The Lemon Fool

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?

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.

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!

[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.

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?

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.

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.

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

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%.

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.

I've started out with Vanguard as 0.15% of not a lot is very cost effective, and trading at the daily cut off is free. You can either buy directly with a debit card - this takes one day to clear, then they will purchase at the following daily cut off. Alternately, you could build up the cash by making several debit card payments, then purchase when you are ready. If the cash is already in the account, the purchase occurs at the next daily cut off and will appear in your investments the day after. With funds, you can buy any amount as they do fractions. However ETFs must be bought 'whole'.

DAK whether VUKE make dividend announcements please?

There is nothing on investegate.

Hargreaves L. mention a payment date of 8 April.

feder1 wrote:DAK whether VUKE make dividend announcements please?

There is nothing on investegate.

Hargreaves L. mention a payment date of 8 April.

Here are the historic

https://www.vanguardinvestor.co.uk/inve ... tributions

Looks like it's different this year,

https://api.vanguard.com/rs/gre/gls/1.3 ... s/11632/gb

Anncoucement - 11/03/2021

Ex-div - 18/03/2021

Record - 19/03/2021

Pay - 31/03/2021