learn about as I'm not 'in it' every day, so this was really valuable. Cheers!
Insightful perspective. A global index fund would be less stressful. I'd also be wondering in hindsight whether I should've gone with the S&P 500. But given the US federal government's militarism and interventionism abroad, forcing countries to de-dollarize, I think you've made a very wise choice in going with a global index.
Editing has taken a step up, well done mate
Very slick looking video!
Recently retired and looking at options on where to invest my pension pot.
Getting advice from professionals but have decided to keep some pocket money back to do a bit of investing.
These videos have been interesting and entertaining. I’ve started off by buying some S&P500 and a global index.
Thanks for making what I thought was a dull subject that I thought I’d never get my head around something I can dabble with and enjoy.
Wow what a video. Lots of work! Great honest content 😊
I'm new to all of this and I've invested in both the S&P 500 and FTSE All - Worlds.
Is it wise to invest in both? Not wise? One or the other?
VWRL for the win - I've been building this one up for MONTHS because I too am an idiot. The hands off approach, being a rational optimist and expecting the world to grow makes this ETF an obvious choice! 📈
It’s worth mentioning the exchange rate implications here.. When investing in overseas markets a strengthening pound will reduce your returns. A weakening pound improves your return
Yeah I do mention them at the end but very briefly
In your video you say that investing in a global fund means you don’t have to worry about FX rates… but from what I’ve seen most global funds are not hedged so are subject to FX fluctuations… the weak pound helped my portfolio a lot last year (btw love your videos, thank you for the content)
@@mdubaj Yes sorry i should have clarified this more, FX impact is there especially exposure to the dollar with a 65% allocation to that market, what i meant was I am exposed to all manner of currencies through a global approach and I really just work on the basis of it will all average out in the end. I don't change my investment strategy as a result. Also long term the pound has fallen against the dollar and if that trend continues i do ok anyway.
Maybe FX could be a topic discussed in a future video… after all, Argentinian stock market returns have smashed the S&P 500 (just a shame their currency tanked too 😂)
Funds will usually offer the ability to invest in the currency you want to take the investment in.
Could you not just pick the currency share class of the fund in your home currency and remove the fx fluctuation on your investment?
This was really interesting, thank you!
Glad you enjoyed it!
Surely though, while a global fund (such as the FTSE all caps) is heavily weighted to the US at the moment, if in the future the US does slide significantly and other economies take over, the fund will automatically rebalance? Therefore a 50/50 split between an S&P fund and an All World fund only overweights the US at the moment, but that won't necessarily always be the case?
It does rebalance but while losing value of course
Agreed. This comment supports just going for a FTSE All World, with the peace of mind knowing it'll balance if macroeconomic factors move things. I just need to calculate how much more it'll cost in fees. (Not financial advice)
Love your content buddy, keep up the good work ✌️👍
Loved this video, so helpful! Would appreciate a video covering your thoughts on a SIPP/the pots you have going for your retirement. Thanks for the great content as always
Thank you for this, it really is nice to see the perspective of an investor who is not based in the US. As a US investor I often feel a bit crazy buying our equivalent of the total world index VT. So many people around me fall victim to home country bias and see no point in buying the world market when the US has done so well. It's not that I think the US won't do well going forward.... I just don't know. What I know is the world SHOULD do well.... My IRA and workplace 401k are split between US/International to match market cap weights... it's just nice to see there are others out there in other countries who share the same idea as me.
Home bias is a thing here in the UK also even with our market not doing well! In the same way the "America is all i need" approach is heavily touted by many here. I think you have put it really well. We don't know if America will do well but the world should. If it doesn't well we are screwed anyway haha
@@DamienTalksMoney "We don't know if America will do well but the world should. If it doesn't well we are screwed anyway" that's so clarifying lol
Home country bias is not all that bad. There’s research showing that people in developed countries achieve best risk adjusted return when they invest 35% in home country. Think about Canada’s stock market represents only 3% of global value, that’s 30% higher. For Americans where the U.S. stock market is 60% of global market, 30% on top of 60% is 90%. And so all in S&P really isn’t bad investment if you are American.
I'm a bit older than you and started late so I'm gonna go for the (currently) higher return of the Vanguard S&P for my SIPP, but if things change I'll move it into the global Index. I'll cross that bridge when I come to it.
Think carefully what you are saying? You have limited Time and are going to have a punt on past performance in the hope for future profits and if it goes wrong you will potentially sell a badly performing fund at a low and exchange it for a potentially better fund at a higher cost.
That’s called timing the market. Keep researching and come up with a more balanced approach strategy.
In my ISA I do just Life-strategy 100. My pension is split between VWRL and VUSA. 50/50.
I never comment on financial type videos… great job 👍
I've made some money out of property. 25 years hard slog. I'm fed up with conmen out there flogging overpriced courses to gullible souls promising them get rich strategies. You need a side income for investments, that's why they sell their snake oil.
Difficult to find people that are authentic and genuine but my initial impression of this channel is that this gentleman seems honest.
I want to invest in something else but don't know anything other than property. Too much hassle and returns are not great.
Great video as always. One comparison I’ve wanted to see is the Global All Cap vs 100% life strategy. Is there any point moving across to the all cap? Or take the bet on the UK weighted market with the LS.
