Help with Fidelity and VWRP or VAFTGAG
Discussion
I’m looking to move my investment (SIPP, S&SISA, JISA, JSIPP) to Fidelity as they are one of the few who cater for all products.
Looking at the SIPP, which is worth £400,000 if I look to invest in FTSE All-World UCITS ETF (VWRP) it shows annual service fees of £90. Whereas if I were to invest in FTSE Global All Cap Index Fund (VAFTGAG) the fees rise to £800.
I think both VWRP and VAFTGAG are similar but one is a fund and the other a ETF?
I plan on leaving the products invested and not chopping and changing regularly so have ignored small costs in moving in/out of ETFs
To keep costs down, it looks like VWRP is the one to drop my money into but am I missing something??
Looking at the SIPP, which is worth £400,000 if I look to invest in FTSE All-World UCITS ETF (VWRP) it shows annual service fees of £90. Whereas if I were to invest in FTSE Global All Cap Index Fund (VAFTGAG) the fees rise to £800.
I think both VWRP and VAFTGAG are similar but one is a fund and the other a ETF?
I plan on leaving the products invested and not chopping and changing regularly so have ignored small costs in moving in/out of ETFs
To keep costs down, it looks like VWRP is the one to drop my money into but am I missing something??
FTSE Global All Cap is more diversified and it's a fund so it's forward dealing and not "tradable) v VWRP which is an ETF and is tradable in Market hours.
Most platforms will only let you buy whole units of ETFs whilst you can buy an amount of a fund.
As you've discovered for reasons that make no sense (to me) some platforms will have totally different platform fees for ETFs and shares than they do for OEICs (funds).
Fidelity is such a platform.
Most platforms will only let you buy whole units of ETFs whilst you can buy an amount of a fund.
As you've discovered for reasons that make no sense (to me) some platforms will have totally different platform fees for ETFs and shares than they do for OEICs (funds).
Fidelity is such a platform.
I use Fidelity for my SIPP and ISA, all invested in ETF's to take advantage of the lower fees.
It is somewhat of a minor hindrance as (IMO) OEIC funds offer a broader range especially 'one and done' multi asset funds which would save me the hassle/faff of having to use multiple ETF's to reach desired allocations in my ISA. Less of an issue in SIPP (100% equities) and on larger value investments you potentially save hundreds of not 000's in fees.
VWRP is a solid/well established ETF. There are also FWRG and SPDR ACWI for consideration (cheaper than VWRP but not to say any better, just different options..also noting you may pay higher spreads on these Vs VWRP)
It is somewhat of a minor hindrance as (IMO) OEIC funds offer a broader range especially 'one and done' multi asset funds which would save me the hassle/faff of having to use multiple ETF's to reach desired allocations in my ISA. Less of an issue in SIPP (100% equities) and on larger value investments you potentially save hundreds of not 000's in fees.
VWRP is a solid/well established ETF. There are also FWRG and SPDR ACWI for consideration (cheaper than VWRP but not to say any better, just different options..also noting you may pay higher spreads on these Vs VWRP)
Edited by VR99 on Friday 9th January 10:51
hab1966 said:
I think both VWRP and VAFTGAG are similar but one is a fund and the other a ETF?
Yes. It's in the product names, and Fidelity charge funds and ETFs differently. ETFs are cheaper and can be traded instantly, like shares. However the choice isn't as great.hab1966 said:
To keep costs down, it looks like VWRP is the one to drop my money into but am I missing something??
No doubt the products do slightly different things so will perform slightly differently. The question is whether the fund will do better and so cover the additional fee.hab1966 said:
So holding either VWRP or VAFTGAG in a pension or ISA doesn't pose any problems tax wise if i change what i hold in?
Not as far as I'm aware.Mr Pointy said:
If you're planning on holding two Vanguard funds why don't you open a Vanguard account?
He may want the option of holding non-Vanguard products (or shares) in the future.hab1966 said:
Thanks for the answer.
So holding either VWRP or VAFTGAG in a pension or ISA doesn't pose any problems tax wise if i change what i hold in?
Nope.So holding either VWRP or VAFTGAG in a pension or ISA doesn't pose any problems tax wise if i change what i hold in?
ISA is the wrapper - long as it's in that the tax treatment is the same.
This is why you really need to shop around/compare platforms for your specific personal requirement - two people can use the same platform and pay wildly different amounts in platform fees just because of what they hold or how often they trade etc.
It's mad but it's just how it is.
Re Fidelity itself my wife had the worst service possible when trying to sell various funds and needed to make 4 separate calls for 4 funds.
Took 2 days to accomplish and the individual concerned was immensely rude.
Obviously she complained and was compensated for any fund “ loss “ plus a further £175.
I also cancelled our other accounts with them.
Could well have been a one off and a shame as the returns had been acceptable but even Fidelity admitted this was appalling !
Took 2 days to accomplish and the individual concerned was immensely rude.
Obviously she complained and was compensated for any fund “ loss “ plus a further £175.
I also cancelled our other accounts with them.
Could well have been a one off and a shame as the returns had been acceptable but even Fidelity admitted this was appalling !
alscar said:
Re Fidelity itself my wife had the worst service possible when trying to sell various funds and needed to make 4 separate calls for 4 funds...
FWIW my experience has been exactly the opposite, and I use them a lot. Buying/selling is online (though I believe they offer phone trading), but if there's something I don't understand I ring up and they talk me through it, no problem. Overall I find the service excellent; that and the product choice (3,000+) is why I use them. A friend who has only about £30K with them has no difficulty either.Note - it can take several days to completely sell a fund due to forward pricing and 'settling', that's just the way of funds. But it's still just one instruction.
Simpo Two said:
FWIW my experience has been exactly the opposite, and I use them a lot. Buying/selling is online (though I believe they offer phone trading), but if there's something I don't understand I ring up and they talk me through it, no problem. Overall I find the service excellent; that and the product choice (3,000+) is why I use them. A friend who has only about £30K with them has no difficulty either.
Note - it can take several days to completely sell a fund due to forward pricing and 'settling', that's just the way of funds. But it's still just one instruction.
It was the phone trading she did and still took 4 separate calls and instructions which is obviously not right and which Fidelity themselves agreed with her. Note - it can take several days to completely sell a fund due to forward pricing and 'settling', that's just the way of funds. But it's still just one instruction.
It was “only “ about £ 80k in totality but that’s not the point either.
Glad they are good for you.
butchstewie said:
FTSE Global All Cap is more diversified and it's a fund so it's forward dealing and not "tradable) v VWRP which is an ETF and is tradable in Market hours.
Most platforms will only let you buy whole units of ETFs whilst you can buy an amount of a fund.
As you've discovered for reasons that make no sense (to me) some platforms will have totally different platform fees for ETFs and shares than they do for OEICs (funds).
Fidelity is such a platform.
The fund fee on VWRP is cheaper than FTSE Global All Cap (VAFTGAG) at 0.19% vs 0.23% per year. That's the price you pay for additional diversification (VWRP holds 3,657 companies vs. 7,113 for VAFTGAG).Most platforms will only let you buy whole units of ETFs whilst you can buy an amount of a fund.
As you've discovered for reasons that make no sense (to me) some platforms will have totally different platform fees for ETFs and shares than they do for OEICs (funds).
Fidelity is such a platform.
The difference is that VAFTGAG holds small companies which VWRP doesn't. As a result it it's slightly less exposed to the tech sector. For example, VAFTGAG holds 3.94% Nvidia compared to VWRP at 4.34%.
The differences make next to no difference from a fund performance perspective:
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