Vanguard direct to customer offering confirmed

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Comments

  • AndyT678
    AndyT678 Posts: 757 Forumite
    First Anniversary Combo Breaker
    Vanguard wrote:
    The Vanguard ISA is a flexible ISA, which means you can take money out for emergencies and put it back in later in the same tax year without affecting your ISA allowance. [...] maybe you need to spend some of your ISA funds to carry out some home repairs. You fix your roof, then later in the year you receive a bonus from work. With Vanguard’s flexible ISA you can use that money to replenish your tax-efficient portfolio.

    Unusual to find that level of flexibility on an S&S ISA. Not sure if that's good or bad.

    One of their examples sort of suggests that it's aimed at someone who really needs a cash emergency fund and shouldn't be in S&S anyway.
  • JohnRo
    JohnRo Posts: 2,887 Forumite
    First Anniversary Combo Breaker First Post
    edited 16 May 2017 at 9:10AM
    Yes, understandable given Vanguard's platform fee is 0.15% on the first £250,000 with no dealing or transfer fees. It's like they've just lobbed a hand grenade into the fray.

    I wonder what percentage of customer assets at HL, and elsewhere, are Vanguard products.
    AndyT678 wrote: »
    Unusual to find that level of flexibility on an S&S ISA. Not sure if that's good or bad.

    It's good :D
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • edinburgher
    edinburgher Posts: 13,462 Forumite
    Name Dropper First Anniversary First Post
    I thought flexible ISAs were becoming more common? Charles Stanley Direct offer flexibility (my current broker)
  • mgarl10024
    mgarl10024 Posts: 643 Forumite
    First Anniversary Combo Breaker
    edited 16 May 2017 at 9:20AM
    I'm not sure this is such a great deal - unless I am missing something.

    If Vanguard are charging 0.15%, this doesn't work well for larger investors. For example, if you had over £10k, you would be better to own the Vanguard investments through say Halifax at £12.50/yr? Even cheaper through iWeb once you've paid the account opening fee?

    What am I missing?
  • isasmurf
    isasmurf Posts: 1,999 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    ian-d wrote: »
    Has certainly shook the share price of HL though.

    Or perhaps something else has. If investors holding funds with HL were price conscious they wouldn't be holding their funds with HL in the first place.
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
    Name Dropper First Post Photogenic First Anniversary
    No platform charge if £250k or more invested.

    Unsure if the free dealing (at end of day) is only applicable to their OIEC offerings or also includes ETFs. Immediate dealing available for £7.50.

    Was hoping they might venture in to the SIPP world.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • JohnRo
    JohnRo Posts: 2,887 Forumite
    First Anniversary Combo Breaker First Post
    mgarl10024 wrote: »
    What am I missing?

    no dealing costs?
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • Audaxer
    Audaxer Posts: 3,508 Forumite
    First Anniversary Name Dropper First Post
    edinburgher wrote: »
    Fees are also capped at £375 - does this change your opinion at all?
    Still nowhere near as low as Halifax Share Dealing fixed fee platform charge of £12.50 per annum.
  • EdSwippet
    EdSwippet Posts: 1,588 Forumite
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    edinburgher wrote: »
    Fees are also capped at £375 - does this change your opinion at all?
    Not really. Flat-fee platforms operate in the £40-£120 range.

    Most have separate trading charges, so if you're a hyperactive fund switcher then those costs could add up. But then, if you're a hyperactive fund switcher then you probably aren't interested in Vanguard's passive tracker funds in the first place.
  • EdSwippet
    EdSwippet Posts: 1,588 Forumite
    First Anniversary Name Dropper First Post
    cloud_dog wrote: »
    No platform charge if £250k or more invested.
    No further platform charge once assets reach and then exceed £250k. But 0.15% on the first £250k.
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