2 pots to invest into ETF's

bowlhead99

csgohan4 said:

can i just check ETI are ETF's, ETCs and IT's? does it include shares as Bowelhead says???

Shares and bonds in normal companies are exchange traded financial instruments (bought and sold on a market), just like shares in investment trusts and shares in exchange-traded funds, and exchange traded certificates for some commodities.

https://www.fidelity.co.uk/shares/share-dealing-faq/#2214840

csgohan4

bowlhead99 said:

csgohan4 said:

can i just check ETI are ETF's, ETCs and IT's? does it include shares as Bowelhead says???

Shares and bonds in normal companies are exchange traded financial instruments (bought and sold on a market), just like shares in investment trusts and shares in exchange-traded funds, and exchange traded certificates for some commodities.

https://www.fidelity.co.uk/shares/share-dealing-faq/#2214840

on a like for like basis it seems fidelity seems the winner in terms of costs, also no draw down costs in regards to SIPP. Might move my SIPP from AJ bell just before I hit the £45 mark in fees.  Assuming you only use ETI

bowlhead99

csgohan4 said:

bowlhead99 said:

csgohan4 said:

can i just check ETI are ETF's, ETCs and IT's? does it include shares as Bowelhead says???

Shares and bonds in normal companies are exchange traded financial instruments (bought and sold on a market), just like shares in investment trusts and shares in exchange-traded funds, and exchange traded certificates for some commodities.

https://www.fidelity.co.uk/shares/share-dealing-faq/#2214840

on a like for like basis it seems fidelity seems the winner in terms of costs, also no draw down costs in regards to SIPP. Might move my SIPP from AJ bell just before I hit the £45 mark in fees.  Assuming you only use ETI

I don't have a huge amount of non exchange-traded stuff, so the higher fees on open-ended funds wouldn't eat too far into the saving of £55 on the exchange-traded stuff that comes with the lower cap at Fidelity vs AJ Bell's £100.

However, the dealbreaker for me is that Fidelity have always had a funds focus rather than on stockbroker services and I hold various foreign stocks, which Fidelity don't support (merely mentioning a  'coming soon' for UK-traded CDIs and bonds) in their FAQ). I like the freedom of the 'SI' part of SIPP, so being unable to buy foreign stocks that I fancy from time to time would be an unnecessary restriction, and so I don't mid paying the extra £50 a year to be able to do that; it's not a lot of basis points if the SIPP gets bigger.

Doing the maths I suppose if my ETI-focussed SIPP was at the £20-50k level then the extra £5-£55 fee from AJB would be an extra 0.02 to 0.11% and I'd be less likely to put individual stocks in it anyway, so I might well be tempted... but at £200k+ it's only a couple of basis points so not worth worrying about if it is likely to cause any frustrations. 

I'm too far off drawdown age for those services to relevant for me for over a decade so will shop around for that sort of thing nearer the time.

bundoran

csgohan4 said:

can i just check ETI are ETF's, ETCs and IT's? does it include shares as Bowelhead says???

*Chortle*   😂

Alexland

csgohan4 said:

on a like for like basis it seems fidelity seems the winner in terms of costs, also no draw down costs in regards to SIPP. Might move my SIPP from AJ bell just before I hit the £45 mark in fees.  Assuming you only use ETI

Also consider the differences in how their trade fees work. I like that in our AJ Bell accounts they let us pay the £1.50 regular trade fee when doing a scheduled trade against the cash balance however in our Fidelity accounts they will only do a regular trade fee against new contributions. Not a problem as we never contribute or trade on Fidelity but might be a consideration for your circumstances. There was the same restriction of only getting the regular trade rate with new contributions with HL which alongside the higher caps caused us to leave.

csgohan4

bowlhead99 said:

csgohan4 said:

bowlhead99 said:

csgohan4 said:

can i just check ETI are ETF's, ETCs and IT's? does it include shares as Bowelhead says???

Shares and bonds in normal companies are exchange traded financial instruments (bought and sold on a market), just like shares in investment trusts and shares in exchange-traded funds, and exchange traded certificates for some commodities.

https://www.fidelity.co.uk/shares/share-dealing-faq/#2214840

on a like for like basis it seems fidelity seems the winner in terms of costs, also no draw down costs in regards to SIPP. Might move my SIPP from AJ bell just before I hit the £45 mark in fees.  Assuming you only use ETI

I don't have a huge amount of non exchange-traded stuff, so the higher fees on open-ended funds wouldn't eat too far into the saving of £55 on the exchange-traded stuff that comes with the lower cap at Fidelity vs AJ Bell's £100.

