Author Topic: UK Investing help - want to diversity investments into US markets  (Read 1441 times)

shanghaiMMM

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Hi guys,

I'm fairly new to investing so looking for some help, particularly help from a UK point of view.

I've currently invested around 13,000 in Fidelity Index UK Fund P-Acc. Since opening the account it has been up and down and is currently about 3% down. I have another 8000 or so I want to invest and, as the UK market isn't doing much for me, and also for diversification reasons, I was thinking about investing in the SP500.

EDIT: I currently have around 1200-1500 a month I can continue to invest in either account for around the next 3 years. After that my salary / situation will change.

I've looked at these funds on Fidelity:
 

HSBC S&P 500 ETF - fees 0.44%

Vanguard U.S. Equity Index Acc (VAUIA) - 0.45%

Vanguard LifeStrategy 100% Equity Inc (VANEI) - 0.59%


http://monevator.com/compare-uk-cheapest-online-brokers/

Next, having looked at the above site, I'm wondering if Fidelity is the best option. HSBC or iWeb seem to have lower fees.

So my questions, if anybody would be so kind to help this newbie:



1) Diversification into the US markets - is this even a good idea as a UKer?

2) If so, which fund would you go for?

3) The fees above (from 0.44%-0.59%), are these prohibitive? I know they're much higher than what a US investor would pay.

4) Would opening a new account with HSBC or iWeb serve me better than Fidelity?

5) Does being in China complicate things at all?

Thanks in advance!

 

 

 
« Last Edit: December 11, 2014, 08:26:29 PM by shanghaiMMM »

GordonCopestake

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Re: UK Investing help - want to diversity investments into US markets
« Reply #1 on: December 12, 2014, 01:50:12 AM »
I can't help you with your investment choices as I'm a complete beginner (and am watching this thread keenly!), I use BestInvest and they are the cheapest I've found so far.

Out of curiosity when did you open your account to be 3% down? I would hope that it was only recently as on average the FTSE has managed 7% since 1985

mveill1

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Re: UK Investing help - want to diversity investments into US markets
« Reply #2 on: December 12, 2014, 02:40:58 AM »
The fact that your UK fund is 3% down should in no way whatsoever influence your decision to invest in the US. The time horizon is years, decades, so who cares? That said, it would be foolish not to invest in the US. Over the long-term it is as reliably investor-friendly as it gets.

As for which fund to choose, morningstar.co.uk will rank them for you. They have a screener you can use, all you have to do is open a free account.

I found the HSBC broker site an absolute pain to use. As I work for a financial institution I now use their broker, as it makes compliance easier for me. Trading charges are reasonable, and I don't day-trade in any event. I think the ongoing management charges of the funds themselves is what you ought to worry about most, not so much the broker?

shanghaiMMM

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Re: UK Investing help - want to diversity investments into US markets
« Reply #3 on: December 12, 2014, 03:05:26 AM »
Sorry, I should have made clearer. I'm not investing in the US because I'm 3% down in the UK. I know it's a long game. I just think it would be better to have some money invested in US markets as well. I'm aware 3% down should be nothing to worry about. I've been invested in the UK about 3-4 months, not the best few months I guess.

I will check out both BestInvest and MorningStar, thanks for the tips!