Beginner - Navigating funds on HL

AnotherJoe

green_man said:

AnotherJoe said:

Whats the big deal with ETFs? Why do "novices" need to  hold funds and not ETFs?

I guess it’s just that ETFs  can trade at changing premiums/discounts, can use gearing/ derivatives and the trading costs are usually more than for funds (on most/many platforms).?
However they do tend to be about the cheapest entry to index tracking, so as long as you read the docs and know what you are buying then I’ve got to say I prefer the definitive price you get with these and Investment trusts.

.... plus they are much cheaper to hold inside HL.

OP, I dont know where you've been reading but if something you've been reading really says you should track the FTSE100, steer well clear of whatever/whoever is giving that advice.

green_man

AnotherJoe said:

.... plus they are much cheaper to hold inside HL.

OP, I dont know where you've been reading but if something you've been reading really says you should track the FTSE100, steer well clear of whatever/whoever is giving that advice.

There’s plenty of platforms that don’t charge any extra for holding shares/ITs/ETFs.

Nothing wrong with tracking the FTSE100, it might be the best performing index over the next cycle?, though would have been pretty poor over the last.   Of course if that’s all you are tracking then that would definitely be a poor strategy as having very poor diversification.

csgohan4

FTSE100 above
I've not got any trackers for the FTSE 100, if I did, I would rather it be the 250. Personal preference I guess if it fits into your investment strategy

DireEmblem

So how about we recommend something small/cheap for a newbie.  Trading212 I think ticks the boxes.  Free to hold ETF’s, and something popular like VRWD - accumulation version of VWRL is a very diverse global fund imo?

The OP can even sign up for a £1 using global someone’s referral link, and get a free share worth up to £100.  Can sell the free share and buy an ETF of their choosing.

Fairly safe for a quid wouldn’t you say?

dizzeedollee

green_man said:

AnotherJoe said:

.... plus they are much cheaper to hold inside HL.

OP, I dont know where you've been reading but if something you've been reading really says you should track the FTSE100, steer well clear of whatever/whoever is giving that advice.

There’s plenty of platforms that don’t charge any extra for holding shares/ITs/ETFs.

Nothing wrong with tracking the FTSE100, it might be the best performing index over the next cycle?, though would have been pretty poor over the last.   Of course if that’s all you are tracking then that would definitely be a poor strategy as having very poor diversification.

csgohan4 said:

FTSE100 above
I've not got any trackers for the FTSE 100, if I did, I would rather it be the 250. Personal preference I guess if it fits into your investment strategy

HI all, thanks for your comments. As previously mentioned, I just used the FTSE 100 as an example because it was the first one that popped into my head, no because that's what the literature has been recommending!

DireEmblem said:

So how about we recommend something small/cheap for a newbie.  Trading212 I think ticks the boxes.  Free to hold ETF’s, and something popular like VRWD - accumulation version of VWRL is a very diverse global fund imo?

The OP can even sign up for a £1 using global someone’s referral link, and get a free share worth up to £100.  Can sell the free share and buy an ETF of their choosing.

Fairly safe for a quid wouldn’t you say?

I'll have a look into Trading 212, it's not one I've heard of. Generally speaking do you think it's only worth having one S&S ISA? I'm still tossing up between Vanguard and HL. I like that HL has more choice and I have some indexes in mind that I want to track but obviously Vanguard is cheaper. Or do you think it's not unreasonable to start off with a Vanguard ISA then transfer into HL once I've built up more confidence +/- funds?

DireEmblem

dizzeedollee said:

green_man said:

AnotherJoe said:

.... plus they are much cheaper to hold inside HL.

OP, I dont know where you've been reading but if something you've been reading really says you should track the FTSE100, steer well clear of whatever/whoever is giving that advice.

There’s plenty of platforms that don’t charge any extra for holding shares/ITs/ETFs.

Nothing wrong with tracking the FTSE100, it might be the best performing index over the next cycle?, though would have been pretty poor over the last.   Of course if that’s all you are tracking then that would definitely be a poor strategy as having very poor diversification.

csgohan4 said:

FTSE100 above
I've not got any trackers for the FTSE 100, if I did, I would rather it be the 250. Personal preference I guess if it fits into your investment strategy

HI all, thanks for your comments. As previously mentioned, I just used the FTSE 100 as an example because it was the first one that popped into my head, no because that's what the literature has been recommending!

DireEmblem said:

So how about we recommend something small/cheap for a newbie.  Trading212 I think ticks the boxes.  Free to hold ETF’s, and something popular like VRWD - accumulation version of VWRL is a very diverse global fund imo?

The OP can even sign up for a £1 using global someone’s referral link, and get a free share worth up to £100.  Can sell the free share and buy an ETF of their choosing.

Fairly safe for a quid wouldn’t you say?

I'll have a look into Trading 212, it's not one I've heard of. Generally speaking do you think it's only worth having one S&S ISA? I'm still tossing up between Vanguard and HL. I like that HL has more choice and I have some indexes in mind that I want to track but obviously Vanguard is cheaper. Or do you think it's not unreasonable to start off with a Vanguard ISA then transfer into HL once I've built up more confidence +/- funds?

If your looking for mutual funds with plenty choice, have a gander at Cavendish Online.  Their 0.25% platform fee beats Hargreaves 0.45%, and is essentially Fidelity.

You can have multiple S&S ISA’s, but can only put money into one each tax year.

dizzeedollee

DireEmblem said:

If your looking for mutual funds with plenty choice, have a gander at Cavendish Online.  Their 0.25% platform fee beats Hargreaves 0.45%, and is essentially Fidelity.
You can have multiple S&S ISA’s, but can only put money into one each tax year.

What are your thoughts on the reputability and customer service provided by Cavendish compared to HL? I've come across fewer recommendations for Cavendish than HL, but I'm not sure if that's just because HL are bigger and more 'visible'? 

csgohan4

https://monevator.com/compare-uk-cheapest-online-brokers/

is a list of other platforms to consider. Would you use the customer service if your buying and selling your funds yourself?

HL is expensive for what it is, and their wealth list is probably a list where they get commission from, not necessarily good for you

I use Iweb for general S+S ISA and eqi for LISA, low cost is important for me as I know what kind of funds I want. Personal preference

ColdIron

£25 per month into funds will cost about 67.5 pence for the first year. For low sums any percentage fee platform is going to be cheap

dizzeedollee

csgohan4 said:

is a list of other platforms to consider. Would you use the customer service if your buying and selling your funds yourself?

HL is expensive for what it is, and their wealth list is probably a list where they get commission from, not necessarily good for you

I use Iweb for general S+S ISA and eqi for LISA, low cost is important for me as I know what kind of funds I want. Personal preference

I think what would worry me most from the customer service side is how easily I could transfer an ISA or SIPP. For example, I've read in some forums that it's a nightmare to transfer from ii. I've been comparing OCFs for the funds I'm interested in between platforms and there are some differences. I'm still learning which funds I should be investing in based on tracking error, PTR etc but it's a nightmare finding all of this information!

ColdIron said:

£25 per month into funds will cost about 67.5 pence for the first year. For low sums any percentage fee platform is going to be cheap

That's true! I think the indecision comes from worrying that it's going to be a pain transferring an ISA to a different provider. What happens if they don't offer a fund I've invested in on the new platform, is it simply sold off?