-
Compare
Independent, no-nonsense ratings and reviews
- Tools
- Money Guides
- Money Goals
- Money Tribes
- Articles
- Ask an Expert
Independent, no-nonsense ratings and reviews
Vanguard have been growing at a rapid rate in the UK, with money flowing into their SIPPs since they launched their pension offering in Feb 2020. The introduction of drawdown now means these guys offer a very credible, no frills, low-cost pension which is good for both those saving up and those in retirement. Be warned – it is not for people who like assembling a pick and mix pension. The website and associated information is sparse, but these guys are rock solid and cheap. If you want a good, ready-made, balanced, passive fund – look no further.
We score each provider on about 20 different criteria including cost, service, website, functionality, customer feedback and our experience of the service. All overseen by our PhD gonk!
Beginner Investor
Confident Investor
Low cost
No access to shares
Straightforward investments
Don’t want to take our word for it? We ask existing customers and investors to rate their experience with the company – based on value for money, overall service and the website. We need at least 20 customer reviews before we add anyone to our Best Buys list.
Based on 86 reviews
The only real problem with this provider is the limited choice of funds and the fact that share dealing is not possible. But for value for money it is difficult to beat.
13/02/2021
No comment.
13/02/2021
Really easy to set up. I have been in the 100% Lifestrategy for around 12 months and gained around 26%! The website is a little dated though and sadly no app. Highly recommended.
12/02/2021
Unfortunately it is limited to Vanguard products only, so if you want to invest here you will have yet another account to look after if you already have some investments. However, there are quite a few choices available. Ready made portfolios have a reasonable performance and makes life easy if your new to investing or want a fairly conservative home for your money.
12/02/2021
Great funds and cheap. Web site a bit cluncky The Reviewer is pre-retirement age.
05/02/2021
Good communications, a simple website that makes it easy to find what I need. Vanguard shows the benefit of keeping it simple.
29/01/2021
Good value for smaller portfolios. Limited choice of manged funds but better choice of index funds for passive investors. Well suited for younger investors etc starting out on their investment journey and first time pension savers.
29/01/2021
I have no complaints. I transferred in my Stocks & Shares ISA last year and SIPP this year with no problems. The low ongoing costs and diversification through index tracking are the biggest attractions of Vanguard for me. Being tied to only Vanguard products makes it a bit boring- but maybe that is a good thing, as I can't go 'off piste', with lockdown fiddling!
29/01/2021
Been with Vanguard since July 2020 to invest and forget for between 5 and 10 years. So far so good. Charges very competitive.
29/01/2021
Just so easy to set up a new ISA. However transferring an ISA from a different provider is a complete nightmare....
29/01/2021
Vanguard automatically renewed my 19/20 isa. I was unaware and went elsewhere for the 20/21 isa. Now Vanguard sends me to HMRC to sort their mess. Fuming.
26/01/2021
Easy to use, easy to understand, easy to participate. Investing at its most straightforward. The focus on low cost is clearly to the benefit of investors as its inspirational founder, Jack Bogle, envisioned (watch him speak on youtube). I have been able to directly compare Vanguard's platform and service to Fidelity's in which I also hold an Stocks and Shares ISA. They hold slightly different assets but my returns in Vanguard funds - compounded by low costs - definitely give them the edge. 'Boring' investing at its best!
10/11/2020
Great on price and lots of hassle free options. Website isn't particularly slick and there aren't a range of exotic investment options but I would definitely recommend them to a first time investor.
26/10/2020
Seriously quick and easy to request 4 pension transfers and set up an ISA with regular payments. Clear investment choices, a website that's easy to navigate and great value for money.
26/10/2020
Simple and cost effective
23/10/2020
Very good, simple and efficient
23/10/2020
Straightforward use information and application process for ISA. Like the ability to switch and buy other funds in the wide range they offer. Lots of data on the website once you become familiar
23/10/2020
Easy to use website with clear investment options. Clear performance data. Easy to understand and competitive charges. What's not to like?
