Best S&S ISA for index trackers

sajets

Despite some extensive digging on this forum I have not be able to unearth a definitive answer on what the best stocks and shares ISA for investments in index trackers is.

I currently have an account with HL but with the new platform fee most trackers are expensive when investing less than 10k in a single tracker.

Any recommendations as to which platform has the best ISA for trackers (I am indifferent between various tracking funds)? At the moment is seems almost best to open a second S&S ISA with HSBC to access their trackers at 0.25% TER.

Would HSBC also be affected by the platform review? I do that expect the pricing for their own products would be affected but keen to hear other opinions.

Thanks

dunstonh

The platform review will almost certainly see the buying of trackers moving back to fund houses. If the platforms have to charge explicitly (which is the current proposed position) and cannot rely on hidden payments from fund houses anymore then it would be more expensive to hold trackers on platform than currently. Some fund houses may get into bed with a certain platform to distribute their funds with the platform charge waived. That has already started to happen. However, time will tell.

BFM

so if i want hsbc trackers in the upcoming tax year I would be better getting them direct from HSBC rather than using H-L and their monthly fees?

I had around £1k in 6 or 7 of the hsbc trackers on H_L but transferred into other funds on H-L when the £2 / month / fund fees started to get levied at H-L.

SnowMan

BFM wrote: »

so if i want hsbc trackers in the upcoming tax year I would be better getting them direct from HSBC rather than using H-L and their monthly fees?

I had around £1k in 6 or 7 of the hsbc trackers on H_L but transferred into other funds on H-L when the £2 / month / fund fees started to get levied at H-L.

Going direct to HSBC for HSBC trackers with next year's subscriptions would certainly be cheaper than going through HL see this post on the possibilities and limitations.

sajets

What are the alternatives to the HSBC trackers?

One alternative that has been mentioned on this forum are the Vanguard funds, what is the best way to access them? I considered the Vanguard LifeStrategy 100% Equity funds on HL to limit the amount platform fee I have to pay without compromising on diversification. However, according to HL the 100% Equity fund has a 5% investment in VANGUARD INVESTMENTS UK LTD, i.e. the management company, which for me is a no-go (but strangely this holding is not shown in the Vanguard Factcard). Any opinions on this?

MrMalkin

Vanguard has an unusual ownership system. It's a mutual company, which means it is owned by the funds that it offers and therefore the people who invest with them, not shareholders or a private individual.

It's one of the reasons why their charges are so low, they're effectively a non-profit company because any profits are returned to the customers.

gadgetmind

The OP might care to take a look at BestInvest. The Vanguard trackers trigger the £60 in vat "custody fee" for an ISA, but this fee covers as many different trackers as you care to hold, and equities/ETFs/etc.

However, the Blackrock and HSBC trackers do *not* trigger BI's custody fee, which makes this a good option.

DYOR, of course!