One of the most popular funds in the U.K as of May 2021 by Interactive Investors and is above other popular active funds:
The fund, primary invests in other Vanguard funds, as you can see from the table below that the funds it invests in are a diverse range of geographical mix.
The mix is weighted more towards the U.K. as it is a U.K fund over other global funds and recommended weighting. It does a good job of diversifying in Japanese funds and Asian and European funds.
The point I would personally make for a fund that is looking for diversification within one fund is that it is low towards European equities (see below). I would personally, for higher growth, want more in Asia and emerging markets than in the U.K. but as of writing the U.K and Ireland both look in a reasonable position and are both developed so from a safety standpoint it doesn’t look too risky.
Also, some would argue that this is underweighted in U.S equities as the benchmark for U.S equities is 60% and would agree some what with this as I would rather it was more weighted in the U.S than the U.K as this is looking to go more for the U.K market.
However, I personally, would be happier to see around 40/50% U.S if the allocation in Europe was higher for stability and if looking for more an aggressive approach more in EM markets.
When you break down the performance, it has been consistently positive and the breakdown of the geographical split seems to be producing positive results.
Going further into detail you see the Alpha and Sharp ratio (two metrics of risk-adjusted return), The Alpha is negative. Although, would say for a passive fund it is not looking too high results for the metrics.
Conclusion
My thoughts, if you are looking for a hands off all in one fund then this fund is a good as any. If you are looking for a more active approach personally, believe you could have a better mix of weighting more towards your needs and preferences.
