Buying ETFs on Vanguard vs HL

PingPongSet

I am new to ETFs and investing. I consider buying EFTs, in particular S&P500, or FTSE100, via Vanguard, or HL, or others.

The things I consider is charges (e.g. annual cost, buy/sell cost) imposed by both providers, and dividends received from both EFTs above.

Are there other things that I must consider?

What are the pros and cons of buying EFTs via Vanguard, or HL, or others?

As an example, below is the charge from Vanguard, which turns out it is not alway cheaper than HL

https://www.vanguardinvestor.co.uk/content/documents/legal/vanguard-full-fund-costs-and-charges.pdf

The Vanguard S&P 500 has a total coast of 0.25%. This consists of the below:

Account Fee: 0.15%

Ongoing Costs (OCF): 0.07%

Transaction Costs: 0.01%

One-off costs: 0.02% 

One-off costs are only charged when you buy and sell from the fund, the other three charges are ongoing. The Ongoing Costs and Transaction Costs are an estimated cost for being invested in the fund for 1 year.

Based upon this the total cost on a £500 lump sum would be £500 * 0.25% = £1.25

The £7.50 fee is only charged if you buy the fund at a live price which can only be done from money already held in a Vanguard account. 

With a live price dealing fee the total would then be £8.75.

Linton

The main drawback with Vanguard is that you can only buy Vanguard products.  WIth HL or many other platforms you have a choice of thousands of investments.

DireEmblem

You should also consider both availability of funds, and platform costs.  I use Trading212 for EtFs as no platform fee, so no 0.15% charge on your S&P500 etf.

csgohan4

Iweb is another good shout for low fees
https://monevator.com/compare-uk-cheapest-online-brokers/
above is a good resource

dales1

Yes, monevator is useful for comparing fees.

Halifax share dealing has a stiff dealing charge but no ongoing custody charge or account opening charge.

(Myself, I wouldn't buy a FTSE100 ETF (you can search this forum for comments on this)).

PingPongSet

dales1 said:

Yes, monevator is useful for comparing fees.

Halifax share dealing has a stiff dealing charge but no ongoing custody charge or account opening charge.

(Myself, I wouldn't buy a FTSE100 ETF (you can search this forum for comments on this)).

Do you have a link to why we don't buy FTSE100 ETF? I tried it on here, but it returns many results.

You meant S&P500 ETF is ok to buy?

csgohan4

PingPongSet said:

dales1 said:

Yes, monevator is useful for comparing fees.

Halifax share dealing has a stiff dealing charge but no ongoing custody charge or account opening charge.

(Myself, I wouldn't buy a FTSE100 ETF (you can search this forum for comments on this)).

Do you have a link to why we don't buy FTSE100 ETF? I tried it on here, but it returns many results.

You meant S&P500 ETF is ok to buy?

it shouldn't matter what one does, what matters is your own investment strategy and the logic behind certain trackers/funds and why you chose them. 

Remember, everyone has their own risk appetite, one man's meat is another man's poison. 

I also am steering clear of UK only index trackers, poor outlook likely, with brexit round the corner and historical returns haven't been great. However out of the two i would pick the 250 if  I had to choose.

Some people would have no problem having home bias in their strategy, nothing wrong with that. We are all in it for the long game,  no one is more right than others, just do what's right for you. Not everyone is Warren Buffet. Timing the market can lead to tears, Woodford is a prime example, unless you don't mind losing the money

dales1

PingPongSet said:

Do you have a link to why we don't buy FTSE100 ETF? I tried it on here, but it returns many results.

Try these, for starters:-

https://forums.moneysavingexpert.com/discussion/5905447/ftse-100-or-250-tracker-through-who-though 

https://forums.moneysavingexpert.com/discussion/6127272/ftse-100-vanguard 

https://forums.moneysavingexpert.com/discussion/6162098/23m-newbie-investment-savings-portfolio-advice-gac-ftse-100-ftse-250-esg-dwac