However, the dealbreaker for me is that Fidelity have always had a funds focus rather than on stockbroker services and I hold various foreign stocks, which Fidelity don't support (merely mentioning a  'coming soon' for UK-traded CDIs and bonds) in their FAQ). I like the freedom of the 'SI' part of SIPP, so being unable to buy foreign stocks that I fancy from time to time would be an unnecessary restriction, and so I don't mid paying the extra £50 a year to be able to do that; it's not a lot of basis points if the SIPP gets bigger.

Doing the maths I suppose if my ETI-focussed SIPP was at the £20-50k level then the extra £5-£55 fee from AJB would be an extra 0.02 to 0.11% and I'd be less likely to put individual stocks in it anyway, so I might well be tempted... but at £200k+ it's only a couple of basis points so not worth worrying about if it is likely to cause any frustrations. 

I'm too far off drawdown age for those services to relevant for me for over a decade so will shop around for that sort of thing nearer the time.

point taken, tried looking for tesla and they only have UK shares on there which is not helpful if one wanted non Uk stocks

bowlhead99

I suppose if someone was only investing at the level where they didn't have open-ended funds and were 'just before they hit the £45 mark in fees' at AJB for their ETF or investment trust -focussed portfolio, there is only £18k in the pot so its unlikely they would be using individual shares as part of that retirement fund, so lack of foreign markets is a moot point for most. 

 It would be potentially more of a factor for people with larger portfolios to be able to accommodate investing in individual companies alongside the main holdings, or someone who had broken off a chunk of 'play money' as a hobby while having most of their pension elsewhere e.g. a workplace scheme. For someone who does actually want individual stocks, it's unlikely that restricting to the UK stockmarket only would be ideal in this day and age, so people who want to hold individual companies will probably look elsewhere while people who don't want individual companies would think the service from Fidelity was fine because they are only using the London stock exchange to buy collective investment vehicles like ITs and ETFs.

csgohan4

bowlhead99 said:

I suppose if someone was only investing at the level where they didn't have open-ended funds and were 'just before they hit the £45 mark in fees' at AJB for their ETF or investment trust -focussed portfolio, there is only £18k in the pot so its unlikely they would be using individual shares as part of that retirement fund, so lack of foreign markets is a moot point for most. 

 It would be potentially more of a factor for people with larger portfolios to be able to accommodate investing in individual companies alongside the main holdings, or someone who had broken off a chunk of 'play money' as a hobby while having most of their pension elsewhere e.g. a workplace scheme. For someone who does actually want individual stocks, it's unlikely that restricting to the UK stockmarket only would be ideal in this day and age, so people who want to hold individual companies will probably look elsewhere while people who don't want individual companies would think the service from Fidelity was fine because they are only using the London stock exchange to buy collective investment vehicles like ITs and ETFs.

Sadly worthwhile investing I've realised you need a large amount of capital to do so. 10k is a drop in the ocean to say 100k  to invest in the flavour of the month, where return may seem not much in comparison, but  what do I know, I have no edge and an active passive investor. 

Alexland

I would agree and to be fair Fidelity's website isn't much fun just lots of satisfied looking people thinking "isn't it great I put a load of money into an ETF and then left it alone to make me very wealthy at a low cost". Like our iWeb ISAs our Fidelity SIPPs are just the cheapest place in town to park our car.

csgohan4

Alexland said:

I would agree and to be fair Fidelity's website isn't much fun just lots of satisfied looking people thinking "isn't it great I put a load of money into an ETF and then left it alone to make me very wealthy at a low cost". Like our iWeb ISAs our Fidelity SIPPs are just the cheapest place in town to park our car.

yeah, horses for courses I guess, will probably move over to Fidelity before I draw down, but who knows what the fees will be then, cavendish has changed for example and got taken over. 

Will stick with AJ bell for now, they have far more choice than I ever will need, but I may need it in the future. My LISA is with EQI which is the cheapest funds wise anyways. S+S ISA will probably go with Iweb cost wise,