Here’s how I’d invest £1k in 2020
Rupert Hargreaves | Sunday, 5th January, 2020 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shares Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Here’s how I’d invest £1k in 2020 Enter Your Email Address Simply click below to discover how you can take advantage of this. Image source: Getty Images See all posts by Rupert Hargreaves “This Stock Could Be Like Buying Amazon in 1997” 2018 was a mixed year for investors around the world as stock markets plunged on trade concerns towards the end of the year. However, in 2019, markets roared back with some of the world’s stock indexes producing returns of more than 20% for investors, making it one of the best years on record in terms of performance.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Following this performance, I think 2020 is going to be another good year for investors around the world. With this being the case, if I had £1,000 to invest today, I would put my money to work in a low-cost global stock tracker fund. A global investmentA global stock tracker fund is a great way to get exposure to the world stock markets without taking too much risk. Picking single stocks can be a time-consuming and confusing process, and £1,000 isn’t enough to build a diversified portfolio of individual stocks, especially when you take into account trading charges.What’s more, even picking individual stock markets can be tricky. For example, last year, Britain’s leading blue-chip stock index jumped 12%. However, the S&P 500 index of top US companies surged by 28% and the MSCI World Index, which tracks stocks across the developed world, jumped by almost 24% during 2019. The best way to get exposure to global stock markets is, in my opinion, to buy the FTSE All-World UCITS ETF. Offered and managed by global fund powerhouse Vanguard, the All-World ETF owns a total of 3,371 stocks and charges an annual management fee of 0.22%. One thing to note about this fund is the fact that its base currency is US dollars, so there’s quite a lot of currency exposure here, which can have a significant impact on returns.If you are not comfortable with this kind of exposure, then the iShares MSCI World GBP Hedged UCITS ETF is a great alternative. The difference between this fund and its peer is the fact that the iShares offering hedges its currency exposure back to sterling, so investors don’t have to worry about foreign currency risk.It is a bit more expensive, with an annual management fee of 0.55%, but this is relatively inexpensive considering the peace of mind that currency hedging offers.Over the past five years, this fund has returned 7.4% per annum including fees, and it has compounded investors’ capital at an annual rate of 9.8% since inception. At this rate of return, it will take around seven years to double your initial investment.The bottom lineSo, that’s how I would invest £1,000 in 2020. While this might not be the most exciting investment strategy around, I believe that buying a low-cost global tracker fund means investors can gain exposure to global markets without having to worry too much about picking stocks or countries. All you need to do is click ‘buy’ then sit back, relax and watch your money grow. It is as easy as that.