Comparing stock index trackers
For a long time now i've been investing in VWRL (FTSE All World Index) as a way of keeping my portfolio diversified and allowing me to take more risk when it comes to individual stocks as most of my money is within this fund. When talking to a friend the other week he has a similar approach but instead of VWRL he's been investing in VUSA (S&P 500 Index tracker) he swears but it and said the returns are better than VWRL.
My curiosity kicked in, as a long term investor i want to get the most value out of my investments as a few pounds now could cost thousand later. With this in mind i decided to do a comparison. My friend was right, long term returns are better on VUSA but it's more heavily weighted to America and also the top Tech Companies taking up 25% of the funds total investment.
Depending on your risk tolerance etc you need to work out what is the best option for you. In terms of historic performance VUSA might be the better play, but more risk involved with all exposure in America.
My curiosity kicked in, as a long term investor i want to get the most value out of my investments as a few pounds now could cost thousand later. With this in mind i decided to do a comparison. My friend was right, long term returns are better on VUSA but it's more heavily weighted to America and also the top Tech Companies taking up 25% of the funds total investment.
Depending on your risk tolerance etc you need to work out what is the best option for you. In terms of historic performance VUSA might be the better play, but more risk involved with all exposure in America.
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