Possible UK alternative to Vanguard US Target Date Index Fund?

Investing
#1

Hi Jeremy,

I recently saw one of your posts highlighting Vanguard USA’s target date index funds. They all contained a US stock market index, an international stock market index and a bond index split roughly 70%, 20% and 10% respectively. Upon inspection of Vanguard UK’s list of funds, they don’t seem to offer anything like this with the right proportions of each fund. This is quite a shame I think!

I discovered the FTSE Developed World ETF while browsing the UK site. It seems like a good alternative to invest in but I’d like your opinion on it if you would be so kind. I would also look to invest in a UK bond index alongside this ETF long term.

Here’s a link to the ETF: https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ucits-etf-usd-distributing
The ticker is (VEVE.L)

Looking forward to hearing your response!

Chris

#2

Chris if you go on Vanguard app and go on ‘what we offer’, there is an option for target retirement funds, you then have the option for target retirement 2035, 2040… etc etc.
That’s the target date index fund in the UK as far as I understand. I went with life strategy 80 instead tho (also in UK).

#3

I’m also a UK Vanguard investor. I think really as long as your investments are low cost and diversified you’re already winning regardless of which package or product you’re using.

I personally use the US Equity index fund - accumulation which is basically VTSAX, so the total US stock market (3900) odd stocks and the ESG developed world all cap index equity fund for a good broad diversification. I’m personally not worrying about bonds at the moment as I’m 28 and after as much growth as possible, and will re-assess as our wealth grows.

I want to be in control of our investments which is why I didn’t choose either of the packages mentioned above, to be honest it’s up to you what you’re comfortable with but as long as it’s low cost, diversified and invested in regularly and staying the course you’ll probably do very well :+1:

Tom

1 Like
#4

Thanks for the tips Tom- very helpful! Out of curiosity, how much do you allocate to each of the funds?

#5

Hi Chris.

Apologies for such a long wait for a reply but I didn’t realise you had done.

At the time of writing I was doing 50/50 split for each of the funds. Now in my SIP I have 100% of it invested in the world all cap index fund and it’s done about 30% which I was thrilled with over the last 18 months.

My ISA I’m invested solely in the English version of VTSAX (US Equity Index Fund - Accumulation) as I personally think it’ll grow more aggressively and I’m contributing to that every month. Whereas my SIP I’m just going to leave - it’s a pension from a previous employer and I don’t like not having access to the money 24/7 like I get with my ISA.

Hope that helps.

How are you getting on since your last post?

Kind regards,

Tom