23/10/2020
Great value investing. Beginner friendly. Helpful, informative website
23/10/2020
No mobile app The top up journey is seamless Ux is very clean and simple for web Simple to growth of account Emails are frustrating as tell you there is an update but doesn’t include a link to the website Would appreciate more commentary on the specific funds invested in
23/10/2020
WebSite site clunky and not easy to find your way around. HL website much better
23/10/2020
Simple and straightforward. Need a UK app though
23/10/2020
Excellent value and a good range of funds
22/10/2020
Good value, good coverage of most geographical areas and also most asset classes
20/10/2020
The price is good but the service has been slow and I don't feel very engaged. I took out a SIPP with them earlier in 2020 with the aim of consolidating my various pensions into 1 pot. The transfers process has been very smooth and quick for some but equally very slow and cumbersome for others. It feels like if the other provider is has their transfer process sorted then Vanguard are happy; if they don't then they are really doing much to move things along. I don't find the website the easiest to use either but now that everything is set up then it does what it needs to. Overall - I guess you get what you pay for. 6 out of 10 from me. The Reviewer is Pre-retirement age.
19/10/2020
Great value, flexible informative website and a solid track record
18/10/2020
Clear, easy and great customer service
17/10/2020
Vanguard has amazingly low fees and is very straight forward and simple to invest through their stocks and shares ISA. The only thing that lets them down is not having an App, but their website is pretty good and easy to understand.
17/10/2020
easy to understand and use
17/10/2020
Funds limited to only Vanguard but ideal for new investors +costs low
17/10/2020
Very good value for money. Many of their funds feature on best buy recommendations. Simple low cost trackers. One negative is that the list of funds is restricted and you cannot trade individual shares.
17/10/2020
They are brilliant and the first firm in the world to invent ETF's. Vanguard is run for its investors first (not owners, they come next) which is unique. They are the second largest investment firm in the world (2nd only to Blackrock - which I think is not as good a company). Vanguard is named (with side of ship 'logo') after one of UK's naval vessels sailing at the time of the Napoleonic wars (circa 1780-1815). It was used by Nelson at the 'Battle of the Nile' - as far as I remember.
16/10/2020
Fast and friendly customer service, and fantastic value for money The Reviewer is Post-retirement age.
16/10/2020
Best value
16/10/2020
It’s limited to its own products Initially did well but I later switched to fidelity
16/10/2020
V good value for money, compared with most other platforms. That means compounding works in my favour, rather than theirs!
16/10/2020
V cost effective. Broad menu of fixed price options. Good for regular investments. Can be hard to ensure that you're investing new money into the same funds as you're currently invested in.
16/10/2020
Easy to understand website (despite Holly's warning to the contrary!), always answer my questions promptly and in detail. No complaints.
16/10/2020
Website is super easy to use, and I haven't had anything that couldn't be answered there.
16/10/2020
I started my investment journey a few years ago with Vangaurd, costs were cheap and it was easy to select funds. I could track their performance on the website and sell them easily if they were not performing. When furloughed earlier this year I researched Vanguards performance against other funds and realized that generally they had performed far worse than others. I am currently transferring my Vanguard ISA to another provider, this has so far taken about 6 weeks and not all of my funds have been transferred. When the transfer is compete I will sell all my Vanguard Funds and hopefully invest better performing ones.
16/10/2020
Value for money, easy to use App, easy to set up investments, and so far good returns on investment with their lifestyle fund
16/10/2020
.
16/10/2020
Very simple to use and narrow but good selection of funds
16/10/2020
Cheap, easy to use even for a novice technophobe like me. Also made a few quid in profit. Happy days...!
16/10/2020
No comment.
29/09/2020
Invested £2k with them and left it with them for 18 months. The increase in value was miserable - approx. 1.3%. My own share purchases did much better, and I got the dividend. They keep the dividend payments!
16/02/2020
Have only recently started using Vanguard, but have been very impressed. Easy to set up and use, all important information easy to find. The low fees are ideal for someone just starting out in investment world.
