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ETF's or Mutuals in a new Vanguard ISA?
Isaac J
Posted: 15 August 2023 14:47:08(UTC)
#12

Joined: 25/05/2022(UTC)
Posts: 298

Sameh Youssef;276323 wrote:
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.


I think Ramondo's question related not to actively managed mutual funds, but to index-tracking funds. For example, they have both a FTSE 100 unit trust and a FTSE 100 ETF.

@Ramondo, I think NigelV's point about the ETF prices is important. If you're only using the Vanguard platform, as the same platform fee and fee cap applies, I think the unit trust option is better because you get units for each £ you invest without having to worry about excess cash left around.
AlanP2
Posted: 19 August 2023 07:56:30(UTC)
#13

Joined: 20/01/2021(UTC)
Posts: 71

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Was thanked: 133 time(s) in 48 post(s)
Isaac J;276325 wrote:


@Ramondo, I think NigelV's point about the ETF prices is important. If you're only using the Vanguard platform, as the same platform fee and fee cap applies, I think the unit trust option is better because you get units for each £ you invest without having to worry about excess cash left around.



That's what I do, and then buy the relevant ETF equivalent once a year to avoid having t mess with uninvested cash.
1 user thanked AlanP2 for this post.
Fife Clive on 19/08/2023(UTC)
Jesse M
Posted: 19 August 2023 12:27:24(UTC)
#10

Joined: 30/12/2020(UTC)
Posts: 1,471

NigelV;276321 wrote:
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)



You might find your answer here, fractional shares and FCA discussion

https://moneyforums.city...-shares.aspx#post270463

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