vanguard ETF troubles, or not, some heavyweight advice needed

bowlhead99

wolves1976 said:

Alexland said:

If you have over £100k in an ISA wrapper and want 100% equities (although it might not be suitable for your risk tolerance if you are going to get upset when markets are low, make behavioural mistakes of selling low, etc) then consider the HSBC FTSE All World accumulation fund (OCF of only 0.13% and includes some EM exposure) which unlike an ETF would have FSCS protection up to £85k (obviously not for normal investment ups and downs) and for platform consider iWeb for £25 setup and £5 per trade (or maybe Halifax Share Delaing could be cheaper if making regular scheduled purchases).

Vanguard Investor's platform charges are better suited for smaller accounts and their All World/Cap products are not cheap so with enough money you are better going to a fixed fee platform and having more choice to find better value products.

@Alexland - can you advise on this fund, name, factsheet location pls.  HSBC FTSE All World accumulation fund - can seem to find this one @ 0.13%

The fund is HSBC FTSE All World Index, the share class "Class C Accumulation" which most UK retail investors would have access to, has an estimate of 0.13% OCF - see factsheet:
link

Certain factsheets show this class at 0.18% OCF, if they are taking the cost estimate from the fund's last financial year ended mid-November 2019.

But HSBC's own current prospectus now puts that class of the fund as having an AMC of 0.10% within an OCF of 0.13%, and foototes it with:
  * The OCF is estimated following the change to charges on 1 April 2020. 

The actual reported OCF won't universally update until the next annual report comes out, so it is a similar story with a number of other HSBC products which had reductions on their Class C units this year - e.g. their FTSE 250 index tracker shows as 0.18% on some factsheets but the prospectus shows 0.12% for both Inc C and Acc C as the charges you'd be exposed to going forward if you bought today.

Another_Saver

bowlhead99 said:

wolves1976 said:

Alexland said:

If you have over £100k in an ISA wrapper and want 100% equities (although it might not be suitable for your risk tolerance if you are going to get upset when markets are low, make behavioural mistakes of selling low, etc) then consider the HSBC FTSE All World accumulation fund (OCF of only 0.13% and includes some EM exposure) which unlike an ETF would have FSCS protection up to £85k (obviously not for normal investment ups and downs) and for platform consider iWeb for £25 setup and £5 per trade (or maybe Halifax Share Delaing could be cheaper if making regular scheduled purchases).

Vanguard Investor's platform charges are better suited for smaller accounts and their All World/Cap products are not cheap so with enough money you are better going to a fixed fee platform and having more choice to find better value products.

@Alexland - can you advise on this fund, name, factsheet location pls.  HSBC FTSE All World accumulation fund - can seem to find this one @ 0.13%

The fund is HSBC FTSE All World Index, the share class "Class C Accumulation" which most UK retail investors would have access to, has an estimate of 0.13% OCF - see factsheet:


Certain factsheets show this class at 0.18% OCF, if they are taking the cost estimate from the fund's last financial year ended mid-November 2019.

But HSBC's own current prospectus now puts that class of the fund as having an AMC of 0.10% within an OCF of 0.13%, and foototes it with:
  * The OCF is estimated following the change to charges on 1 April 2020. 

The actual reported OCF won't universally update until the next annual report comes out, so it is a similar story with a number of other HSBC products which had reductions on their Class C units this year - e.g. their FTSE 250 index tracker shows as 0.18% on some factsheets but the prospectus shows 0.12% for both Inc C and Acc C as the charges you'd be exposed to going forward if you bought today.

Don't forget the OCF doesn't include transaction costs and incidental expenses, which can adds tens of basis points to some funds.

bowlhead99

Another_Saver said:

bowlhead99 said:

wolves1976 said:

Alexland said:

If you have over £100k in an ISA wrapper and want 100% equities (although it might not be suitable for your risk tolerance if you are going to get upset when markets are low, make behavioural mistakes of selling low, etc) then consider the HSBC FTSE All World accumulation fund (OCF of only 0.13% and includes some EM exposure) which unlike an ETF would have FSCS protection up to £85k (obviously not for normal investment ups and downs) and for platform consider iWeb for £25 setup and £5 per trade (or maybe Halifax Share Delaing could be cheaper if making regular scheduled purchases).

Vanguard Investor's platform charges are better suited for smaller accounts and their All World/Cap products are not cheap so with enough money you are better going to a fixed fee platform and having more choice to find better value products.

@Alexland - can you advise on this fund, name, factsheet location pls.  HSBC FTSE All World accumulation fund - can seem to find this one @ 0.13%

The fund is HSBC FTSE All World Index, the share class "Class C Accumulation" which most UK retail investors would have access to, has an estimate of 0.13% OCF - see factsheet:


Certain factsheets show this class at 0.18% OCF, if they are taking the cost estimate from the fund's last financial year ended mid-November 2019.

But HSBC's own current prospectus now puts that class of the fund as having an AMC of 0.10% within an OCF of 0.13%, and foototes it with:
  * The OCF is estimated following the change to charges on 1 April 2020. 

The actual reported OCF won't universally update until the next annual report comes out, so it is a similar story with a number of other HSBC products which had reductions on their Class C units this year - e.g. their FTSE 250 index tracker shows as 0.18% on some factsheets but the prospectus shows 0.12% for both Inc C and Acc C as the charges you'd be exposed to going forward if you bought today.

Don't forget the OCF doesn't include transaction costs and incidental expenses, which can adds tens of basis points to some funds.

True, though isuch costs are unlikely to add tens of basis points to tracker funds for world or country indices as held by ETFs - as the asset allocation will remain constant throughout the quarter with only a small amount of liquidity management at the periphery. Only if the fund is growing significantly or contracting from new net subscriptions  or major net redemptions is there likely to be a material amount of net dealing activity required to manage the incoming or outgoing funds flow.