Lowest cost ISA for HSBC FTSE All World

boingy

I'm just starting to plan my savings and investments for next year.
In April I'd like to put 20K into an ISA investing in the HSBC FTSE All World fund.

I've already got an iWeb account and I will not be trading - just buying and holding. Is that going to be the cheapest for my scenario or is there a better option?

LHW99

Well:

https://www.iweb-sharedealing.co.uk/our-accounts/self-select-stocks-and-shares-isa.html

Says: no opening charge if you open one before 30 June 2024, no annual fees, and £5 per trade.

I'm sure they can change it but that looks pretty good to me.

ColdIron

£5 to buy and £0 to hold. Not much margin for cost savings

PloughmansLunch

I suppose the absolute cheapest option is you could buy with HSBC (no trading fee) then immediately transfer to iWeb so you pay neither the (6 monthly?) HSBC 0.25% platform fee nor the iWeb £5 trading fee, but that might be asking for trouble.

boingy

ColdIron said:

£5 to buy and £0 to hold. Not much margin for cost savings

LOL, yeah. It just seems a bit too good to be true so I wanted to make sure I had understood it correctly.

Ciprico

If you were looking at HMWO (HSBC FTSE All World fund), maybe take a look at SWLD. Still a global ETF, but the fees are slightly lower, and maybe more relevant, its accumulating so no dividends. HMWO pays dividends in US$. 

Its normally easy enough to convert into £ on your platform, but its an extra faff, and without doubt an extra cost in doing so...

InvesterJones

Ciprico said:

If you were looking at HMWO (HSBC FTSE All World fund), maybe take a look at SWLD. Still a global ETF, but the fees are slightly lower, and maybe more relevant, its accumulating so no dividends. HMWO pays dividends in US$. 

Its normally easy enough to convert into £ on your platform, but its an extra faff, and without doubt an extra cost in doing so...

There in an accumulating version of HSBC FTSE All world so no dividends to worry about. SWLD on the other hand is not all world, but developed world.

boingy

Yep, it was the acc version I was looking at. This one:

https://www.markets.iweb-sharedealing.co.uk/funds-centre/fund-supermarket/detail/GB00BMJJJF91

artyboy

boingy said:

Yep, it was the acc version I was looking at. This one:

https://www.markets.iweb-sharedealing.co.uk/funds-centre/fund-supermarket/detail/GB00BMJJJF91

Not quite the same as that's a traditional fund rather than an ETF - the HMWO ETF has no direct accumulating equivalent as far as I'm aware.

For some platforms, ETFs are cheaper to hold than funds, so this isn't just a semantic difference...

boingy

I was never particularly looking for an ETF. This is a buy and hold investment so normal funds will do just fine.

But, as an aside, do you ever marvel at the vast range of very similar funds with very similar names that are available, sometimes in ETF and non-ETF form and sometimes with acc and income options? I'm sure the investing world doesn't need that many choices!

artyboy

boingy said:

I was never particularly looking for an ETF. This is a buy and hold investment so normal funds will do just fine.

But, as an aside, do you ever marvel at the vast range of very similar funds with very similar names that are available, sometimes in ETF and non-ETF form and sometimes with acc and income options? I'm sure the investing world doesn't need that many choices!

Ah yes fair enough, I can see it was another poster that mentioned HMWO...

I tend to agree that there are a bewildering variety of funds that to the average investor appear to be almost identical. I guess the demand is there otherwise they would not exist, and I'm sure that more sophisticated investors see the differences more clearly. 

But then I guess that's why Vanguard has done so well - created a relatively simple platform with a handful of funds that are a bit different from each other. And marketed it as a straightforward way for people to invest...