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JISA - magnificent 7 & diversifying passive trackers?
Mum of 2
Posted: 06 January 2025 14:57:27(UTC)
#1

Joined: 06/01/2025(UTC)
Posts: 1

Hello

I’m new to posting here although I read the boards from time to time.
I’d be grateful for advice and opinions.

I’ve two kids 13 & 15 and I’ve invested monthly (plus birthday top ups) since they were born.
Having started out with the Child Trust Fund (not good selection of funds) I eventually got them both into Hargreaves’s Lansdowne JISAs to keep costs to a minimum and for a passive investment.
Initially they were investing in an HSBC world tracker but a few years back when a Vanguard All World product was available I switched subsequent contributions to that .
So they both currently hold two ETFs but contribute to only the Vanguard one.
Time is on their side so we intend to stick with 100% equities for a few years yet.

Up to now I’ve opted for an entirely passive stance by letting the All World product do its thing.
Thats done a great job so far!
However it’s biased to the US market and therefore tech stocks.
So we have ended up with about 17% of their portfolio in “the magnificent 7”.
That seems a bit high…. Well certainly a lot more ££ than I’d have invested had I chosen stocks myself….

I can’t decide quite what to do. Possible options seem to be:
1) Sell a chunk of the existing ETF to bank the substantial gains made recently - it what would we switch to and timing is tricky.
2) Keep the existing ETF and simply divert future contributions to a new/different fund - either small cap or all world ex US (not finding it easy to find a good/cheap alternative tracker product)
3) Commit 100% to the full passive experience and leave it alone - they’re young enough they could ride out a future hit which will defo come at some point and might be unrelated to these 7 anyway!
4) Something else?

Any thought please?
And fund/ETF suggestions gratefully received

Cheers
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