HSBC Global Strategy Vs Vanguard LifeStrategy

Alexland

jicms said:

Thanks. Both will be ISAs.

Over the long term a single iWeb ISA would probably be best for a static £40k as it would cost £100 setup and a £5 trade each tax year so £110 total. If you paid 15% pa on £20k with Vanguard that would be £30 pa and if you paid 25% pa on £20k with HSBC that would be £50 pa so £80 pa total. So over 10 years iWeb at £110 would be much cheaper than £800 (or higher with investment growth). You would want accumulation units of both funds to avoid needing to pay iWeb further trade charges to reinvest dividends. It would have been even cheaper a few days ago when the iWeb opening fee was only £25...

[Deleted User]

0.15% pa

Alexland

Deleted_User said:

0.15% pa

Sorry yes missed the dots but the maths still works.

jicms

I've opened an iWeb account and funded it with the HSBC GS Balanced fund. Disappointed to see they don't have an app.  Gutted I had to pay £75 more than two days ago!
So grateful for all the assistance and many thanks for your patience.

Altarf

Alexland said:

jicms said:

Thanks. Both will be ISAs.

Over the long term a single iWeb ISA would probably be best for a static £40k as it would cost £100 setup and a £5 trade each tax year so £110 total. If you paid 15% pa on £20k with Vanguard that would be £30 pa and if you paid 25% pa on £20k with HSBC that would be £50 pa so £80 pa total. So over 10 years iWeb at £110 would be much cheaper than £800 (or higher with investment growth). You would want accumulation units of both funds to avoid needing to pay iWeb further trade charges to reinvest dividends. It would have been even cheaper a few days ago when the iWeb opening fee was only £25...

Halifax Share Dealing is cheaper.
A fixed £12.50 a year for an ISA not a percentage, no matter the value of the investment, and £2 per trade if you use their regular investment facility.

Alexland

Altarf said:

Halifax Share Dealing is cheaper.
A fixed £12.50 a year for an ISA not a percentage, no matter the value of the investment, and £2 per trade if you use their regular investment facility.

Well over 10 years (as per the above example) with 2 trades that would cost £129 compared to iWeb at £110.

HSD is good for disciplined regular contributions but the £12.50 adhoc trade charge (eg £25 to switch funds) really stings which is one of the reasons I left them.

fronty

I just stumbled across this thread again, it's nearly 6 years since I took the plunge, I've been making equal monthly contributions into both funds and you can see from my screenshot below that HSBC does have the edge but only by a few %, in value terms it's equating to a difference of £6,800 in favour of HSBC - I'm guessing what's holding back VLS is the UK allocation and maybe the bonds.

You can see I've added some L&G Global Technology into the mix, so the funds part of my portfolio is showing a gain of 56.57% over 6 years - I don't really know if that's good or not, I guess considering we had the Trump "Liberation Day" debacle, I guess it's doing okay. 100% return after 10 years would be cool but no idea if that's reasonable when you look at the worsening global picture at the moment (sovereign debt crises wherever you look!).

You can see I've also added a few individual shares and recently bought a bit of gold just for fun, I may add more gold as that seems to be where all the money is going right now.

fronty

A comparison of the performance of these two funds over the past 6 years from trustnet:

QrizB

AnotherJoe said:
Surely "team managed" simply means there isn't one possibly iconoclastic / off the rails /reckless manager ? So its an attempt to calm your fears there might be one incompetent individual in charge.

Thanks for bumping this thread, it's a real blast from the past.

I realise I'm six years late but I did chuckle when I noticed where all those links go 😆

(The quoted post is on page 4 of the thread, and dates from 2019.)