Don't Ignore Vanguard If You Want To Save Money

Don’t Ignore Vanguard If You Want To Save Money
Underwater by Andy Deitsch. Why?

The launch of Vanguard’s new low cost investment service in the UK could signal an important milestone in the push for lower charges across the asset management industry

Vanguard, One Of The World’s Leading Investment Firms, Introduces A Low Cost Service To The UK

Vanguard Slashes Dealing Costs By Attracting Direct Investors

Philadelphia-based firm Vanguard, famed for its cheap passive tracker funds, has just confirmed the launch of its direct to consumer service in the UK, highlighting its low annual account fee.

On 16 May 2017, Vanguard, which has been in the UK for over nine years, launched an online investment platform for UK mass-market investors at a much lower cost than many of its competitors.  It means you can invest with Vanguard without having to use a third-party stockmarket platform, cutting out that fee in the process.

Vanguard Costs A Leading Stockmarket Platform More Than Half A Billion!

As direct result of this news, within 24 hours, shares in one of the UK’s favourite stockmarket platforms dropped 8 per cent, wiping £583 million of its value.  Shareholders are worried it could lose large swathes of customers to lower-cost rivals like Vanguard.

Overview Of The Vanguard Costs

Vanguard's new service will charge an annual account fee of just 0.15 per cent a year, adding to the continual pressure across the industry to lower fees.  The most you’ll pay is £375, as it’s not charged above the first £250,000 invested.

There’s a minimum investment of £500 to join the service or a monthly savings contribution of £100, which will provide access to the firm's suite of funds including the LifeStrategy range, index funds, ETFs, Target Retirement Funds and actively-managed vehicles.

All the funds are available via an ISA, Junior ISA or general account.  A Vanguard SIPP will be added in the future. 

Vanguard says it wants to “offer investors value for money”, in response to the FCA’s interim asset management market study that found fees had not fallen far enough given the growing scale of the industry.

Vanguard is huge.  It has more than 20 million investors around the world.  It has in excess of £3 trillion in global assets under management.  And Vanguard is the choice of one of the world’s richest men.  On his death, Warren Buffett has instructed his trustee to convert most of his wealth into an index-tracker fund with Vanguard, saying: “I believe the trust’s long-term results from this policy will be superior to those attained by most investors who employ high-fee managers.”

To find out how much you could save, visit Vanguard.

12 Technical Indicators To Compliment Your Vanguard Investments

If you’re planning to hold a portfolio of passive funds with Vanguard or others, or even blue chip stocks, well into retirement, then short-term movements in the market are unlikely to be your biggest worry.

However, if you dabble in the stock market on a day-to-day basis, or if you simply want to know what drives the thinking of other market participants, it can help to understand the basics of technical indicators.

Many traders swear by them to help with the timing of their trades or to alert them of trends.  Even for an investor more focused on the underlying fundamentals of companies, learning how these indicators work can provide added conviction on new or existing trades.

The graphic below explores the fundamentals behind 12 of the most commonly used technical indicators.  It differentiates between lagging and leading indicators, and also explains some basic tactics for incorporating these markers into an overall investment strategy.


Please Share This

If you’ve found this page of interest, please would you kindly send a link to it to your friends and colleagues using the buttons below.  You’ll be helping us out, and they might like it too.  Thanks, it's much appreciated.


AJ Bell Is Often The Best Value SIPP For Stockmarket Assets

That's our opinion.  Not just because AJ Bell was the first company to offer an online SIPP.  Nor that it's received many prestigious awards.  And not even because the wife of SIPPclub's Founder has an AJ Bell SIPP.  It's because it's one of the most competitive stockmarket SIPPs on the market. 

Over time, charges can wipe out a huge part of your fund.  We like AJ Bell because there are no set-up costs.  If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund.  And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment).  However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.

Visit AJ Bell

Get Valuable SIPP And SSAS Insights Emailed Directly To Your Inbox Every Monday

  • Please use an email address you can access. You can unsubscribe at any time.

As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from  Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.

Please read our full Terms which includes criteria for SIPPclub membership.