Vanguard FTSE Global All Cap in ISA switch to ETF version?

Bravepants

Hello,

I'm invested in the OEIC fund on Vanguard Investor.

Has anyone just gone all out and swapped their entire holding for the ETF version yet? I mean all at once, rather than drip feeding large chunks "incase there is a large shift due to world events"?

I'm aware pound cost averaging will cost £7.50 a purchase, but this is outweighed by the reduced cost of holding the index tracker overall. Also, I may now stop adding to the fund anyway and just let it grow for the future, or do one-off lumps each year going forward.

In other places online there has been mention of currency variation effects within the new ETF. Is that really a cause for concern?

Thanks all

masonic

I suppose there is also the question of whether a very large order would walk the price up. I'm guessing at Vanguard you don't see a live quote you can accept or reject.

There's also a saving to be had in moving to a cheaper platform, and that might give you a better fund switching experience.

I've not seen anything about currency variation effects. What is supposed to be different about the currency exposure of the ETF vs the OEIC?

MDMD

Why not transfer the OEIC in specie to another platform? I have OEIC funds held in Barclays and Scottish Widows and the platform fee is zero on both.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82117929#Comment_82117929

It's probably worth doing both as the fund fee for the ETF is also considerably cheaper.

PixelPound

Remember the ETF has the bid/ask spread to take into account, although it is growing fast so should shorten

GeoffTF

The ETF was trading at a premium of 0.3% to 0.4%, but it is now about the same as the more established Vanguard ETFs:

https://www.tradingview.com/symbols/LSE-VALL/profile/

You may be facing a wide spread, but that is likely to come down. You will be out of the market for a couple of days when to sell the OEIC. That could work for or against you. If it is a big holding, you could switch a little at a time. I would not be in a hurry to do anything, except switch to a cheaper platform.

£7.50 is for live trades on Vanguard's platform. You should see the price before you trade. Bulk trades are free. It is £5 a trade on SWSD, with no platform fee.

InvesterJones

https://forums.moneysavingexpert.com/discussion/6681266/vanguard-ftse-global-all-cap-in-isa-switch-to-etf-version

Given the ETF can be bought within seconds during market hours, it's very unlikely there will be a large shift due to world events - though I don't know whether the vanguard platform lets you buy as soon as the OEIC sells or if there is a clearing period.

Also isn't there an option to not pay the dealing fee if you are happy to take a single price point in the day for DCA?

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82117997#Comment_82117997

Vanguard is slow:

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-switch-funds

With SWSD you should be able to buy the ETF on the second day after selling the OEIC.

Bravepants

https://forums.moneysavingexpert.com/discussion/comment/82117995#Comment_82117995

It seems ETF trades settle twice a day on Vanguard, 10.15, and 14.10. I did a test purchase of the ETF with some cash in the account. So it’s likely a bulk trade. Looking back I don’t think I was offered a live trade?

Bravepants

Well it looks like I’m going to transfer my Vanguard ISA to Scottish Widows. Vanguard is a bit slow and clunky. I’ll investigate further over the weekend and start things on Monday.

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82118107#Comment_82118107

You were offered the option to trade at the next valuation point or in real time. You chose the former and got a bulk trade. 10:15 and 14:10 are the cut-off times for submitting orders. ETFs settle the next day. OEICs can take a day longer to settle (particularly the international ones). My experience suggests that Vanguard's platform achieves that schedule if you hand crank, despite what it says in the link that I gave. People have reported that Vanguard's switch funds option is very slow though. Platforms will usually let you reinvest before an executed sale settles, immediately in the case of ETFs.