How to lower the UK bias of VLS100

in Savings & Investments
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  • barnstar2077barnstar2077 Forumite
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    I recently switched to Vanguards FTSE Global All Cap Index from VLS100.  I don't think there is anything wrong with VLS100, but my work's pension is heavily invested in the UK and I wanted to offset it a bit. 
    Think first of your goal, then make it happen!
  • Gary_2021Gary_2021 Forumite
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    Wonky_Dan said:
    Vhvg is an accumulating developed world etf so that is indeed what you'd be after. So long as an etf is what you want and not a fund. 
    I'm in a dilemma now. The charges to buy and sell ETFs on Hargreaves Lansdown is £11.95 per deal. Is this a reasonable price, considering I will eventually be drip feeding every month into the core holding of VHVG. Would this make holding VHVG much more expensive, or is it, in your opinion, worth it to hold ETFs within a SIPP on HL
  • george4064george4064 Forumite
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    GaryMSE said:
    Wonky_Dan said:
    Vhvg is an accumulating developed world etf so that is indeed what you'd be after. So long as an etf is what you want and not a fund. 
    I'm in a dilemma now. The charges to buy and sell ETFs on Hargreaves Lansdown is £11.95 per deal. Is this a reasonable price, considering I will eventually be drip feeding every month into the core holding of VHVG. Would this make holding VHVG much more expensive, or is it, in your opinion, worth it to hold ETFs within a SIPP on HL
    HL offer a regular investment service, £1.50 per trade per month

    https://www.hl.co.uk/investment-services/invest-by-direct-debit

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  • Gary_2021Gary_2021 Forumite
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    GaryMSE said:
    Wonky_Dan said:
    Vhvg is an accumulating developed world etf so that is indeed what you'd be after. So long as an etf is what you want and not a fund. 
    I'm in a dilemma now. The charges to buy and sell ETFs on Hargreaves Lansdown is £11.95 per deal. Is this a reasonable price, considering I will eventually be drip feeding every month into the core holding of VHVG. Would this make holding VHVG much more expensive, or is it, in your opinion, worth it to hold ETFs within a SIPP on HL
    HL offer a regular investment service, £1.50 per trade per month

    https://www.hl.co.uk/investment-services/invest-by-direct-debit

    Thank you, I didn't know this. That sounds much more reasonable, maybe I should hold ETFs after all
  • ColdIronColdIron Forumite
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    GaryMSE said:
    Is this a reasonable price, considering I will eventually be drip feeding every month into the core holding of VHVG
    What do HL say about their charges for monthly investments?

  • Gary_2021Gary_2021 Forumite
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    ColdIron said:
    GaryMSE said:
    Is this a reasonable price, considering I will eventually be drip feeding every month into the core holding of VHVG
    What do HL say about their charges for monthly investments?

    I have just realized it's £1.50 per trade per month for regular investments. I should of read it before... this sounds much more reasonable 
  • edited 31 July at 6:36PM
    AlexlandAlexland Forumite
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    edited 31 July at 6:36PM
    If you have a small account with HL then it makes no sense to pay trade fees (the 0.45% platform fee is bad enough) to invest in an ETF world tracker when there are traditional OEIC fund trackers available with no trade fees for example if you want Developed World only consider the Fidelity Index World fund at 0.12%
    Or Vanguard have an ESG filtered Developed World tracker fund at 0.20% (link to the UK domiciled one rather than the longer established Irish one)

  • edited 31 July at 6:35PM
    grumiofoundationgrumiofoundation Forumite
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    edited 31 July at 6:35PM
    GaryMSE said:
    GaryMSE said:
    Wonky_Dan said:
    Vhvg is an accumulating developed world etf so that is indeed what you'd be after. So long as an etf is what you want and not a fund. 
    I'm in a dilemma now. The charges to buy and sell ETFs on Hargreaves Lansdown is £11.95 per deal. Is this a reasonable price, considering I will eventually be drip feeding every month into the core holding of VHVG. Would this make holding VHVG much more expensive, or is it, in your opinion, worth it to hold ETFs within a SIPP on HL
    HL offer a regular investment service, £1.50 per trade per month

    https://www.hl.co.uk/investment-services/invest-by-direct-debit

    Thank you, I didn't know this. That sounds much more reasonable, maybe I should hold ETFs after all
    Have you read their charges? The dealing charges are not the only charges you pay. Platform fee is capped for exchange traded instruments (inc. ETFs) at £200, whereas not capped for funds. So when you hit ~45k is cheaper to hold ETFs (not inc.dealing fees). If you include dealing fees of 12 x £1.50 per year cheaper at ~48k.
    https://www.hl.co.uk/pensions/sipp/charges-and-interest-rates

    According to this link regular investing is available for certain ETFs so would need to check if the ETF you want is eligible. (I don't use HL so don't know how you do this). 

    https://www.hl.co.uk/investment-services/invest-by-direct-debit


    Edit: see post above from Alexland - I was assuming you have a large enough SIPP that the cap comes into play. Although in that case Fidelity would be cheaper - analogous cap £45

  • AlexlandAlexland Forumite
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    Edit: see post above from Alexland - I was assuming you have a large enough SIPP that the cap comes into play. Although in that case Fidelity would be cheaper - analogous cap £45
    Fidleity platform would be cheaper either way. On a small account they would charge 0.35% and discount their Fidelity Index World fund to 0.10% so 0.45% total. On a large account the adhoc ETF trades would be cheaper and the regular trades the same price but as you say the capping is at £45 rather than £200 (ouch!) on a HL SIPP.
    However on a small account Vanguard Investor would be even cheaper (probably using VEVE as they don't charge for scheduled ETF trades) if the OP was happy to be limited to their limited range of investment choices. 0.15% platform plus 0.12% ETF would be 0.27% total.
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