FiL goes on a spending spree!

So, having just sold down some of my holdings of companies, I find myself with some cash sitting in my ISA. This gives me the opportunity to continue rebalancing my portfolio to my newer target allocations.

At present, I am heavily under weight on trackers (in an attempt to reduce the overall risk of my portfolio) so with all this cash I need to purchase some trackers. Now given that I have seen the change in my mentality when I am using trackers, I know that I have to get back in as soon as possible and make sure I hit the next quarters payout – who cares if the price fluctuates up and down a bit.

So, before I dive into what I bought, a quick reflection on what has happened since I sold the stocks. Well not surprisingly, they have gone up slightly. I do find this slightly hard, and wishing that maybe I had just hung on, and who knows what will happen in the future. Yes, I will keep an eye on some of them to see if I can make the most of a cyclic opportunity. For now, I keep reminding myself that I did this to stabilise my portfolio, so in effect the trackers will be fire and forget.

The allocations are not equal but do have predefined target allocations that I can start tracking against.

Purchase #1: Vanguard FTSE-250 – VMID.

Erm hang on a minute? Didn’t I just sell a FTSE-250 tracker?! Well yes. Thanks to a great article over on Monevator, I thought to check on the fees. My old tracker, MIDD, was charging 0.4%, compared to the Vanguard offering at 0.1%. Given the difference in costs, I changed to take Vanguard, and accepting that Vanguard are forming a larger and larger part of my trackers, which is a little worrying but hey ho!

Average purchase cost: £31.68

Purchase #2: Vanguard Asia ex. Japan – VAPX.

Although I have exposure to Japan with my Investment Trust, I have very limited Asia exposure, and so I have tucked in to some Asian holdings. No doubt I will forget about the holding until I need to start topping up the holdings over time but for now it gives me a little diversity!

Average purchase cost: £19.95

Purchase #3: Vanguard European ex. UK – VERX.

Be it a desire to derisk Brexit, or just a desire to increase non UK holding (I find that VHYL is quite heavily US based) or give me some other random exposure, who will ever know 🙂 I wanted to explore some of the wider markets, especially as it means I can now remove my watch list European shares and not care about the exchange rate against the individual shares. I buy a slug of the shares and forget about it – bliss!

Average purchase cost: £25.99

What next?

So I still have some cash left over but I will leave that as cash for now. What I want to see is just how much dividends come in from these new holdings – another couple of months and see how that holds up before I purchase anything further. I have as always done my “back of fag packet” calculations but there is nothing quite like seeing the real dividends drip in.

The portfolio is finally getting close to my allocation – in fact according to my rules, the next purchase will, subject to market changes, be Investment Trusts to build that portion of the portfolio up.

With any luck over the course of this year the rebalancing will complete, and allow me to get back to trying to time the market (remember folks, don’t do that!).

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Author: fireinlondon

Fighting the high cost of living in London

4 thoughts on “FiL goes on a spending spree!”

    1. Hi FvL,
      No problem – I originally went with MIDD for variety from Vanguard, however with the difference between the two then I will suck it up – so yes worth looking at the rotation!
      Cheers,
      FiL

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  1. The best ideas often start their humble beginnings on the back of a fag packet! 🙂

    Good luck with those investments – I have holdings in VMID but also some in HMCX only because at the time, VMID wasn’t available with that platform. Looking at the fees though (0.35% vs 0.1%), I think I’ll make the switch sooner rather than later. Thanks for drawing this to my attention!

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    1. Hi Weenie,

      Haha yes – I do a lot of thinking that way, and it works well quite often!

      Yes, I was in the same place with MIDD without considering the fees, but then when you see it in the cold light of day, it does make a difference, and it doesn’t take much to work out the trade off on trading costs vs. ongoing expenses!
      Cheers,
      FiL

      Like

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