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Changing to Vanguard fund VHVG?
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Ramondo
Posted: 11 August 2024 15:53:26(UTC)
#1

Joined: 20/10/2018(UTC)
Posts: 700
I presently hold VG FTSE global all cap index fund (ACC) and also VG FTSE developed world ex UK (ACC) equity index fund in the proportion of 65% ex UK and the balance in the FTSE all cap as my global funds.
I have been considering transferring both into the VG VHVG (FTSE DEV) World UCITS ETF. (ACC)

I can see some plus's in doing this, one namely the fund costs, the holding amounts are quite large and I believe I would have some largest savings in doing this.
There are some other benefits I believe also.

I would welcome comments etc etc on this planned action from experienced members.
Thank you.
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Peanuts
Posted: 11 August 2024 16:02:44(UTC)
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Ramondo;315385 wrote:
I presently hold VG FTSE global all cap index fund (ACC) and also VG FTSE developed world ex UK (ACC) equity index fund in the proportion of 65% ex UK and the balance in the FTSE all cap as my global funds.
I have been considering transferring both into the VG VHVG (FTSE DEV) World UCITS ETF. (ACC)

I can see some plus's in doing this, one namely the fund costs, the holding amounts are quite large and I believe I would have some largest savings in doing this.
There are some other benefits I believe also.

I would welcome comments etc etc on this planned action from experienced members.
Thank you.



If it’s just save a few bps ask yourself how long it’d take to recoup the saving if you lost 1% in the switch. Of course it could go the other way and you gain 1% and happy days but with markets being volatile it’s a pure gamble.
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4 users thanked Peanuts for this post.
Ramondo on 11/08/2024(UTC), mgk on 11/08/2024(UTC), Maloney on 12/08/2024(UTC), Brisket Bun on 15/08/2024(UTC)
citymoke
Posted: 12 August 2024 04:53:10(UTC)
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Joined: 13/04/2016(UTC)
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Aren’t all the VG ETF’s all about at the same level as far as management costs go though? I swapped all my managed funds recently to HSBC’s HMWO, Vanguard’s VHYL and VWRL, roughly split 33% each. Management costs are in the region of 0.22% each with some variation. Also saving myself a big chunk in platform charges by moving them all away from the HL platform.
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Ramondo on 12/08/2024(UTC)
Ramondo
Posted: 12 August 2024 06:21:47(UTC)
#4

Joined: 20/10/2018(UTC)
Posts: 700
citymoke;315436 wrote:
Aren’t all the VG ETF’s all about at the same level as far as management costs go though? I swapped all my managed funds recently to HSBC’s HMWO, Vanguard’s VHYL and VWRL, roughly split 33% each. Management costs are in the region of 0.22% each with some variation. Also saving myself a big chunk in platform charges by moving them all away from the HL platform.


VHVG is 0.12%, which over time and especially on large amounts can make a appreciable difference in return.
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LongJohn on 12/08/2024(UTC), dbazz on 12/08/2024(UTC)
mcminvest
Posted: 12 August 2024 06:44:09(UTC)
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I've had VEVE in my SIPP since changing to Vanguard 3/4 years ago and it's been great. I chose that due to my experience with Fidelity Index World P in my ISA which is also develped world. I didn't have the option of VHVG at the time as it wasn't available on Vanguard's platform along with others which I find really weird but it is available now. VEVE I will stick with as I reinvest the dividends but keep some aside to pay my SIPP fees which are now set at £375 per annum as I am over the 250K value mark.
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Ramondo on 12/08/2024(UTC), LongJohn on 12/08/2024(UTC)
Ramondo
Posted: 12 August 2024 08:50:06(UTC)
#7

Joined: 20/10/2018(UTC)
Posts: 700
mcminvest;315443 wrote:
I've had VEVE in my SIPP since changing to Vanguard 3/4 years ago and it's been great. I chose that due to my experience with Fidelity Index World P in my ISA which is also develped world. I didn't have the option of VHVG at the time as it wasn't available on Vanguard's platform along with others which I find really weird but it is available now. VEVE I will stick with as I reinvest the dividends but keep some aside to pay my SIPP fees which are now set at £375 per annum as I am over the 250K value mark.


