SONIA MMF suggestions

boingy

I'm possibly looking to add a "SONIA tracker" to my ISA.

Platform is iWeb. The obvious choice is Lyxor CSH2.
Any other suggestions?

I'm new to this type of fund. I'm expecting a return of a tad less than the base rate.
Any pros and cons I need to know about?

masonic

boingy said:

I'm possible looking to add a "SONIA tracker" to my ISA.

Platform is iWeb. The obvious choice is Lyxor CSH2.
Any other suggestions?

I'm new to this type of fund. I'm expecting a return of a tad less than the base rate.
Any pros and cons I need to know about?

Presumably you are already aware that the share price is rather high, so you will not be able to invest exactly the amount you may wish. Other than that, you'd pay the same trading costs whether you picked this ETF or an open ended fund, so there isn't much to favour one over the other.

Stargunner

You could also consider the following that is also popular on here.

Royal London Short Term Money Market Fund Y Acc or Inc

boingy

masonic said:

boingy said:

I'm possible looking to add a "SONIA tracker" to my ISA.

Platform is iWeb. The obvious choice is Lyxor CSH2.
Any other suggestions?

I'm new to this type of fund. I'm expecting a return of a tad less than the base rate.
Any pros and cons I need to know about?

Presumably you are already aware that the share price is rather high, so you will not be able to invest exactly the amount you may wish. Other than that, you'd pay the same trading costs whether you picked this ETF or an open ended fund, so there isn't much to favour one over the other.

Wow! Thanks masonic. I always expect these kind of threads to throw up something unexpected but you've just sent me down a completely different rabbit hole. I hadn't really paid much attention to the share price because my assumption was that I can just buy fractional shares of that fund (an ETF). I already do that with ETFs in an ISA at InvestEngine so it must be OK, right? But the wording of your reply made me doubt. So 40-odd minutes later I've Googled, and read, and read some more, and discovered a hot topic that I had completely missed. It even came up on this forum a couple of days ago. It sounds like moves are afoot to change the rules but that's in the future and there are no further details as yet.

So I need to rephrase my question. 
Can anyone suggest open funds (OEICs) that are equivalent to CSH2? Good SONIA tracking at a low cost is the brief.

The Royal London one mentioned above had made #2 on my shortlist but I'm open to other suggestions. 

masonic

Whether or not the changes get made to allow fractional share trading within ISAs, it is not something iWeb has supported for any of its accounts and I can't see that changing.

There is another thread where the Vanguard SSTMMF is being discussed at the moment. That should probably be included in your list.

boingy

I've never really thought of ETFs as shares, even though they are exchange traded, hence me not really paying attention to anything that talks about fractional shares, because I no longer invest directly in individual shares. 

Invest Engine and the others are all banging the drum and claiming they are right but, as far as I can tell, they are not so I'm not sure how that tale will end. I guess it depends on what changes come in and when they take effect. 

That Vanguard fund did make my long list but the charges are slightly higher and the performance is comparable to pretty much all the others so it didn't bring anything special to the party. TBH, it's not a very exciting sector to research, which I guess is the whole point.   

masonic

boingy said:

I've never really thought of ETFs as shares, even though they are exchange traded, hence me not really paying attention to anything that talks about fractional shares, because I no longer invest directly in individual shares. 

Invest Engine and the others are all banging the drum and claiming they are right but, as far as I can tell, they are not so I'm not sure how that tale will end. I guess it depends on what changes come in and when they take effect.

You might find this recent thread of interest: https://forums.moneysavingexpert.com/discussion/6501565/fractional-etf-shares-in-a-s-s-isa

boingy said:

That Vanguard fund did make my long list but the charges are slightly higher and the performance is comparable to pretty much all the others so it didn't bring anything special to the party. TBH, it's not a very exciting sector to research, which I guess is the whole point.   

There is very little scope for differences in performance when the investment pool these funds target is so limited. Any difference you might find will likely be down to happenstance.