Author Topic: How to track markets if not living in the US (UK)  (Read 2016 times)

IWanttoBelieve

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How to track markets if not living in the US (UK)
« on: June 16, 2015, 06:37:28 AM »
Since I live in the UK, if I track S&P, I guess I'll be exposed to exchange rate.
Same if I track other EU stocks/bonds.

But if I track only the FTSE and UK bonds, am I correct in thinking I'll be expose to more volatility since the UK economy is a smaller sample?

What would be the correct mustachian approach to track the market and at some point in the future be able to live on the 4% withdrawal rule?

frugledoc

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Re: How to track markets if not living in the US (UK)
« Reply #1 on: June 16, 2015, 01:37:38 PM »
VWRL tracks the whole world. 

forummm

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Re: How to track markets if not living in the US (UK)
« Reply #2 on: June 16, 2015, 02:28:53 PM »
https://www.vanguard.co.uk/documents/adv/literature/generic-product-list-adv.pdf

More info on VWRL and other ETFs traded on the LSE in GBP.

If you invest in foreign companies, there will be some currency risk. But also the benefit of lower volatility and much greater diversification. Personally, I want to own the world index even though the US is so large just by itself.

jinga nation

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Re: How to track markets if not living in the US (UK)
« Reply #3 on: June 16, 2015, 03:00:39 PM »
See Monevator for sample UK lazy portfolios. http://monevator.com/9-lazy-portfolios-for-uk-passive-investors-2010/

Vanguard FTSE funds are prominent in the various combinations.

frugledoc

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Re: How to track markets if not living in the US (UK)
« Reply #4 on: June 17, 2015, 11:45:01 AM »
Problem is that you can't invest in vanguard funds without paying a platform charge in the UK.  Vanguard allow you to buy direct if you are buying 100k worth.
For this reason I stick mostly to vanguard ETFs, although ishares are cheaper for some of the optioons.

jinga nation

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Re: How to track markets if not living in the US (UK)
« Reply #5 on: September 11, 2015, 12:44:42 PM »
Problem is that you can't invest in vanguard funds without paying a platform charge in the UK.  Vanguard allow you to buy direct if you are buying 100k worth.
For this reason I stick mostly to vanguard ETFs, although ishares are cheaper for some of the optioons.

I don't think that is true. I just had an in-law open a lazy portfolio using Vanguard ETFs in the UK. There is an S&P 500 UCITS ETF with an ER of 0.07%.
https://www.vanguard.co.uk/uk/portal/investments/all-products?productType=etf

She used the monevator website for sample portfolios. HSBC also has low ER index funds, as I've been informed.