23/01/2020
No comment.
23/01/2020
An app is apparently on the way but is a surprising omission given how slick and user friendly the service otherwise is. Web clarity and functionality is good. The calculation of a costs estimate up front and saved as a document is great service. I have only very recently used Vanguard (because I am looking forward to their pension product) but I like what I have seen so far.
23/01/2020
Transferred ISA last November and added a bit to use all my allowance. Low cost, simple to use, no hassle. Clear information on performance. It would be nice to be able to compare different investments on the same page/graph, but that’s a very minor flaw.
23/01/2020
Really clear, and very reassuring to know you're not overpaying for the product. Also it is more flexible than it initially appears in terms of minimum payments. Only drawback is it is very old fashioned and traditional, with very little in terms of ESG funds. However I don't think it is alone in this so for the moment I am not overly worried about that. The one time I phoned customer service I had a totally satisfactory experience.
23/01/2020
Very detailed monthly/daily feedback (view) on performance is brilliant. Lack of a mobile app hasn't been an issue since the mobile website is very functional.
10/01/2020
Many ordinary investors do not have the research facilities of the large institutions to operate safely in purchasing shares directly. Vanguard looks well suited to those of us who do not wish to spend too much time trying to pick the winners. Whilst other investment platforms (e.g. Hargreaves Landsdown etc) offer similar services Vanguard has very fair low-fee charges. This is important because excessive and/or hidden fees can eat into hard won profits over the longer term. One downside: Vanguard seems to have closed its telephone helpline which is very much a negative move for me.
05/01/2020
I think this is straightforward for a first time investment and the costs are clear. There is very little bullshit, and the website is easy to use to monitor how your investment is performing. The options are straightforward to assess your attitude to risk. I read up on them beforehand and the review on Boring Money was very helpful.
04/01/2020
Easy website to navigate. Even if you’re stuck, you can send them a secure message for help & they will always reply. Transparent with their charges/fees & their majority of their funds do quite well. Very easy to transfer in your ISA.
03/01/2020
Love website - Love communication - Love simplicity
22/11/2019
I have transferred about 4 previous ISAs to their lifestyle fund & they are doing very well. Also they respond to email questions very quickly.
20/09/2019
Unfussy, straight forward and quick to respond to questions. Good returns.
31/07/2019
Easy to follow and efficient service. As mentioned, limited to Vanguard funds only. Shame that a lot of the funds offered to US and Ireland Vanguard are not offered. Likewise there is a demand for SIPP, JSIPP and LISA but Vanguard UK are only planning to offer SIPP. Shame.
19/07/2019
It was really easy to use and good value.
03/06/2019
No comment.
04/03/2019
Low management charges. Performance
19/12/2018
Quite straightforward to invest in diverse funds. Get the impression they hve some brains behind their fundpickers. SIPP please - it’s been promised for 2018 they have a fortnight left! Also mobile app please
19/12/2018
It seemed a good idea at the time but website a bit clunky. I had a standing order to put money in the account and because of this I was automatically enrolled in an ISA with them for the following year. It's in the small print. They received many complaints about this apparently!
19/12/2018
You get what you pay for. Would like a clearer analysis of returns
19/12/2018
No comment.
08/12/2018
Fair to say overall service is pretty minimal, definitely require some basic knowledge of funds/stocks to make an informed choice. Having said that vanguard are excellent value for money and offer some great products. Also like the simplicity of the account dashboard that shows you how your investment has performed, big fan overall!
29/11/2018
Fabulous company – unique. The only platform owned by the investors themselves, excellent, honest & low-cost. Easy to navigate site. They could improve by introducing SIPPs - apparently coming soon. They only sell Vanguard products, but a world ETF is all you need for low cost investment which is diversified and passive, rather than a rip off active investment which is provided by other companies with lesser moral standards (often charging higher fees for a poorer service). Encouraged to join by their patent honesty, financial rectitude, ads, site, customer service, & cost/value for money.
