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.
I also use the Vanguard platform. I like it; it is basic, no frills and does the job. I am waiting for them to introduce SIPP to their platform. I think they haven't just yet because they are alot more complicated to administer compared to an ISA.
ReplyDeleteYes CC, I do not require bells and whistles, just a basic low cost platform...but if they offered the option to remember my username every time I login that would help!
DeleteI read somewhere they are aiming to introduce a SIPP later this year so maybe it's not too far away?
I suspect if you are a ‘buy and hold’ guy then your purchases on the Vangaurd platform will be more expensive than on the Halifax platform, over the course of a few years. Is there another reason you chose to open a new account?
ReplyDeleteChris S,
DeleteI like to think I am 'buy n hold' but overall I calculated the platform cost between the two seems to work out a little less with the drip feed due to the absence of transaction charges for each small purchase and then the sale cost when I wish to sell units to take out 'income'.
That makes good sense, especially as this fund doesn’t have a dealing spread to nibble away at your cash.
ReplyDelete