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Fund options from Vanguard in Ireland

Using a core range of Vanguard funds, it’s possible to achieve a huge amount of diversification for your investments.  You can invest at a risk-reward level that’s appropriate for your needs by adjusting the proportion of your money invested in company shares and bonds.

Ready-made portfolios

Using Vanguard funds, Moneycube can provide ready-made portfolios to help our customers put together a balanced mix of index funds.

We’ve set out below some typical portfolios using Vanguard funds below.

Portfolio 60:40 80:20 All equity
    Vanguard U.S. 500 stock index fund 34% 47% 58%
    Vanguard European stock index fund 13% 17% 21%
    Vanguard Japan stock index fund 5% 6% 8%
     Vanguard Emerging markets stock index fund 8% 10% 11%
    Total equity 60% 80% 98%
     Vanguard Global bond index fund 27% 13% 0%
     Vanguard Global short-term bond index fund 11% 5% 0%
    Cash 2% 2% 2%
    Total bonds and cash 40% 20% 2%
Total 100% 100% 100%

Portfolio performance

Index funds make a simple promise: to follow the performance of the markets.  Nothing more.

So it’s no surprise that the ready-made portfolios have done pretty much what the markets have done over the last few years.

On a three-year view, the annualised return ranges from 7.1% to 11.6%, as the chart below shows.

Vanguard Model Portfolios Performance Chart &Ndash; Fund Options From Vanguard In IrelandNotes:  Back-tested data to 31 October 2019.  Returns are net of fund management fee (OCF), but do not include Moneycube/ platform fees (0.9% per year)

Who are ready-made portfolios for?

Ready-made portfolios of index funds might suit you if:

  • You want ongoing advice on your investments
  • You want to put your money to work in low-cost investments with a global outlook
  • Don’t have time to monitor your investments directly all the time

Rebalancing and fund switching

Fund switches are easy when you invest in a Vanguard portfolio using Moneycube.  You can rebalance, or switch among Vanguard investment funds, with no dealing costs, and no tax charges.

Investment costs

One of the great advantages of index funds is that they don’t require all the expensive humans that actively managed funds can’t do without.

That drives down the overall cost to you, the investor.  And that has a direct impact on the investment growth you can enjoy.


Read on: Investment costs using Vanguard index funds