r/investing
Around £200k-£220k to invest - wanted to discuss ETFs I am looking at
Investor with £200k-£220k seeks advice on an ETF portfolio strategy including SWDA, TDGB, and 2x leveraged funds.
- Plans to allocate the majority of funds to historically stable broad-market ETFs like SWDA.
- Maintains a portion in bonds yielding 5% as a safety cushion.
- Plans to use 2x leveraged ETFs (SP500/Nasdaq), which carry long-term volatility decay risks.
- Intends to swing trade individual FTSE100 stocks, which is highly risky and difficult for typical investors.
Hi Everyone,
Very late but I decided to join the game. I am currently doing all the research and want to be very careful so wanted to discuss ETFs and strategy with you as that sub has been very helpful so far.
I have currently got around £40k in bonds paying 5% over the next 3 years. Can sell it if I see that ETFs are doing good. On top of that I have got something like £200k-£220k to invest in ETFs, was thinking eventually to keep around £20k out of it to try with individual stocks.
I can't upload the screenshot of my Excel spreadsheet, here is the list of ETFs I found that seem fairly popular.
SWDA
SSAC
VWRP
VWRL
V3AB
VHVG
TDGB
XMWX
However some of them seem very similar to each other so I wanted to ask what is the difference between them?
Two that I like the most are:
1) SWDA – shows very good last 5 years performance but most importantly, shows very stable growth since 2009. Seems like their rebalancing is working really well.
2) TDGB – fairly expensive but with very good 5 years growth and solid dividends on top of that. Little issue is with Dividends paid in Euro, which means I would lose on some FX fee every time I get dividend. VHYL is the alternative but it has got worse performance than TDGB, so even with those fees TDGB still looks like a better option.
One I am not sure about is VHVG – fairly cheap for Vanguard and delivered 83% over the last 5 years, seems too good to be true, where is the catch with that one?
What I was thinking to do:
1) £40k – keep it for now as Bonds at 5% per annum
2) £100k – SWDA
3) £80k – TDGB
4) £20k – tactically 2x Leveraged SP500 or £10k 2x SP500 and £10k 2x Nasdaq. I am aware of leveraged compounding and decay risk but doing some research, it seems like 2x SP500 still outperforms vanilla SP500 by around 1.5x looking at it long term.
5) £20k – try to buy some individual stocks, maybe swing trading of FTSE100 index.
What am I missing here? Am I exposing myself to significant risks with such setup? Any suggestions and other ETFs worth checking are much appreciated.
Thanks!
VOO and chill comments incoming
I believe that the best for world index without emerging markets included is MXWS which is only 0.05% Ter. It is synthetic though different than SWDA.
I would not touch a leveraged etf in this market. Also, the return last five years is absolutely irrelevant. They can be up 200% the last 5 years and down 50% in 5 years and vice a versa.
It is a good time to accumulate shares of good companies btw, markets are dipping. Buy in at different times of the year split 5 or 6 times(40k each time).
Nah man, I haven't got stomach for going that heavy in shares. Want to try easy with £20k tops. The rest goes as ETFs for sure. If I do well with shares then I might reconsider down the line.
hey, solid list of ETFs you've got there for long term growth, those global diversified ones are definitely a smart play. it sounds like you're setting yourself up nicely. for me, even with long term holdings, i'm always keeping an eye on the broader market sentiment and where the big money is flowing. i actually use the politician tracker on ThetaPal to get a feel for what the top congress traders are doing – helps me decide when to hold more dry powder versus when to fully deploy into more aggressive positions. what's your take on holding some cash on the side for opportunistic buys or are you planning to be fully invested pretty quickly?
I've got £40k as bonds that I can sell within 5 days if needed. The rest goes as lump sum, as I'm done waiting. Have lost way too many opportunities already and feel like a loser, as if I did what I'm planning to do how but 5 years ago, I would already be retired in some sunny, cheap country in Asia.
I just watch the daily stocks of Sentimentick.
https://www.sentimentick.com
Look I, like most people probably do not have every single ticker symbol memorized. Next time try posting what the etf is about if you want a real discussion on them because I’m not taking my time to look of 10 different etfs based on tickers.
Leveraged ETFs generally don’t outperform the base sp500 and can underperform based on fees.
As for dividend etf while I don’t mind a dividend I don’t go out of my way for it and wouldn’t advise a high dividend strategy unless you’re retired and would be otherwise withdrawing money from the market
Also generally any etf with an expense ratio over .35 isn’t worth it
Normally I would avoid dividend ETFs as they usually grow very slowly and the dividend doesn't cover the slow growth compared to other ETFs... But this specific ETF seems different, it grew 78% over the last 5 years, which is more than popular Vanguard ETFs that don't pay any dividends when that TDGB paid even over 5% in some years on top of that growth. It looks like it's too beautiful to be true.
I understand that it might be painful to Google every ETF I found, that's why I asked specifically about the two. And eventually I'm asking for suggestions if I missed some interesting ETFs.
acc etfs are also tax efficient. You have a small allowance for dividends tax free, I think £500 but that only applies to hmrc, uncle sam takes a min 15% even from an isa. With your amounts you will likely go over the £500 annual allowance and pay tax
top
lol 😂