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  • FIRST POST
    • blizeH
    • By blizeH 11th Oct 16, 10:32 PM
    • 1,198Posts
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    blizeH
    Cheapest global tracker through iWeb?
    • #1
    • 11th Oct 16, 10:32 PM
    Cheapest global tracker through iWeb? 11th Oct 16 at 10:32 PM
    Hi, I'd like to invest in a global index tracker through iWeb and was wondering which the cheapest one is please? Sites like Monevator are super useful but the rates on iWeb always seem to differ.

    I've mostly used Vanguard LifeStrategy before (mixture of 80/100) but they have a huge UK bias which I'm very keen to avoid right now.

    Thank you!
Page 1
    • bowlhead99
    • By bowlhead99 12th Oct 16, 7:15 AM
    • 5,083 Posts
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    bowlhead99
    • #2
    • 12th Oct 16, 7:15 AM
    • #2
    • 12th Oct 16, 7:15 AM
    Vanguard do a FTSE All-World tracker as an ETF, with OCF of 0.25%. Ticker of the one priced in GBP on London stockmarket is VWRL.

    https://www.vanguard.co.uk/uk/portal/detail/etf/overview?portId=9505&assetCode=EQUITY##overview

    http://www.ftse.com/Analytics/FactSheets/Home/DownloadSingleIssue/GAE?issueName=AWORLDS
    • Glen Clark
    • By Glen Clark 12th Oct 16, 7:49 AM
    • 3,446 Posts
    • 2,486 Thanks
    Glen Clark
    • #3
    • 12th Oct 16, 7:49 AM
    • #3
    • 12th Oct 16, 7:49 AM
    Hi, I'd like to invest in a global index tracker through iWeb and was wondering which the cheapest one is please?

    Thank you!
    Originally posted by blizeH
    Cheapest one I have seen is ticker code HMWO (from HSBC) at 0.15% : http://funds.ft.com/uk/Tearsheet/Summary?s=HMWO:LSE:GBX
    The Council Tax on a 3 bed semi is higher than Buckingham Palace
    • Ray Singh-Blue
    • By Ray Singh-Blue 12th Oct 16, 8:29 AM
    • 142 Posts
    • 167 Thanks
    Ray Singh-Blue
    • #4
    • 12th Oct 16, 8:29 AM
    • #4
    • 12th Oct 16, 8:29 AM
    From http://monevator.com/low-cost-index-trackers/

    World Tracker. Cheapest

    Fidelity Index World Fund I (GB00B7LWFW05) OCF 0.15%
    HSBC MSCI World ETF (HMWO) OCF 0.15%
    Vanguard FTSE Developed World ETF (VEVE) OCF 0.18%
    db X-trackers MSCI World ETF (XDEX) OCF 0.19%
    iShares Core MSCI World ETF (SWDA) OCF 0.2%
    HSBC FTSE All-World Index Fund C (GB00BMJJJG09) OCF 0.2%

    The HSBC index fund contains an emerging market component. The rest cover the developed world only.

    Some broader info at https://www.bogleheads.org/wiki/UK_investing but not as detailed about your specific Q
    • bowlhead99
    • By bowlhead99 12th Oct 16, 8:52 AM
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    bowlhead99
    • #5
    • 12th Oct 16, 8:52 AM
    • #5
    • 12th Oct 16, 8:52 AM
    Worth noting that unlike the FTSE All-World, the cheaper ones using FTSE Developed or MSCI World don't cover the emerging markets.

    For example MSCI World is only 23 developed countries and so it covers less than 90% of what the "proper" MSCI ACWI index covers.

