Why do people with the knowledge seem to invest more in ETFs?

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82102647#Comment_82102647

It looks like Vanguard UK is introducing an ETF equivalent of VAFTGAG at the end of January. The OCF will be 0.07%, which greatly undercuts VAFTGAG's 0.23%.

https://www.lemonfool.co.uk/viewtopic.php?f=55&p=803707#p803707

GIL5 is a cheaper (but smaller) alternative to ILG5:

https://www.justetf.com/uk/etf-profile.html?isin=LU1439943090#basics

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82102756#Comment_82102756

Though my view on this was I pay in £x per month every month. Ideally I'd like to buy in at the best day of the month at the best time of day at the month but unfortunately have no crystal ball. The money goes in & it buys what it buys which will hopefully do a job over time. No point in me fretting over which time of day this months payment is better being put in at. It's all automatic & job done, forgetaboutit.

Yes if you buy every month and keep for the long term, it will make no difference at all when the actual investment is exactly bought.

cloud_dog

https://forums.moneysavingexpert.com/discussion/comment/82102756#Comment_82102756

I don't doubt or disagree with it, but for younger people there can be a trend to chase returns (timing, risk, etc).

poseidon1

I suspect there maybe a growing generational divide with 'boomers' and Generation Xers more familiar and conversant with OEICs whilst younger tik tok/ you tube generation attracted to etfs and the low cost platforms that host them.

Certainly in my case ( age 68) , OEICs have been my regular investment 'go to' with etfs only relatively recently a part of my portfolios, as I explore niche options such as gold.

masonic

I've gradually moved from all OEIC/UT to all ETF/IT for cost reasons.

booneruk

I use both. My workplace pension (Aviva) and my SIPP (II) are both using OEICs, 100% of new money goes into very cheap global trackers.

The rest of my investments are across the various app platforms and use a mix of investment trusts, individual stocks and ETFs. Mainly for the low fees of these platforms but also because it's what they support (though Freetrade does offer some OEICs now I think)

Oh, I also use II outside my SIPP for some UK Gilts - Old Man's Crypto! (though I'm not that old)

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82103127#Comment_82103127

"though Freetrade does offer some OEICs now I think"

Yes, it says it now offers 1,000+ OEICs. On its website it's decided to use American terminology and refer to them as mutual funds but in the app just as funds. I've bought a few via Freetrade and it was a slick experience requiring only a few taps and it sends you an app alert when the order's been completed.

https://freetrade.io/mutual-funds

GeoffTF

Prosper offers some popular open ended funds too. Barclays has recently thrown its hat into the ring to join Scottish Widows with zero platform charges.

leosayer

https://forums.moneysavingexpert.com/discussion/comment/82102884#Comment_82102884

The Amundi short term gilt fund isn't available in Acc units.

I'll believe the VAFTGAG ETF class fee of 7bps when I see it but thanks for the heads up

Newbie_John

https://forums.moneysavingexpert.com/discussion/comment/82102594#Comment_82102594

This and also many newcomers start with platform that offers a good sign up either for them or the "youtouber" that recommended it, and platform that offer best bonuses like trading212, IG etc. only offer ETFs.

Also the larger platofrms like HL had exception for free regular investment in ETFs so older generation picked up that too.

Perosnally I prefer OEIC with Barclays for free (recent change) and ETFs with IG in the meantime waiting for ISA allowance but in early days I liked knowing how much something is worth rather than selling it and finding out next day it's £200 down :)