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Buying Vanguard

Closed-end funds and OEICs
feder1
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Buying Vanguard

#380167

Postby feder1 » January 24th, 2021, 9:53 am

I am thinking of buying some Vanguard UK etf VUKE for the first time.

I wish to send cash somewhere (Vanguard or Hargreaves Landsown??) in chunks until I have a reasonable amount with them before I make a lumpsum purchase.

I do not wish to buy in several bits so DAK who could accomodate this please?

swill453
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Re: Buying Vanguard

#380170

Postby swill453 » January 24th, 2021, 10:03 am

feder1 wrote:I am thinking of buying some Vanguard UK etf VUKE for the first time.

I wish to send cash somewhere (Vanguard or Hargreaves Landsown??) in chunks until I have a reasonable amount with them before I make a lumpsum purchase.

I do not wish to buy in several bits so DAK who could accomodate this please?

Most of the providers do some kind of regular investment scheme where the trading cost is low, but the trade is done at a fixed time every month (some would say that is an advantage as it doesn't tempt you to try to time the market).

For example at AJBell Youinvest the cost is £1.50. So you may be able to get your money working for you sooner than you think.

Scott.

JohnB
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Re: Buying Vanguard

#380192

Postby JohnB » January 24th, 2021, 10:37 am

Brokers normally expect you to fund a cash account out of which you make purchases, which is what you describe. Its rare for them to allow you to make a trade and then provide the funds. They will sometimes pay a pittance in interest on the cash balance. But as @swill453 says, a regular investment scheme might work better for you.

Top tip, If buying regularly outside a SIPP or ISA, buy INC units, unless you likely really complicated capital gains calculations!

Alaric
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Re: Buying Vanguard

#380264

Postby Alaric » January 24th, 2021, 1:39 pm

[quote="JohnB"]Brokers normally expect you to fund a cash account out of which you make purchases, which is what you describe. /quote]

If you have an existing portfolio, they seem to allow you to buy first. The premise being that you can sell within the same settlement period to raise the funds. I agree though that an expected sequence would be

Open account
deposit funds
buy shares

and that buying shares might be deferred until the purchase was economic regarding dealing costs.

ReallyVeryFoolish
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Re: Buying Vanguard

#380266

Postby ReallyVeryFoolish » January 24th, 2021, 1:49 pm

If you happen to have an account at Interactive Investor, they have a free of charge monthly investment option. As stated, AJ Bell just charge £1.50 for that. Not a lot of money.

RVF.

feder1
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Re: Buying Vanguard

#380292

Postby feder1 » January 24th, 2021, 3:05 pm

Thanks all.

I did wish to buy at a date of my choosing.

What spooked me was when I started to look at Vanguard without an a/c, it looked as though I had to buy straightaway but of course I was most likely wrong. It would probably have needed a funded a/c to be set up first.

No one so far has favoured Vanguard over a broker?

EthicsGradient
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Re: Buying Vanguard

#380443

Postby EthicsGradient » January 25th, 2021, 1:13 am

So what you're looking for is a direct debit to pull in a regular amount of cash to an account each month without an associated purchase, and then you choose the moment to use the accumulated cash.

II can certainly do that; so can AJBell with their SIPP, so I think they'd be able to to that with an ISA or plain trading account too.

paulnumbers
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Re: Buying Vanguard

#380514

Postby paulnumbers » January 25th, 2021, 10:35 am

feder1 wrote:Thanks all.

I did wish to buy at a date of my choosing.

What spooked me was when I started to look at Vanguard without an a/c, it looked as though I had to buy straightaway but of course I was most likely wrong. It would probably have needed a funded a/c to be set up first.

No one so far has favoured Vanguard over a broker?


Vanguard are a broker (and a fund manager)

https://monevator.com/compare-uk-cheape ... e-brokers/

If I were you I would just use vanguard the broker, who charge a 0.15% pa fee. The slightly cheaper option is Trading 212, but I wouldn't really recommend them. All you're saving is 0.15% and going from a broker with probably the best customer service to one with probably the worst.

Another zero cost option would be freetrade.

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Re: Buying Vanguard

#380546

Postby JohnB » January 25th, 2021, 11:43 am

A lot depends whether you are investing in a SIPP, ISA or unsheltered. Holding my large VUKE in a HL SIPP might sound expensive at 0.45% custody fee, except its capped at £200. Holding VUKE at HL unsheltered costs me nothing. Holding VMID in a I-web ISA has no custody fee. Holding either with Vanguard directly would cost me more

feder1
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Re: Buying Vanguard

#388999

Postby feder1 » February 23rd, 2021, 5:54 am

Thanks everyone for helpful replies.

Eventually i opened a Vanguard a/c very easily and straightforward and fed in some cash.

I bought some VUKE Ftse 100 ETF which has a notional yield of 3.09%.

Oddly this contrasts with iShares ISF, which is similar I believe, but quotes a yield of 3.9%.

GeoffF100
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Re: Buying Vanguard

#389025

Postby GeoffF100 » February 23rd, 2021, 8:51 am

If you are talking relatively small sums of money investing directly with Vanguard may be your best option. They charge 0.15% with no dealing fees. That is £1.50 p.a. on £1,000, and £15 p.a on £10.000. When your account gets large, you can transfer it to another broker.


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