Vanguard direct to customer offering confirmed

Linton

Audaxer wrote: »

Thanks Linton, that is very helpful. I have also been looking at things like the Money Observer magazine's list of Rated Funds which are detailed in a separate Fund Choices magazine. They are helpfully split in sectors and have risk factors etc. I assume these funds will have been subject to the sort of research you are talking about? As I'm looking to transfer fairly large sums from Virgin and Cash ISAs is it reasonable to trust their judgement along with Trustnet and Morningstar ratings and select what I consider the best funds from each sector to give me good diversification?

I can't go that far wrong by that method, or can I?

You shouldnt trust in ratings unless it is clear on what basis these ratings have been awarded. In general it isnt. And just because a fund is highly rated in its sector it doesnt mean that it is suitable for your objectives. So possibly use rated funds as part of generating your shortlist but you cant avoid doing your own research.

BananaRepublic

hennerz wrote: »

Don't tell me that your past 4 recommendations all got the job!? That must be skill not luck!


Here is some further reading on the skill vs luck question mentioned as needing 22 years to tell in Pincher's interview: http://www.etf.com/sections/index-investor-corner/swedroe-research-highlights-active-management-shortcomings?nopaging=1

A few points:

1. I have been investing for about 20 years, and my strategy has worked extremely well for me. The probability that it has been luck can estimated using Bayesian statistics, and it is very low indeed.
2. It's not hard to apply basic Bayesian statistics to the funds with a good historical investment performance. Doing so suggests that luck does not come into it.
3. Yes, most active funds are not so good in the long term, that is well known.
4. The studies you reference are American and as I and many others have pointed out, the US market is one where tracker funds are the best choice. In many markets outside of the US, active funds to better relative to trackers.
5. I did fall for the tracker hype many years ago, and regret it now, those were my worst performing funds. They still made me okay returns, but nothing like as much as my active funds.

There are a number of other people who have stated in this thread that they too can successfully choose active funds. So you have some other targets for your rather childish and snidey comments.

Regarding village idiots, unfortunately there seems to be a surfeit of candidates these days, apparently many of them are currently Labour MPs, but their future is insecure and they are looking out for future work which can make good use of their existing skill sets.

ColdIron

Handbags at dawn

BananaRepublic

ColdIron wrote: »

Handbags at dawn

Not really, but this rather aggressive individual has decided to pick on me alone with his crass putdowns, rather then several people who are saying pretty much the same thing as me.

Incidentally, and getting back to the thread if I may, I use stock market investments as the basis for my pension, however a friend has several buy to let properties. His reasoning is that once he has paid off the mortgages, the tenants will generate an income, even allowing for maintenance and other overheads, and the underlying asset should increase in value over time. He lives in an affluent southern area, and of course property performance does vary greatly around the country. And there is always the possibility that the housing market could slump for many years, due for example to increased emigration resulting from Brexit, or some other unforeseen event. My view, rightly or wrongly, is that property - at least in the prosperous south - is a good long term investment.

MarcoM

Hello,


How much would one save with a 100k ISA if this was kept with Vanguard rather than HL?


Has anyone had any experience already of Vanguard UK and their customer service?


Many thanks

eskbanker

MarcoM wrote: »

How much would one save with a 100k ISA if this was kept with Vanguard rather than HL?

Vanguard's platform fee is 0.15%, HL is 0.45%, so £300/yr.

MarcoM

Many thanks for your reply.


Do you know if HL allow electronic transfer outs?

bostonerimus

I'm still waiting for posts from active fund investors that have lost money. People are usually quick to advertise success rather than failure. It is certainly true that some active funds will out perform their benchmark and also that some won't. Choosing a fund on the basis of past results isn't something that I'm willing to do because I like the certainty of lower fees more than the possibility of higher returns.

A passive strategy is pretty easy to track and I know that with my essentially 3 fund portfolio of Vanguard US Total Stock Market, Vanguard International Stock Index, and Vanguard Total Bond Market I've averaged 8% annually for that last 30 years without doing much work through 3 or 4 major downturns. The UK investor can now do much the same as there are lots of tracker funds available and the more that pressure that Vanguard can exert on the platform side the better.....I speak as a satisfied long term US Vanguard customer.

bigadaj

bostonerimus wrote: »

I'm still waiting for posts from active fund investors that have lost money. People are usually quick to advertise success rather than failure. It is certainly true that some active funds will out perform their benchmark and also that some won't. Choosing a fund on the basis of past results isn't something that I'm willing to do because I like the certainty of lower fees more than the possibility of higher returns.

A passive strategy is pretty easy to track and I know that with my essentially 3 fund portfolio of Vanguard US Total Stock Market, Vanguard International Stock Index, and Vanguard Total Bond Market I've averaged 8% annually for that last 30 years without doing much work through 3 or 4 major downturns. The UK investor can now do much the same as there are lots of tracker funds available and the more that pressure that Vanguard can exert on the platform side the better.....I speak as a satisfied long term US Vanguard customer.

Yes but the situation in the us, where you are based, is somewhat different.

Taxation is different, tax free wrappers are different and teh size of teh economy means that you can just but a is tracker and forget it, as suggested by mr Buffett.

dunstonh

.I speak as a satisfied long term US Vanguard customer.

The US position is different though. Most managed funds do fail to beat trackers because of US taxation. That tax does not exist in the UK. Plus, as mentioned above, you would be daft to build a UK equivalent of the typical US model allocations. You tend to find European/UK models are more worldwide in their approach than the typical US model.

Remember that Vanguard itself has managed funds that outperform trackers and it also has the opinion of a mix and match approach.