Vanguard: New Minimum Monthly Account charge

ColdIron

GeoffTF said:

ColdIron said:

22225 said:

With my ISA with Vanguard I have LS 100 and Global All Caps. I believe the closest Dodl have is FTSE World Index tracker. So that's the most similar thing to sell up and then transfer them to?

FTSE Russel don't do a World Index (although MSCI do).

Yes, they do:

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ucits-etf-usd-distributing/overview

FTSE Russell provide indexes not trackers

Naming is important with indexes. That's a Vanguard ETF that tracks the FTSE Developed World Index, there are others. If by 'World Index' we mean some generic global index perhaps that's descriptive enough. But the OP was looking for the closest to a specific index (the Global All Cap). Would that be the All World (EM) or the Developed World (No EM) index? I would say the Developed World Index is the furthest away from their present Global All Cap and the All-World the closest.

As it happens MSCI provide a named World Index, (it's developed world as it happens)

jbrassy

EthicsGradient said:

If people do want something to balance the non-small-cap nature of a FTSE All World Index fund, there is Vanguard's Global Small Cap Index OEIC, with 0.31% ongoing charge. Morningstar shows the HSBC FTSE All World Index fund as 82% Giant/Large companies, and 18% Medium, and the Small Cap OEIC as 1% Large, 34% Medium, 62% Small and 13% Micro. A ratio of perhaps 87% All World and 13% Small Cap would get you about 10% Small/Micro, which I think is the percentage of the total market that the groups are based on.

According to this, small caps make up around 10% of the FTSE Global All Cap index and 15% of the MSCI All Country World IMI (ACWI IMI).

https://www.bankeronwheels.com/best-international-etfs/

Alexland

honeststeveo said:
So with the latest rise in the minimum pension age some have obtained a protected right to take their pension at 55 if they held their pension with Fidelity for example. So if you have a pension with them and the right is important to you then you are pretty much stuck with them for better or worse.

Yup I'm in that position and access at 55 is too important to my plans to risk doing any transfers in/out of my Fidelity SIPP. I'm reassured by the fact they have always been a good provider to me for the past 2 decades. When this was in consultation I even managed to get my little kids (now free) Fidelity pensions with protected age access before the deadline. I'm really hoping that Fidelity don't change their policy on capping fees for holding an ETF anytime soon else they would get very expensive for me.

honeststeveo

Alexland said:

honeststeveo said:
So with the latest rise in the minimum pension age some have obtained a protected right to take their pension at 55 if they held their pension with Fidelity for example. So if you have a pension with them and the right is important to you then you are pretty much stuck with them for better or worse.

Yup I'm in that position and access at 55 is too important to my plans to risk doing any transfers in/out of my Fidelity SIPP. I'm reassured by the fact they have always been a good provider to me for the past 2 decades. When this was in consultation I even managed to get my little kids (now free) Fidelity pensions with protected age access before the deadline. I'm really hoping that Fidelity don't change their policy on capping fees for holding an ETF anytime soon else they would get very expensive for me.

Yes I remember you from a previous thread. Sadly I missed the boat with Fidelity. I have a small holding with VG that I've held for a good while and which I intended to retain till retirement in the (probably vain) hope that they might pivot and say they will be offering the protected right on 55 minimum age. Now that they are pushing up the fees this is starting to feel like it'll probably be a waste of money and extra agro.

jimjames

timmy963 said:

They are trying to have their cake and eat it too. It's like they had a meeting and asked how can they shaft everybody.

They're certainly not shafting everybody. This only affects those with under £32k in total across ISA, SIPP & GIA. Even then the change for anyone with a full year's ISA allowance is very small. Completely agree that anyone starting out or with a few thousand in an ISA as I have will be paying much more as percentage. Luckily I have a SIPP above the limit so won't actually pay more.

Some people seem to be getting agitated about it without actually understanding that it isn't a new charge on top of the existing fees, it replaces them.

Section62

jimjames said:

Some people seem to be getting agitated about it without actually understanding that it isn't a new charge on top of the existing fees, it replaces them.

The only bit that would annoy me, if it applied to me, is them changing the fee collection so it is proportional across account types held.  Being able to specify the fees should come out of a GIA only is a useful feature, as the current T&C's note.

If I've understood correctly fees can still be paid by DD, although the wording of the FAQs is a bit ambiguous.

Alexland

honeststeveo said:

I have a small holding with VG that I've held for a good while and which I intended to retain till retirement in the (probably vain) hope that they might pivot and say they will be offering the protected right on 55 minimum age.

From what I understand it's down to how the pension scheme rules were drafted at the cutoff date. If the scheme rules said you can get access from 55 then the trustees can offer access at that age but if the scheme rules said you can get access from the age the government allows then it will go up to 57 and there's nothing the trustees or provider can do to bring that forward apart from the ill health special cases. All that Fidelity have done is confirm their rules specifically said age 55 so they believe their SIPP holders at the cutoff date have this protected access age.

gravel_2

ColdIron said:

GeoffTF said:

ColdIron said:

22225 said:

With my ISA with Vanguard I have LS 100 and Global All Caps. I believe the closest Dodl have is FTSE World Index tracker. So that's the most similar thing to sell up and then transfer them to?

FTSE Russel don't do a World Index (although MSCI do).

Yes, they do:

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-world-ucits-etf-usd-distributing/overview

FTSE Russell provide indexes not trackers

Naming is important with indexes. That's a Vanguard ETF that tracks the FTSE Developed World Index, there are others. If by 'World Index' we mean some generic global index perhaps that's descriptive enough. But the OP was looking for the closest to a specific index (the Global All Cap). Would that be the All World (EM) or the Developed World (No EM) index? I would say the Developed World Index is the furthest away from their present Global All Cap and the All-World the closest.

As it happens MSCI provide a named World Index, (it's developed world as it happens)

There is actually a "FTSE World Index". It seems to be a bit obscure (I only know it because I have selected a fund tracking the ex-UK version of it in my pension).

It's developed + advanced emerging with large and mid caps.

https://research.ftserussell.com/Analytics/Factsheets/Home/DownloadSingleIssue?issueName=WORLDS

dgpur

eskbanker said:

dgpur said:

Vanguard has been my least well performing investment (was experiencing a loss for ages), so I guess that money is about to shift to my best performing. 🤷‍♂️

That emoji is probably appropriate - this thread isn't about the performance of their investments but the change in platform fees....

I mean that the platform fees are the final deal breaker for me. I thought that was obvious, based on which thread I posted in. I was prepared to give them longer. But not with these fees.

Alexland

dgpur said:

I mean that the platform fees are the final deal breaker for me. I thought that was obvious, based on which thread I posted in. I was prepared to give them longer. But not with these fees.

So is the performance issue with the Vanguard fund you hold because they are doing a bad job tracking an index or executing the fund strategy or it just that the underlying assets the fund invests in are not going up? Eg. Vanguard could be doing a great job tracking something that's decreasing in value which would be outside their control.