Vanguard: funds or ETFs?

JakeHyde

sebtomato said:

I am just looking for the cheapest way to get some "funds", so should I just look at the ETF fee vs. the fund fee?

I'm in a similar position, and from my layman's understanding, there is virtually little difference between an ETF and Fund.
ETF's can be traded throughout the day, and Index Funds get traded end of day, someone please correct me if I'm wrong.

But The platform I will be using is InvestEngine with zero platform fees on a DIY portfolio. You can get most of your Vanguard ETF's on there without the platform fees.

sebtomato

MX5huggy said:

Be careful the S&P 500 is not the US stock market, Vanguard offer a US fund the with 4074 stocks vs 508 in the S&P. Look at the history of Tesla not joining the S&P until it was massive (in value) because it did not meet the criteria of being profitable. 

You can cover the Developed World cheaply using VEVE (0.12), or using the alternative offered above just add a bit of emerging market if you want. 

Then holding ETF’s on Fidelity or HL has just a fee of £45 pa but there are trading fees which you don’t have on Vanguard. 

Regarding the S&P500, I am just following Warren Buffet's advice. He said people are better off investing in an S&P500 index tracker as opposed to his fund, but maybe I need to look at something a bit broader indeed.

The Vanguard S&P500 ETF is very cheap, with a fee of only 0.07% per year.

Good point regarding HL, and low fees for ETFs.

sebtomato

JakeHyde said:

But The platform I will be using is InvestEngine with zero platform fees on a DIY portfolio. You can get most of your Vanguard ETF's on there without the platform fees.

Thanks, I didn't know about InvestEngine. I will check it.

However, since I am moving my pensions too to Vanguard, the platform fee (capped at £350) will become very small. I'd rather have my ISA and pensions with a established company, but can use a smaller player for a general investment account. 

I am currently using Freetrade for that, which doesn't have platform fees either. A number of Vanguard ETFs are available too.

I am very glad I am ditching Aviva, and Fidelity for my pensions, as they were charging 1% per year management fee. Also ditching HL for my ISA: they have a better website than Vanguard and a lot more funds, but it all comes at a price. They have made enough money from me now.

Should be able to save thousands on fees per year.

GeoffTF

The Vanguard small cap fund tracks the MSCI index, whereas other Vanguard funds track the FTSE Russell indexes. That leads to duplication. A global tracker is much cheaper at 0.13% (either HSBC or 0.9*VEVE + 0.1*VFEM). iWeb is cheaper than Vanguard's platform for £500K.

JustAnotherSaver

Tried to understand ETFs myself but didn't satisfy myself enough with enough knowledge to go down that road. They may or may not have been a better option for me but as I didn't understand enough I thought it would be a mistake to continue with it.

My understanding was there's little difference but clearly there's enough of a difference for them to be two different things & not just only 1 option.

I remember Alexland tried helping me in terms of the LISA as I'm sure he was/is invested in ETFs. My head just didn't get it.

dunstonh

Regarding the S&P500, I am just following Warren Buffet's advice. He said people are better off investing in an S&P500 index tracker as opposed to his fund, but maybe I need to look at something a bit broader indeed.

Another person misinterpreted what he said.  You may wish to read up on what he actually said and to whom he said it.   In the context of the audience, it was correct. However, you are very different to those he was saying it to.

Albermarle

I am very glad I am ditching Aviva, and Fidelity for my pensions, as they were charging 1% per year management fee

Presume the Fidelity pension was a work related one ?

On their retail site , platform fee is 0.35% or 0.2% if you have over £250K .Also platform fees for ETF's; shares and Investment Trusts is capped at £45 for all products .

So it is possible to have a Million Pound pension and only pay £45 pa in platform fees . 

ColdIron

sebtomato said:

MX5huggy said:

Be careful the S&P 500 is not the US stock market, Vanguard offer a US fund the with 4074 stocks vs 508 in the S&P. Look at the history of Tesla not joining the S&P until it was massive (in value) because it did not meet the criteria of being profitable. 

You can cover the Developed World cheaply using VEVE (0.12), or using the alternative offered above just add a bit of emerging market if you want. 

Then holding ETF’s on Fidelity or HL has just a fee of £45 pa but there are trading fees which you don’t have on Vanguard. 

Regarding the S&P500, I am just following Warren Buffet's advice. He said people are better off investing in an S&P500 index tracker as opposed to his fund,

It was advice for his wife and good advice if you are a US octogenarian with more money than you could possibly spend

sebtomato

Albermarle said:

I am very glad I am ditching Aviva, and Fidelity for my pensions, as they were charging 1% per year management fee

Presume the Fidelity pension was a work related one ?

On their retail site , platform fee is 0.35% or 0.2% if you have over £250K .Also platform fees for ETF's; shares and Investment Trusts is capped at £45 for all products .

So it is possible to have a Million Pound pension and only pay £45 pa in platform fees . 

Yes, work related one. Having gone to the website and downloaded my last pension statement from them, I have failed to find the exact fees being charged... At least, the Aviva statement is clear on that.

sebtomato

ColdIron said:

sebtomato said:

MX5huggy said:

Be careful the S&P 500 is not the US stock market, Vanguard offer a US fund the with 4074 stocks vs 508 in the S&P. Look at the history of Tesla not joining the S&P until it was massive (in value) because it did not meet the criteria of being profitable. 

You can cover the Developed World cheaply using VEVE (0.12), or using the alternative offered above just add a bit of emerging market if you want. 

Then holding ETF’s on Fidelity or HL has just a fee of £45 pa but there are trading fees which you don’t have on Vanguard. 

Regarding the S&P500, I am just following Warren Buffet's advice. He said people are better off investing in an S&P500 index tracker as opposed to his fund,

It was advice for his wife and good advice if you are a US octogenarian with more money than you could possibly spend

Yes, I don't know the details, just found the story amusing. One the most successful investors of all time saying (or having someone related) that a passive fund is not bad.

A S&P500 tracker seems a good investment (and very cheap) as part of passive investment strategy anyway.