We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How to invest in the Vanguard index fund?

Johnsmith2016
Posts: 436 Forumite
Hi,
I am looking to invest in the vanguard fund that follows the ftse.
I have a couple of questions .
1. Can I invest in this fund via the lifetime isa or a SIPP?
If so are these generally the best methods due to the tax breaks?
Does this fund pay dividends as normal that I can. Reinvest?
Seen one with HL as I don't have 100k to go through vanguard - is it the same index fund?
Any help or tips appreciated
I am looking to invest in the vanguard fund that follows the ftse.
I have a couple of questions .
1. Can I invest in this fund via the lifetime isa or a SIPP?
If so are these generally the best methods due to the tax breaks?
Does this fund pay dividends as normal that I can. Reinvest?
Seen one with HL as I don't have 100k to go through vanguard - is it the same index fund?
Any help or tips appreciated
0
Comments
-
I am looking to invest in the vanguard fund that follows the ftse.
Why only one? (single sector funds are meant to be held in a portfolio of other single sector funds)1. Can I invest in this fund via the lifetime isa or a SIPP?
its available in all the mainstream tax wrappers.If so are these generally the best methods due to the tax breaks?
All tax wrappers have pros and cons. Or advantages or disadvantages when you compare them.Does this fund pay dividends as normal that I can. Reinvest?
You havent said which fund. However, most of theirs have an income version and an accumulation version.. The level of dividends will depend on the fund you select.Seen one with HL as I don't have 100k to go through vanguard - is it the same index fund?
You havent said which index fund.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
The ftse 100.0
-
Johnsmith2016 wrote: »Hi,
I am looking to invest in the vanguard fund that follows the ftse.
Seen one with HL as I don't have 100k to go through vanguard - is it the same index fund?Johnsmith2016 wrote: »The ftse 100.
They also have an open ended fund that follows the FTSE UK All-Share, a broader index. HL do have that one, which you can buy as an income version (paying dividends which you could then reinvest) or as accumulation version (dividends are internally reinvested rather than paid out). http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-ftse-uk-all-share-index-accumulation
That one has annual running costs from Vanguard of 0.08% as well as an initial charge of 0.2% each time you buy. You would pay a platform fee of 0.45% to HL. There is no separate charge from HL to buy or sell.
Vanguard also have an ETF that tracks the FTSE100, which is listed on the stock exchange and can be bought by pretty much any stockbroker, including HL. It pays out dividends and is not available as an accumulating version, so you would have to pay to reinvest the dividends. Maybe that is what you saw on HL's website. http://www.hl.co.uk/shares/shares-search-results/v/vanguard-funds-plc-ftse-100-ucits-etf-gbp
It has annual running costs of 0.09% and has a small spread between buy and sell prices. As it is traded on the stock exchange you would generally incur a dealing fee of £11.95 from HL every time you bought or sold any of it. Assuming you put it in an ISA or SIPP, and didn't have any other investments in the ISA or SIPP, you would pay a platform fee of 0.45% to HL on the first £10,000 worth.Any help or tips appreciated
A FTSE 100 index tracker is a highly specialist fund, investing most of its money into just a few companies which are listed in the UK, mostly international-facing and focussed in a small number of industries. It is a pretty poor investment choice if you want exposure to the stockmarkets of the world. As Dunstonh mentioned, it is not designed to be held on its own.
However, if your SIPP or ISA already has at least ten other funds covering other sectors (such as shares of other UK companies, and shares of companies in all the other regions of the developed world, and emerging markets, and all different types of corporate and government bonds from UK and overseas, and commercial property, etc), then it is probably alright to buy it. However, I expect that is not the case. Most people would start by buying a fund that invested in all those places rather than a specialist fund that only invested in a very small and focused set of companies.
But maybe you know something we don't about your personal circumstances and why you would want a FTSE100 tracker.0 -
Johnsmith2016 wrote: »Hi,
I am looking to invest in the vanguard fund that follows the ftse.
I have a couple of questions .
1. Can I invest in this fund via the lifetime isa or a SIPP?
If you need to ask this question, that pretty much makes it a slam dunk you shouldn't do this.0 -
Johnsmith2016 wrote: »The ftse 100.
Why do you want to invest 100% into one of the worst performing indexes for the last 25 years?
Why do you want to invest 100% into just one area (regardless of whether it is the FTSE100 or another benchmark/index)? That is bad investing.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Vanguard have a FTSE 100 ETF; code VUKE. You can buy and sell it like any share and can do so within an ISA or SIPP:
https://www.institutional.vanguard.co.uk/portal/instl/uk/en/product.html#/fundDetail/etf/portId=9509/assetCode=equity/?overview0 -
Vanguard have a FTSE 100 ETF; code VUKE. You can buy and sell it like any share and can do so within an ISA or SIPP:
https://www.institutional.vanguard.co.uk/portal/instl/uk/en/product.html#/fundDetail/etf/portId=9509/assetCode=equity/?overview
Yes, linked in post #40 -
Thank you for all the help and replies guys much appreciated that you took the time to explain and post links .
I am a novice and still doing research on best way to go, I'm 30 with no savings or pension and want to start building sometime over the next 40yrs
It's a mine field as there are so many different types, I'm not adverse to risk, and would prefer something moderately risky over the long term .
The reason I have so far picked the vanguard fund following the ftse 100 is due to listening to warren Buffett's annual Berkshire Hathaway shareholder meeting this year and he was asked how would you invest your money if you was 30years old today. And he simply said a low cost index fund that follows the S&P 500 - he said investors have wasted 10billion over the last decade trying to beat the market via fund managers who are the ones who make the money and more often than not under perform and everyone thinks they know best and can out perform the market . His advice was keep it simple and ultra low cost . So that's my base really, but open to any other suggestions as I'm still learning what route is best.0 -
He also specifically recommended vanguard also for the index fund.0
-
It's different as he's based in the us.
If you want to broadly follow his advice maybe look for an all world tracker, vanguard and others such as fidelity, black rock etc0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.9K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.1K Spending & Discounts
- 244.9K Work, Benefits & Business
- 600.4K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards