Some Vanguard ISA fund questions

underground99

isayhello said:

It will be interesting to find out the timescales though just in case I decide to sell one of the funds in the ISA and switch the cash to another fund.

For both the All Cap / LS100 on one hand and the Small Cap on the other, the settlement date is two business days after the valuation point / dealing day.

So if you had put your order in to sell some All Cap at 00.15 Tuesday morning you would have caught the cutoff point for Tuesday's valuation and cash should settle into your account on Tuesday + 2  = Thursday.

Whereas if you had ordered to sell some Small Cap at 00.15 Tuesday morning you would have missed the cutoff point for Tuesday dealing and got the Wednesday dealing day; cash should settle into your account on Wednesday + 2  = Friday.

However looking at the cutoffs if you had placed the order for any of those funds at 14:00 Tuesday, you would have got the Wednesday dealing day / valuation point for all of them, and settlement would be two business days later = Friday. 

Some ISA platforms that know you are going to be able to receive £x of funds redemption proceeds on a given settlement day from a sell order will allow you to make a purchase of a new fund with the same settlement day so you could simply 'switch' £1000 from one fund to the other at 14:00 Tuesday, and they would both get priced on Wednesday and settle on Friday. If the amount you're asking to switch is less than your most recent value of the fund you're switching it from, they can effectively take the risk of the money not turning up (as it's not a big risk) and let you commit it into a new fund.

However other platforms don't do that, and they would need to wait until after the beancounters had generated a contract note for your dealing (and the dealing doesn't happen until Wednesday so information about the price might not be circulated until Thursday...) before you can place the order to buy, if you didn't already have spare cleared funds in the account.

isayhello

Thanks @underground99 to be on the safe side with Vanguard when I do it for the first time, I'll probably give it a few days to make sure the sale was completed and I have the cash to invest again in a new fund.

Will call/message Vanguard tomorrow if I don't see the small cap completed, just out of curiosity to learn why it takes a few days longer than the All cap.

Sooetie

Hi
I also just joined Vanguard - 4 days ago.

I was searching for answers and thanks to Underground and Dunston for great info on this thread.

After my initial £500 to a Lifestrategy  I thought I'd have a go at other stuff so I picked other ETF funds and allocated varying amounts which is when I also came across the At best/Single thing...

I didn't know if I had to put 500 into every fund - so I worked it out by trying it out and if you put £100 for ETF shares at £30 you get 3 and £10 returned to acc. If you put it into say a lifestyle fund it all gets used.
I bought a share in 1 fund with the leftover money from my other investments and also a few minutes later bought others after i made a debit card payment.  the first went through the next morning but the other later in the evening I think that may be the problem  for OP as it says on the site that it takes a day for card payments to clear.

I also put £300 each into 2 other funds but then got the misconception from the site that I had to put a min £500 into each fund I wanted to invest so sent Vanguard a message  to clarify about how much can I put in and when. Vanguard sent this reply - 

'Creating an account requires a minimum payment of £500 or £100 per month regular payments, However there are no minimum contributions thereafter when making payments on an ad hoc basis'

So I hope this helps.

isayhello

The fund purchase was set to complete this morning. Seems like the small cap fund took 2 days longer than the all cap/VLS funds this time if it helps anyone in future.

ranciduk

I’m looking at investing in a lifestrategy 60% in an S and S ISA with vanguard 

never invested or had a S&S ISA before

my question is , does this pay dividends to you every year?

and do that they  have to be automatically reinvested - or can they be taken as cash payments into your nominated account instead?

im looking at getting a yearly income from dividends

dunstonh

my question is , does this pay dividends to you every year?

yes

and do that they  have to be automatically reinvested - or can they be taken as cash payments into your nominated account instead?

It is available in income and accumulation versions (i.e. income = paid out, accumulation means retained within the fund).

im looking at getting a yearly income from dividends

That is an older fashioned way of doing it but if its what you want you can do it.

ColdIron

ranciduk said:

im looking at getting a yearly income from dividends

If dividend income is your objective VLS 60 isn't what I would choose. It pays about 1.54% pa which on £10,000 is a cup of coffee a week. Hardly worth the bother

ranciduk

Would something like this be better?

FTSE All-World High Dividend Yield ETF

ColdIron

It certainly has a higher yield but would come at the cost of lower growth as it filters out companies with good growth prospects or those with lower, or no, dividends. It really depends on your circumstances and objectives. If a steady income stream is important you could put together a portfolio of investment trusts with a smoothed dividend or if you have other sources of income and this is in addition to that you might look for growth and periodically sell down some of your investments. Then there are certain bonds that provide reliable payments and low volatility, or property, infrastructure etc. Or a mixture of the above

There is no one size fits all, you need to tailor your investments to meet your needs. Horses for courses

ranciduk

Okay dokey!