Nutmeg ‘SRI’ JISA advice

bpk101

Alexland said: perhaps invest in something like the Vanguard ESG Developed World fund which only costs 0.20%.

Is the 0.20% cost the same thing as an ‘expense ratio’?

Alexland

bpk101 said:

Is the 0.20% cost the same thing as an ‘expense ratio’?

These days fund managers publish an Ongoing Charge Figure (OCF) which replaces the old Total Expense Ratio (TER) and Annual Management Charge (AMC) which were missing some elements of the charges. Fund managers also make a disclosure of the internal transaction costs incurred by the fund in trading the underlying securities including market spread but you usually have to dig around their website to find this information but on this fund it is 0.01%

https://www.vanguardinvestor.co.uk/what-we-offer/fees-explained

DireEmblem

kuratowski said:

However, the usual advice is to pick the investment before you decide on the platform.

100% this.

Thrugelmir

bpk101 said:

Both myself and my spouse are keen to invest in socially responsible funds, but are we forfeiting much bigger returns by doing so?

Ultimately yes. Shareholders cannot expect both high profits and well paid employees (for example).  

grumiofoundation

Thrugelmir said:

bpk101 said:

Both myself and my spouse are keen to invest in socially responsible funds, but are we forfeiting much bigger returns by doing so?

Ultimately yes. Shareholders cannot expect both high profits and well paid employees (for example).  

Although expecting lowers returns from ethical investments may seem logical for various reasons, it isn’t backed up by the evidence. 

Maybe this will change moving forward but I don’t think lower returns (especially ‘much’ lower as OP originally asked) should be expected. 

https://blog.ccminvests.com/disproving-the-myth-that-impact-esg-investing-often-results-in-lower-returns/

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2699610

https://www.morganstanley.com/ideas/sustainable-investing-competitive-advantages

Obviously this is could differ depending on the exact nature of the ethical investments.  For a index excluding certain companies you are effectively betting on tobacco/coal/weapons etc underperforming the non-excluded sectors. 

bpk101

grumiofoundation said:

For a index excluding certain companies you are effectively betting on tobacco/coal/weapons etc underperforming the non-excluded sectors. 

I'm not necessarily betting on them underperforming, just compromising for peace of mind knowing our money hasn't contributed towards their efforts in any way regardless of how they perform. 

bpk101

Alexland said:

perhaps invest in something like the Vanguard ESG Developed World fund which only costs 0.20%.

What's the difference between the ESG Developed World All Cap Equity Index Fund and the ESG Developed World All Cap Equity Index Fund (UK) versions of this fund. Would i need to choose the (UK) version if investing from the UK?

And as you mentioned they're available through Fidelity also but with the inclusion of GBP in the name, i presume these are the same two funds?

Vanguard ESG Developed World All Cap Equity Index Fund (UK) GBP Acc
Vanguard ESG Developed World All Cap Equity Index Fund GBP Acc

Alexland

The original fund was domiciled in Ireland but since Brexit fund managers have tended to launch UK domiciled versions of their funds.

grumiofoundation

bpk101 said:

Alexland said:

perhaps invest in something like the Vanguard ESG Developed World fund which only costs 0.20%.

What's the difference between the ESG Developed World All Cap Equity Index Fund and the ESG Developed World All Cap Equity Index Fund (UK) versions of this fund. Would i need to choose the (UK) version if investing from the UK?

And as you mentioned they're available through Fidelity also but with the inclusion of GBP in the name, i presume these are the same two funds?

Vanguard ESG Developed World All Cap Equity Index Fund (UK) GBP Acc
Vanguard ESG Developed World All Cap Equity Index Fund GBP Acc

I believe it is where they are domiciled and will make little practical difference, as they are tracking the same index. You don’t need to choose UK version (but no reason not to). 

See thread below where same question asked and answered in more detail. 

https://forums.moneysavingexpert.com/discussion/6163363/vanguard-esg-dev-world-all-cap-equity-index-vs-esg-dev-world-all-cap-equity-index-uk



You can compare the ISIN s to check they match. 

GB00BLLZQL34 for (UK) version.

Spiggle

bpk101 said:

What's the difference between the ESG Developed World All Cap Equity Index Fund and the ESG Developed World All Cap Equity Index Fund (UK) versions of this fund. Would i need to choose the (UK) version if investing from the UK?

I'm only a 'littley' and relatively new investor. I have a little of both these funds and have held them for only around a year so far. The first one I bought at around £279 per unit and they now sit at £355pu in my tiny SIPP. The (UK) version I bought around the same time for my S&SISA @ £105pu and now sit at around £130pu. They are the same index just different launch dates of the products and history available.

In April this year I also put a smaller amount into the S&SISA of the latest Vanguard ESG offering, V3AM. Far too early to say if it was wise but worth a punt for me as I'm only a small inexperienced investor and have no intention whatsoever of drawing/withdrawing from either S&SISA or SIPP. For me they're tax efficient wrappers, protection against inflation and protected funds for when I pop my clogs!

I also like Vanguard as it suits my inexperience and they are so good when I ring them up or use the platform contact method.

HTH.

All the best,
Spigs