We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 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!

OEIC or ETF for S&P500?

Options
245

Comments

  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 25 August 2018 at 6:10PM
    aroominyork wrote: »
    OK, thanks. I think I've seen other threads on this issue. It's not a concern to me.

    So back to my OP - the only difference is once daily vs. instant pricing/trading?

    I really value the instant pricing. But for me the hugely reduced fees are even better, annually I only pay £268.90 for about £925k investments at HL, which is really cheap (£245 for SIPP and ISA and twice £11.95 for my annual investments in both). It would cost a lot more with funds.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Economic wrote: »
    FSCS protection is like a comfort blanket for some investors, but grown-up investors do not worry about it.

    Are those the grown-up investors who will stamp their feet and demand the nanny state bail them out if something goes wrong?
    Free the dunston one next time too.
  • dunstonh
    dunstonh Posts: 119,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    EFTs can have synthetic replication or physical replication. OEICS will be physical only.
    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.
  • aroominyork
    aroominyork Posts: 3,312 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    dunstonh wrote: »
    EFTs can have synthetic replication or physical replication. OEICS will be physical only.
    This article suggests a little risk with synthetic replication. Is that something to take into account?
  • dunstonh
    dunstonh Posts: 119,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    aroominyork wrote: »
    This article suggests a little risk with synthetic replication. Is that something to take into account?

    replace a little risk with a lot of risk. Generally, you are best avoiding synthetic replication totally.
    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.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    edited 26 August 2018 at 7:29AM
    chucknorris wrote: »
    I really value the instant pricing. But for me the hugely reduced fees are even better, annually I only pay £268.90 for about £925k investments at HL, which is really cheap (£245 for SIPP and ISA and twice £11.95 for my annual investments in both). It would cost a lot more with funds.
    Why aren't you using one of the platforms that make no annual charges for ISA's?
    https://www.moneysavingexpert.com/savings/cheap-online-sharedealing/?_ga=2.14774326.1017526747.1498207934-1345294851.1496851258
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    Glen_Clark wrote: »
    Why aren't you using one of the platforms that make no annual charges for ISA's?
    Presumably because the £45 fee is already below 0.0005% of his overall S&S investment portfolio and would make a relatively meaningless difference to his net worth to move his ISA assets to (examples per your link) AJ Bell at £30/ year or X-O at £0 / year.
  • masonic
    masonic Posts: 27,182 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I'm in a similar boat and the reason I'm staying with a provider that makes platform charges is that, despite being in mostly ITs and ETFs, I still hold a small amount of OEICs and want to retain the freedom to move more substantially into them if conditions dictate that I should. I could move the lot to iWeb I suppose, but the headache and cost of transferring put me off - plus the range of investments on offer is more limited. So I stick with II and pay a little over £100 per year in combined platform and trading costs, despite perhaps being able to save up to £50 per year.
  • aroominyork
    aroominyork Posts: 3,312 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    dunstonh wrote: »
    EFTs can have synthetic replication or physical replication. OEICS will be physical only.
    Thanks. Next question... in physically replicated ETFs, should I be concerned whether it is full replication or optimised sampling? I am veering towards a hedged S&P ETF and am comparing IGUS and XDPG.
  • System
    System Posts: 178,346 Community Admin
    10,000 Posts Photogenic Name Dropper
    Full replication should more accurately track the index as it includes all the shares, but sampling should be reasonably accurate. Another consideration is does the ETF engage in stock lending, and is this a concern to you. Also, why do you want a hedged ETF?
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture