Interactive Investor (Stocks and Shares ISA/SIPP etc.)

Alexland

Madeinireland101 said:

Thanks all - the problem is I want to use Vanguard Lifestrategy funds and I don’t think they are covered by the Fidelity £45 cap but feel free to correct me if I am wrong.

Yes the Fidleity cap would only apply to exchange traded assets such as ETFs, ITs or individual company shares not OEIC funds. However with a large account you might find there are lower cost options than VLS anyway if you are willing to do some of the portfolio construction yourself holding a small number of ETFs (not too many to avoid excessive trade fees).

Madeinireland101

Alexland said:

Madeinireland101 said:

Thanks all - the problem is I want to use Vanguard Lifestrategy funds and I don’t think they are covered by the Fidelity £45 cap but feel free to correct me if I am wrong.

Yes the Fidleity cap would only apply to exchange traded assets such as ETFs, ITs or individual company shares not OEIC funds. However with a large account you might find there are lower cost options than VLS anyway if you are willing to do some of the portfolio construction yourself holding a small number of ETFs (not too many to avoid excessive trade fees).

Thanks - I’m not sure I’m confident enough or want to spend the time on portfolio construction but I suppose I could transfer later to fidelity if that’s a route I think is better in the future

granta

Alexland said:

Madeinireland101 said:

Thanks all - the problem is I want to use Vanguard Lifestrategy funds and I don’t think they are covered by the Fidelity £45 cap but feel free to correct me if I am wrong.

Yes the Fidleity cap would only apply to exchange traded assets such as ETFs, ITs or individual company shares not OEIC funds. However with a large account you might find there are lower cost options than VLS anyway if you are willing to do some of the portfolio construction yourself holding a small number of ETFs (not too many to avoid excessive trade fees).

I'm currently with ii SIPP but starting to think of switching to Fidelity and using ETFs. Realise I need to do a lot more research and think how to construct my portfolio. Any suggestions of how to start looking into this? How did you go about constructing your portfolio Alexland?
Currently hold HSBC Global Strategy Dynamic as main SIPP holding and would like to construct something similar using ETFs. Buy and hold essentially. With a view to adding to it each month if possible.

coyrls

Personally, I wouldn't like my choice of investment to be dictated by a platform's charging structure.  I would choose your preferred investments first and then choose a suitable platform on which to hold those invetments.

sairy.gamp

Madeinireland101 said:

Folks,
id like to add to this discussion as I am about to move my SIPP from iweb to ii and also an ISA from Aj Bell youinvest as well.
I will be going into Flexi drawdown shortly after this move. With iWeb I would be facing an additional charge of £180 per year - making total fees £360 per year and with ii there would be no additional charge meaning a £240 charge per year.
So ii wins easily for me 😀😀😀
I will hopefully benefit from the 6 month free period for the SIPP charges but can someone explain the topcashback benefit that I saw mentioned please?
Thanks...

https://www.topcashback.co.uk/interactive-investor/
https://www.topcashback.co.uk/interactive-investor-stocks-and-shares-isa/
There is useful info on cashback sites on the main MSE site here:
https://www.moneysavingexpert.com/shopping/cashback-websites/
I think the general rule is treat it as a bonus when and if you get it. That said my ii (SIPP via 'refer a friend') has tracked alright so far and TCB did tell me when i asked them that transfers (SIPP in my case) were included in their offering. Quidco said no to this.
You wont get cashback on Sipp & ISA as it is for first time customers only so you need to decide which is best for you. £60 in saved sipp fees also available via ii, and also £120 in account charges (note loss of trading credits) via 'refer a friend programme too (this may jeopardise your topcashback - mine seems fine so far as i say). II dont start the clock on the £60 offer until your transfered funds arrive (or you fund sipp with new money).

Alexland

granta said:

I'm currently with ii SIPP but starting to think of switching to Fidelity and using ETFs. Realise I need to do a lot more research and think how to construct my portfolio. Any suggestions of how to start looking into this? How did you go about constructing your portfolio Alexland?
Currently hold HSBC Global Strategy Dynamic as main SIPP holding and would like to construct something similar using ETFs. Buy and hold essentially. With a view to adding to it each month if possible.

We just hold a developed world tracker ETF (Vanguard VEVE and HSBC HMWO at 0.12% and 0.15% respectively) in our Fidelity SIPPs and pay the £45 pa and £1.50 every quarter for the divi reinvestments and hold the rest of our pension portfolio including emerging markets exposure in our workplace pensions where we are actively contributing and can rebalance for no extra charge. Overall because we hold the cheaper Vanguard VEVE in the larger account our total SIPP costs work out under 0.15%.

