About the Vanguard starter portfolio
The Vanguard starter portfolio is a Vanguard-only two-sleeve core: 70% global equity and 30% global bonds, both wrapped in low-cost UCITS ETFs that a UK investor can hold through any major broker. It is built for someone who values a single fund family, simple paperwork, and broad market exposure without specialist sleeves. As with every model on this site, this is one illustration, not a recommendation.
Holdings and weights
- 70% Vanguard FTSE All-World UCITS ETF (VWRP) — the global equity core. Around 3,700 holdings across developed and emerging markets, accumulating share class. Ongoing charges roughly 0.22%.
- 30% Vanguard Global Aggregate Bond UCITS ETF GBP Hedged (VAGP) — the bond ballast sleeve. Investment-grade global government and corporate bonds, hedged to sterling. Ongoing charges roughly 0.10%.
What the portfolio is trying to do
VWRP captures the entire investable world stock market in proportion to global market cap. VAGP covers a similarly broad slice of the investment-grade bond market, hedged to sterling so currency movement does not amplify the bond return. The 70/30 split is more growth-tilted than the cautious core 60/40 model — suited to investors with a longer horizon or higher tolerance for drawdowns.
Who this is for
Investors who prefer to keep one fund provider for simplicity, who want broad market exposure without specialist tilts, and who are comfortable with a slightly higher equity weight than the cautious core. People building a long-term ISA or SIPP portfolio from scratch often start here.
Who should look elsewhere
If you want a one-ticket solution, see the one-fund global portfolio. If you want a modular shelf with iShares-specific tools or specialist sleeves like options-overlay income, see the iShares starter portfolio or the income tilt portfolio.
Tax wrappers
Both VWRP and VAGP are UCITS ETFs domiciled in Ireland with UK reporting status, eligible for ISAs, Junior ISAs, SIPPs, and General Investment Accounts. Inside an ISA or SIPP, dividends and capital gains are sheltered from UK tax. Outside a wrapper, dividends and gains can be taxable — see the ISA vs GIA guide.
Rebalancing
An annual rebalance back to 70/30 is usually sufficient. In years where the equity sleeve has run hot, rebalancing trims into the bond sleeve; in years where bonds have outperformed, the trade goes the other way. Rebalancing is tax-free inside an ISA or SIPP. In a GIA it can trigger capital gains, so threshold-based rebalancing is often preferred to a fixed annual reset.
Key risks
Both sleeves can fall in value, and they sometimes fall together. Bonds carry interest-rate risk: when rates rise, bond prices fall, and the longer the duration of the bond fund, the bigger the move. The hedge on VAGP protects against currency volatility, not against interest-rate or credit risk. Equity risk is broad-market: any global recession can drive a 30%+ fall in the equity sleeve. Past performance is not a guide to future returns.
Educational content only. Not financial advice. Investment values can fall as well as rise, and you may not get back what you invested. ETF holdings, charges, and weights are illustrative and may change. Always check current factsheets and consider your own circumstances before investing.