Author Topic: Vanguard UK Lifestrategy Vs FTSE Global All Cap?  (Read 1966 times)

Poozay

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Vanguard UK Lifestrategy Vs FTSE Global All Cap?
« on: March 20, 2018, 03:16:20 AM »
Hi all,

Currently invested 80/20 lifestrategy, but not happy about the quite heavy UK bias. Considering Vanguards FTSE Global All Cap.

What are your views on the pro’s and cons?


frugledoc

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Re: Vanguard UK Lifestrategy Vs FTSE Global All Cap?
« Reply #1 on: March 20, 2018, 04:58:43 AM »
both are fine.  I prefer vanguard all world

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Re: Vanguard UK Lifestrategy Vs FTSE Global All Cap?
« Reply #2 on: March 20, 2018, 11:45:41 AM »
VGLS100 is a simpler comparison with the FTSE Global All Cap. The main differences are the UK bias as you mention and the All Cap has more exposure to some small cap stocks and emerging markets which I think is useful. I personally went with the All Cap because of this, but there is very little in it. I don't know why they don't put some of their small cap fund in the LifeStrategy funds. The investing approach as advocated on this board really requires three main things from a stocks index fund:

1. Global diversified exposure
2. Low costs
3. No obscure asset allocation e.g. 80% FTSE 100 or 60% in Liechtenstein or whatever.

Both VGLS100 and FTSE Global All Cap achieve this. In hindsight one of them will be better, looking back over any time horizon but not that we can tell now. Investing in one of these is great for us. It could almost be a best of three heads or tails to decide which to go for unless someone has a strong view on the UK allocation they would like.

However you are comparing VGLS80 with the Global All Cap fund which is not a like for like comparison. Presumably the asset allocation you want to achieve is 80% stocks and 20% bonds? So you would need one or several bond funds to go with the FTSE Global All Cap in order to maintain this allocation. So the biggest advantage of VGLS80 over the FTSE All Cap fund is the automatic rebalancing and simplicity to keep you at that 80:20 allocation. With the FTSE Global All Cap fund you would need to do this rebalancing yourself.

The All World fund frugledoc refers to invests in a lot fewer stocks (3104 v 5200) when compared to the Global All Cap. So it isn't as well diversified and concentrates on large/medium sized companies where the All Cap includes small companies as well. Again just personal preference really as to what you prefer. The All World is an ETF. I don't know enough about ETF's to know if this is an advantage/disadvantage for anyone's particular situation over a mutual fund.