Vanguard Life Strategy

mf78

Charles Stanley Direct are good for a new or small ISA. No dealing fees at all on funds and 0.25% annual charge. They were the cheapest for me when I opened it last year and I have been quite happy with them.

2010

A_Flock_Of_Sheep wrote: »

I am with Halifax and they charge £12.50 per year to hold my ISA and provide the full range of VLS funds. They only had 100% Equity which is what I hold but now I am considering changing to the 60% Equity 40% Bonds fund as I have no bond exposure.

Dealing fees will be £12.50 but they run £2 regular dealing several times a month which you can use one off. Currently there are no dealing fees for VLS funds.

Thanks for that, I`m already with Halifax share dealing so that will save me looking elsewhere.

argheadache

I've been trying to compare ISA providers for this purpose - if I just want to regularly pay into a Vanguard lifestrategy fund, what's the cheapest way?

Currently I have a TD account which charges 0.35%/year. On £10k, that's £35.
I could open a Halifax ISA, they charge £12.50/ year; I contribute every 2 months for £2/deal, total cost is £12.50+12 = 24.50

If I already have the TD account, is this worthwhile...? £10/year saving is not that much, and I supose I could pay in every month with TD for that

Archi_Bald

http://monevator.com/compare-uk-cheapest-online-brokers/

ruperts

Is the fact that the VG EM tracker has vastly underperformed the MSCI EM Index over the last year a cause for concern?


Obviously the two must be tracking quite a different compilation of indexes, in which case are you not essentially backing the ability (or luck) of whoever decides what is going to be tracked? Doesn't this leave you with most of the risks of active management, without the benefit of actual professional management?

Marazan

ruperts wrote: »

Obviously the two must be tracking quite a different compilation of indexes,

Indeed, the Vanguard tracks the IMA Global Emerging Markets.

ruperts

Marazan wrote: »

Indeed, the Vanguard tracks the IMA Global Emerging Markets.

Not according to the Key investor Information:




Objective

The Fund seeks to track the performance of the Morgan Stanley Capital

International (“MSCI”) Emerging Markets Index (the “Index”).





Which makes the underperformance even more worrying.

The IMA tracks active fund performance anyway I believe, so the VG fund can't track that

andy013

bowlhead99 wrote: »

...whether corporate profits will outstrip the interest returns on lower risk fixed-interest corporate and government bonds.

Over any 20-30 year timescale you cherry pick from the last century, they do.

Just want to point out that this isn't true. There have been some 20 year periods where bonds have beaten equities, although it is rare.

See: http://monevator.com/historical-returns-corporate-bonds/

andy013

ruperts wrote: »

Which makes the underperformance even more worrying.

Ruperts, I think there is a problem with trustnet displaying the MSCI EM index. If you click on the chart it seems to show (what I assume is) the correct values with a much lower tracker error.

Marazan

ruperts wrote: »

The IMA tracks active fund performance anyway I believe, so the VG fund can't track that

Yeah, I don't know what came over me there, I read the wrong thing from the wrong document.