All aboard the Vanguard ship

MX5huggy

Doing nothing is worse than doing something. I’ve been thinking, reading mulling over since Christmas so I’ve jumped in £100 a month in my daughters (7) JISA to try and get hers near the value of her brothers (11) CTF (£3k)

I’ve settled on ESG (because 7 year olds should not profit from the sales of cluster bombs and cigarettes, bit of a shame she misses out on nuclear power and alcohol, she won’t profit from her investment in WKD in her teens). 

I’m amazed by the range and volume of companies invested in (3865) I’d seen the top 10 but thought the rest was secret so it’s Tesla to Severn Trent

Thinking of moving the CTF that is with UnityMutial to the same. Will have to go via someone else’s JISA that accepts CTF transfers (Vanguard only accept incoming JISA) if only to cut the fee from 1.5 to 0.2% 

Don’t really have a question just tell me why I’m barking up the wrong tree. I can see me doing so similar with a personal ISA although salary sacrifice AVC’s with the Prudential are my main saving vehicle ATM 50% in their positive impact fund.

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-uk-gbp-acc/overview?intcmpgn=equityglobal_esgdevelopedworldallcapequityindexfunduk_fund_link

Alexland

Vanguard's ESG Developed World fund looks fairly good so I don't think you are 'barking up the wrong tree' although you might want to add some emerging market exposure too.
You might consider transferring the existing JISA to Fidelity if you wanted to avoid paying the 0.15% platform fee as they also have that investment available and make no charges on Junior accounts if you stick to funds. Unfortunately they don't accept CTFs either so you might need to go through another provider as a stepping stone..
I agree 'leveling up' JISAs is a challenge my kids are currently about £9k different which I need to make up but I'm waiting to see if any inheritance comes through as I would rather make the most of our adult ISA allowances for now.

Thrugelmir

Is Tesla an ESG stock I'd say not. Many questions remain over which companies should be included in such funds. Too much greenwashing in the Corporate world.  

MX5huggy

Thanks Alexland, I don’t really think saving for the kids is important, but for some reason both the government and an uncle thought the first child should receive cash for being born. I think it’s more important to save for yourselves and if everything goes well we can help the kids out.

Thurugelmir it’s an issue but I don’t see why Tesla would not be an ESG in this case Toyota are also in the top 50 stocks held. In this case it’s just excluding companies in actively “bad” sectors. Sevent Trent were probably one of the companies in the news the other day for polluting rivers with raw sewage 400k times last year. I’ve got a few shares in a B corp certified company they still make clothes from polyester in the Far East? Consumption is bad, what can we do? 

Apple Inc.	3.8327%
Microsoft Corp.	3.4053%
Amazon.com Inc.	2.5681%
Facebook Inc. Class A	1.2118%
Alphabet Inc. Class A	1.1894%
Alphabet Inc. Class C	1.1591%
Tesla Inc.	1.0006%
JPMorgan Chase & Co.	0.8708%
Visa Inc. Class A	0.7004%
Walt Disney Co.	0.6693%
Samsung Electronics Co. Ltd.	0.6536%
NVIDIA Corp.	0.6336%
UnitedHealth Group Inc.	0.6128%
Mastercard Inc. Class A	0.6109%
PayPal Holdings Inc.	0.5974%
Procter & Gamble Co.	0.5829%
Nestle SA	0.57%
Home Depot Inc.	0.5417%
Bank of America Corp.	0.5248%
Intel Corp.	0.4887%
Comcast Corp. Class A	0.4676%
Netflix Inc.	0.449%
Verizon Communications Inc.	0.4455%
ASML Holding NV	0.4402%
Adobe Inc.	0.4315%
Roche Holding AG	0.4292%
Abbott Laboratories	0.4044%
AT&T Inc.	0.3892%
AbbVie Inc.	0.3716%
salesforce.com Inc.	0.3715%
Cisco Systems Inc./Delaware	0.3712%
Coca-Cola Co.	0.3698%
Pfizer Inc.	0.3649%
Broadcom Inc.	0.3617%
Merck & Co. Inc.	0.3585%
Toyota Motor Corp.	0.3545%
PepsiCo Inc.	0.348%
Thermo Fisher Scientific Inc.	0.3478%
Eli Lilly and Co.	0.3384%
NIKE Inc. Class B	0.3225%
Accenture plc Class A	0.3118%
Texas Instruments Inc.	0.3078%
Medtronic plc	0.3061%

Thrugelmir

MX5huggy said:

Thurugelmir it’s an issue but I don’t see why Tesla would not be an ESG in this case 

Holding/promoting Bitcoin and mining of lithium by child labour in the Congo spring to mind off the top of my head. 

dunstonh

Thrugelmir said:

Is Tesla an ESG stock I'd say not. Many questions remain over which companies should be included in such funds. Too much greenwashing in the Corporate world.  

This is the problem when trying to use a passive fund for ESG.     I would agree with you that I don't believe Tesla should be included in an ESG portfolio.     The recent purchases in Bitcoin move it away from ESG further. (Bitcoin being responsible for significant global warming activity as well as money laundering and other criminal activity). 

Indeed, quite a few in the list would not meet many people's ESG views.

Vanguard are really providing a solution for people that aren't really serious with their ESG views but can feel a little bit cosier that they are being told they are.  In reality, serious ESG investors would need to use more focused options that match their views on ESG.    However, for the small amounts involved, it seems a good enough solution.

Nurse2047

Sorry to jump on but have seen Tickr who only invest ethically- anyone used them for ESG funds? 

dunstonh

MFW2026 said:

Sorry to jump on but have seen Tickr who only invest ethically- anyone used them for ESG funds? 

Its new and niche.  So, likely to be limited responses (as it appears).   I took a look at their website.....
In respect of charges, it may well be good value up to £3000.  It then adds, what is calls, a platform charge (although it doesnt appear to be a platform - although increasingly that term is being used by non-platforms instead of the generic term "provider charge"). 
 Portfolio charges are 0.25% to 0.65% depending on portfolio selected.  They say they use ETFs and bonds.  So, it is arguable that the fund charges are a tad on the high side potentially for an ETF and bond portfolio.   
I couldn't find any data about the portfolios.  So, you would be investing blind.

John464

MX5huggy said:

Doing nothing is worse than doing something. 

Sometimes it is, Sometimes it isn't.
Doing nothing is often the best course of action.