IWeb - who's using them?

silvercue

ColdIron said:

silvercue said:

ColdIron said:

silvercue said:

GeoffTF said:

silvercue said:

I have a S&S ISA I opened with IWEB in April and purchased investment in 4 Vanguard products through them.  I am very pleased with them so far.

I also have a Moneyfarm S&S ISA which I am currently enjoying with no fees, but that will run out and the fees will just make me like my IWEB one even more.

I find their website very good.  I would love an App, I have submitted that as feedback.  Their support is excellent. 

My only very tiny gripe I had is I can see my dividend payments for my ETFs but the funds I see no info on and have to search for info elsewhere.  IWEB told me to contact Vanguard and Vanguard told me to talk to Iweb - eventually I got an answer, but it would be nice to see info on this on IWEB site.

I have just checked on my account. The dividends on my Vanguard UK domiciled OEIC and Unit Trust are showing under Dividends. If you click on the amount, it gives more details. iWeb has a penchant for invisible links, so always search carefully. I check my dividends against an independent source, e.g. Vanguard.

I understand that is because these are Accumulate Funds and the dividend is not distributed, but reinvested.  That is fine, but I see no audit trail or evidence to show me that reinvestment has actually happened.

You won't. The dividends are not paid out so cannot be 'reinvested' as such, they are simply retained within the fund therefore increasing the share price

BTW your choices seem a little odd

By using an S&P 500 tracker with a global index you are hugely increasing your allocation to a single country. That's a big bet on one geography

As you have Acc funds I assume you don't need the income. Why are you using the high yield version of the FTSE All World Index? The non-high yield ETF (VWRP) has, and will likely always have, a better total return

Regarding the point of retaining the funds.  I just want to see some evidence that this has happened.

The accumulating ETF (VHYG) and the distributing ETF (VHYL) are both basically the same fund following the FTSE All World High Dividend Yield index. During the period from the last ex date the dividends from the underlying companies will roll in in dribs and drabs slowly increasing (or decreasing less) the share value

At the next ex dividend date VHYL will make a payment which you can see in your statements (your evidence). The share price will also reduce (or decrease less) to reflect that distribution but that's OK as you have a lump of cash

VHYG won't do anything as it simply retains those dividends received since the last ex date. There is nothing to see as nothing happened so no evidence in your statements

You could look at the distribution made by the distributing fund if it matters to you. You could also plot the accumulating and distributing classes on a chart and look at the divergence of the share price at the ex div date

NB I still don't understand your justification of VHYG over VWRP. If you don't need the income why use a high yield ETF with a lower total return

Thanks - I think that is what I am seeing.  I like to see audit trails though!

Regarding the yield, yes I see your point if I don't need the income now.  I guess I was hoping the dividends would help in a period of volatility and market uncertainty

dealyboy

ColdIron said:

dealyboy said:

@Rollinghome said:

silvercue said:

GeoffTF said:

silvercue said:

I have a S&S ISA I opened with IWEB in April and purchased investment in 4 Vanguard products through them.  I am very pleased with them so far.

I also have a Moneyfarm S&S ISA which I am currently enjoying with no fees, but that will run out and the fees will just make me like my IWEB one even more.

I find their website very good.  I would love an App, I have submitted that as feedback.  Their support is excellent. 

My only very tiny gripe I had is I can see my dividend payments for my ETFs but the funds I see no info on and have to search for info elsewhere.  IWEB told me to contact Vanguard and Vanguard told me to talk to Iweb - eventually I got an answer, but it would be nice to see info on this on IWEB site.

I have just checked on my account. The dividends on my Vanguard UK domiciled OEIC and Unit Trust are showing under Dividends. If you click on the amount, it gives more details. iWeb has a penchant for invisible links, so always search carefully. I check my dividends against an independent source, e.g. Vanguard.

Thanks.  I have this for my 2 ETFs, just the same as you but not for these two:

VANGUARD FUNDS PLC SP 500 UCITS ETF GBP ACC  (VUAG)

VANGUARD FUNDS PLC FTSE ALL WRLD HI DIV YLD UT  (VHYG)

I understand that is because these are Accumulate Funds and the dividend is not distributed, but reinvested.  That is fine, but I see no audit trail or evidence to show me that reinvestment has actually happened.   

I can't recall seeing that info on any platforms I've used, and why many people will use Acc funds in an ISA and Inc funds in a non-ISA account. That way makes tax returns easier while reducing uninvested cash in ISAs. You can see that divis are being added by graphing against the Inc version with income added.

PS. Note that divis are subject to tax whether paid out or rolled up.

AJ Bell provide that information, at least they do for my SIPP HSBC GS Acc fund units twice a year.

The last one (by platform secure message) ...

They're details of a Corporate Action for equalisation payments where you bought into a fund between ex dividend dates (group 1 and 2 units)

Does AJB provide dividend details in periods where you have not bought additional units? Can this detail be seen by people who are not clients?