    https://www.msci.com/world

    Whereas your lifestrategy fund or a "proper" global tracker would cover emerging markets. You might or might not feel you'd miss that bit, but having 10% of your assets in an area that goes up by 10% more than the average of the rest, improves portfolio performance by an entire percent, which it about 20x the effect of saving 0.05% on management fees.
    Last edited by bowlhead99; 12-10-2016 at 9:03 AM. Reason: typo
    • Glen Clark
    • By Glen Clark 12th Oct 16, 9:11 AM
    • 3,446 Posts
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    Glen Clark
    • #6
    • 12th Oct 16, 9:11 AM
    • #6
    • 12th Oct 16, 9:11 AM
    My biggest holding is SWDA: http://funds.ft.com/uk/Tearsheet/Summary?s=SWDA:LSE:GBX The charge is 0.2% Being a very large fund dealing spreads are low, and being an accumulator reinvesting the dividends looks more cost effective than paying commission to have your dividends converted from dollars to Sterling. and paying more commission to buy more units with it?
    The Council Tax on a 3 bed semi is higher than Buckingham Palace
    • Linton
    • By Linton 12th Oct 16, 9:40 AM
    • 6,929 Posts
    • 6,518 Thanks
    Linton
    • #7
    • 12th Oct 16, 9:40 AM
    • #7
    • 12th Oct 16, 9:40 AM
    As Bowlhead says, what a fund invests in is far more important than the odd fraction of a % in charges. Consider the % US. The wider trackers are around 54% US which would worry me. The more narrow "developed world" ones are at 60% US which is a real concern in my view. One of the main intellectual reasons for using a global tracker is that it represents the world market. However if you look at world data on the net you will see that the actual US% is below 40% at least according to 2013-2014 data..
    • Glen Clark
    • By Glen Clark 12th Oct 16, 11:14 AM
    • 3,446 Posts
    • 2,486 Thanks
    Glen Clark
    • #8
    • 12th Oct 16, 11:14 AM
    • #8
    • 12th Oct 16, 11:14 AM
    Warren Buffet advised his wife to invest 90% in the S&P 500, so 60% wouldn't be a great concern to me. It doesn't look great value after the huge rises since QE, but then what does?
    My last re-investment of dividends was to my FTSE100 ETF to rebalance, and in the hope the FTSE100 will catch up. But I am well aware I may be wrong.
    Last edited by Glen Clark; 12-10-2016 at 11:19 AM.
    The Council Tax on a 3 bed semi is higher than Buckingham Palace
    • blizeH
    • By blizeH 12th Oct 16, 12:57 PM
    • 1,198 Posts
    • 568 Thanks
    blizeH
    • #9
    • 12th Oct 16, 12:57 PM
    • #9
    • 12th Oct 16, 12:57 PM
    Thank you all so much for the responses!

    Very interesting, I think what bowlhead said about emerging markets in particular is very eye opening, because whilst I do already have some coverage through the Vanguard LifeStrategys the Fidelity fund I'm invested with has none.

    The HSBC FTSE All-World Index Fund seems like the best option in this case then? Slightly cheaper then the Vanguard alternatives and seems to have a nice balance of both developed and emerging markets.
    • Ray Singh-Blue
    • By Ray Singh-Blue 12th Oct 16, 2:23 PM
    • 142 Posts
    • 167 Thanks
    Ray Singh-Blue
    HSBC FTSE All-World Index Fund has 2002 holdings, Vanguard Funds plc FTSE All-World UCITS ETF has 2973 holdings.
    • blizeH
    • By blizeH 12th Oct 16, 3:19 PM
    • 1,198 Posts
    • 568 Thanks
    blizeH
    Thanks! In the past I've gone for funds over ETFs, but I'll look up the difference now (I don't think there are many differences other than ETF trading is instant) and probably go with VWRL then
    • brendon
    • By brendon 12th Oct 16, 3:31 PM
    • 492 Posts
    • 424 Thanks
    brendon
    Sites like Monevator are super useful but the rates on iWeb always seem to differ.
    On a number of occasions, I've seen the rate on iWeb different from what appears in the factsheet. Perhaps they haven't got around to updating a fund quickly enough. Always open the factsheet and check the rate, and raise it with iWeb if their system shows something different.
    • Glen Clark
    • By Glen Clark 12th Oct 16, 6:38 PM
    • 3,446 Posts
    • 2,486 Thanks
    Glen Clark
    Thanks! In the past I've gone for funds over ETFs, but I'll look up the difference now (I don't think there are many differences other than ETF trading is instant) and probably go with VWRL then
    Originally posted by blizeH
    All the funds I hold are ETFs (Exchange Traded Funds) on www.x-o.co.uk where their only charges are £5.95 to buy or sell. Its just like buying or selling shares except the spreads tend to be lower and there is no stamp duty. Don't other types of fund (which x-o don't do) attract extra fees?
    Last edited by Glen Clark; 12-10-2016 at 6:40 PM.
    The Council Tax on a 3 bed semi is higher than Buckingham Palace
    • adindas
    • By adindas 12th Oct 16, 7:00 PM
    • 2,858 Posts
    • 1,283 Thanks
    adindas
    Is it a good idea to buy Samsung Share ??
    Last edited by adindas; 12-10-2016 at 7:50 PM.
    • Ray Singh-Blue
    • By Ray Singh-Blue 12th Oct 16, 7:23 PM
    • 142 Posts
    • 167 Thanks
    Ray Singh-Blue
    Is it a good ides to buy Samsung Share ??
    Originally posted by adindas
    Soothsayer. Caesar!
    Caesar. Ha! who calls?
    Casca. Bid every noise be still: peace yet again!
    Caesar. Who is it in the press that calls on me?
    I hear a tongue, shriller than all the music,
    Cry 'Caesar!' Speak; Caesar is turn'd to hear.
    Soothsayer. Beware the ides of March.
    Caesar. What man is that?
    Brutus. A soothsayer bids you beware the ides of March.
    Caesar. Set him before me; let me see his face.
    Cassius. Fellow, come from the throng; look upon Caesar.
    Caesar. What say'st thou to me now? speak once again.
    Soothsayer. Beware the ides of March.
    Caesar. He is a dreamer; let us leave him
    • bowlhead99
    • By bowlhead99 12th Oct 16, 7:38 PM
    • 5,083 Posts
    • 8,983 Thanks
    bowlhead99
    If you've a burning desire to buy Samsung, what could possibly go wrong. The stock looks ready to explode back upwards!

