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Cheapest Vanguard LifeStrategy S&S ISA
jimmyjones_2
Posts: 106 Forumite
Hi,
I am looking at opening my first S&S ISA and after a some research have decided to go for a passive investing strategy and make monthly payments into a single Vanguard LifeStrategy 80% Equity fund.
According to my research (searching google), a HL S&S ISA would be cheapest for holding a single fund with a £24 pa platform fee and no other charges apart from the dilution levy and annual management charge which are obviously unavoidable.
But iii.co.uk seem to offer Vanguard LifeStrategy in their S&S ISA and have no annual fee and no charge to buy funds - is this there a catch?
Are iii.co.uk actually the cheapest option for monthly drip-feeding a Vanguard LifeStrategy S&S ISA?
I am looking at opening my first S&S ISA and after a some research have decided to go for a passive investing strategy and make monthly payments into a single Vanguard LifeStrategy 80% Equity fund.
According to my research (searching google), a HL S&S ISA would be cheapest for holding a single fund with a £24 pa platform fee and no other charges apart from the dilution levy and annual management charge which are obviously unavoidable.
But iii.co.uk seem to offer Vanguard LifeStrategy in their S&S ISA and have no annual fee and no charge to buy funds - is this there a catch?
Are iii.co.uk actually the cheapest option for monthly drip-feeding a Vanguard LifeStrategy S&S ISA?
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Comments
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What makes you think that iii offer Vanguard trackers in a S&S ISA. If they do it's news to me!Old dog but always delighted to learn new tricks!0
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Well, perhaps I posted the above too early without checking because I think you might be right! I'll investigate further because if they do it is a very recent thing.Old dog but always delighted to learn new tricks!0
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Interesting. The iii main site is certainly listing Vanguard LS as an available fund and states that the minimum purchase is £20, that there is a 0.00% initial charge and that it can be held in their ISA. I then went to my iii trading account and nothing comes up under Vanguard to enable you to actually buy the fund!
Maybe a phone call to them may get an explanation.Old dog but always delighted to learn new tricks!0 -
I'm looking at moving my wife's pension to Vanguard LS and for a single fund, a HL SIPP seems like good value at only £48 pa in fees.
It's a pretty small (£25k) pot with only £3600 pa going in, so I need to keep fees low!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Westy, thanks for checking your trading account.
I called Interactive Investor who cant see it on their system. This is pretty annoying, it is clearly listed here as being available in an ISA: http://www.iii.co.uk/investing/factsheet/ACDT0 -
gadgetmind, I have an even more modest HL SIPP and now hold a single single Vanguard LS. I think the 'platform fee' is £2 per per month so I am expecting it to cost only £24pa plus the annual management charge.0
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jimmyjones wrote: »I think the 'platform fee' is £2 per per month so I am expecting it to cost only £24pa plus the annual management charge.
Thanks. Here's me with a brain the size of a planet and I can't do 2 x 12 successfully!
This is looking like an easy decision and will mop up a really old Hill Samuel pension, a high-fee IFA-managed pension with Skandia and an Aviva stakeholder.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Hi,
I've been reading this thread with interest after reading the passive investor over on Moneyvator.
I have about £15k in HL S&S ISA cash holding account waiting to invest. I don't have time to micro-manage it so passive investing is the way forward for me at this point.
I'd be interested in the Vanguard 80% as the money isn't required for anything and whilst I certainly wouldn't like to lose it, it would't adversely affect me if I did. I'm also in for the long haul, 10 years+.
I will be investing the full S&S ISA amount each year.
I'm pretty new to investing and I don't know what I don't know so it would be easy to make the wrong choice.
Is it bad practise to put all the money into one investment vehicle even though it is a fund of funds?
Is it better to stagger the payments into the investment over a period of time?
Can anyone highlight any downsides to the Vanguard funds and is there any markets I should be looking at to supplement the Vanguard investment?
Thanks
Dave0 -
Is it bad practise to put all the money into one investment vehicle even though it is a fund of funds?
With active funds, it can be, but given the global reach and asset balance of those Vanguard funds, it's perfectly fine.Is it better to stagger the payments into the investment over a period of time?
Yes, setting up a monthly contribution is typically best, which is why the ISA limit always divides by 12!Can anyone highlight any downsides to the Vanguard funds and is there any markets I should be looking at to supplement the Vanguard investment?
The LS funds don't include commodities, property or corporate bonds, but the benefits of these in a portfolio are questionable.
Maybe have a read of this.
https://www.vanguard.co.uk/documents/adv/literature/target-allocation-appproach.pdfI am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »The LS funds don't include commodities, property or corporate bonds, but the benefits of these in a portfolio are questionable.
Maybe have a read of this.
https://www.vanguard.co.uk/documents/adv/literature/target-allocation-appproach.pdf
Are you sure they don't include corporate bonds? The document you've linked shows "UK investment grade bonds" in all but the 100% equity fund.0
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