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ETF's or Mutuals in a new Vanguard ISA?
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Ramondo
Posted: 13 August 2023 07:27:20(UTC)
#1

Joined: 20/10/2018(UTC)
Posts: 700
I'm about to fund a new vanguard ISA and would be interested to read views on whether to hold the ISA in ETF's or Mutual funds.

The holding in what ever form will be a 'all world' type.
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xxd09
Posted: 13 August 2023 08:10:39(UTC)
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Been investing with Vanguard for many years
All my 3 index funds are OIECs (Mutual Funds)cos ETFs weren’t available
ETFs allow you to trade your funds like shares ie instantly
OIECs reconcile at the end of the day ie move slower
As index funds are for “buy and hold” -not trading!-in my case I never bothered changing
There are some other very minor differences but to all intents and purposes for the amateur investor they both are the same thing
xxd09
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4 users thanked xxd09 for this post.
Helen L on 13/08/2023(UTC), Fife Clive on 13/08/2023(UTC), Ramondo on 13/08/2023(UTC), Guest on 15/08/2023(UTC)
Aminatidi
Posted: 13 August 2023 08:19:21(UTC)
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One other thing that leaps to mind and it depends whether it concerns you but I think their ETFs tend to be Ireland based whilst their OEICs tend to be UK based which I think (happy to be corrected) means they're treated differently in FSCS terms.
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Ramondo on 13/08/2023(UTC)
SF100
Posted: 13 August 2023 08:19:43(UTC)
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ETF's are usually domiciled in Ireland.
That's no good thing for UK based investors,
especially for when the big world debt bubble goes pop
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Ramondo on 13/08/2023(UTC), Tim Dr on 16/09/2023(UTC)
Isaac J
Posted: 13 August 2023 09:09:09(UTC)
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Aminatidi;276107 wrote:
One other thing that leaps to mind and it depends whether it concerns you but I think their ETFs tend to be Ireland based whilst their OEICs tend to be UK based which I think (happy to be corrected) means they're treated differently in FSCS terms.


A fair few of their OEICs are also Ireland based, I think, going off their ISINs?

e.g.
Global Small Cap Index (KIID PDF): IE00B3X1NT05
Global Bond Index (KIID PDF): IE00B50W2R13
Emerging Markets Stock Index (KIID PDF): IE00B50MZ724
UK Government Bond Index (KIID PDF): IE00B1S75374

and more.
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SF100 on 13/08/2023(UTC), Ramondo on 13/08/2023(UTC), COYS54 on 15/08/2023(UTC)
Peanuts
Posted: 14 August 2023 06:09:18(UTC)
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I've not watched this yet but Pensioncraft's latest vid might help you..

https://www.youtube.com/watch?v=GYAgbBPBmkw
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Ramondo on 14/08/2023(UTC)
Law Man
Posted: 15 August 2023 07:04:35(UTC)
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SF100: Why, please, are ETFs domiciled in Ireland a greater risk?

Choice of platform/ nominee: the charges may differ - E.g. HL charges flat £45 for. ISA, £200 for SIPP above a £ threshold,, but 0.45%pa on all for OEICs.
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2 users thanked Law Man for this post.
AndyJ on 15/08/2023(UTC), Fife Clive on 19/08/2023(UTC)
Rick Sure
Posted: 15 August 2023 08:49:04(UTC)
#8

Joined: 14/09/2010(UTC)
Posts: 10
No stamp duty on ETF’s, lower charges and easy to trade also can hold in your shares ISA and SIPP accounts
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NigelV
Posted: 15 August 2023 14:04:39(UTC)
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I would say the issue with Vanguard ETFS is the cost of them, i.e VEVE is currently £88, so if you are a regular saver of say £250 a month, you are only going to be buying 2 Shares you will be left with £74 uninvested for the month, so the next month you need to tinker with the amount you invest, so it is not invest and forget. It is invest and tinker a bit with the amount the next month.

I have never understood why they don't split the shares to make easier for regular investors.

(This is unless you use a platform like InvestEngine or others that support split shares)
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Isaac J on 15/08/2023(UTC)
Sameh Youssef
Posted: 15 August 2023 14:11:55(UTC)
#11

Joined: 12/10/2010(UTC)
Posts: 2
ETFs are usually cheaper than mutual funds whether they are unit trust or investment trust. While an excellent manager of a mutual may beat the index which is tracked by an ETF, the long term difference may not be that big because the manager usually has his/her own investment style, for example growth or value, which comes and goes over the years while the index performance benefits from both styles as they rise one at a time. ETFs provide access to thematic areas of the matket, for example electrical cars, battery, hydrogen etc while there is no fund that is dedicated entirely to any of these themes.
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