    Ahahaha.
    • adindas
    • By adindas 12th Oct 16, 7:55 PM
    • 2,858 Posts
    • 1,283 Thanks
    adindas
    Soothsayer. Caesar!
    Caesar. Ha! who calls?
    Casca. Bid every noise be still: peace yet again!
    Caesar. Who is it in the press that calls on me?
    I hear a tongue, shriller than all the music,
    Cry 'Caesar!' Speak; Caesar is turn'd to hear.
    Soothsayer. Beware the ides of March.
    Caesar. What man is that?
    Brutus. A soothsayer bids you beware the ides of March.
    Caesar. Set him before me; let me see his face.
    Cassius. Fellow, come from the throng; look upon Caesar.
    Caesar. What say'st thou to me now? speak once again.
    Soothsayer. Beware the ides of March.
    Caesar. He is a dreamer; let us leave him
    Originally posted by Ray Singh-Blue
    What is this, a joke ? Try again as it not funny enough people are not laughing reading this ...

    If you've a burning desire to buy Samsung, what could possibly go wrong. The stock looks ready to explode back upwards!

    Ahahaha.
    Originally posted by bowlhead99
    It seems the share price is falling now due to Samsung Note 7 case. Samsung is a global brand selling what many people need nowadays. It is a very good chance it will bounce back again.

    So what could possibly go wrong ?
    Last edited by adindas; 12-10-2016 at 8:17 PM.
    • bigadaj
    • By bigadaj 12th Oct 16, 9:09 PM
    • 7,781 Posts
    • 4,740 Thanks
    bigadaj
    What is this, a joke ? Try again as it not funny enough people are not laughing reading this ...

    Not a bad pun, possibly overly long, but you can't go wrong with a bit of Shakespeare.

    It seems the share price is falling now due to Samsung Note 7 case. Samsung is a global brand selling what many people need nowadays. It is a very good chance it will bounce back again.

    So what could possibly go wrong ?
    Originally posted by adindas
    Well the comoany could go bust and you could lose your money.

    Or slightly less dramatically, but far more probably, Samsung could be the next Nokia or rim, meaning your investment is worth a fraction in years to come.

    Or it could bounce back and give you huge profits.
    • Ray Singh-Blue
    • By Ray Singh-Blue 12th Oct 16, 9:36 PM
    • 142 Posts
    • 167 Thanks
    Ray Singh-Blue
    Adindas, Surely the answer is that right now exactly as many people think it is a good idea to buy Samsung shares, as think it is a good idea to sell Samsung shares. All that changes is the price upon which they agree. That's the basis of a free market.

    I'm wondering why would you buy just one share though? Novelty gift?

    And as we are going waaaay off topic, what is the best time of year to prune apple trees?
    • metrobus
    • By metrobus 12th Oct 16, 10:22 PM
    • 1,270 Posts
    • 607 Thanks
    metrobus
    Just spent 2 hours reading up on ETFs.

    Since most are priced in USDs I presume since I will be buying in £
    I have in effect lost 20% in the last 4 months.

    Would I be better buying a Sterling listed ETF?

    Thank you.
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