Author Topic: VTSAX in the UK  (Read 1092 times)

Henry_Krinkle

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VTSAX in the UK
« on: March 28, 2018, 10:07:53 AM »
Hi all. Long time lurker, first time poster here.

Having built up an emergency fund of 6 months worth of expenses, Iím now looking to start investing in Vanguard. Having read JL Collins, Iíd like to start putting money in VTSAX, but I donít think we can do this in the UK?

I had a look at Vanguardís website, would the nearest fund be VUSA which tracks the S&P 500 index?

never give up

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Re: VTSAX in the UK
« Reply #1 on: March 28, 2018, 10:25:00 AM »
I would have thought it was closer to the US Equity Index Fund rather than the S&P 500 tracker. The US Equity Index fund invests in nearly 3500 stocks rather than the 500 odd in the S&P 500 tracker.

Playing with Fire UK

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Re: VTSAX in the UK
« Reply #2 on: March 29, 2018, 12:55:05 AM »
Hi Henry,

What makes you so keen on US stocks when you are based in the UK? It's a great starting place for US-based investors, but doesn't necessarily make sense for UK folk.

Vanguard's Lifestrategy is good, so is Vanguard's "FTSE Developed World ex-U.K. Equity Index Fund".

The reason that VTSAX is recommended for the US folk is that it is cheap, broad and relevant.

If you are planning to move (back?) to the US or you believe that the US market is somehow better than everyone else then the US stocks make sense.

rob/d

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Re: VTSAX in the UK
« Reply #3 on: March 29, 2018, 01:09:55 AM »
 I'm a fan of the Vanguard lifestratergy funds , at my age , and you will get plenty of U.S exposure with one. About enough i would say.

This nice man on youtube has quite a few different Vanguard product reviews .

https://www.youtube.com/channel/UC9OIwUcx-Uss7xj7s1P5XGw/videos?ab_channel=PensionCraft

shelivesthedream

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Re: VTSAX in the UK
« Reply #4 on: March 29, 2018, 01:31:06 AM »
As PWFUK said, unless you have a reason to go heavy on the US, just start with Vanguard LifeStrategy 100 ASAP. You can always reallocate later (because asset allocation is important), but it's more important to just get started and not let the perfect be the enemy of the good. Whatever the market is doing, yesterday is the best time to get your money in.

This is my favourite investing article:

http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/

PropJoe

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Re: VTSAX in the UK
« Reply #5 on: March 29, 2018, 03:00:10 AM »
Agreed that it's better so start with something simple and then fine tune as you go.

I roughly try to mirror the global market gap, so ~50% US, 9% Japan, 6% UK etc.
I have slightly more bias towards US because historically it has out-performed most other markets and this is what the 4% SWR  is based on. The SWR would be lower if you used only the FTSE for historical analysis.

The VLS funds look good and give plenty of global exposure but with a slight home bias.
I make up a similar allocation based on 6-8 funds because it allows me to have a lower expense ratio, 0.14 vs 0.22.
It's not a huge difference but every little helps.

londonstache

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Re: VTSAX in the UK
« Reply #6 on: April 03, 2018, 02:00:31 AM »
I'm also a heavy fan of Vanguard Lifestrategy - pick a risk preference, set and forget.