ETF Exchange Traded Funds (ETFs) 2021

Ah,yes I understand. So he should start a new thread then.

 

I see vanguard have scrapped the cash account fee of .20% for the personal investor platform and have cut brokerage to $9 per etf trade. Managed fund passive route could be an option for the behavioural challengened investor who is prone to tinkering.

 

@pippen

I saw that a few days ago, still not well received by some who use it though (i.e. no DRP)

https://www.vanguard.com.au/personal/en/our-fees/our-fees-tab-17-august-tab



$500 minimum investment amount

 

No drp, thats interesting I always thought they had drp??? Just the automatic bpay option isn't available I thought on this platform???

 

This seems good though, so if I buy VAS I pay $9/trade (wonder if any restriction on amount) whereas with Commsec I would need to pay minimum $20.

 

https://www.vanguard.com.au/personal/en/faq-details/can-i-set-up-dividend-reinvestments

Exchange traded funds
Distributions from exchange traded funds are paid into your Vanguard Cash Account. These can be used to buy additional units in the same funds or other securities available on the Vanguard Personal Investor platform. We are working towards offering the ability to reinvest these payments.

ASX shares
Dividends from ASX shares are paid into your Vanguard Cash Account. These can be used to buy additional shares or other securities available on the Vanguard Personal Investor platform.

**currently .... who know's, may change in the future

 

@pippen

Also looks like only Vanguard ETF's available (no competitors ETF's) and 275 odd ASX top shares

Product doc

 

@Redwing lots of unhappy investors jumping ship to self wealth as it's CHESS supported and on the forums lots of anger aimed towards vanguard. Will be interesting to see how it pans out.

 

is this all part of a changeup leading into launching their super product at the end of the year?

 

I don't believe they are CHESS supported tho, you could go self wealth route at $9.50 flat fee trade and is CHESS supported, better savings than commsec anyway

 

Not a good start then

 

@Anne11, was curious so gave vanguard a call, $9 dollar flat fee for vanguard etfs regardless of amount invested as long as above $500 minimum, no drp tho on etfs????? However on self wealth people have reported issues that when they sell they don't have the option to specify which parcel they want to sell. Decisions decisions! I still agree the unlisted fund would solve alot of people's behavioural issues in relation to timing the market, they have drp also bpay and direct debit, and the AMIT scheme would help unit holders. @Nodrog has mentioned this for a couple years now too!!!

 

I asked mainly for my daughter who is ready to invest. So it’s perhaps a good option.

I would prefer the managed fund path to avoid the failed attempt to time the market.

 

Thanks @pippen for checking it out. What does it mean no chess supported?

 

In my simple terms CHESS means you hold the shares directly with allocated HIN number whilst with no CHESS like some online brokers and vanguard they are custodians and they hold the shares on your behalf if they go under could be an issue in getting the shares. Other users can correct me!!!

 

Are you able to elaborate what you mean by above statement? I have never seen any platform allowing you to select which parcel you sell. It's upto you to keep track of which ones you sold and the tax implications for it.

Cheers,
Oracle.

 

I have never sold a share so it was on a forum I believe a poster mentioned they has issues trying to pinpoint how to sell off parcel if it wasfirst in first out or last in first out. but I agree tax office and tax time should sort that out.

 

I've only ever used Self Wealth so could be way off base here but I thought it only "nominally" mattered to the Tax department which parcel of shares was sold in order to calculate CGT and didn't really matter in reality what shares actually change hands so no need to notify the Broker.

 

Newbie question here. I have only ever purchased the vanguard index funds via the BT platform with the wholesale option. I am about to start using Self wealth to purchase VAS & VGS the ETF versions. Can you opt for DRP when buying the ETF's via self wealth? If so does using DRP have any advantages over collecting the distribution and just purchasing additional shares yourself such as discounted share price for DRP or saving the brokerage fee compared to buying yourself I guess?

 

@Big A if I remember correctly when you make your initial purchase you will need to sign up for their management system (computershare) and select how you want to receive distributions. The benefit to DRP in the ETFs is no brokerage, don’t think they can offer any sort of discount.