We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Which S&S ISA provider - Low cost trackers
nufc_fan
Posts: 111 Forumite
After reading Tim Hales book I am going to invest in some low cost inex trackers to begin with and with the view to expand my portfolio when I have the experience to do so.
Quite confused about charges etc, planning on ivesting around £100 per month to begin with. Two popular choices seem to be HL or iii. Which is best, most cost effective etc?
Quite confused about charges etc, planning on ivesting around £100 per month to begin with. Two popular choices seem to be HL or iii. Which is best, most cost effective etc?
0
Comments
-
Most cost effective will be to go with iii and use their porfolio builder (£1.50 per purchase) and go for the likes of HSBC trackers with a TER of around 0.25%.0
-
Most cost effective will be to go with iii and use their porfolio builder (£1.50 per purchase) and go for the likes of HSBC trackers with a TER of around 0.25%.
With iii being explicitly charged, wouldnt they offer the cheaper Vanguard or Blackrock class D trackers ?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Most cost effective will be to go with iii and use their porfolio builder (£1.50 per purchase) and go for the likes of HSBC trackers with a TER of around 0.25%.
iii's £1.50 regular investment charge is only for shares, ETFs, ITs, etc. Like HL, there is no charge for dealing in unit trusts/OEICs like the HSBC funds.With iii being explicitly charged, wouldnt they offer the cheaper Vanguard or Blackrock class D trackers ?
iii don't offer Vanguard at the moment, presumably because their model (no ISA charge, no dealing charges) and Vanguard's (no commission to platform) are incompatible. Don't know about Blackrock.
In terms of charges, there's not much to choose between HL and iii for those HSBC trackers. Both have no annual charge, no initial charges and no dealing charges. (If you might want to buy other funds later, active or otherwise, or shares, ETFs or ITs, that could make a difference.)
HL's minimum investment per fund is £50 per month, whereas iii is £20 a month. If you want to drip-feed £100 into more than two trackers, HL will mean slightly more complicated admin because you'll have to put the money into one or two funds and then spread it over the other funds periodically. With iii, you could put £20 a month into five funds.0 -
I hope you've already found this site. Very useful.
http://monevator.com/category/investing/passive-investing-investing/
http://monevator.com/2011/01/06/passive-investing-model-portfolio/0 -
"The happiest of people don't necessarily have the
best of everything; they just make the best
of everything that comes along their way."
-- Author Unknown --0 -
saveonarola wrote: »iii don't offer Vanguard at the moment, presumably because their model (no ISA charge, no dealing charges) and Vanguard's (no commission to platform) are incompatible. Don't know about Blackrock.
Think Blackrock class D are institutional only, hence through IFA. They look reasonable, especially the EM and fixed income which differentiate against say HSBC UT trackers, old data below which is probably still about right:
BlackRock Continental European Equity Tracker Fund 0.24%
BlackRock Fixed Income Tracker Fund 0.22%
BlackRock Japan Equity Tracker Fund 0.25%
BlackRock North American Equity Tracker Fund 0.23%
BlackRock Pacific ex Japan Equity Tracker Fund 0.29%
BlackRock UK Equity Tracker Fund 0.22%
BlackRock Emerging Market Equity Tracker Fund 0.29%
Not keen on the Vanguard UT tracker options (e.g via Alliance Trust) on cost grounds.
But I do like some of the Vanguard etfs, especially VWO.NYSE which I think is the one of the best EM trackers around at 0.22% if you can buy it cheaply (i-Dealing at £9.90, but not in an ISA) and follows MSCI EM rather than FTSE EM (L+G UT EM tracker and Blackrock class D EM).
JamesU0 -
Think Blackrock class D are institutional only, hence through IFA. They look reasonable, especially the EM and fixed income which differentiate against say HSBC UT trackers, old data below which is probably still about right:
They are institutional. However, it seems they are making appearances on unbundled platforms and Skandia (the only bundled one that has them).
Those TERs have actually recently changed and got a bit lower (0.01-0.02% lower)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Not keen on the Vanguard UT tracker options (e.g via Alliance Trust) on cost grounds.
£60 a year via sippdeal, which seems reasonable.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 -
They are institutional. However, it seems they are making appearances on unbundled platforms
Which ones? I'd much prefer to go unbundled to keep costs down.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 -
Not keen on the Vanguard UT tracker options (e.g via Alliance Trust) on cost grounds.gadgetmind wrote: ȣ60 a year via sippdeal, which seems reasonable.
As well as Alliance Trust (£25+VAT annual and £1.50 monthly dealing), Vanguard is available in a Bestinvest ISA for £12.50+VAT custody charge per quarter (£60 a year). But OP is talking about investing £100 a month, which makes either option a bit pricey when you can get the HSBC trackers through HL or iii with no annual charge and no dealing charges.
Of course, there are other, less obvious costs, like tracking error, but that's unpredictable and a fairly small consideration at £100 a month. I haven't done any calculations, but at that level of investment, I would imagine that avoiding platform and dealing charges would be the priority.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.6K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.3K Spending & Discounts
- 243.6K Work, Benefits & Business
- 598.3K Mortgages, Homes & Bills
- 176.7K Life & Family
- 256.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards