Nutmeg ‘SRI’ JISA advice

bpk101

The V3AM (or V3AB in my instance) looks really interesting actually. 

At 0.24% it’s slightly more expensive than the ESG Developed World All Cap at 0.20%. I wonder how much difference that’d make on a £200 per month investment over 15 years? 

Also, how would the fact it’s an ETF effect me when compared to the ESG Developed World All Cap? 

Alexland

bpk101 said:

Also, how would the fact it’s an ETF effect me when compared to the ESG Developed World All Cap? 

ETFs have market spread, the difference between the buy and sell price, which can be more significant on smaller newly launched less liquid ones.

If you are using Fidelity, and they make it available, they would charge £10 per trade or £1.50 per regular trade for using an ETF compared to fund trading which has no trade charge. Fidelity child accounts are only good value if you stick to traditional funds.

If you are using Vanguard Investor paying the 0.15% ongoing then an ETF would only cost extra if you wanted an online live price offer at £7.50 per trade.

grumiofoundation

bpk101 said:

The V3AM (or V3AB in my instance) looks really interesting actually. 

At 0.24% it’s slightly more expensive than the ESG Developed World All Cap at 0.20%. I wonder how much difference that’d make on a £200 per month investment over 15 years? 

Also, how would the fact it’s an ETF effect me when compared to the ESG Developed World All Cap? 

Before worrying about the 0.04% OCF or ETF versus fund you need to look at what they are invested in and decide which one is suitable for you based on that.
The main difference between them is that V3AM (or V3AB) is All-world (i.e. including emerging markets - china, india, taiwan etc) whereas the ESG Developed World All Cap fund is only developed world.


Vanguard also offer an emerging market fund 
https://www.vanguardinvestor.co.uk/investments/vanguard-esg-emerging-markets-all-cap-equity-index-fund-gbp-acc

If you wanted to replicate the ETF with traditional funds you would need to own both the developed world and EM fund (in a ~9:1 ratio - V3AM is 10.6% emerging markets, see link).
https://www.vanguardinvestor.co.uk/investments/vanguard-esg-global-all-cap-ucits-etf-usd-distributing/portfolio-data?intcmpgn=equityglobal_esgglobalallcapucitsetf_fund_link


As explained above by Alexland ETFs generally occur trading fees. Vanguard don't charge trading fees on their ETFs if you are happy to not trade live (so same way you would trade for traditional funds). Although one thing to watch out for is vanguard only seems to offer V3AM - the income version of the fund, not the accumulation (V3AB) - not sure why.  

Alexland

grumiofoundation said:

Vanguard also offer an emerging market fund 
https://www.vanguardinvestor.co.uk/investments/vanguard-esg-emerging-markets-all-cap-equity-index-fund-gbp-acc

Let's see what they think about the ESG credentials of a fund that invests 40% in China

Madrick

Is anyone having trouble logging onto the Nutmeg site?

Just keeps saying "temporary closed due to maintenance"

Been that way for a few days. 🤔

grumiofoundation

bpk101 said:

grumiofoundation said:

one thing to watch out for is vanguard only seems to offer V3AM - the income version of the fund, not the accumulation (V3AB) - not sure why.  

Is it not this one?

https://www.vanguard.co.uk/professional/product/etf/equity/9470/esg-global-all-cap-ucits-etf-usd-accumulating

That website is for professional investors. 

When I look at their ETFs page (see link) I don't see the accumulation version available. Of both this ETF and others (e.g. can only see VWRL not VWRP).

https://www.vanguardinvestor.co.uk/what-we-offer/etf-products

You can buy ACC version on other platforms but on vanguards platform seems like just the INC version is available. Maybe I am missing something?

grumiofoundation

Madrick said:

Is anyone having trouble logging onto the Nutmeg site?

Just keeps saying "temporary closed due to maintenance"

Been that way for a few days. 🤔

Just checked and can log in fine. 

Get the message at top of screen but logged in no issue.

Apologies - We are currently experiencing some technical difficulties with some of our services. The team is working hard to get it back up and running as soon as possible. We are sorry for any inconvenience.

bpk101

grumiofoundation said:

bpk101 said:

The V3AM (or V3AB in my instance) looks really interesting actually. 

At 0.24% it’s slightly more expensive than the ESG Developed World All Cap at 0.20%. I wonder how much difference that’d make on a £200 per month investment over 15 years? 

Also, how would the fact it’s an ETF effect me when compared to the ESG Developed World All Cap? 

Before worrying about the 0.04% OCF or ETF versus fund you need to look at what they are invested in and decide which one is suitable for you based on that.
The main difference between them is that V3AM (or V3AB) is All-world (i.e. including emerging markets - china, india, taiwan etc) whereas the ESG Developed World All Cap fund is only developed world.


Vanguard also offer an emerging market fund 
https://www.vanguardinvestor.co.uk/investments/vanguard-esg-emerging-markets-all-cap-equity-index-fund-gbp-acc

If you wanted to replicate the ETF with traditional funds you would need to own both the developed world and EM fund (in a ~9:1 ratio - V3AM is 10.6% emerging markets, see link).
https://www.vanguardinvestor.co.uk/investments/vanguard-esg-global-all-cap-ucits-etf-usd-distributing/portfolio-data?intcmpgn=equityglobal_esgglobalallcapucitsetf_fund_link


As explained above by Alexland ETFs generally occur trading fees. Vanguard don't charge trading fees on their ETFs if you are happy to not trade live (so same way you would trade for traditional funds). Although one thing to watch out for is vanguard only seems to offer V3AM - the income version of the fund, not the accumulation (V3AB) - not sure why.  

The 10% inclusion of emerging markets is why I find it interesting actually, I’ve read elsewhere about people recreating this 9:1 split manually and that the V3AM offer negates the need to do that.

Strange that vanguard investor doesn’t offer the accumulative version though. 

grumiofoundation

Alexland said:

grumiofoundation said:

Vanguard also offer an emerging market fund 
https://www.vanguardinvestor.co.uk/investments/vanguard-esg-emerging-markets-all-cap-equity-index-fund-gbp-acc

Let's see what they think about the ESG credentials of a fund that invests 40% in China

Is indeed a concern 🤔 really not very different holdings to the non-screened. 
Could be time for us bite the higher fees bullet and look at moving towards more active management in emerging markets if we want to be ‘ethical’… 

bpk101

Do you think adopting this manual 9:1 split between the Vanguard ESG Developed World and ESG Emerging Markets All Cap Index funds through Fidelity would be a good strategy to get started with for my sons JISA? 

It adds a bit more risk - so potentially more reward - than opting solely for the Developed World fund alone and will (I hope) offer me an easy entry point to investing and allow me to track the progress of 2 different funds to see how they compare as I learn more about investing. 

Or is a 9:1 split creating more complexity than is helpful for a beginner?