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  • FIRST POST
    • Ed-1
    • By Ed-1 5th Feb 18, 9:51 PM
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    Ed-1
    Lisa etf
    • #1
    • 5th Feb 18, 9:51 PM
    Lisa etf 5th Feb 18 at 9:51 PM
    Can anyone direct me towards a single multi-asset ETF to invest LISA funds into with AJ Bell/Hargreaves Lansdown?
Page 1
    • bowlhead99
    • By bowlhead99 5th Feb 18, 9:59 PM
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    bowlhead99
    • #2
    • 5th Feb 18, 9:59 PM
    • #2
    • 5th Feb 18, 9:59 PM
    Good luck finding any multi-asset ETFs. ETFs are good for tracking indexes or other predetermined mixes of shares, bonds or other assets which follow a set formula. That's how they can operate efficiently and what they are known for.

    For a multi-asset investment vehicle you are really looking at either OEICs/ICVCs or Unit Trusts via a fund platform, or investment trusts as your solution
    • Alexland
    • By Alexland 5th Feb 18, 10:01 PM
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    Alexland
    • #3
    • 5th Feb 18, 10:01 PM
    • #3
    • 5th Feb 18, 10:01 PM
    ETFs don't tend to be multi asset funds.

    Assuming you are using your LISA to invest for 60 and given that ETFs cost money to trade and you won't benefit from LISA capped platform charges for some years then you are probably better sticking to funds such as Blackrock Consensus 85 for the discount on HL if you have a high enough volatility tollerence. Eventually it might be worth changing to SWDA ETF and holding a greater proportion of bonds and non-US in an ISA, etc to compensate.

    Alex
    Last edited by Alexland; 05-02-2018 at 10:06 PM. Reason: Added more
    • Ed-1
    • By Ed-1 5th Feb 18, 10:09 PM
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    Ed-1
    • #4
    • 5th Feb 18, 10:09 PM
    • #4
    • 5th Feb 18, 10:09 PM
    ETFs don't tend to be multi asset funds.

    Assuming you are using your LISA to invest for 60 and given that ETFs cost money to trade and you won't benefit from LISA capped platform charges for some years then you are probably better sticking to funds such as Blackrock Consensus 85 for the discount on HL if you have a high enough volatility tollerence. Eventually it might be worth changing to SWDA ETF and holding a greater proportion of bonds and non-US in an ISA, etc to compensate.

    Alex
    Originally posted by Alexland
    What is the discount on/referring to?
    • sjp999
    • By sjp999 5th Feb 18, 10:20 PM
    • 51 Posts
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    sjp999
    • #5
    • 5th Feb 18, 10:20 PM
    • #5
    • 5th Feb 18, 10:20 PM
    HL discount the OCF/TER/whatever it's called now by 0.13 from 0.22 down to 0.09.
    • ColdIron
    • By ColdIron 5th Feb 18, 11:09 PM
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    ColdIron
    • #6
    • 5th Feb 18, 11:09 PM
    • #6
    • 5th Feb 18, 11:09 PM
    Can anyone direct me towards a single multi-asset ETF
    Originally posted by Ed-1
    ETFs track an index. If you want a multi asset holding you are firmly in active management territory
    • Ed-1
    • By Ed-1 6th Feb 18, 12:10 AM
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    Ed-1
    • #7
    • 6th Feb 18, 12:10 AM
    • #7
    • 6th Feb 18, 12:10 AM
    HL discount the OCF/TER/whatever it's called now by 0.13 from 0.22 down to 0.09.
    Originally posted by sjp999
    I'm assuming Blackrock Consensus 85 is multi-asset?
    • thenewcomer
    • By thenewcomer 6th Feb 18, 12:15 AM
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    thenewcomer
    • #8
    • 6th Feb 18, 12:15 AM
    • #8
    • 6th Feb 18, 12:15 AM
    would it be risky to hold a LISA in ETF? with LISA we cannot withdraw the money until we buy our first house or at 60....
    • Alexland
    • By Alexland 6th Feb 18, 6:59 AM
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    Alexland
    • #9
    • 6th Feb 18, 6:59 AM
    • #9
    • 6th Feb 18, 6:59 AM
    I'm assuming Blackrock Consensus 85 is multi-asset?
    Originally posted by Ed-1
    Yes but mostly in shares.

    Sadly there is no discount on the less volatile versions of the fund series.
    • Alexland
    • By Alexland 6th Feb 18, 7:01 AM
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    Alexland
    would it be risky to hold a LISA in ETF? with LISA we cannot withdraw the money until we buy our first house or at 60....
    Originally posted by thenewcomer
    Depends on your investment period. If buying a house soon then yes stick to cash but otherwise for a 20+ year investment shares have historically done very well. But as per my first post the fees on funds would be lower than ETFs for the early years for a S&S LISA.

    https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/

    Alex
    • Ed-1
    • By Ed-1 6th Feb 18, 10:20 AM
    • 2,230 Posts
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    Ed-1
    Yes but mostly in shares.

    Sadly there is no discount on the less volatile versions of the fund series.
    Originally posted by Alexland
    That's with HL but if you go with AJ Bell then aren't the overall charges lower anyway? Base fee of 0.25% and the ongoing fund fee of 0.22% is 0.47% altogether. The discount with HL brings the fund fee down to 0.09% but the base fee is 0.45% giving 0.54% in total.
    • Alexland
    • By Alexland 6th Feb 18, 10:32 AM
    • 2,594 Posts
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    Alexland
    Yes but AJ Bell charge 1.50 for fund trades.
    Last edited by Alexland; 06-02-2018 at 11:52 AM. Reason: Typo
    • Ed-1
    • By Ed-1 6th Feb 18, 10:34 AM
    • 2,230 Posts
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    Ed-1
    Yes but AJ Bell charge 1.50 for fu d trades.
    Originally posted by Alexland
    If you're putting everything in a less volatile Blackrock Consensus fund though it's still better to go with AJ Bell.
    • Alexland
    • By Alexland 6th Feb 18, 10:44 AM
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    Alexland
    Yes if you are doing lump sum rather than regular investments.
    • Eco Miser
    • By Eco Miser 6th Feb 18, 3:05 PM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    would it be risky to hold a LISA in ETF? with LISA we cannot withdraw the money until we buy our first house or at 60....
    Originally posted by thenewcomer
    Other way round - LISA is the wrapper and ETF a (class of) investment.
    While you can't take the money out of a LISA until 60 or house purchase (without penalty), you can sell the investment(s) within it, then buy other investments, as often as you think fit.
    Eco Miser
    Saving money for well over half a century
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