Vanguard Index / EFT fund and transferring Cash ISA in process

incus432

BTW I just found where I presume you got the 0.188% figure for transaction costs on the Iweb info pages.  Note that it states

"*This is an indication based on the market average. The fund’s actual transaction cost will be shown before you place a trade". 

Also every fund and ETF I looked at shows the same value so I think its hopelessly inaccurate.  I'd believe the Monevator analysis

For the record an even cheaper all world Global fund is

• SPDR MSCI ACWI ETF (ACWI) TCO 0.12% (OCF 0.12%, Transaction 0%)

InvesterJones

typeractive said:

Hi @InvesterJones,

Thank you for the quick reply ....so much to consider. Well £5 per monthly trade sounds OK to me. But I'm still going to keep looking. I guess it's a bit of a balancing act between the trade fee, account fee and ongoing fee. 

Thanks for the clarity on the FX fee and also the 0.188%. So I kind of just need to forget about that bit and focus on the 0.13%.

I looked on trust pilot for iweb-shares and whilst they have a good review profile the number of reviews is low. I tried to find them on the FSCS and FCA and feel like I'm struggling to know of they are safe / reputable. On the FCA they are listed as Halifax Share Dealing. Same ref number, different address. Web link on FCA takes to Halifax main site. 

Can't find them under iweb on the FSCS.

Any thoughts on this?

Yet another question I have. A lot of platforms will provide ETF's, but not index. Is that due to the way they are traded or something?

Yeah, and even the 0.13% is taken internally by the fund, so you don't need to provide it on top (like you do platform fees/trade charges) - but the OCF is worth comparing between funds as all other things being equal, the lower OCF the more remains in the fund to grow.

iWeb are Halifax Share Dealing, yes, so if you're looking for a big name then you're fine. As mentioned elsewhere recently, investment platforms aren't the same as bank (savings) accounts - FSCS is of limited use as typically your money is invested in third-party funds rather than held on the platform. If the platform goes under you'll still own those funds, the administration will simply pass to a new platform.

On ETFs vs 'Funds' - it's just the platform choice - ETFs are usually live traded on an exchange which brings a certain amount of platform technical consideration, but also simplifies transactions to some extent as they can go via a single exchange rather than dealing with lots of funds - until recently the opposite was true as well, some platforms were OEICs/Unit Trusts ('Funds') only. Even now some platforms offer a wider choice of OEICs/Unit Trusts than they do Exchange Traded Funds (ETFs).

incus432

This thread is one of those explaining why you shoudnt fret about platforms going bust and the 85k is irrelevant .  https://forums.moneysavingexpert.com/discussion/6411115/have-any-sipp-isa-platforms-gone-bust-if-so-what-happened#latest  Iweb are completely kosher and part of Halifax/Lloyds

One the funds/ETFs question, I tend to use ETFs now as some platforms are cheaper if you stick to those, and also trading is near instant. Fund trading is more delayed - maybe a day or two before you see your cash from a sale or know what price you've paid for a purchase. Otherwise not that important

typeractive

Hi again,

I've been doing more reading and homework. Found gathering some of the performance info on both the SPDR MSCI ACWI UCITS ETF Unhedged GBP (ACWI), and HSBC FTSE All World Index C Acc a little harder to find (but I think that's because I've been on the Vanguard website so much). Morning star has been quite helpful. But I also found a site called fundinfo.com which is good as you can compare a few funds together and it presents them in a helpful table. I couldn't find the GBP SPDR MSCI on fund info which is a little annoying.

Anyway I ran the numbers of my typical future planning idea and kept the average return at 7% just for parity. I just plugged in HSBC FTSE all world index C acc using iweb at 0.12% with £5 trade per month, VGL100A (0.15 account fee + 0.22% OCF = 0.37%), and VAFTGAG (same workings as previous = 0.38%) to see what the impact on the fees would be. Before anyone jumps in, I know it is unlikely to remain like this in any capacity but the differences over time as you say @incus432. Real big difference and as you say, more in the pot helps the compounding effect.

I'm swaying towards the HSBC as it is accumulating, and it does have that brand name that goes with it (rightly or wrongly), plus it has previously performed better than vanguard alternatives I was looking at....though in fairness I may not be comparing apples with apples as perhaps the VWRP is a closer comparator. Regardless, the fees of iweb + HSBC are likely to work out less than a vanguard product. 

I would like to see more of the holdings in the HSBC product. On Vanguard you can download the full list. Not that I'm going to scrutinise every company by any means, but it's good to see a few more than the top hitters.

So if I go for this platform and index, then the next step is the consideration of moving it over. Which it feels like I don't have too much option but to transfer the full cash isa.

Thanks @incus432, and @InvesterJones for all the continued help!!  

incus432

That SPDR fund (ticker ACWI) is accumulating. As is the dev world version (SWLD). The Morningstar comparison page is good for side by side comparison of different funds/ETFs, and charting

https://www.morningstar.co.uk/uk/compare/investment.aspx#?idType=msid&securityIds=

InvesterJones

typeractive said:

I would like to see more of the holdings in the HSBC product. On Vanguard you can download the full list. Not that I'm going to scrutinise every company by any means, but it's good to see a few more than the top hitters.

It'll be no surprise to learn the HSBC FTSE all-world fund tracks the FTSE all-world index, so you can download the constituents list and weights directly from https://research.ftserussell.com/analytics/factsheets/Home/DownloadConstituentsWeights/?indexdetails=AWORLDS

There will be a very small tracking error between the fund and the index as they only sample, but that shouldn't make a significant difference.