We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Vanguard: New Minimum Monthly Account charge
Options
Comments
-
Hoenir said:GeoffTF said:"This isn't John Bogle's Vanguard anymore."
That was 25 years ago !2 -
GeoffTF said:"This isn't John Bogle's Vanguard anymore."John Bogle's Vanguard has been priced out of existence. Simple index funds are free or almost free in the US. Vanguard's competitors manage that by subsidising their simple index funds from more profitable managed funds and advice. Vanguard has a simple choice. Either go out of business, or go into the business of which John Bogle disapproved.Vanguard's main business has been managing funds. Their UK brokerage operation has been a mess. Their IT platform was delivered way behind schedule. It is not very intuitive and, even at this stage, it is full of bugs. Compare it with AJ Bell, for example. There were successful models for Vanguard to copy, but they did not do that. The knock on effect of this is higher support costs than their competitors.Vanguard's funds are mostly bought through advisors or other platforms. Vanguard seems to have decided that they would prefer their platform to be a small business that pays its way, rather than a large business that makes a big loss.2
-
equitydealer said:GeoffTF said:"This isn't John Bogle's Vanguard anymore."John Bogle's Vanguard has been priced out of existence. Simple index funds are free or almost free in the US. Vanguard's competitors manage that by subsidising their simple index funds from more profitable managed funds and advice. Vanguard has a simple choice. Either go out of business, or go into the business of which John Bogle disapproved.Vanguard's main business has been managing funds. Their UK brokerage operation has been a mess. Their IT platform was delivered way behind schedule. It is not very intuitive and, even at this stage, it is full of bugs. Compare it with AJ Bell, for example. There were successful models for Vanguard to copy, but they did not do that. The knock on effect of this is higher support costs than their competitors.Vanguard's funds are mostly bought through advisors or other platforms. Vanguard seems to have decided that they would prefer their platform to be a small business that pays its way, rather than a large business that makes a big loss.1
-
Hoenir said:When the next market correction comes along. A couple of quid is going to pale into insignificance.
An increase in ongoing platform charges is always a cost to the portfolio and it's one of the few areas that an investor can take action with some certainty it will make an improvement to the long term performance. On the smaller portfolios this increase in fees can be seriously detrimental so people are right to be concerned and review their options.
1 -
Alexland said:Hoenir said:When the next market correction comes along. A couple of quid is going to pale into insignificance.
An increase in ongoing platform charges is always a cost to the portfolio and it's one of the few areas that an investor can take action with some certainty it will make an improvement to the long term performance. On the smaller portfolios this increase in fees can be seriously detrimental so people are right to be concerned and review their options.
1 -
Eco_Miser said:GeoffTF said:equitydealer said:eskbanker said:equitydealer said:Hoenir said:equitydealer said:Funny, for a company that used to champion lower fees they are going in the wrong direction
They've only shot themselves in the foot if they haven't modelled the impact of such a decision - any large organisation making such changes will do so in the full knowledge that some of its customers won't be happy (especially smaller ones) and will take their business elsewhere, so they will have crunched the numbers rather than this being some sort of surprise to them.2 -
Alexland said:Hoenir said:When the next market correction comes along. A couple of quid is going to pale into insignificance.1
-
jimjames said:B0bbyEwing said:Only just discovered this today. Glad I did. Had a lowly amount S&S ISA with Vanguard. Really should've moved it elsewhere but as it wasn't really costing anything I just never bothered to get round to it.
BTW it was already costing you, just a bit less than the new charges if it's under £32k you have
Unfortunately since most of the mail from these companies is just junk to me, I have the bad habit of just skimming the lot of it & not reading any of it.
My fault entirely, I know.1 -
equitydealer said:GeoffTF said:"This isn't John Bogle's Vanguard anymore."John Bogle's Vanguard has been priced out of existence. Simple index funds are free or almost free in the US. Vanguard's competitors manage that by subsidising their simple index funds from more profitable managed funds and advice. Vanguard has a simple choice. Either go out of business, or go into the business of which John Bogle disapproved.Vanguard's main business has been managing funds. Their UK brokerage operation has been a mess. Their IT platform was delivered way behind schedule. It is not very intuitive and, even at this stage, it is full of bugs. Compare it with AJ Bell, for example. There were successful models for Vanguard to copy, but they did not do that. The knock on effect of this is higher support costs than their competitors.Vanguard's funds are mostly bought through advisors or other platforms. Vanguard seems to have decided that they would prefer their platform to be a small business that pays its way, rather than a large business that makes a big loss.
Really, hardly anyone will care. Except the "ninjas". And Vanguard are probably glad about that.5
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards