ETF alternatives to Vanguard LS40% and Global Cap

dharm999

I'm looking to transfer my ISA to Hargreaves, from Vanguard, to take advantage of the cashback offer.  Currently I am invested in funds, VLS40% and Global Cap, but to minimise costs on Hargreaves, I want to switch to ETFs.  Are there equivalent ones I should be looking at, or would I have to create a portfolio myself to mirror what i have at the moment?  

Thanks

Linton

An ESG version of Vanguard FSE Global All Cap is available as an ETF.

If say you are 50% VLS40 and 50% VFGAC you could go fo 30%  global bond ETF and 70% of the ESG ETF or another global index fund of your choice.

I dont think tyhat basiing everything on the quirks of your chosen platform is a good strategy.  Better to choose your platform based on the funds you need.

dharm999

Thanks.  I have no particular allegiance to Vanguard, so any ETFs that are broadly similar to the current funds would be fine.  Given  the cashback value and potential reduction in cost by switching to HL, I'm happy to explore options that give me something similar.  Currently it is a roughly even split between VLS40% and Global All Cap, so a split of 30% into a bond ETF and 70% in to a global equity ETF would be absolutely fine, just a case of picking ones available on the HL platform that give me what I want.  

DavidT67

Vanguard are the only provider with a Global All-Cap ETF,  if you use MSCI World or FTSE All-World / Developed World you'll have a much wider choice of ETFs.

You can search the ETF universe at JustETF.Com

dharm999

Thanks, I've had a look on Justetf.com at the World ETFs.  Some have a currency in the ETF title, e.g. MSCI World UCITS USD and others don't.  For a complete novice to ETFs, what is the significance of having an ETF in a foreign currency?  

GeoffTF

dharm999 said:

Thanks, I've had a look on Justetf.com at the World ETFs.  Some have a currency in the ETF title, e.g. MSCI World UCITS USD and others don't.  For a complete novice to ETFs, what is the significance of having an ETF in a foreign currency? 

You will be heavily stung for foreign exchange charges when you buy and again when you sell. Avoid them.

masonic

Many ETFs will have more than one listing, so you have the choice of USD or GBP trading currency. Dividends may still be made in USD, but this can be avoided by using an accumulating ETF.

VAGS is Vanguard's global aggregate bond ETF, which may fulfil a role in replicating VLS40.

DavidT67

dharm999 said:

Thanks, I've had a look on Justetf.com at the World ETFs.  Some have a currency in the ETF title, e.g. MSCI World UCITS USD and others don't.  For a complete novice to ETFs, what is the significance of having an ETF in a foreign currency?  

All ETFs are EU domiciled, mostly in Ireland.  Their base currency is most often USD, but they will have LSE listing in GBP and Euro listing in EUR also.  Dividends will be in base currency, so watch FX fees on Distributing variants.

HL only shows GBP trade currency variant of ETFs.

dharm999

Thanks.  So if I go for an Acc ETF offered by HL, then I avoid currency issues with taking the regular income out, and the main currency issue would be when buying and selling the ETF?  This is despite HL pricing in GBP, as the underlying price of the ETF could be in a foreign currency, and most probably is.  

masonic

dharm999 said:

Thanks.  So if I go for an Acc ETF offered by HL, then I avoid currency issues with taking the regular income out, and the main currency issue would be when buying and selling the ETF?  This is despite HL pricing in GBP, as the underlying price of the ETF could be in a foreign currency, and most probably is.  

The ETF will have better foreign exchange rates than you'd get from HL. You can't get around the fact that the underlying companies' shares trade in different currencies. Your existing funds must also go out and buy foreign company shares.

dharm999

Thanks.  So in reality the ETF currency risk isn’t substantially different from the funds I’m invested in now?