Vanguard UK have today announced the launch of their own platform for UK investors to compete with the likes of Hargreaves Lansdown
and AJ Bell.
They are offering a stocks & shares ISA, a basic general account (non ISA) and a junior ISA. Investors will be able to choose
from Vanguard's full range of index funds - including the popular Lifestrategy
range as well as Target Retirement funds - also actively managed funds and full
range of exchange traded funds.
I understand a SIPP will be offered later this year.
Obviously the drawback will be that investors are restricted
to holding just Vanguard investments so will not be able to hold individual shares or
investment trusts and funds from other providers.
Charges
As you would expect the charges are low - just 0.15%
which means £30 p.a. for this year's £20,000 ISA allowance for example. With HL the
charges would be £90 and with AJ Bell Youinvest £50. Also there are no dealing
charges for the purchase/sale of funds and £7.50 for dealing ETFs.
This move was flagged up last year so it is good to
see the launch.
It will be interesting to see the response from the
established platforms as I am sure Vanguard's offering will be very attractive
to those who are happy just holding their range.
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 Youinvest
ISA with my mix of investment trusts which I will also retain.
However I will
look at a new ISA for this coming year with Vanguard when the time comes around
to add to my Lifestrategy holding.
Leave a comment below...what do you think about the new platform?
HL ISA charge capped at £45 I think
ReplyDeleteRuby,
DeleteThe cap applies to shares, investment trusts and ETFs but not for funds such as Vanguard Lifestrategy for example.
I note the HL share price dropped over 8% today following Vanguard's announcement!
Quite right.
DeleteHL is good value for ETF's etc for higher value portfolios but not competitive at all for funds.This is annoying as I would rather hold index funds that ETF's.
I have noticed though that switching from Vanguard All World ETF at HL to a composite portfolio comprising 3 index funds at Vanguard would result in lower fees even after adding on the account charge. This is due to the lower lower management fees on most index funds.
Yes, it can be quite a complex equation working out which type of fund works out more economical with which provider. I had a look at this in an article last year
Deletehttp://diyinvestoruk.blogspot.co.uk/2016/05/selecting-your-diy-online-broker.html
Good luck in finding the right combination!
ETF's held in a SIPP or ISA I should add. Unwrapped is free.
ReplyDelete