Your guess is as good as anyone's
I’m all in for MSCI world index fund. I chose Fidelity for the low fees.
Well said at the end, applies to everyone. Bonds : no one appears to talk about these and makeup of their portfolio but appreciate the common theme is 20yr+ strategy.
Excellent - Thanks. Time for me to make a move on this.
Great vid! Didn’t you say All world has avg return of 10% over the years? But then mentioned at the end an avg return of 8.3%? Was that just factoring in inflation rates?
I'm going all in on my indexes 🎉
I went for VUSA and VWRL. Otherwise I'm also building up my portfolio of TSLA shares, and I have a small account for daytrading.
I mainly do momentum trading with that.
Great summary as always!
Not many would admit that, and not many would admit he described most, if not, all of us.
This my first viewing of him. He's a hoot. Love the Brits.
Great video. Watch out for currency swings....$1.75 to pound some years ago...
Another excellent and thoughtful video. Good sound advice (OK not 'advice' - but insight 👍😉😀) As an older investor, close to retirement, I've still got a good few years to keep invested and I hope sustain and grow my funds, it's good to have some diversity, and loved your comments about keeping the monkey brain busy with a small active % of the porffolio, while the bulk is in the index (be it All world or S&P)
You see things so clearly Damien, superb video
For myself, I’ve always been an avid saver & investor throughout my life and done quite well I think being 67 in a week! But I’ve always been surrounded by nay sayers saying invest in domestic property, which has also done well. So my question is have your peers been saying similar and how do you respond?
Thanks Damien, great video. What are your thoughts on the LifeStrategy Vanguard funds? Im considering the 100% equity one. Have you ever considered these and if so, what would put you off from picking it? It has similar exposure and fees to the FTSE Global index fund you described in the video. Your thoughts would be really appreciated, thanks
The great advantage in investing in world indexes is that whichever countries wins, we win: we don’t know if and when China will take over the US dominance, or maybe there is a sudden change of balance and Indonesia suddenly becomes the leader in a few years, or Canada, The UK, Australia and New Zealand unite and form a new super productive superpower…. in any case, a global index will adapt, so if in 50 years from now US stocks will be worth nothing compared to Indonesian stocks, then your index will be full of them. If nothing changed and the US stays the leader, then your index keeps following the US. You are always siding with the winner, therefore winning yourself every time
This concept of the fund constantly rebalancing without any emotion and to a degree cost to the holder is probably the most important reason to invest in world indexes, that and diversity. The only downside is the dividends aren't that great.
Morning Damien I hope you're well and thanks for your advise. I would like your thoughts on my pension plz
Glad to see youve recovered and your video quality is still S tier 👌
Im gona try and create a gobal portfolio with lower fees.
60% SPXP fee .05% S&P500
4.28% ISF fee .07% FTSE 100
0.72% VMID fee .11% FTSE 250
10% XUEK fee .09% EURO
7.5% VJPN fee .15% Japan
7.5% VAPX fee .15% Asia
10% HMEF fee .15% Emerging
Kinda follows VWRL though its a little more work, the fees are quite a bit less.
Not gona lie though invested into single stocks during the bull run 😅 still super heavy into UK right now. Looking to trim down if things get better.
Hi Damon would like to here more on your crypto investments. Do you know what is going on with xrp ?
Great video! I’m looking to transfer my pension to a SIP. Is the best time to do this when the market is low or when the market is high? Does it make a difference?
Excellent video. Subscribed
Great informational video. Worth considering.
Why do you like to re-invest the dividends yourself?
Really good video and it's on par with what I was thinking recently too... I've always bought MSCI Global Islamic and their USA counterpart but I suspect things are about to shift but realising over 60% of Global is still USA is good to know so thank you once again Damien.
Hi Damien, do you ever do a live Q&A? Thanks James
This was a video I didn’t know I needed. Been thinking about my portfolio being heavily dependent on US stocks, but didn’t feel there was a worthy solution till this vid. Thanks!
Great video and very valuable information, as always. Just to get your opinion, what is really the difference between the FTSE All-World UCITS ETF (VWRL) and the FTSE Global All Cap Index Fund Accumulation? Why do prefer the dividends of the VWRL over the autocompound of the Global All Cap? Thank you so much for your advice!
I just like getting the notifications and investing them myself as simple as that 🤣
And the all cap also includes small businesses
This channel is a gem.
I'd love to see a global index fund that doesn't include Apple, Alphabet, Microsoft, Amazon, Nvidia and Tesla, does one exist? These names always seem to come up in the top 10 when ordered by weight, all my efforts to add a bit of diversity to my investments always seems to be thwarted by the same names at the top of the list.
Another great vid! Thanks Damien!!
Being closer to retirement I decide to do 50 50 on sp500 and vwrl, the reason being I will be taking money out so will simply take out of the one that's doing the best. I get to benefit from the lower fees on the sp500 on half the amount.
Vanguard platform fee should be reduced vastly because I can get the same funds through hargreeves landsdown but with a fixed fee of £45 per year no matter how much I have in there and the vanguard fee is limited to £375 so that is a big saving each year
That was a cool video. A lot of people in banking understand less than 10 % of what you explain here
Damo, mean this in an absolutely genuine and kind way, but think your lip looks better now than before the attack! Honestly 😃 Top quality video too!
Mate it does!!! haha straightened it out nicely hasn't it