Wednesday, 7 February 2018
An Additional New Platform for My ISA
In 2015 I opened an additional ISA with Halifax to hold my Vanguard Lifestrategy 60 fund and for a one-off buy and hold this is still cheaper than Vanguard so I will keep it going. I also have my AJ Bell Youinvest ISA in which I hold my mix of investment trusts which I will also retain.
However, last May, Vanguard Direct launched their own platform with annual charges of just 0.15% per annum and I made a mental note to look at a new ISA for this coming year with Vanguard when the time came around to add to my Lifestrategy holding.
I have been accumulating cash from various sales over the past year and I have held off adding to my global funds mainly due to the weakness in sterling following the EU referendum outcome. However, in recent weeks the pound has strengthened considerably against the US Dollar and recently clawed its way back above the $1.40 level for the first time since June 2016. In addition, there has been a sharp correction in global markets which has been the trigger to dip a toe in the water.
In the past week I spent a few minutes online to open my new S&S ISA with Vanguard Direct and I will now start to build my holding in the VLS 40 but will take things slow and steady and drip feed small sums back in as the markets are still close to their all-time high point. As Vanguard do not make a charge for the sale and purchase of funds, it seems to be a slightly better option than Halifax with its £12.50 dealing fee.
The only charges for my new ISA are the annual platform fees of 0.15% - which works out at £1.50 per year for each £1,000 invested or £30 p.a. for the full ISA allowance of £20,000. Of course, I am limited to Vanguard funds however for me this is not really a problem as I can hold a wider selection of investments with my other two providers.
My initial purchase is the VLS 40 (inc) @ £146 and I hope to make several additions over the coming year or so.