hazellend
Member of DD Central
Posts: 2,361 
Likes: 2,179
|
Post by hazellend on Oct 9, 2021 10:26:03 GMT
That depends on the time frame. Get the timing wrong and it can take years to recover your losses. In the long run though you are correct, but you know what Keynes said about the long run.
I'm assuming we're talking about passive index funds for this Vanguard ISA, what are the fund charges, 0.2% pa ? For an extra 0.4% pa, you can buy a knowledgeable Baillie Gifford active Fund manager or multiple managers and a huge selection of funds and investment trusts covering every sector and geographical area. Just saying, compare the last 5 years performance records.
Unfortunately past performance has been shown to have zero predictive value of future performance, actually it seems to be inversely correlated.
|
|
|
|
Post by overthehill on Oct 9, 2021 10:34:22 GMT
I'm assuming we're talking about passive index funds for this Vanguard ISA, what are the fund charges, 0.2% pa ? For an extra 0.4% pa, you can buy a knowledgeable Baillie Gifford active Fund manager or multiple managers and a huge selection of funds and investment trusts covering every sector and geographical area. Just saying, compare the last 5 years performance records.
Unfortunately past performance has been shown to have zero predictive value of future performance, actually it seems to be inversely correlated. Past performance of what, could you be any more vague ? You're missing the point, if all the stock markets tank over the next 5 years, Vanguard funds are guaranteed by their very nature to tank. I 'll side with a company who has been in the business for 113 years.
|
|
hazellend
Member of DD Central
Posts: 2,361
Likes: 2,179
|
Post by hazellend on Oct 9, 2021 11:35:36 GMT
Unfortunately past performance has been shown to have zero predictive value of future performance, actually it seems to be inversely correlated. Past performance of what, could you be any more vague ? You're missing the point, if all the stock markets tank over the next 5 years, Vanguard funds are guaranteed by their very nature to tank. I 'll side with a company who has been in the business for 113 years.
Over any time frame really. I think the most famous one is an American fund that massively outperformed for more than 10 years then ended up underperforming ever since over anytime frame beyond that. They gave up all their gains and more. Again the evidence shows that active funds tend to underperform in downturns as well as upturns. I’m not saying ballie Gifford aren’t good funds.
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Oct 9, 2021 11:46:41 GMT
I'm assuming we're talking about passive index funds for this Vanguard ISA, what are the fund charges, 0.2% pa ? For an extra 0.4% pa, you can buy a knowledgeable Baillie Gifford active Fund manager or multiple managers and a huge selection of funds and investment trusts covering every sector and geographical area. Just saying, compare the last 5 years performance records.
Unfortunately past performance has been shown to have zero predictive value of future performance, actually it seems to be inversely correlated. This sentence is contradictory. If there is a correlation there is a level of predictability.
|
|
hazellend
Member of DD Central
Posts: 2,361
Likes: 2,179
|
Post by hazellend on Oct 9, 2021 12:41:06 GMT
Unfortunately past performance has been shown to have zero predictive value of future performance, actually it seems to be inversely correlated. This sentence is contradictory. If there is a correlation there is a level of predictability. Good point. I think the evidence shows that lady returns are inversely correlated with future returns
|
|
drgonzo
Member of DD Central
Posts: 82
Likes: 95
|
Post by drgonzo on Oct 9, 2021 12:54:24 GMT
I've done quite a few ISA transfers in to Vanguard from different sources and they've always been dealt with quickly. The fact that they don't allow partial transfers from cash/P2P ISA's is annoying and so requires a bit of juggling of funds if you don't want to (or in the case of most P2P accounts, can't) do a full balance transfer.
