Vanguard Life Strategy

roxy28

MadMat wrote: »

As long as both are on the same platform it'd be no more expensive. You mentioned Charles Stanley, their fees for holding funds are based on total value, not number of funds. trading funds is free too.

Mat

Ok.

So for example to be clear he could buy VLS 40 put in £1000, then buy VLS 60 put in £1000, all in his C stanley ISA and no extra cost as if he was just putting into the sole VLS 40 fund.

roxy28

Kendall80 wrote: »

If you choose a % fee broker such as CSD you would be charged 0.25% and whatever the OCF is (0.24%?) So whether you split it or not you'd still be charged 0.49% overall.


There is also a 0.1% initial charge... just to confuse things a little more

Would that be 1 or 2 initial charges.

JohnRo

roxy28 wrote: »

Would that be 1 or 2 initial charges.

One.

Vanguard impose a preset dilution levy (PDL) on purchases and some sales (I think) to offset the costs of those transactions on existing unit holders.

The broker, CSD in this case, charge pro rata, monthly in arrears so the only upfront direct charge is the PDL. Annually the cost percentage is the broker fee plus the specific funds OCF

dunstonh

That would also mean paying 2 lots of platform/fund fees?

It would be a pretty bad platform pricing model that did that.

puk999

roxy28 wrote: »

Would that be 1 or 2 initial charges.

If he put £2000 into VLS40 it'd be 0.1% of that, so £2.

If he put £1000 into VLS40 and £1000 into VLS60, VLS40's £1000 attracts an initial 0.1% charge (i.e. £1), and VLS60's £1000 attracts an initial 0.1% charge of £1, so altogether it's still £2.

This is a one-off charge when entering the funds to protect existing VLS investors.

roxy28

Thanks to all who have replied its become very clear with your help.

Just one more thing, there is nothing too wrong with the mix of VLS 40 / VLS 60, i know the more informed investor would not think of doing that, but it does sound ok to buy the 2.

JohnRo

Personally I don't understand why, they're as near as dammit identical.

Surely it'd be better, if you really must have two VLS, to go for something like 20/80 and rebalance annually?

At least that way you might have a chance of benefitting from any relative outperformance?

roxy28

JohnRo wrote: »

Personally I don't understand why, they're as near as dammit identical.

Surely it'd be better, if you really must have two VLS, to go for something like 20/80 and rebalance annually?

At least that way you might have a chance of benefitting from any relative outperformance?

It was not his plan to have 2 but just about now settled on the VLS 60, just needs to press the button and go.
It was that someone in this thread said if not sure which one to go for buy the 2 to create a 50/50 mix.

When you say 20/80 is that the lower one VLS 20.

roxy28

JohnRo wrote: »

Personally I don't understand why, they're as near as dammit identical.

You mean the VLS 40 and the VLS 60 are almost identical?

JohnRo

roxy28 wrote: »

You mean the VLS 40 and the VLS 60 are almost identical?

Yes, obviously they're different but not enough imo to warrant holding both. Pick one or the other, imo, I personally can't see the wisdom in holding both.