Which global tracker fund and platform for sipp and isa?

Bostonerimus1

Rt90 said:

Hello everyone.
I currently have a sipp with Vanguard in LS100 acc. This has served me well as a starting point but I’m not comfortable with the U.K. bias and it’s semi active nature. Maybe the slug of U.K. provides a bit of currency hedging but it’s too high a percentage for me.
The two funds I’m looking at are the Vanguard ftse global all cap and the HSBC ftse all world index fund c.
 Not much between them. I like the Vanguard fund for it’s little bit of small cap. It holds over 7000 shares  to HSBC’s 3000+ which seems more diverse. The small cap will account for the extra between the two I expect so that’s probably fairly insignificant.
The Vanguard fund has a charge of 0.23% with overall charge of 0.43% for holding it on their platform which I’m already on. Obviously this is the easiest option for me provided staying with the Vanguard platform is a good option.
The HSBC option has a cheaper fund charge of 0.12% but would require a platform change.
Any advice on these funds , platforms, or any alternatives will be much appreciated.
The main priority is to increase the pension pot but I will also be looking to add an isa in the near future. Ideally using the same fund and platform for simplicity.
My investment strategy really is a one fund set and forget approach.
Many thanks for any help.

You'll probably do ok with any Global Tracker from a respectable company. The far more important factor to success will be how much you contribute and how you manage your investment through the inevitable crashes. So do a budget so you can see where to save money that you can then save and invest and have a plan for when you lose 20% overnight.

FIREmenow

The size of your pots might factor into platform choice, seeing as global trackers are pretty similar as discussed.  Vanguard's percentage fee will be beaten by fixed-fee platforms at some point. 

Good info here, the last column shows the tipping point where certain platforms are cheaper, including when to leave Vanguard. The ones with caps on ETFs become really cheap on larger pots if you're willing to hold ETFs instead of index funds. https://monevator.com/compare-uk-cheapest-online-brokers/

Rt90

FIREmenow said:

The size of your pots might factor into platform choice, seeing as global trackers are pretty similar as discussed.  Vanguard's percentage fee will be beaten by fixed-fee platforms at some point. 

Good info here, the last column shows the tipping point where certain platforms are cheaper, including when to leave Vanguard. The ones with caps on ETFs become really cheap on larger pots if you're willing to hold ETFs instead of index funds. https://monevator.com/compare-uk-cheapest-online-brokers/

Thanks for the link. That’s just the sort of info I was after. I’ll have a good look at that to see if there’s another platform that would suit better for now and the future.
Vanguard is capped at £375 I think so there is a reasonable limit on it if I take the easier option of sticking with them and not going through a transfer.

Stargunner

Bostonerimus1 said:

Rt90 said:

Hello everyone.
I currently have a sipp with Vanguard in LS100 acc. This has served me well as a starting point but I’m not comfortable with the U.K. bias and it’s semi active nature. Maybe the slug of U.K. provides a bit of currency hedging but it’s too high a percentage for me.
The two funds I’m looking at are the Vanguard ftse global all cap and the HSBC ftse all world index fund c.
 Not much between them. I like the Vanguard fund for it’s little bit of small cap. It holds over 7000 shares  to HSBC’s 3000+ which seems more diverse. The small cap will account for the extra between the two I expect so that’s probably fairly insignificant.
The Vanguard fund has a charge of 0.23% with overall charge of 0.43% for holding it on their platform which I’m already on. Obviously this is the easiest option for me provided staying with the Vanguard platform is a good option.
The HSBC option has a cheaper fund charge of 0.12% but would require a platform change.
Any advice on these funds , platforms, or any alternatives will be much appreciated.
The main priority is to increase the pension pot but I will also be looking to add an isa in the near future. Ideally using the same fund and platform for simplicity.
My investment strategy really is a one fund set and forget approach.
Many thanks for any help.

You'll probably do ok with any Global Tracker from a respectable company. The far more important factor to success will be how much you contribute and how you manage your investment through the inevitable crashes. So do a budget so you can see where to save money that you can then save and invest and have a plan for when you lose 20% overnight.

When was the last time that a global tracker lost 20% overnight?

Bostonerimus1

Stargunner said:

Bostonerimus1 said:

Rt90 said:

Hello everyone.
I currently have a sipp with Vanguard in LS100 acc. This has served me well as a starting point but I’m not comfortable with the U.K. bias and it’s semi active nature. Maybe the slug of U.K. provides a bit of currency hedging but it’s too high a percentage for me.
The two funds I’m looking at are the Vanguard ftse global all cap and the HSBC ftse all world index fund c.
 Not much between them. I like the Vanguard fund for it’s little bit of small cap. It holds over 7000 shares  to HSBC’s 3000+ which seems more diverse. The small cap will account for the extra between the two I expect so that’s probably fairly insignificant.
The Vanguard fund has a charge of 0.23% with overall charge of 0.43% for holding it on their platform which I’m already on. Obviously this is the easiest option for me provided staying with the Vanguard platform is a good option.
The HSBC option has a cheaper fund charge of 0.12% but would require a platform change.
Any advice on these funds , platforms, or any alternatives will be much appreciated.
The main priority is to increase the pension pot but I will also be looking to add an isa in the near future. Ideally using the same fund and platform for simplicity.
My investment strategy really is a one fund set and forget approach.
Many thanks for any help.