Fidelity often provide dividend details for Acc funds in their factsheets but not in the case of the OP's ETFs. I suspect it's for funds only

Thanks @ColdIron ...
I receive these dividend messages with associated Corporate Action Events every 6 months and have done since I opened an account and invested in 2018.

The previous figures relate as follows: Group 1 interim dividend for holdings prior to ex. dividend (final) date in 2022, Group 2 for additional holdings purchased post ex. dividend (final) date in 2022, and prior to this ex. dividend (interim) statement. The Group 1 pay rate matches published figures on Trustnet, the Group 2 doesn't.

Here is the ex. dividend (final) one from 2021 and the only investment I had made prior to that point was the one in 2018.

The Group 1 holding relates to the purchase in 2018 and the Group 2 holding is zero.

These details are obviously only available to me. I cannot see anywhere where dividend payment dates and amounts are shown on AJ Bell, I use Trustnet for reference.

Edit: I do not see dividend information regarding this fund in my iWeb S&S ISA.

EthicsGradient

For accumulating ETFs, the only equivalent to the income reported for an accumulating OEIC is the Excess Reportable Income, which tells you (6 months after the end of the financial year for the ETF) the effective income on which you could be liable to tax, and is also the amount you can claim as a cost in a capital gains calculation . But since this holding is in an ISA, none of these calculations apply. The "reinvestment" happens purely internally to the ETF, and is nothing at all to do with the ISA platform - there is no "audit trail" for them to tell you about. The price of the ETF shares is determined by the market, and that is mainly influenced by the price for large players to create or destroy units in the ETF, based on their underlying value.

oz0707

Has it been mentioned - I don't think iWeb offer LISAs - Can't use them for that but perfect fine for ISA

ColdIron

silvercue said:

Regarding the yield, yes I see your point if I don't need the income now.  I guess I was hoping the dividends would help in a period of volatility and market uncertainty

The FTSE All World index (VWRP/VWRL) and the FTSE All World High Yield index (VHYG/VHYL)  both have dividends (though to a different extent) so won't do much for volatility

The FTSE AW HY index (1,824 constituents) is essentially a sub set of the FTSE AW index (4,165 constituents). The high yield index basically excludes companies whose dividends are below a value they set (see link).

This is good if your priority is income but the problem is that many of the missing companies are high growth and far more likely to produce a higher total return (a mixture of share price growth plus dividends)

So no Apples, Microsofts, Amazons, Teslas etc. Amazon have never paid a dividend and choose to reward their investors with share price growth by reinvesting their profits into more big box warehouses, staff, AWS etc

You are basically fishing in a smaller pool with lots of oil and gas with only 53 tech companies vs 395 tech companies in the AW index

I have VHYL in my income portfolio as I take the dividends but it would have no place in my growth portfolio where I use VWRP. Plot the total return of VWRP with VHYG and you will see what I mean

HTH

https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?issueName=AWHDY&isManual=False

GeoffTF

ColdIron said:

silvercue said:

ColdIron said:

silvercue said:

GeoffTF said:

silvercue said:

I have a S&S ISA I opened with IWEB in April and purchased investment in 4 Vanguard products through them.  I am very pleased with them so far.

I also have a Moneyfarm S&S ISA which I am currently enjoying with no fees, but that will run out and the fees will just make me like my IWEB one even more.

I find their website very good.  I would love an App, I have submitted that as feedback.  Their support is excellent. 

My only very tiny gripe I had is I can see my dividend payments for my ETFs but the funds I see no info on and have to search for info elsewhere.  IWEB told me to contact Vanguard and Vanguard told me to talk to Iweb - eventually I got an answer, but it would be nice to see info on this on IWEB site.

I have just checked on my account. The dividends on my Vanguard UK domiciled OEIC and Unit Trust are showing under Dividends. If you click on the amount, it gives more details. iWeb has a penchant for invisible links, so always search carefully. I check my dividends against an independent source, e.g. Vanguard.

I understand that is because these are Accumulate Funds and the dividend is not distributed, but reinvested.  That is fine, but I see no audit trail or evidence to show me that reinvestment has actually happened.

You won't. The dividends are not paid out so cannot be 'reinvested' as such, they are simply retained within the fund therefore increasing the share price

BTW your choices seem a little odd

By using an S&P 500 tracker with a global index you are hugely increasing your allocation to a single country. That's a big bet on one geography

As you have Acc funds I assume you don't need the income. Why are you using the high yield version of the FTSE All World Index? The non-high yield ETF (VWRP) has, and will likely always have, a better total return

Regarding the point of retaining the funds.  I just want to see some evidence that this has happened.

