List of new ETFs in Dozens Invest shelf

We’ve mentioned that the new investment products have been made live in the app yesterday but in case you have not had the opportunity to browse these, or are not yet a customer, we’ve posted a list of these with some further details.

As well as generally extending the range of choices available, I trust that this addresses some of the feedback that we got from active members here like @Gaoler @sendu and @khadz who were looking for investment options in lower risk categories as well as index trackers, so we’d love to hear your thoughts and feedback

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Thanks @robert. It’s good to see some additional ETFs, and no doubt the S&P500 one will prove popular.

However, what exactly is the “World Equities” one? I’m disappointed it isn’t a fully diversified global fund (why those 5 regions in particular?).

A one-stop-shop of the whole market (or as close as you can get in an ETF, such as VWRL) would be very valuable to those who don’t know how to pick markets* and just want to ride the whole stock market upwards with reduced volatility, and a statistical likelyhood of doing better in the long term than any subselection of the market.

[ * ] picking the right market to back is not really something anyone can do infallibly, because no one can predict the future. You can make an educated guess, you can get lucky, but you can also be wrong and get unlucky. The safe choice is no choice, taking the average of everyone else’s bets.

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Thanks to some extra homework by a colleague (much more expert than me), I am able to try to reply to this :slight_smile:

The pie chart in the World Equities ETF Strategy Details only shows the top 5 country weights, but the 15.01% tied up in ‘other’ consists of an additional 15+ developed market countries

The aim of the ETF is certainly to capture the broad global equity index which does so by investing in large companies - covering 85% of the market cap in each country

In a quick comparison to VWRL the country weights are relatively similar, and match the share of global equities, with the notable difference the inclusion of China in the Vanguard ETF.

While there are certainly differences (and these numbers will vary regularly so these are approximates only), you see it is quite diversified.

World Equities (%) VWRL (%)
US 65.8 56.3
Japan 8.2 7.6
UK 4.5 4.2
France 3.3 2.8
Switzerland 3.2 2.8
Canada 3.1 2.5
Germany 2.8 2.6
Australia 2.0 2.0
Netherlands 1.4 1.2
HK 1.0 1.1
China - 4.9
Other 4.7 12.0

SPDR MSCI World UCITS ETF

You can see the details of each ETF by clicking “Browse Investments” and then whacking the risk level up to 5 to see everything available. Then click each ‘strategy’ to see which ETF is being used for that strategy.

I only just realized this was possible!

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Thanks. Personally I prefer my global fund to include EM, but it’s pretty standard to buy EM separately as well.

However, would any of Dozen’s target customers who know nothing of the stock market know to do this? I think not, and that’s the benefit of a truly one-stop-shop option.

Having a “can’t go wrong” (which is to say, can’t do any worse than the stock market as whole) option amongst all the other options in Dozens would be useful. I don’t really know what someone new to investing is able to make of all the other options. How can they decide? Will the basis of their decision making really be what is also good for them?

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I think the app could do with a tool on the Invest screen to steer customers to suitable options.

Something along the lines of how much do you have as a lump sum/monthly, do you already have decent regular savings, how long could you lock money away for, a check on the level of risk a customer would be comfortable with etc.

Essentially, a self-directed questionnaire with suggestions at the end, such as x% in bonds and x% in an ETF with a list of suitable choices in the app.

It’s quite a jump at the moment from the Grow bonds to Invest, particularly for someone who’s never invested.

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