Vanguard at the vanguard ?

michael1234

Hello Folks

I've noticed this fund manager on the whole gets better reviews than most. Why is this? Perhaps its consistently cheaper? Or are its managed funds consistently better than others? Or are its global or region specific funds better diversified and representative ? Or none of the above and its something else?

And are there any new kids or old kids under new management that are worthy of a look?

I'm asking for myself as I'm questioning why I would look at Vanguard first as I often have.

I have absolutely nothing to do with the company other than buying into some of their funds.

masonic

They were very cheap when they first launched in the UK (relative to everything else). Since then several other players have emerged and battled to drive fees down to all time lows. I'd be equally happy with Blackrock/iShares, HSBC, State Street, Invesco, etc.

Vanguard's investment platform (restricted to Vanguard funds), was also very cheap and good for beginners, driving them to Vanguard funds. Now, their pricing model is less attractive and they would not be at the top of most people's list of preferred options.

dunstonh

I've noticed this fund manager on the whole gets better reviews than most. Why is this? 

They were instrumental in bringing UK fund charges down.  However, you do need to be wary.  no single fund house is the best in all areas.  I have Vanguard funds in my portfolio but I have other fund houses as well which I feel are better in their respective areas.

Perhaps its consistently cheaper? 

no. There are cheaper fund houses in a number of areas.

 Or are its managed funds consistently better than others? 

Vanguard doesn't have many managed funds but what those that they have had underperformed comparable funds from other fund houses until Trump did his little thing.

 Or are its global or region specific funds better diversified and representative ? 

No.  They have funds that follow many of the ususual benchmarks that others follow.   In some cases they fully replicate.  In some cases they sample replicate.  In some cases that has led to better returns. In some cases it has led to worse.

Hoenir

michael1234 said:

I've noticed this fund manager on the whole gets better reviews than most. Why is this? 

In global terms it's the second largest asset manager after Blackrock. Provides a usefull reference point as a consequence. When it first launched in the UK in 2010 shook the retail market up. Though now things are moving on. 

GeoffTF

Vanguard has the largest global market share for index funds held by DIY investors. Amundi can be much cheaper than Vanguard and is the largest European asset manager. Amundi has recently moved the domicile of some of its ETFs from Luxembourg to Ireland to benefit from the more favourable tax treaties. Nonetheless, Vanguard is still the market leader for selling index funds to DIY investors in this country. Vanguard has always pushed cost as the main factor in choosing an index fund, but it has become a premium priced option. Vanguard's own platform used to be very cheap for small accounts, but is now a premium priced option both for large and small accounts.