07/11/2018
No comment
11/02/2018
Cheap way to invest in Vanguard funds without large platform fees. Platform fee is capped across all the account types. Good responses to queries online in account.
30/01/2018
Simplicity of interface and limited, studied choice of funds. Easy to see current status and transactions.
30/01/2018
Value for money.
30/01/2018
Great service.
30/01/2018
Great service and brilliant website.
30/01/2018
OCF fees could be reduced.
30/01/2018
Cheap to run with charges clearly shown, nothing hidden away in piles of meaningless figures.
30/01/2018
Had a disaster trying to move Vanguard funds from Barclays to Vanguard. Vanguard mistakenly sent an instruction that all my holdings were to be sold, not just the Vanguard funds! Vanguard refused to accept responsibility despite the correspondence clearly showing it was their mistake. It was resolved but took hours of my time.
30/01/2018
Vanguard LifeStrategy range is good but I have recently moved to HSBC Global Strategy which I consider a better mix for less cost.
30/01/2018
I really like the Vanguard online platform. Staff have been helpful and responsive in any dealings with them. I think the low cost of investing with Vanguard is the biggest draw.
30/01/2018
The platform fees are low. They could provide more on their website.
30/01/2018
Simple effective investing. How it should be done.
27/12/2017
No muss no fuss. Simple and competent.
26/09/2017
Cheap, excellent customer service. I do not have a large amount invested and am in my late 20s, so have not done a lot of research on my investments because I can't be bothered.
26/09/2017
Nice and simple - does all I need. Cheap funds and low fees, doesn't feel like I'm missing much from other sites.
21/07/2017
No comment
18/07/2017
Great value. Good for people who don't want to spend hours faffing around choosing the latest whizzy investments and just want someone to do it for them. Website still dull and purely functional only.
04/07/2017
What's good about it?
Vanguard Investor are yet to launch a mobile app, but the site is quite simple to use on mobile.
They have a mobile app for US customers so we would expect an app to be launching in the UK in the near future.
Vanguard is a weird exception to the rule in that the site is better once logged in than the other way around. It works smoothly enough and the screens are easy to read, compute and move around.
Trading and funding the account were easy.
Stocks and Shares ISA
Junior ISA
Investment Account
Pension
Own brand funds
We do not currently have sufficient feedback from investors on the drawdown experience to review the service for those in retirement. Please help us by leaving your review.
Vanguard is one of the world's largest asset management groups, with Vanguard Investor so investors can buy its funds directly.
When you hear Vanguard you should immediately think “low charges”. The account fee is 0.15% per year, capped at £375. Effectively, this means no platform fees on anything over £250k. This low-cost service won’t offer research and shares, bells or whistles, but with its LifeStrategy range of funds it will manage your money in a decent portfolio, spread around lots of global investments which are picked and run for you, for around 0.41% all-in or £4.10 on a £1,000 investment. You can only hold Vanguard's investments – so you can’t access other fund managers or buy shares here.
Vanguard recently launched pension drawdown options for those looking to take payments from their pot. This drawdown service comes at no additional cost to investors.
| Provider Size: | New investment service from one of the world's largest asset managers. |
| Minimum amounts: | £500 minimum lump sum investment £100 minimum monthly investment |
"Hello! I'm 22 years old and trying to navigate my finances. I have a comfortable safety buffer of £15,000, I'm contributing to my workplace pension and I'm also putting money into a cash LISA. I would now like to put £100 a month into a Stocks and Shares ISA. After exploring Boring Money, I've decided to opt for the Vanguard LifeStrategy 80% Equity Fund. I'm planning on investing this money for at least ten years. However, I wanted to know if there is any possibility of reducing risk after this time? For example, could I perhaps transfer to the 60% Equity Fund? Thanks for your help."
Lucy, London
02/08/2020
Read our replyHello! I'm 22 years old and trying to navigate my finances. I have a comfortable safety buffer of £15,000, I'm contributing to my workplace pension and I'm also putting money into a cash LISA. I would now like to put £100 a month into a Stocks and Shares ISA. After exploring Boring Money, I've decided to opt for the Vanguard LifeStrategy 80% Equity Fund. I'm planning on investing this money for at least ten years. However, I wanted to know if there is any possibility of reducing risk after this time? For example, could I perhaps transfer to the 60% Equity Fund? Thanks for your help.
