300k to invest, lump sum or dca? VWCE or VUAA?

[saharali1991]

@musicbazzar Great, I'll check them all! Thank you

 

[ecaush]

@saharali1991 Why not invest a certain amount of a lump sum and then DCA the rest? That way you would both skip the FOMO and not be at a high risk. Lump sum 200k at once, then DCA the rest for example.

 

[samr1995]

@saharali1991 Both investments are good, VUAA is supposed to have higher return at least historically.

I guess you are all in right now in XEON ETF, I would do DCA in 12/24 months or 50% DCA/50% Lump sum.

Other consideration with that large amount maybe makes sense to have at least some looking for dividends in a ETF like the FGEQ - Fidelity Global Quality Income UCITS ETF. Maybe 60%/70% VWCE or VUAA, and the rest in FGEQ or VHYL.

 

[saharali1991]

@samr1995 Interesting! Don't VUAA and VWCE pay dividends as well? Trying to figure out how effective it would be to have 40% in FGEQ or VHYL also in relation to their higher ter costs.

 

[samr1995]

@saharali1991 Yes, they pay dividends but are lower and accumulated(around 1,6% i think) so until you sell you don't gain.

The cost is higher true, but you have the advantage of having an ETF focused in income without selling, the closer to retirement the more interesting. Might be also a little boost to you seeing already some income.

The ETF that I share Is around 3% Dividend yield with good growth and is a fund with Distribution. Is not as tax efficient, but you don't need to sell a single time, for the long run, i think is helpful mentally. Maybe the percentage that I said is high with 15 years horizon, or you might like to think out for later.

 

[drakmugivenwing1989]

@saharali1991 If you go all in would all 300k be insured?

 

[saharali1991]

@drakmugivenwing1989 What do you mean, insured?

 

[drakmugivenwing1989]

@saharali1991 How much of investment value is insured in case broker goes bust

 

[saharali1991]

@drakmugivenwing1989 In case the broker fails, money remains invested with the fund institution, for example Vanguard. Then it can be transferred to another broker.