Hargreaves Lansdown HL Junior Stocks & Shares ISA

mither_2

Hi,

I've put funds in to the above and now want to invest in ETFs for my children (1 year old and 3 years old) . My criteria is:
Low fee

Accumulation funds so that any returns are re-invested

focus on how the fund has performed over 5 years

Good georgraphic spread (not all US as many fudns are)
Idealy a UK fund manager such as L&G

I'm quite swayed by the funds where HL can offer a discount on the mgmt fee. Should I be? How valuable is this?

Does the HL "Wealth Shortlist" mean anything?

The ETFs I've seen that I like so far are:
L&G UK Index

L&G Pacific Index

ABRDN Asia Pacific Equity

L&G Global Emerging Markets

L&G International Index Trust

Any thoughst on this approach and/or these specific funds? My current view would be to pick 3-4 and then put the £5k per child in on a matching basis and then just leave it.

Any thoughts welcome.

mither_2

If the ML forums aren't the best place to discuss such subjects then please do point me in another direction. There may be somehwere else where I'm better to have this discussion.

vm2pensioner

https://forums.moneysavingexpert.com/discussion/6671211/hargreaves-lansdown-hl-junior-stocks-shares-isa

The funds you list are not ETFs but index tracker funds (the ABRDN Asia Pacific Equity is a managed fund). That said, L&G offer a good range of index tracker funds and with low management charges. Index trackers (accumulation) are probably a good way to 'invest and forget', and those you mention are worth considering. You could also add something like the L&G US Index Fund, or their S&P 500 Index Fund, to give some exposure to USA markets.

mither_2

Thanks. I can see that now having read further that they are tracker funds which seem like a good option for my childrens ISAs as I'll just leave the funds there for a very long time and don't want to try and do anything clever with them. There are no dealing charges with childrens ISAs and a 0.1% to 0.2% range on the net ongoing charge seems OK.

Notepad_Phil

https://forums.moneysavingexpert.com/discussion/comment/82024827#Comment_82024827

They are indeed tracker funds and hence have many good qualities, but apart from the International Trust fund each one only invests in quite a restricted set of countries.

Now you say that you would invest across 3 of 4 funds, but you have to decide the percentages you want in each one, which is fine if you believe you can figure out where the winners and losers of the various world regions will be, but personally I'd maybe just concentrate on one fund that invested more broadly across the whole world e.g. something like HSBC FTSE All World Index Class C - Accumulation. It's currently 0.13% at HL, invests in 3676 companies and is slightly less full-on the US than the International Trust fund you mentioned.

There are other similar funds, but the FTSE All World fund is my personal favourite and worth you at least having a look at it.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82024906#Comment_82024906

Fidelity World P is also popular. Fee is 0.12%. US % is 71% which is high, but consequently the 5 year performance is a little higher. Of course that may reverse in future, or not.

mither_2

https://forums.moneysavingexpert.com/discussion/comment/82024906#Comment_82024906

That does sound interesting and fits my criteria of being well spread, fairly low fees and where I can put the cash and then just leave it.

If, for my own interest, I wanted to look at the fund has done on a region by region basis, or by investment type, is there anyway to break the numbers? If such info visible in the fund?

Do these funds have risk grades?

mither_2

Sounds interesting. I'm tempted to look at funds that have less US exposure as my pensiosn with Aviva and Royal London also have a lot of exposure to the US. I know this is my kid's ISAs rather than my pension but the money will eventually end up with them either way.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82030762#Comment_82030762

Do these funds have risk grades?

Risk grading is an inexact science. and not always consistent. Sometimes it goes 1 to 7 ( highest risk) or 1 to 10 ( highest risk)

I think all the funds being discussed in this thread are 100% equity index type funds, so would normally have the similar risk rating, regardless of some differences in country weightings etc. So say 5/6 on a 1to7 scale, and 8 on a 1 to 10 scale. ( approx)

Notepad_Phil

https://forums.moneysavingexpert.com/discussion/comment/82030762#Comment_82030762

If, for my own interest, I wanted to look at the fund has done on a region by region basis, or by investment type, is there anyway to break the numbers? If such info visible in the fund?

You could go to the fund managers website and search for the associated documents etc for the funds you were interested in, but a much easier way is to look on the hl website itself. E.g. you can can see the top 10 breakdowns of holdings, sectors and countries if you look towards the bottom of hl's main website page for that fund at https://www.hl.co.uk/funds/fund-discounts%2C-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation , whilst the other tabs also contain other potentially useful information that you may be interested in.

mither_2

https://forums.moneysavingexpert.com/discussion/comment/82031767#Comment_82031767

Thanks all. I've gone for the HSBC FTSE All world index. Its fee free with a childs ISA and and the charge seems OK at 0.14%.

However, it does seem very US focused (as does the Fidelity World P). Is this just because so many of the traded companies in the world are US based?

Also as there are no entry and exit dealing charge on a children's ISA there is no obvious down side on spreading the money across a few different funds? So long as the net onfoing charge is roughly the same the costs will be similar so the only factor the is how well each fund does.

I don't want to receive money back and then re-invest it so I'm assuming I shuld always go for accumudlation and just reinvest any gains back into the fund?