Lucy, London
02/08/2020
Hi Lucy,
Firstly, congrats! I wish I had been as organised as you when I was 22.
You sound pretty organised and like you've ticked all the main boxes:
The Vanguard Lifestrategy funds are a very good option for newcomers to investing who aren't confident enough to pick their own funds and shares, and who want a big global brand to do the heavy lifting for them.
The benefit of setting up an ISA is that you are free to switch the funds inside this ISA, as and when you choose. So you are absolutely able to sell the 80% equity fund at a time to suit you, and switch the proceeds into a lower risk fund - perhaps nearer to the time when you think you will want to sell down your investments and take the cash.
I guess one question (and it is a question, because I don't know the answer) is that, if you think this money could be for more than a 10 year period, why are you not picking the 100% equity fund?
So many people stick with the middle options because it feels intuitively safer then picking an extreme. It may be that you are fundamentally uncomfortable with the idea of owning 100% in shares, which is of course your prerogative. But you do have the cash buffers to mean that you should be able to weather any storms without needing to sell your investments when markets are going through tough times.
It could be that the 80% equity fund is the most sensible choice for you, but I'd just say have that internal dialogue and make sure you've got a logical reason for not investing these very long term savings fully in shares.
I hope that helps and good luck (not that it sounds like you need it!),
Holly
We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA.
This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.
We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.
"I have been paying into Vanguard Lifestrategy for a few months now, despite losses during the peak of the coronavirus outbreak I am now making gains again now. I regret not putting more money into the market at the very bottom in March, but I thought things were going to get a lot worse and I'm quite a cautious investor, but instead the recovery took me by surprise. I still would like to put more money in but but not all in one go, but feel time is against me. I'm 50 now and hope to retire at 60. This gives me just 9.5 years to pay in and grow, do you think this is a long enough period to invest in or am I now stuck with low interest bank accounts? I also read your weekly blog today that was sent to me, it mentions that if we experience higher inflation this could hit shares and particularly bonds. Now this is somewhat concerning, but it may be years away and I can't afford to sit on the sidelines waiting for the dips to arrive. I have my money split between Vanguard LS 60 & 80 with slightly more in 60. So basically my question to you is - with only a ten year timeframe, am I coming to the end of my investing life and should now stick with cash if shares and bonds are likely to take a hit in a few years? But where else is there to go for a health return?"
Richard, Hull
25/06/2020
Read our replyI have been paying into Vanguard Lifestrategy for a few months now, despite losses during the peak of the coronavirus outbreak I am now making gains again now. I regret not putting more money into the market at the very bottom in March, but I thought things were going to get a lot worse and I'm quite a cautious investor, but instead the recovery took me by surprise. I still would like to put more money in but but not all in one go, but feel time is against me. I'm 50 now and hope to retire at 60. This gives me just 9.5 years to pay in and grow, do you think this is a long enough period to invest in or am I now stuck with low interest bank accounts? I also read your weekly blog today that was sent to me, it mentions that if we experience higher inflation this could hit shares and particularly bonds. Now this is somewhat concerning, but it may be years away and I can't afford to sit on the sidelines waiting for the dips to arrive. I have my money split between Vanguard LS 60 & 80 with slightly more in 60. So basically my question to you is - with only a ten year timeframe, am I coming to the end of my investing life and should now stick with cash if shares and bonds are likely to take a hit in a few years? But where else is there to go for a health return?
Richard, Hull
25/06/2020
First up Richard, I can't give you financial advice. I'm not a qualified adviser and also I don't know your full financial picture. So I am just sharing some food for thought here - hope it helps you to make the best decision for you.
Yours is a really common question and a very hard one at that.