You'll probably do ok with any Global Tracker from a respectable company. The far more important factor to success will be how much you contribute and how you manage your investment through the inevitable crashes. So do a budget so you can see where to save money that you can then save and invest and have a plan for when you lose 20% overnight.

When was the last time that a global tracker lost 20% overnight?

It's a possibility and a scenario that should be considered. The Dow did fall by 13% in a day in 2020 due to Covid and it fell from 14000 to 7000 in 2007/2008 over 6 months of the financial crisis. My point is you MUST stress test your investment strategies and have tactics to survive both mentally and financially. In 2008 I was still a 60/40 investor and so I sold bonds and bought equities as the Dow fell. I bought at 7000 and now the Dow is at 41000 which points to a long time horizon and rebalancing as one approach. Through Covid I did nothing which also worked out.

Hoenir

Stargunner said:

Bostonerimus1 said:

Rt90 said:

Hello everyone.
I currently have a sipp with Vanguard in LS100 acc. This has served me well as a starting point but I’m not comfortable with the U.K. bias and it’s semi active nature. Maybe the slug of U.K. provides a bit of currency hedging but it’s too high a percentage for me.
The two funds I’m looking at are the Vanguard ftse global all cap and the HSBC ftse all world index fund c.
 Not much between them. I like the Vanguard fund for it’s little bit of small cap. It holds over 7000 shares  to HSBC’s 3000+ which seems more diverse. The small cap will account for the extra between the two I expect so that’s probably fairly insignificant.
The Vanguard fund has a charge of 0.23% with overall charge of 0.43% for holding it on their platform which I’m already on. Obviously this is the easiest option for me provided staying with the Vanguard platform is a good option.
The HSBC option has a cheaper fund charge of 0.12% but would require a platform change.
Any advice on these funds , platforms, or any alternatives will be much appreciated.
The main priority is to increase the pension pot but I will also be looking to add an isa in the near future. Ideally using the same fund and platform for simplicity.
My investment strategy really is a one fund set and forget approach.
Many thanks for any help.

You'll probably do ok with any Global Tracker from a respectable company. The far more important factor to success will be how much you contribute and how you manage your investment through the inevitable crashes. So do a budget so you can see where to save money that you can then save and invest and have a plan for when you lose 20% overnight.

When was the last time that a global tracker lost 20% overnight?

Black Monday 19th October 1987.  S&P500 fell 20.47%.  Following day the Nikkei fell 14.9% and the FTSE 100 12.2%.  Resulting in trading mayhem globally. 

JohnWinder

There wouldn’t be much difference in outcome with either of the first two you mentioned I’d guess. Other things you could consider, also making little difference I’d guess, would be whether one tracks its index much better than the other, and whether the management fee is likely to rise or fall. HSBC has form with the latter, recently raising the fee of a popular fund series despite the economies of scale suggesting the fee might have been lowered… a loss leader fee to start out with. The opposite has been a feature with Vanguard.

EthicsGradient

JohnWinder said:

There wouldn’t be much difference in outcome with either of the first two you mentioned I’d guess. Other things you could consider, also making little difference I’d guess, would be whether one tracks its index much better than the other, and whether the management fee is likely to rise or fall. HSBC has form with the latter, recently raising the fee of a popular fund series despite the economies of scale suggesting the fee might have been lowered… a loss leader fee to start out with. The opposite has been a feature with Vanguard.

As a matter of interest, what were those HSBC fund(s)? Since I have a couple, I wouldn't like to think they'd snuck a price increase past me.

Rt90

JohnWinder said:

There wouldn’t be much difference in outcome with either of the first two you mentioned I’d guess. Other things you could consider, also making little difference I’d guess, would be whether one tracks its index much better than the other, and whether the management fee is likely to rise or fall. HSBC has form with the latter, recently raising the fee of a popular fund series despite the economies of scale suggesting the fee might have been lowered… a loss leader fee to start out with. The opposite has been a feature with Vanguard.

That thought had crossed my mind. Today’s fee may not be tomorrow’s!

JohnWinder

EthicsGradient said:

As a matter of interest, what were those HSBC fund(s)? Since I have a couple, I wouldn't like to think they'd snuck a price increase past me.

https://citywire.com/wealth-manager/news/hsbc-raises-fees-on-low-cost-7-8bn-global-strategy-range/a2439616

'The annual management charge for the five-strong fund range will inch up owing to the ‘growth and sophistication’ of the funds, says HSBC.'