Stocks and Shares ISA Transfer

vienly

Hello,

I have an Stocks and Shares ISA with Hargreaves Lansdown and have a active Vanguard fund (VWRL) with them.
Is it possible to transfer my Stocks and Shares ISA from 'HL' to 'Vanguard' to take advantage of the lower fees at 0.15%?

I know this take about 30 days but I don't know if I have to sell my fund and have everything in cash before transfer is allowed?

Thank you

MX5huggy

Yes but is it cheaper? HL cap the fee for holding ETF’s at £45 per year. So if your holding is £30k or more HL is cheaper. If you are buying often then the answer changes. Vanguard don’t charge trading fees (if you buy on the daily option not the spot price). HL trading fee depends on how much you trade. 

monikaewm

Hi Vienly, 

Have you tried doing an in specie transfer? In Specie transfer allows you to transfer your funds to another provider without selling down your assets. I don't use Vanguard so unfortunately I'm not sure if they would allow that.

Hope that helps! 

vienly

Thank you for the response

Ah Ok I didn't realise HL Caps ETF's at £45, the difference is only £21 a year then.

£16k fund
HL annual fee = £45 (capped)
Vanguard = £24

I suppose it isn't worth the hassle to transfer.

vienly

I haven't heard of specie transfer but will look into it, my fund will go over the £30k mark eventually with additional funds so I think I will stick with HL then. Thanks all

Albermarle

monikaewm said:

Hi Vienly, 

Have you tried doing an in specie transfer? In Specie transfer allows you to transfer your funds to another provider without selling down your assets. I don't use Vanguard so unfortunately I'm not sure if they would allow that.

Hope that helps! 

I am sure Vanguard will be happy to accept an in specie transfer of their own funds .
However in specie transfers in general are known for there often being long delays in finalising the transaction . Transfers out of HL have been noted in this forum for being slow ( months ) 
Although you will not be out of the market , you will not be able to buy or sell any funds that are being transferred and the delays can be frustrating .

vienly

Learn something new everyday! 

Albermarle

vienly said:

Learn something new everyday! 

Especially about money on all  these MSE forums 

Alexland

vienly said:

Ah Ok I didn't realise HL Caps ETF's at £45, the difference is only £21 a year then.

£16k fund
HL annual fee = £45 (capped)
Vanguard = £24

I suppose it isn't worth the hassle to transfer.

Also consider any ETF trading costs you might be incurring on HL compared to Vanguard who offer inclusive scheduled trades or cheaper live trades. At that HL account valuation I don't really know why you are using an ETF as the HSBC FTSE All-World fund would have no trade costs and is almost half the price. According to Trustnet data the HSBC fund would have returned 84.7% over the past 5 years compared to the Vanguard ETF at 83.2% so not a lot of difference other than avoiding platform trade costs.

ispookie666

Not related to Vanguard but in the process of transferring Junior ISA from HL to Fidelity.  It took 1 day to transfer from HL to fidelity for the investments which are available in both platform.