It is a bit like asking me if you should go ski-ing again aged 50. The odds suggest that you will be fine. But the older you get the riskier it gets, and the greater the chances of any broken bones doing more damage and taking longer to heal. But would you say to any 50 year old friends that they shouldn't go ski-ing? Probably not. But if they break a bone, they'd be bloody unlucky and you'd feel guilty. Welcome to my world!
Loads to say.
Your timeframes. You are only 50. And there is no rule to say that when you hit 60 you need to take all your money out of the stock market.
In retirement we have 2 basic choices. We take our retirement savings and trade them in for a guaranteed and fixed annual income till the lights turn out. (An annuity). OR we keep invested in the stock markets, typically taking a lump sum on retirement and then drawing down a regular chunk every month or year to supplement our income (Drawdown).
Annuities are certain. But right now with interest rates so low, you don't get much and you prevent any potential upside (and of course downside) from markets. As a rule of thumb, take your pension savings and divide by about 20 or 25. That's a rough guide to how much you'd get a year if you buy an annuity.
However, if you live to 90, for example, 30 years from 60 to 90 is quite a long time to lock yourself out of the stock market. So don't assume that these next 10 years are all you have left to be in the markets. You may of course take some of your pension savings as cash when you're 60 (25% is tax free), keep some invested in a 'drawdown' pension and then trade it all in for an annuity when you're older. So maybe revisit your assumed timeframes for continuing your relationship with the stock market?
I think markets in March took us all by surprise and will continue to take us all by surprise for the rest of the year. No-one knows what is going to happen. It's a bit like having a teenager - you just know they're going to be stroppy at some stage but you don't know when or how long for. As we cannot predict the future, drip-feeding in can be sensible. I should think it will mean this year that you get some months where you buy cheap. And some months where you buy near the top. So be it. People to claim to call the market are usually pub bores who gloss over facts!
Cash rates are rubbish and going nowhere fast in the short-term. (We might get inflation at some point which will change this but I think we're some way off that.) So you are facing the most unpalatable choice. Rubbish cash. Or potentially ugly markets. I personally think bonds are a bit pointless right now (but that will anger some people who will violently disagree!) There is no easy answer so it's just a case of mitigating risk. My personal view is that with a 10 year + window you can ride out any storms in markets. As long as you don't bottle it and sell if things get bad. That's a bad mistake to make. If you make your bed, you have to keep lying in it!
Let's think of it in a more day-to-day way. If you tell me that you think stock markets will not grow over the next 10 years, that is similar to saying that you think there will be next to no growth, innovation or opportunity with companies - no room for any big global brands to become bigger and more profitable than they are today. 10 years is a very long time to hold such a pessimistic view for.
A key example is climate change: in order to meet the goals set out in the 2015 Paris climate agreement, investors need to allocate an additional $1.5tn per year to renewable energy and other low carbon projects – and to do so very soon, within a decade or so. Someone's got to get that money!? This will drive growth, expansion and change. See what I mean? There will be some sectors which will grow whatever the broader doom and gloom.
Now to the funds you mention. Vanguard is a big credible low-cost global name. It's as safe a pair of hands as you can get. So that box is ticked. 60% in shares is like a single measure gin and tonic. 80% is more like a double. Bigger highs. Bigger lows. In my analogy however the 80% doesn't necessarily equal a bigger hangover if you have long timeframes. If you think back to my earlier comments, you only lose money in stock markets when you are a forced seller. So although the 80% in shares will be more uncomfortable at times, if you don't need to sell - it doesn't matter. And if you think that you will have some money in 'drawdown' pension products after 60, well your timeframes are longer than 10 years.
So maybe your 60% stuff is your 10 year pot. And your 80% stuff is your longer-term stuff? (And really, for 10 years or more, I suspect many people would actually select the 100% version but of course this will be more volatile.)
(Vanguard is a good player but they are passive. People will argue about whether this is the right approach for markets which are likely to fall further. You are in safe hands as I've said and I don't want to overload you. But as you become more comfortable with investing, do read up on the difference between active and passive funds in different market conditions. Not a critical one for today though - don't want to bombard you!)
