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!