Transfer out Vanguard SS ISA to another platform with lower fees

getgobby

I currently have around £3k in my SS ISA with Vanguard, all held in FTSE Global All Cap Index Fund Accumulation fund.

Given the new fee structure has been in place for a good few months now, I'm wondering whats the best way I can transfer to an equivalent fund (if one exists) on a different platform? I'm aware that Vanguard transfers are amongst the slowest to complete, and given the recent stock market volatility (and somewhat recovery) I'm wondering if it's just quicker to cash out, then transfer out, and purchase funds on the other platform.

Failing that, I could just cash out entirely, lose the £3k tax wrapper, and just use part of my new £20k allowance to cover it (I doubt I'll be anywhere near that amount this year).

Thanks in advance!

toothdoctor

If you're happy to invest in ETFs then Trading 212 or Invest Engine have zero platform fees. An all world ETF such as VWRP/FWRG are somewhat equivalent in that they hold stocks from both the developed and emerging markets. These platforms don't hold the global all cap fund so you would have to sell them,transfer the cash then buy the etf on the new platform. This means you will be out off the market for the duration of the transfer

jimjames

If you're unlikely to reach the £20k limit this year then withdrawing and opening elsewhere is likely to be the quickest and best option as it will minimise the fees you pay.

GeoffTF

You can swap FTSE Global All Cap Index Fund Accumulation for VWRP and transfer that. That misses out the small capitalisation stocks, but that is not likely to make much difference. Nobody knows which fund will do better.

InvesterJones

'Best' way somewhat depends on which platform you want to move to, which of course depends on how you plan to make future contributions.

If you are very worried about movements during transfer then an 'in specie' transfer to a provider like iWeb that has the same fund means you are not out of the market at all..

If you want to make small regular contributions in the future however iWeb might not be as cheap (0 cost to hold, but fee per transaction) as some others, so you can either swap the fund at vanguard (so out of the market for a day I guess) to a fund that is held on the platform you're going to (eg dodl for OIECs/ITs, or investengine/T212 for ETFs) and then do an in specie transfer.

In specie transfers can take a long time, but you remain invested in the same fund throughout.

If however you might need to access the funds shortly after transferring then withdrawing and reinvesting will result in a few more days out of the market but the process will complete much quicker than a transfer.