If you wanted an accumulating World ETF then you could consider iShares SWDA at 0.20% or Lyxor LCWL at 0.12% but that one doesn't have great liquidity for large amounts and isn't even available on Fidelity. If you wanted a complete global equities portfolio in the Fidelity SIPPs then emerging markets trackers include iShares EMIM which accumulates at 0.18%.

Or if you wanted to hold both the Developed World and Emerging Markets in the same ETF there is the Vanguard All-World VWRL or the accumulating VWRP both available on Fidelity but at 0.22% it's more than I would be willing to pay but still compare it to the trade fees you would incur for holding the two areas separately.

For the bonds there are various options but to be honest none of them are very attractive whatever the format at least you haven't got too many of them in your current fund.

granta

Alexland said:

granta said:

I'm currently with ii SIPP but starting to think of switching to Fidelity and using ETFs. Realise I need to do a lot more research and think how to construct my portfolio. Any suggestions of how to start looking into this? How did you go about constructing your portfolio Alexland?
Currently hold HSBC Global Strategy Dynamic as main SIPP holding and would like to construct something similar using ETFs. Buy and hold essentially. With a view to adding to it each month if possible.

We just hold a developed world tracker ETF (Vanguard VEVE and HSBC HMWO at 0.12% and 0.15% respectively) in our Fidelity SIPPs and pay the £45 pa and £1.50 every quarter for the divi reinvestments and hold the rest of our pension portfolio including emerging markets exposure in our workplace pensions where we are actively contributing and can rebalance for no extra charge. Overall because we hold the cheaper Vanguard VEVE in the larger account our total SIPP costs work out under 0.15%.

If you wanted an accumulating World ETF then you could consider iShares SWDA at 0.20% or Lyxor LCWL at 0.12% but that one doesn't have great liquidity for large amounts and isn't even available on Fidelity. If you wanted a complete global equities portfolio in the Fidelity SIPPs then emerging markets trackers include iShares EMIM which accumulates at 0.18%.

Or if you wanted to hold both the Developed World and Emerging Markets in the same ETF there is the Vanguard All-World VWRL or the accumulating VWRP both available on Fidelity but at 0.22% it's more than I would be willing to pay but still compare it to the trade fees you would incur for holding the two areas separately.

For the bonds there are various options but to be honest none of them are very attractive whatever the format at least you haven't got too many of them in your current fund.

Thank you Alexland for very detailed reply. I will look into these as reducing costs down to this level is very appealing. Still have a lot to learn before making any moves but it's a good starting point!

Alexland

granta said:

Thank you Alexland for very detailed reply. I will look into these as reducing costs down to this level is very appealing. Still have a lot to learn before making any moves but it's a good starting point!

Yeah low cost is usually good every tiny percentage digit counts, especially as costs are still being deducted when markets are low, but still we find ourselves spending a couple of grand a year on platform and fund manager costs across our various accounts. After these SIPPs our next most expensive accounts are our ISAs where we pay a little active management on an investment trust to give us smoothed income which we don't really need but it helps me sleep at night and helps keep our portfolio 'style-neutral' as these global trackers have drifted to a more US weighted growth style in recent years.

IvanOpinion

granta said:
I will look into these as reducing costs down to this level is very appealing. Still have a lot to learn before making any moves but it's a good starting point!

Just be aware that low cost does not necessarily to your advantage.  For instance if a low cost fund (say OCF of 0.1%) returns 3.1% then you effectively make 3%; however if a higher cost fund (say 1%) returns 4.5% then you effectively make 3.5%.  And yes it could work the other way around as well where you would be better off with a low cost fund.

My only point is that there is more than just the cost to be considered.

Eco_Miser

IvanOpinion said:

granta said:
I will look into these as reducing costs down to this level is very appealing. Still have a lot to learn before making any moves but it's a good starting point!

Just be aware that low cost does not necessarily to your advantage.  For instance if a low cost fund (say OCF of 0.1%) returns 3.1% then you effectively make 3%; however if a higher cost fund (say 1%) returns 4.5% then you effectively make 3.5%.  And yes it could work the other way around as well where you would be better off with a low cost fund.

My only point is that there is more than just the cost to be considered.

Quite.  However returns are normally given nett of costs, so those two funds would be quoted as returning 3% and 3.5% respectively.