Choosing a global equities tracker fund

You need to build a compounding machine that owns a slice of the great businesses of the world.

It’s simple to choose a global equities tracker fund if you are looking in the right places.

Unfortunately, the financial media and the financial services industries bombard us with marketing, jargon, junk data and misinformation.

The result is that people new to investing who need to make a sensible fund choice in their workplace pension or their stocks & shares ISA get overwhelmed with information overload…leading to confusion and procrastination.

There is no one single correct fund.  There are many different low cost equity index tracker funds. The video below lists some of the best options (but there are many others!).

If you are struggling to start, keep it simple and don’t sweat the small stuff obsessing about micro differences between different products. There is a lot of overlap here: the similarities between them are much greater than the differences.

The most important thing is to get started. If you are unsure, then start with a practice account (no risk, no cost) where you invest “monopoly money” or by investing small amounts of money until you are more confident in your choice.

Check out this short (5m), clear and helpful video from The Money Plant Youtube channel:


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7 comments

  1. During these uncertain times, it’s gold having good quality advice.

    1. There’s sometimes a “money makeover” type article in sunday papers and the person who is typically looking to have their money work for them and provide a reliable income into their dosage.
      Over the years they accumulate a range of funds – and individual shares too. Rightly or wrongly they buy and hold so they have a range of funds which fundamentally hold the same underlying shared but with an additional layer(s) of fees, ocfs and charges that take a bite out of returns.
      The expert advice is never to just invest in VWRL but to do a bit of pruning and tidy things up – make what needs to be more tax friendly and think about an annuity / bonds.

      Why we have to think so much for our financial retirement is either a blessing if you start early, choose well and keep fees down or a travesty if you start late, choose poorly and have 1% taken off you every year.
      Advice like that in the article should keep us on the straight and narrow.

      Thanks.

  2. Thanks for this! Agreed. Simplicity is key. Which do you prefer? All Cap or VEVE?

  3. What about socially responsible/ethical investing using the above principles? Having a dig around Vanguard UK, I found:
    “ESG Developed World All Cap Equity Index Fund – Accumulation”; would this do the trick?

  4. For those like me who want to avoid fossil fuels, I suggest a look at the iShares World SRI
    https://www.ishares.com/uk/individual/en/products/316039/

  5. Thanks for this. What I find a shame is that the FTSE All Cap Index Fund isn’t available as an ETF. I think it is pretty much the same as VT.

    Also what are your thoughts on the recently listed Vanguard LifeStatergy ETFs that have been listed in Germany and Italy (trading in Euros)?

  6. I agree the financial media really is mostly junk/total confusion (they are reporters after all). I’ve put up a lot of screens and tests on my page to help clarify some of the confusion with honest data! Cheers!

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