Around £200k-£220k to invest - wanted to discuss ETFs I am looking at

REDDIT.COMJun 9, 4:53 PM UTC
Around £200k-£220k to invest - wanted to discuss ETFs I am looking at

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 - 0.20% - 81% growth over the last 5 years

SSAC - 0.20% - 77% growth over the last 5 years

VWRP - 0.19% - 76% growth over the last 5 years

VWRL - 0.19% - 62% growth over the last 5 years (lower than VWRP as it pays dividends instead of accumulating them)

V3AB - 0.24% - 68% growth over the last 5 years

VHVG - 0.12% - 83% growth over the last 5 years (Why so cheap and so good growth?)

TDGB - 0.38% - 78% growth over the last 5 years + solid dividends on top

XMWX - 0.15% - Fairly new, but over the last 18 months the performance was fine. Might be worth adding a small portion for diversification, as it exludes the USA

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!

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