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Investing for future returns
Comments
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london21 said:
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.
You'll need to total the investment fees to compare these properly (neglecting fund/ETF fees since, for a world tracker, they are the fairly similar on each platform). For example,
iWeb. Platform fee=0, one transaction per month, fee=12*5=£60, total annual fees=£60
HL (if I understand their fees correctly), capped platform fee=£45, transaction fees=12*9.99~£120, total=£165
Vanguard, platform fee=£46 (although this will increase with your investment value), transaction fees=£0, total=£46
There are other considerations - vanguard have a much more restricted set of funds (but have a world tracker sufficient for your current needs) and a functional website - never had to use their customer service, iweb has a functional web site and (in my experience) good customer service and more choice in relevant funds. Not used HL so cannot comment.
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If someone has money in barclays ISA with fix ending in January, is it possible to transfer the money to IWeb ISA funds0
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Yes, assuming you have an S&S ISA with IWeb.Why do you think it might not be possible?0
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london21 said:badger09 said:Yes, assuming you have an S&S ISA with IWeb.Why do you think it might not be possible?
Thought easier if going for one account to the other but can call IWeb tomorrow.Log into your S&S ISA account. From Menu (top right) select Transfers then Transfer Your Account from Another Provider then ISA Transfer. You have to complete the online transfer form, print & post it to IWeb.2 -
badger09 said:london21 said:badger09 said:Yes, assuming you have an S&S ISA with IWeb.Why do you think it might not be possible?
Thought easier if going for one account to the other but can call IWeb tomorrow.Log into your S&S ISA account. From Menu (top right) select Transfers then Transfer Your Account from Another Provider then ISA Transfer. You have to complete the online transfer form, print & post it to IWeb.
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Hi All,
A bit curious, I have my ISA in Vanguard FTSE Global All Cap Index Fund GBP which is up +21.13% 1 year change, but Vanguard S&P 500 UCITS ETF USD Accumulation is up +29.41% 1 year change.
I am thinking of transfering my money to S&P500.
Diversification: The FTSE Global All Cap Index Fund offers broader diversification as it includes large, mid-sized, and small companies from both developed and emerging markets In contrast, the S&P 500 ETF focuses solely on large-cap U.S. companies
Currency Risk: Since the S&P 500 ETF is in USD, i might be exposed to currency risk if ny base currency is GBP. Fluctuations in the exchange rate could impact my returns.
Sector Exposure: The S&P 500 has a higher concentration in technology and financial services sectors which can be beneficial if these sectors continue to perform well but also adds sector-specific risk.
The global fund might offer more stability due to its diversification, while the S&P 500 could provide higher returns but with more volatility.
What do you think? I am investing long term, no immediate need.
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london21 said:
Hi All,
A bit curious, I have my ISA in Vanguard FTSE Global All Cap Index Fund GBP which is up +21.13% 1 year change, but Vanguard S&P 500 UCITS ETF USD Accumulation is up +29.41% 1 year change.
I am thinking of transfering my money to S&P500.
Diversification: The FTSE Global All Cap Index Fund offers broader diversification as it includes large, mid-sized, and small companies from both developed and emerging markets In contrast, the S&P 500 ETF focuses solely on large-cap U.S. companies
Currency Risk: Since the S&P 500 ETF is in USD, i might be exposed to currency risk if ny base currency is GBP. Fluctuations in the exchange rate could impact my returns.
Sector Exposure: The S&P 500 has a higher concentration in technology and financial services sectors which can be beneficial if these sectors continue to perform well but also adds sector-specific risk.
The global fund might offer more stability due to its diversification, while the S&P 500 could provide higher returns but with more volatility.
What do you think? I am investing long term, no immediate need.
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eskbanker said:london21 said:
Hi All,
A bit curious, I have my ISA in Vanguard FTSE Global All Cap Index Fund GBP which is up +21.13% 1 year change, but Vanguard S&P 500 UCITS ETF USD Accumulation is up +29.41% 1 year change.
I am thinking of transfering my money to S&P500.
Diversification: The FTSE Global All Cap Index Fund offers broader diversification as it includes large, mid-sized, and small companies from both developed and emerging markets In contrast, the S&P 500 ETF focuses solely on large-cap U.S. companies
Currency Risk: Since the S&P 500 ETF is in USD, i might be exposed to currency risk if ny base currency is GBP. Fluctuations in the exchange rate could impact my returns.
Sector Exposure: The S&P 500 has a higher concentration in technology and financial services sectors which can be beneficial if these sectors continue to perform well but also adds sector-specific risk.
The global fund might offer more stability due to its diversification, while the S&P 500 could provide higher returns but with more volatility.
What do you think? I am investing long term, no immediate need.
Thanks.0 -
A bit curious, I have my ISA in Vanguard FTSE Global All Cap Index Fund GBP which is up +21.13% 1 year change, but Vanguard S&P 500 UCITS ETF USD Accumulation is up +29.41% 1 year change.
I am thinking of transfering my money to S&P500.What about periods when global out performs the S&P500?
US equity and global equity ex US tend to alternate in cycles. This cycle has seen S&P500 be the key growth area. The previous cycle had US equity being the worst. That alternating cycle goes back generations.
The Global tracker already has US equity in it to a high ratio. So, it's a diverse and sensible option. Whereas S&P500 would be gambling on US always being best which is highly unlikely.
Cycles play out over a decade or two. So, don't make rash decisions on short term data. You will just end up chasing the gains after they have happened and not before.
If you look at the US vs global in the first decade of this millennium (red: Global inc US vs blue: US), would you have considered going 100% US when it is was 20% down after 10 years?
Some of the gains in US in this cycle are because it did so poorly in the previous (in particular tech). Those gains have already happened and you are never going to get them by invested a decade too late.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.2
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