Rebalancing of my ETFs

I have chosen to rebalance my holdings on my ETFs. I have done this, as I wanted more capital to invest in stocks. I also didn't want to have more ETFs than needed.

Previous holdings in ETFs were:

  • VWRL: Vanguard FTSE All-World
  • VFEM: Vanguard FTSE Emerging Markets
  • IITU: iShares S&P 500 Information Technology Sector
  • VGOV: Vanguard UK Gilt UCITS

Holdings are now:

  • FTAL: SPDR FTSE UK All Share - 40%
  • VUSA: Vanguard S&P 500 - 50%
  • VGOV: Vanguard UK Gilt UCITS - 10%

I wanted to do this to cut down on fees, with my current distribution between the 3 new ETFs this brings my fees down to 0.12%. I still have great exposure to the UK and US markets, I am cutting emerging markets as I wanted to be more focused on the UK and US.

According to JustETF.com the 3 new ETFs should bring me a return of ~20.14% a year. With the reinvestment of dividends and profits every year, this could compound really nicely. Whilst giving me more freedom to stock pick in the UK markets.

This also cuts down my exposure to currency fluctuations on the US dollar, as VWRL, VFEM and IITU were run using USD. I now only have one ETF exposure to the US dollar. All my portfolio holdings now apart from VUSA are exposed to the British pound.

Let's see how this pans out, with a good yearly return just on my ETFs and lower fees I am hopeful.