Best Global tracker for LISA (AJ Bell)

FIREmenow

Hello,

We are looking to open LISAs with AJ Bell.  As we will have at least 20 years until we can access the money I am intending to invest this 100% equities.  We have other ISAs invested in LS80, so I was looking at the LS100, but possibly we can do this with a tracker with a lower charage?  I was wondering what other Global equity trackers people would recommend that are available on the AJ Bell platform.

Or, as the nature of LISAs means they will be small and slow-growing, will the small saving in fees be negligible in this case? 

Many thanks for reading and for any thoughts.

MX5huggy

Pre presume it’s on AJ Bell:-

• HSBC FTSE All-World Index Fund C (GB00BMJJJF91) OCF 0.13%

Or have a read on https://monevator.com/low-cost-index-trackers/

Alexland

Depends what you want to invest in. If you want everything then the HSBC fund above, if you want to exclude emerging markets then Fidelity Index World or if you want to overweight UK and reduce all other inc US exposure then VLS100. Either way due to the £1.50 fund trade fees it's probably best to stick to a single fund and after a few years when the valuation is high enough consider switching to an ETF for capped platform fees and using the regular investing feature to invest in ETF units at the same £1.50 rate.
Our LISAs are a single digit proportion of our overall S&S investments so we use them to provide some small cap exposure.

marycanary

MX5huggy said:

Pre presume it’s on AJ Bell:-

• HSBC FTSE All-World Index Fund C (GB00BMJJJF91) OCF 0.13%

Or have a read on https://monevator.com/low-cost-index-trackers/

Another vote for HSBC FTSE All-World Index Fund C, I hold it in my SIPP with AJ Bell. It's money I don't intend to access for 20+ years. 

FIREmenow

Thank you all for your replies. I'll have a look at those in detail,  particularly the HSBC one.

I wonder,  has anyone transferred an ISA into AJ Bell? I have a small old S&S ISA with Charles Stanley and was going to transfer it either to the AJ Bell LISA or my current Vanguard ISA, wondering if either platform is better or faster for this type of thing. 

Many thanks

Alexland

FIREmenow said:

I wonder,  has anyone transferred an ISA into AJ Bell? I have a small old S&S ISA with Charles Stanley and was going to transfer it either to the AJ Bell LISA or my current Vanguard ISA, wondering if either platform is better or faster for this type of thing.

I've transferred a few accounts in/out of both AJ Bell and Vanguard over the years and I would say the AJ Bell transfer team were slightly more on the ball however transfer workloads may be different now and individual experiences will vary and AJ Bell is generally more expensive than Vanguard so I would just go with the one that works out long term cheapest for your circumstances.

FIREmenow

Thanks @Alexland.
I think I'll set up a transfer to Vanguard and put a lump sum from savings into the LISA for this year in case the transfer goes slowly. 

SeniorSam

Do check with Vanguard first as they may not deal with some investments you have in your existing ISA. They are certainly the lowest charging platform, but you may need to consider other investments or another platform. Give them a call.

FIREmenow

Thanks @SeniorSam, those are good points.  I already have a vanguard ISA so it will be good for what I need

GeoffTF

AJ Bell charges a hefty percentage fee to hold OEICs and Unit Trusts. You can avoid that by using ETFs, e.g. VWRL.

grumiofoundation

GeoffTF said:

AJ Bell charges a hefty percentage fee to hold OEICs and Unit Trusts. You can avoid that by using ETFs, e.g. VWRL.

For clarify you do not avoid it (entirely), it is capped at 3.50 per month (£42 per year). 

So for lower balances (<16,800) platform fees are the same.

The OCF of VWRL is 0.22%, whereas the fund linked to earlier is 0.13% - so that’s 36% of the hefty platform charge saved!