Investing for future returns

NoviceInvestor1

Interactive Investor is a flat fee, whether you hold funds, ETFs, IT's etc so may be worth looking into. I think depending on portfolio size HL can actually be cheaper than II, but at a certain £ AUM it's way cheaper.

Vanguard is cheap, you can only access Vanguard funds on it but they have a lot of options including various "Vanguard" actives managed by Wellington.

AJ Bell is similar to HL in terms of a set fee on funds and lower capped amount on ETF's, but set fee is 0.25% instead of 0.45%. So you are buying the exact same thing but guaranteed a 0.20% better return.

london21

jimjames said:

london21 said:

george4064 said:

I would sell them all and buy a world equity ETF such as VWRL. It will simplify your portfolio but also reduce your ongoing fees as you’ll benefit from the HL charging cap.

Thanks checked this but the annual fees would still be 0.79%

HL take 0.45% annual fees, maybe time to find a replacement to HL.

https://www.hl.co.uk/shares/shares-search-results/v/vanguard-ftse-all-world-ucits-etf-usd-acc/costs 

Vanguard would only be 0.15% annual fee

If the fees are capped at £45 per year at HL.

Still ok because 0.15% @28k is already £42

Exodi

Sounds like with the portfolio size and investment preferences, investing in vanguard into an all world index fund, or one of their VLS products would be much more practical and cost efficient for the OP.

(not financial advice)

london21

NoviceInvestor1 said:

Interactive Investor is a flat fee, whether you hold funds, ETFs, IT's etc so may be worth looking into. I think depending on portfolio size HL can actually be cheaper than II, but at a certain £ AUM it's way cheaper.

Vanguard is cheap, you can only access Vanguard funds on it but they have a lot of options including various "Vanguard" actives managed by Wellington.

AJ Bell is similar to HL in terms of a set fee on funds and lower capped amount on ETF's, but set fee is 0.25% instead of 0.45%. So you are buying the exact same thing but guaranteed a 0.20% better return.

Basically, years ago worked at Citibank and a lot of the clients used HL was why I started using them but no harm shopping around now.

If the fees are capped at £45 per year at HL.

Still ok because 0.25% @28k is £70 before April ISA deadline will likely top up when I have sorted out the number of funds, I am inventing in. 1-2 funds will be much better than the 6 I have. 

Exodi

london21 said:

jimjames said:

london21 said:

george4064 said:

I would sell them all and buy a world equity ETF such as VWRL. It will simplify your portfolio but also reduce your ongoing fees as you’ll benefit from the HL charging cap.

Thanks checked this but the annual fees would still be 0.79%

HL take 0.45% annual fees, maybe time to find a replacement to HL.

https://www.hl.co.uk/shares/shares-search-results/v/vanguard-ftse-all-world-ucits-etf-usd-acc/costs 

Vanguard would only be 0.15% annual fee

If the fees are capped at £45 per year at HL

Capped at £45 per year for money held in ETF's.

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

london21

Exodi said:

london21 said:

jimjames said:

london21 said:

george4064 said:

I would sell them all and buy a world equity ETF such as VWRL. It will simplify your portfolio but also reduce your ongoing fees as you’ll benefit from the HL charging cap.

Thanks checked this but the annual fees would still be 0.79%

HL take 0.45% annual fees, maybe time to find a replacement to HL.

https://www.hl.co.uk/shares/shares-search-results/v/vanguard-ftse-all-world-ucits-etf-usd-acc/costs 

Vanguard would only be 0.15% annual fee

If the fees are capped at £45 per year at HL

Capped at £45 per year for money held in ETF's.

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

I have just called HL, All of mine are not currently capped as they are funds.

Need to move to ETF's.

Exodi

london21 said:

Exodi said:

london21 said:

jimjames said:

london21 said:

george4064 said:

I would sell them all and buy a world equity ETF such as VWRL. It will simplify your portfolio but also reduce your ongoing fees as you’ll benefit from the HL charging cap.

Thanks checked this but the annual fees would still be 0.79%

HL take 0.45% annual fees, maybe time to find a replacement to HL.

https://www.hl.co.uk/shares/shares-search-results/v/vanguard-ftse-all-world-ucits-etf-usd-acc/costs 

Vanguard would only be 0.15% annual fee

If the fees are capped at £45 per year at HL

Capped at £45 per year for money held in ETF's.

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

I have just called HL, All of mine are not currently capped as they are funds.

Need to move to ETF's.

HL does charge a share dealing charge for buying ETF funds (see the page I linked).

To avoid having to pay multiple ETF charges, you could sell each fund so you receive cash then use all the cash to buy whatever ETF you want (as opposed to effectively switching each fund into an ETF and incurring a share dealing charge each time).

Alternatively, you could move it into another all world index fund that you could transfer in specie to Vanguard - then once on Vanguard, swap to ETF's where there is no share dealing charge.(e.g. www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-ftse-global-all-cap-index-accumulation)

However, as you had to call HL to work out whether your funds are ETF's or not, I'd encourage you to do more research on investments in general so you can be clear on what you're doing.

london21

Exodi said:

london21 said:

Exodi said:

london21 said:

jimjames said:

london21 said:

george4064 said:

I would sell them all and buy a world equity ETF such as VWRL. It will simplify your portfolio but also reduce your ongoing fees as you’ll benefit from the HL charging cap.

Thanks checked this but the annual fees would still be 0.79%

HL take 0.45% annual fees, maybe time to find a replacement to HL.

https://www.hl.co.uk/shares/shares-search-results/v/vanguard-ftse-all-world-ucits-etf-usd-acc/costs 

Vanguard would only be 0.15% annual fee

If the fees are capped at £45 per year at HL

Capped at £45 per year for money held in ETF's.

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

I have just called HL, All of mine are not currently capped as they are funds.

Need to move to ETF's.

HL does charge a share dealing charge for buying ETF funds (see the page I linked).

To avoid having to pay multiple ETF charges, you could sell each fund so you receive cash then use all the cash to buy whatever ETF you want (as opposed to effectively switching each fund into an ETF and incurring a share dealing charge each time).

Alternatively, you could move it into another all world index fund that you could transfer in specie to Vanguard - then once on Vanguard, swap to ETF's where there is no share dealing charge.(e.g. www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-ftse-global-all-cap-index-accumulation)

However, as you had to call HL to work out whether your funds are ETF's or not, I'd encourage you to do more research on investments in general so you can be clear on what you're doing.

Thanks, you are right more research needed to fully understand what I am doing.

NoviceInvestor1

london21 said:

Exodi said:

london21 said:

Capped at £45 per year for money held in ETF's.

https://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

I have just called HL, All of mine are not currently capped as they are funds.

Need to move to ETF's.

Don't let HL's charging structure make your investment decisions for you - if you want funds move to a platform that doesnt charge you 0.45% for funds, rather than buying ETF's you don't want just to appease HL and their bonkers fees.

Don't let the fees tail wag the investment decisions dog! 

london21

Hi All,

I have had some thoughts about the suggestions given and will like to trim this down.

I am tempted to go for Iweb as will get £100 fee back but they charge £5 per trade and I tend to like transferring my monthly savings in to average the cost of the funds.

I am tempted to sell my many funds and buy the VWRL ETF and stay with HL but although their charge will be fixed max £45 they also charge per trade at 9:99 so monthly investment won't be worth it.

I am also considering Vanguard with their 0.15% platform charge.

What do you reckon is the best choice? I am investing for the long term, I am in my 30s.