I think the first thing to do is to read up on annuities and drawdown. Revisit that 10 year timeframe in your head. Expect great volatility and even a potential crash - that way you can't be surprised. Drip feed in. Make sure you balance your innate caution with making your money work hard enough. Make sure you have enough cash around to weather any short-term needs so you're not a forced seller. Set up a plan and stick to it. Split your money into short-term (cash), medium term and long term pots.
I just worry that with lots of people living longer than ever, nervousness now will force people to sit in cash for 30 year timeframes or even more - and as weird as things are today - that doesn't feel like the right approach.
Hope that helps.
P.S. Money Advice Service has an annuity calculator so have a play on that. Hargreaves Lansdown and AJ Bell Youinvest typically have good information on drawdown. If they fry your brain, try Standard Life for more reading.
We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA.
This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.
We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.
"With China (well on the face of it) emerging from the COVID-19 nightmare, and its economy already up and running as the US, UK, and other countries are still battling, is now a good time to invest into China? What funds with equities that have a China focus are out there on the market? As a novice investor, I was looking at Vanguard's LifeStrategy 60% fund but know this is heavily geared towards the UK market. Any suggestions/thoughts would be most welcome!"
Tariq, Lancashire
09/04/2020
Read our replyWith China (well on the face of it) emerging from the COVID-19 nightmare, and its economy already up and running as the US, UK, and other countries are still battling, is now a good time to invest into China? What funds with equities that have a China focus are out there on the market? As a novice investor, I was looking at Vanguard's LifeStrategy 60% fund but know this is heavily geared towards the UK market. Any suggestions/thoughts would be most welcome!
Tariq, Lancashire
09/04/2020
Hi Tariq,
You say you are a novice investor. As such I suspect you will do little more than tie yourself into knots if you try to be ‘too clever’ about things and second-guess geopolitical, economic and pandemic outcomes. I think actually I’d say the same to a very experienced investor.
As always the very first thing to be clear on is your investment timeframes. Is this long-term stuff and general “I’m saving for 10 years+ just to be sensible and build a nest egg?” Or is it shorter-term and more like 5 years with a specific deadline? The answer to this will really point to your risk profile. If I talk to people in their 30s for example, who are saving into a pension (i.e. we’re talking 20 years+) , then I think they should start with considering 100% in shares/equities.
Just because you are a novice, doesn’t mean you should adopt a 60% equities mix – this is determined by timeframes rather than knowledge. On the other hand, you have to feel confident that you wont bottle it if things tumble by 30% as they did last month – and if you suspect you may not weather the more bumpy ride that a 100% shares portfolio gives you, then go for something less punchy. Even if logic suggests this will not make your money work as hard as it should.
Now – to China. Who knows is the honest answer? There could be a second outbreak, trade wars, an alien invasion – OK that was flippant, but you see the point. Trying to cherry pick regions is nigh impossible. The boring old truth is this is just about diversification.
If you think that the Vanguard option is too weighted towards the UK (the 60% Vanguard LifeStrategy fund currently has about 22% to the UK) then you could try to look for other ‘multi-asset’ funds which have a lower weighting to the UK. But here’s where it gets tricky. The FTSE100 companies are actually very global in nature – take HSBC for example. In 2019, 49% of their revenues came from Asia. And just 29% from Europe. So this is not a UK company by revenue source – it’s just listed on the British Stock Exchange. So that % allocation to the UK can be a little misleading.
If you really want to back a recovery in China – and your guess is as good as anyone’s – then you could always put the majority of your money in a multi-asset fund and allocate a small proportion to a fund with a higher weighting to Asia or indeed China. Many of the DIY platforms including Hargreaves Lansdown, AJ Bell Youinvest or Fidelity have good research you can read up on.
We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA.
This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.
We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.
Our free weekly blog with Holly's
no-nonsense opinions, tips & food for thought.
If you change your mind, you can unsubscribe at any time. We'll never share your details and you can unsubscribe any time.