ETFs and monthly investment

ozzage

Santiago1 wrote: »

EDIT. Also, another point to clarify: the per transaction cost of £1.50 is for the purchase of each individual type of share. So if I wish to invest every month £50 in Company X, £50 in ETF 1 and £100 in ETF 2, the total transaction cost would be 3 x £1.50 = £4.50. Correct?

Does anybody know whether this cost will be deducted from the money invested (in this example, £50+£50+£100 = £200) or will it form a separate charge?

Yes that's correct £4.50 and you'll end up only buying £195.50 worth of the ETFs as the costs some out first, if you look at it that way.

Santiago1_2

ozzage, thank you for these useful messages. A few that I am looking at are:

iShares II Plc iShares FTSE EPRA/NAREIT UK Property GBP (IUKP)


Lyxor CRB IDX ETF Commodities CRB (GBP) (LCTY)


DB X-Trackers MSCI Emerging Markets TRN Index ETF 1C (XMEM)


iShares II Plc iShares Ftse / Macquarie Gbl (INFR)

nicko33

Santiago1 wrote: »

EDIT. Also, another point to clarify: the per transaction cost of £1.50 is for the purchase of each individual type of share. So if I wish to invest every month £50 in Company X, £50 in ETF 1 and £100 in ETF 2, the total transaction cost would be 3 x £1.50 = £4.50.

You could reduce those charges by not buying each one every month, but you would probably have to handle each purchase manually

e.g.
Month 1: £100 company X, £100 ETF 1
Month 2: £200 ETF 2
etc (18 transactions per year rather than 36)

or
Month 1: £200 company X,
Month 2: £200 ETF 2
Month 3: £200 ETF 1,
Month 4: £200 ETF 2
etc (12 transactions per year rather than 36)

having to make each purchase manually probably brings the risk that you alter your strategy every month because you could be swayed by price movements

ozzage

Santiago1 wrote: »

ozzage, thank you for these useful messages. A few that I am looking at are:

iShares II Plc iShares FTSE EPRA/NAREIT UK Property GBP (IUKP)

Lyxor CRB IDX ETF Commodities CRB (GBP) (LCTY)

DB X-Trackers MSCI Emerging Markets TRN Index ETF 1C (XMEM)

iShares II Plc iShares Ftse / Macquarie Gbl (INFR)

IUKP is tradeable at full price and through Sharebuilder (£1.50 option)

LCTY is tradeable at full price and through Sharebuilder (£1.50 option)

XMEM is tradeable at full price and through Sharebuilder (£1.50 option)

INFR is tradeable at full price and through Sharebuilder (£1.50 option)

So you're in luck!

adiatu

Ozzage, Thanks for the useful information

Is there any way to find out which ETF's cannot be traded AT ALL?
I plan to buy a few ETF's and don't want to end up with ETF's that I cannot trade.