Master portfolios to beat Hargreaves Lansdown’s

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Master portfolio – for child

This section examines master investment portfolios for investors looking for a portfolio for a child in the UK.

Investing for kids should typically have a long term outlook; the ‘Adventurous’ portfolios will often be appropriate. That being said, putting money away ‘for university’ is less long term than a 30 year old putting money away ‘for retirement’.

The psychology with children’s portfolios will often be a little different than adults psychology’. Younger generations are typically more globally minded, more likely to value sustainability, and more comfortable with technology. This ‘child’s portfolio’ reflects these assumptions.

This investment portfolio contains 5 ETFs:

ETF	Weighting	Annual yield, %	Annual expenses, %
VUKE: Vanguard FTSE-100 ETF	15%	5%	0.09%
SUUS: iShares MSCI USA SRI ETF	35%	2%	0.20%
CNDX: iShares NASDAQ-100 ETF	15%	0%	0.33%
VFEM: Vanguard FTSE Emerging Markets Equities ETF	15%	2.9%	0.22%
AGGG: iShares Global Aggregate Bonds ETF	20%	1.6%	0.10%

This portfolio has 80% equities, split 50:15:15 USA: Emerging markets:UK. The USA equities are mostly those in MSCI’s Sustainable index, with the balance in the tech/growth-orientated NASDAQ-100.

The bond portion of this master portfolio is invested globally. The normal guidance of keeping the fixed income exposure in the country you live in feels like limiting a child’s horizons.