It's worth noting that the Vanguard ISA is flexible (unlike most other S&S ISA's), so if you do end up transferring in more than you immediately want to invest then you can withdraw and add it back gradually. In fact it's best to only hold uninvested cash there short term, as all funds on the platform incur the 0.15% platform fee, so there's no point paying that on a big chunk of cash.
|
|
alanh
Posts: 556
Likes: 560
|
Post by alanh on Oct 9, 2021 17:27:42 GMT
I recently opened a Vanguard S&S ISA with the intention of transferring £10k from my long-running Cash ISA. I was surprised to find that Vanguard requires the source ISA to be transferred in its entirety. Only an idiot would dump 10 years worth of accumulated cash savings on the stock market all at once. Also, it took 2 months to tell me I can't do what I want to do. One solution might be to open a Cash ISA with someone who will accept the £10k then transfer that to Vanguard, but it's a bit of a faff and not very fair on the third party provider I'm abusing. I checked the T&Cs, but it's not exactly flashing warnings at you. Ah yes I remember this problem from many moons ago when doing a partial transfer from a P2P ISA. My solution was relatively simple as I also have an account with Hargreaves Lansdown. I did a partial cash transfer into an S&S ISA at HL and as soon as it arrived I transferred the cash to an S&S ISA at Vanguard. As you say its a bit of a faff, and as for "abusing" HL, I really couldn't give a toss. Its all a bit strange really as Vanguard have no problems accepting partial transfers from other S&S ISA's, so why the issue with cash ISA's and P2P Isa's?
|
|
alanh
Posts: 556
Likes: 560
|
Post by alanh on Oct 9, 2021 17:30:17 GMT
I recently opened a Vanguard S&S ISA with the intention of transferring £10k from my long-running Cash ISA. I was surprised to find that Vanguard requires the source ISA to be transferred in its entirety. Only an idiot would dump 10 years worth of accumulated cash savings on the stock market all at once. Also, it took 2 months to tell me I can't do what I want to do. One solution might be to open a Cash ISA with someone who will accept the £10k then transfer that to Vanguard, but it's a bit of a faff and not very fair on the third party provider I'm abusing. I checked the T&Cs, but it's not exactly flashing warnings at you. Ah yes I remember this problem from many moons ago when doing a partial transfer from a P2P ISA. My solution was relatively simple as I also have an account with Hargreaves Lansdown. I did a partial cash transfer into an S&S ISA at HL and as soon as it arrived I transferred the cash to an S&S ISA at Vanguard. As you say its a bit of a faff, and as for "abusing" HL, I really couldn't give a toss. Its all a bit strange really as Vanguard have no problems accepting partial transfers from other S&S ISA's, so why the issue with cash ISA's and P2P Isa's? oh, and I forgot to mention - if you want to get invested fairly quickly you can buy whatever Vanguard fund you are interested in on the HL platform once that part of the transfer is done, and then transfer that (as opposed to the cash) to Vanguard
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on Oct 9, 2021 19:51:38 GMT
If you transfer a fund in specie instead of cash, check that they don't charge for it.
|
|
|
|
Post by Ace on Oct 10, 2021 8:57:58 GMT
Another option would be to transfer the whole ISA to Vanguard then do a partial transfer of the extra cash out to somewhere else. That way you wouldn't be abusing another organisation. Vanguard definitely do do partial transfers out. At least they did last year when I did one. They were very slow though.
|
|
travolta
Member of DD Central
Posts: 1,459
Likes: 1,167
|
Post by travolta on Oct 10, 2021 15:51:58 GMT
I find Vanguard slow and a bit of a faff to move money in and out .
Drip feeding ( and opportune removing) has made me 37%, but you have to be very hands on, instantly remove idle cash or charges mount.
What they really want is for you to drop £40,000 plus,all at once and leave them to play with it. On past performance,I will not do this as I haven't 15 years to wait for their promised gains.
|
|
adrianc
Member of DD Central
Posts: 9,012
Likes: 4,824
|
Post by adrianc on Oct 12, 2021 6:42:16 GMT
If going direct to Vanguard is a PITA, why not move the money onto a platform that includes Vanguard funds, such as II?
|
|
trium
Member of DD Central
Posts: 380
Likes: 298
|
Post by trium on Oct 13, 2021 9:51:49 GMT
Vanguard have now dealt with my grievance. Essentially, I failed to understand their T&Cs and, unsurprisingly, they are not upholding the complaint.
|
|