Yes I understand your need re your SIPP fee's, I if possible always opt for the accumulation option and leave income to my IT's and the few shares I hold.
Hopefully this newly available fund will perform better re returns than the other VG world funds, I am hoping the reduced fee will help.
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LongJohn on 12/08/2024(UTC)
dbazz
Posted: 12 August 2024 09:49:04(UTC)
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Ramondo;315441 wrote:
citymoke;315436 wrote:
Aren’t all the VG ETF’s all about at the same level as far as management costs go though? I swapped all my managed funds recently to HSBC’s HMWO, Vanguard’s VHYL and VWRL, roughly split 33% each. Management costs are in the region of 0.22% each with some variation. Also saving myself a big chunk in platform charges by moving them all away from the HL platform.


VHVG is 0.12%, which over time and especially on large amounts can make a appreciable difference in return.


I think it's worth doing for large sums as the difference could be significant when compounded over many years. I very recently switched from SSAC to SWLD for that very reason. I sold one and almost immediately bought the other
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Ramondo on 12/08/2024(UTC)
Aqua lucidus
Posted: 12 August 2024 10:39:49(UTC)
#9

Joined: 14/06/2016(UTC)
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VEVE, VWRL and HMWO all have their biggest holdings in the magnificent 7 with a few other shares. There doesn't seem to be much point in switching from one of these to another, unless you have £50K or more.
The cheapest ongoing charge is VEVE at 012%.
If it is a new buy then VEVE is the one I would go for.
Switching to a cheaper platform might save more money than switching from one ETF to another.
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Ramondo on 12/08/2024(UTC), Micawber on 21/08/2024(UTC)
mcminvest
Posted: 12 August 2024 10:46:36(UTC)
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Ramondo;315461 wrote:
mcminvest;315443 wrote:
I've had VEVE in my SIPP since changing to Vanguard 3/4 years ago and it's been great. I chose that due to my experience with Fidelity Index World P in my ISA which is also develped world. I didn't have the option of VHVG at the time as it wasn't available on Vanguard's platform along with others which I find really weird but it is available now. VEVE I will stick with as I reinvest the dividends but keep some aside to pay my SIPP fees which are now set at £375 per annum as I am over the 250K value mark.


Yes I understand your need re your SIPP fee's, I if possible always opt for the accumulation option and leave income to my IT's and the few shares I hold.
Hopefully this newly available fund will perform better re returns than the other VG world funds, I am hoping the reduced fee will help.


TBH, I would of been happy just to go with an ACC Developed Market fund in SIPP with Vanguard like Fidelity World rather than an ETFand just let it run but again they didn't and don't have that option.
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Ramondo on 12/08/2024(UTC)
Isaac J
Posted: 12 August 2024 10:52:15(UTC)
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Joined: 25/05/2022(UTC)
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Ramondo;315385 wrote:
I can see some plus's in doing this, one namely the fund costs, the holding amounts are quite large and I believe I would have some largest savings in doing this.


The difference in fund costs is nothing compared to the difference in performance of the underlying holdings, and should be irrelevant in your consideration here.

The FTSE Global All Cap contains small caps and emerging markets, and if small caps and emerging markets outperform - ex-post - by 1% per year over the next ten years (for example), that's a lot more significant compared to a 0.1% OCF saving. If the developed markets of VHVG outperform, then that OCF saving will still have minimum impact to the difference in the two funds' performance.

Fund costs are more relevant when you're comparing, say, a 1% FTSE Tracker from Virgin Money with a 0.1% FTSE tracker from L&G.
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4 users thanked Isaac J for this post.
Tim D on 12/08/2024(UTC), Guest on 12/08/2024(UTC), Ramondo on 12/08/2024(UTC), bearcub on 12/08/2024(UTC)
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