The accumulating ETF (VHYG) and the distributing ETF (VHYL) are both basically the same fund following the FTSE All World High Dividend Yield index. During the period from the last ex date the dividends from the underlying companies will roll in in dribs and drabs slowly increasing (or decreasing less) the share value

At the next ex dividend date VHYL will make a payment which you can see in your statements (your evidence). The share price will also reduce (or decrease less) to reflect that distribution but that's OK as you have a lump of cash

VHYG won't do anything as it simply retains those dividends received since the last ex date. There is nothing to see as nothing happened so no evidence in your statements

You could look at the distribution made by the distributing fund if it matters to you. You could also plot the accumulating and distributing classes on a chart and look at the divergence of the share price at the ex div date

NB I still don't understand your justification of VHYG over VWRP. If you don't need the income why use a high yield ETF with a lower total return

It is worth noting that for the FTSE 100 Index Unit Trust which pays dividends at the end of each calendar year, Vanguard currently shows the cash as 0.5% for both the Income and Accumulation units:

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-100-index-unit-trust-gbp-acc/portfolio-data

Morning Star and Trustnet show identical total return graphs for both funds. It would appear that there is one underlying fund that reinvests most of its dividends as it goes along, and sells sufficient stock to pay each dividend distribution for the income units.

GeoffTF

ColdIron said:

dealyboy said:

@Rollinghome said:

silvercue said:

GeoffTF said:

silvercue said:

I have a S&S ISA I opened with IWEB in April and purchased investment in 4 Vanguard products through them.  I am very pleased with them so far.

I also have a Moneyfarm S&S ISA which I am currently enjoying with no fees, but that will run out and the fees will just make me like my IWEB one even more.

I find their website very good.  I would love an App, I have submitted that as feedback.  Their support is excellent. 

My only very tiny gripe I had is I can see my dividend payments for my ETFs but the funds I see no info on and have to search for info elsewhere.  IWEB told me to contact Vanguard and Vanguard told me to talk to Iweb - eventually I got an answer, but it would be nice to see info on this on IWEB site.

I have just checked on my account. The dividends on my Vanguard UK domiciled OEIC and Unit Trust are showing under Dividends. If you click on the amount, it gives more details. iWeb has a penchant for invisible links, so always search carefully. I check my dividends against an independent source, e.g. Vanguard.

Thanks.  I have this for my 2 ETFs, just the same as you but not for these two:

VANGUARD FUNDS PLC SP 500 UCITS ETF GBP ACC  (VUAG)

VANGUARD FUNDS PLC FTSE ALL WRLD HI DIV YLD UT  (VHYG)

I understand that is because these are Accumulate Funds and the dividend is not distributed, but reinvested.  That is fine, but I see no audit trail or evidence to show me that reinvestment has actually happened.   

I can't recall seeing that info on any platforms I've used, and why many people will use Acc funds in an ISA and Inc funds in a non-ISA account. That way makes tax returns easier while reducing uninvested cash in ISAs. You can see that divis are being added by graphing against the Inc version with income added.

PS. Note that divis are subject to tax whether paid out or rolled up.

AJ Bell provide that information, at least they do for my SIPP HSBC GS Acc fund units twice a year.

The last one (by platform secure message) ...

They're details of a Corporate Action for equalisation payments where you bought into a fund between ex dividend dates (group 1 and 2 units)

Does AJB provide dividend details in periods where you have not bought additional units? Can this detail be seen by people who are not clients?

Fidelity often provide dividend details for Acc funds in their factsheets but not in the case of the OP's ETFs. I suspect it's for funds only

For accumulating ETFs the dividends show up as Excess Reportable Income.

ColdIron

GeoffTF said:

Morning Star and Trustnet show identical total return graphs for both funds. It would appear that there is one underlying fund that reinvests most of its dividends as it goes along, and sells sufficient stock to pay each dividend distribution for the income units.

That is my simple understanding of the mechanics. A bit like the dividend reserves of investment trusts. It's not held as cash

masonic

Stargunner said:

masonic said:

SamDude said:

@masonic - rather than putting the money into a FD regular saver, would you not recommend continuing to pay into the Fidelity S&SISA, and then transfer it once a year to iWeb (as a 'past year' ISA) for a single £5 fee?

(curious to know if there are any issues with this as that is what I'm thinking of doing (separately to my FD reg-saver)

You wouldn't even need to pay a £5 fee. I don't believe Fidelity allow partial transfers out, so you'd have the additional overhead of applying for a new S&S ISA, setting up your regular investment again, and ultimately risk Fidelity deciding that they no longer want to have a relationship with you if they get fed up with the behaviour. I don't like to potentially burn bridges, so this is not something I would do.

There are plenty of other S&S ISA providers, so the OP could simply open one with another provider each year, rather than risking their relationship with Fidelity

If making monthly contributions of low value is important, then there are better choices of provider than iWeb to avoid having to keep opening new S&S ISAs. Drip-feeding monthly vs annually is likely to make very little difference as time goes by.

Aminatidi

Thanks all.

Quick one - would anyone know whether debit card payments to IWeb are available instantly please or do they take a day or two to be available to invest?