Junior S&S ISA help needed

sufcboy

I’ve just switched my sons savings account to a stocks and shares isa with HL.

I’m finding the platform slightly confusing in comparison to T212 which i have my own isa on.
I just want to invest his money in something safe like the FTSE all world, but there are that many versions of it on HL I’m at a loss.
Asides from the way the track the market are there any significant differences between ETFS and Funds. And how can you tell the difference on HL?
Also, I was under the impression that HL JISA was fee free yet a lot of the listed etfs seem to say they have fees

Newbie_John

Ive started similar journey the other way round - from HL funds.

They all have internal fees, let it be ETF or OEIC fund, there are no buying fees, platform holding fees but the fund itself needs to make money so they take 0.1% etc. its quite clear on HL.

If you take a tracker fund like Vanguard FTSE Global All Cap Index Fund, there isnt much dofference netween it and similar ETF really, one is priced daily, dealt daily the other ETF at anytime. So I find nornal funds easier in long term investment.

masonic

ETFs are more complicated financial instruments. They can trade at a premium or discount to the assets they hold in some circumstances and they are offshore funds.

In the HL JISA there is no custody fee and no trading fee, so if you want a broad market index fund, then you need only concern yourself with the fund fees.

The cheapest fund is HSBC FTSE All-World Index (0.13%pa), whereas the cheapest ETF is the Vanguard FTSE Global All-Cap ETF (0.07%pa). The Vanguard fund has broader coverage (as it extends into smaller companies). There is unlikely to be a meaningful difference in performance between the two.

HL lists funds and ETFs separately under their Funds and Shares sections of the website, so when you go to the relevant page for the investment you will see something like:

eskbanker

I’ve just switched my sons savings account to a stocks and shares isa with HL.

[…]

I just want to invest his money in something safe like the FTSE all world

What do you understand by 'something safe' here, in the context of moving from capital-protected savings to equity-based investments, i.e. pretty much one end of a risk scale to the other?

masonic

https://forums.moneysavingexpert.com/discussion/comment/82157730#Comment_82157730

The age of the son has not been disclosed, but I would assume safety is being assessed over a long time horizon, taking into account inflation risk, or relative to poorly diversified equity investments. Hopefully it is not a statement about short-term volatility.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82157732#Comment_82157732

Hopefully that's the sort of thing OP has in mind, it just seemed an odd choice of word in the circumstances!