Buying shares through Vanguard

MannyB

HI 

I have s&s ISA with Vanguard and with money in the LS 80% equity fund acc

My question is within my ISA can I buy shares of Tesla or any other company for that matter.I can see their list of various funds and ETF's but not direct shares. Is it just not possible to do so here?  I can see they have an option of opening a general account, would that be the place to buy shares or is that account outside the S&S ISA window?

Also what would be the best way to diversify  within the ISA, so if I have an accumulation fund should I open a similar fund but as income instead?

eskbanker

No, shares aren't available on the Vanguard platform, just funds and ETFs.  You can buy on other platforms if you feel the need....

MannyB

OK thanks, I suppose that keeps the costs down with Vanguard. Only having a certain amount of options to invest in.

How best to diversify? 

Beddie

MannyB said:

OK thanks, I suppose that keeps the costs down with Vanguard. Only having a certain amount of options to invest in.

How best to diversify? 

Buying individual shares is not really diversifying - but buying funds in other sectors or other investments, e.g. property, gold, bonds etc., is.  You already have a diversified fund.

If you want to buy shares, open an account with Trading212 - free and easy to use.

MannyB

Thanks 

Im trying to look at different funds with Vanguard and some seem almost identical but aren't. For example

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-uk-gbp-acc/overview

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-gbp-acc/overview

Both are developed world all cap index, there at two different prices but one has the UK within its title.

DavidT67

One's UK domiciled the others Irish domiciled.  Catering for differing investors needs in an international marketplace where the UK is no longer part of EU and UK funds are no longer UCITS compliant.

eskbanker

MannyB said:

Also what would be the best way to diversify  within the ISA, so if I have an accumulation fund should I open a similar fund but as income instead?

MannyB said:

How best to diversify? 

MannyB said:

Im trying to look at different funds with Vanguard and some seem almost identical but aren't. For example

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-uk-gbp-acc/overview

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-gbp-acc/overview

Both are developed world all cap index, there at two different prices but one has the UK within its title.

Just to be clear, neither of those would improve your diversification, as they're each effectively a subset of the holdings you already have within your LifeStrategy fund, which is effectively designed to be a one stop shop, i.e. there's no real need to seek additional diversification for the sake of it, unless you have a specific reason to.

Albermarle

MannyB said:

OK thanks, I suppose that keeps the costs down with Vanguard. Only having a certain amount of options to invest in.

How best to diversify? 

It is not just the cost, they also have a target market/customer, and a general ethos of offering relatively simple diversified funds for the average long term investor.
Buying and selling individual shares is more risky, and not what the large majority of their customers are interested to do. 

dunstonh

How best to diversify? 

By not buying shares.

OK thanks, I suppose that keeps the costs down with Vanguard. Only having a certain amount of options to invest in.

There are whole of market platforms with similar pricing to restricted platforms.   Vanguard is a fund house and its platform is a vehicle to buy their funds.   For many of us, it is cheaper to buy Vanguard funds on whole of market platforms.

MannyB

Thanks for the messages, a lot of sense posted above.

My ISA is accumulation so any profits are invested back into the fund. However I'm thinking it'd be nice to have some sort of extra income now and again. So could a good way to do that be to open up the same life strategy fund but this time an income fund?  If I do 80% equity fund again it will be already be diversified as discussed above, so hopefully will get the best of all worlds. Most of the 80/20 fund is US and developed world equity based.

Or would there be better options to increase income?

dunstonh

So could a good way to do that be to open up the same life strategy fund but this time an income fund? 

No.  They are low yield funds on the whole and not built for a yielding strategy.    They could be used for a total return strategy.     Income strategies have been off the boil since the credit crunch and total return has been king.   Mainly as US equities were rubbish in the first 10 years of this millennium but the stand out in the last 10.    

Or would there be better options to increase income?

There are multiple methods and you need to consider which are you going to use.