Yes you are US-tilting there. I would just do 93% into FTSE Developed World. About 65% of that is USA. The Magnificent 7 stocks will still be 15-20% of your portfolio.Country of residence: UK
International lifestyle: No plans to move
Age: 38
Desired asset allocation: no idea
Currency: GBP
Emergency funds: ~12 months
Debt: Joint mortgage of around 130k at 1.8% until Nov 2025. £1k a month total payment (slight overpayment)
Also, if you know the details of any state pension(s): Will likely get the full state pension and currently have around £25k in a workplace pension with Scottish Widows. I spent 5 years working in Germany so it's lower than it should be but I'm contributing 10% to it currently (5% me, 5% work) with intent to up it to 15% at some point in the next 2 years
I started a Trading212 S&S ISA this year and slowly put in £2k since May to have a play around with. I want to start putting some spare cash in regularly and I've done a ton of reading but gotten to the stage where more information is just starting to confuse me, so I'm looking for some advice. My aim is to save for retirement, 20-25 years ideally but more likely closer to 30. I have minimal knowledge of investing so a set and forget kinda portfolio is something I'm aiming for. I'm thinking of something like the below for a simple 3 ETF portfolio.
- Vanguard FTSE Developed World acc (VHVG) - 63%
- Vanguard FTSE Emerging Markets acc (VFEG) - 7%
My thinking is that having VHVG and VFEG as 70% of my portfolio mimics Vanguards FTSE All-World (VWRP) but I can stop contributing to VFEG once the pot is large enough after a few years. I feel that having some exposure to EM is good but I don't think it will be groundbreaking next 25-30 years, but please correct me if I'm wrong.
- Vanguard S&P500 Acc (VUAG) - 30%
VUAG because I still think the S&P500 will do well long term and I'm comfortable having a bit of overlap. Quite a US/tech heavy portfolio though as I realise 65% of VHVG is also US focused. So not sure if I should just up VHVG another 10% and put 20% into a ex-us ETF.
Apologies for the long post and thanks in advance for any opinions/guidance. I look forward to reading them!
Emerging Markets is a hard call. Stock markets do not necessarily track GDP. Historically it has been a huge bet on China (China + Taiwan 60% of market), but China has done things which have reduced the appetite of foreign investors and Chinese stockmarket has underperformed.
Statistics: Posted by Valuethinker — Thu Aug 08, 2024 4:38 am