S&S ISAs - Transaction fees & cheap platforms

Albermarle

Difficult to find that.. and slightly confusing in the way it is presented across platforms

I agree but have taken the advice of better informed posters and just ignored them !

SonOf

Ahh i think I get you now, the transaction costs are built into the actual performance of the fund. These can vary based on how the fund is set up and traded, e.g. if more transactions are being made by a fund, swapping share holdings or such the transaction fees add up. The only way i've been able to find any information on the transaction fees associated with the vanguard funds is in the annual financial report vanguard produce for all its funds, LS 100 is between 0-0.00-0.02% over the past 3 years.

That is it.
Except VLS100 has 0.03% transaction costs ex-ante.

Taking it a stage further, charges are disclosed as ex-post and ex-ante. Ex ante are the expected costs. ex-post are the actual costs. When you get the annual costs disclosure of what you have paid, these will be referred to as "ex-post". When you get a fund factsheet or illustration of charges, these will be "ex-ante".

One of the reasons transaction costs is flawed is that it can include an element of profit and loss. Most reasonable people would not consider profit/loss as a charge.

VLS60 is currently 0.05%. It was 0.11% not too long ago. They are not doing anything any different now. It was just different snapshots influenced by profit/loss on trades between decision and settlement. L&GMI funds (similar to VLS but from L&G) have negative transaction costs on theirs. HSBC GS funds (the better version of VLS in many minds) has had lower TC. Architas has higher costs despite providing higher returns in some of their like-for-like funds (it is hard to get exactly like for like with the multi-asset funds with underlying passives). So, what you really need to take from all this is that transaction charges have always been there and are more of an implicit charge than an explicit one. A bit like charges on savings accounts. i.e. you dont know the charges on a savings account but it exists. Transaction charges was a way to give you an indication of some of that implicit cost. Just ignore them as the OCF (or ongoing cost ex-ante) is the key charge.

badger09

There is one small flaw in your cunning plan of transferring VLS 100% in S&S ISA from Vanguard to IWEB....

all current year S&S ISA subscriptions must be kept together.

So, what you could do is transfer this year's subscriptions to IWEB after the end of the tax year (5th April 2020). Continue subscribing this year's allowance up to £20k on the Vanguard platform, then transfer to IWEB after 5th April 2021. etc etc

Mutton_Geoff

cloud_dog wrote: »

Go to SnowMans most excellent thread, download his spreadsheet and play with your possible future numbers and transactions to see what best suits you.

Your link is wrong, it points to a broken url:


http://https//forums.moneysavingexpert.com/showthread.php?t=5583030&highlight=


It should be https://forums.moneysavingexpert.com/discussion/5583030