Managed Funds vanguard australia

The new Vanguard personal platform now allows initial investment into Wholesale funds with $5000. Worth a look mate?

 

Yep, Minimum investment of $5,000

Not keen on the annual account fee of 0.2% though

 

No you are correct - that is my reading of it too. It would be completely depending on your circumstances if this fee was an issue or not. Once you are over the $300K mark 9approx) it would be capped at $600. For those popping in smaller amounts every week/fortnight/month it would be far cheaper than a retail fund (the new platform does not offer their retail finds BTW).

 

But isn't paying $600 much lower(better) that to pay $1700 for Wrap account to hold MF, ETFs and Direct Shares.

Onky difference be that in Wrap account one could hold differnt fund manager ETFs

 

Have just signed up so I can dig and delve inside the system.

 

So the new way: VAS equiv with MER of 0.16 and 0.20 per year.
Or via Selfwealth: VAS with MER of 0.10 and $9.50 per trade.

 

It's certainly not comprehensive - it offers Direct shares (ASX 300ish) and Vanguard ETF's and wholesale products but I think it does not support other ETF's (e.g. iShares, Betashares etc) but I'll check on that.

 

Just in general how ETFs charge fees?

E.g. VAS has a mgmt fee of 0.10 and one can buy on ASX via chess account: vas share price $60 and 1000 shares for $60,000 + broker fee ($25 or $10 or 19.90)

So how does vanguard charge fee of 0.10? At the time of divi or ?

 

you can also do VAS ETF Mer 0.10, $0 trade and 0.20 per year capped at $600

 

It's taken inside the ETF, not separately/directly charged to you

 

Pity they don’t offer the more popular LICs as well.

 

Hummmm.....just trying to understand.

Let's say VAS is tracking ASX300 and the share peice we see on ASX is after the 0.10% fee?

 

@Nodrog

I was thinking about you when a FA SOA mentioned to sell LICs and invest in MFs

 

Yes, just did a search on all the old LIC's - nope. But conglomerates like SOL and BKW are there.

 

I understand the fee is calculated on the daily NTA but that doesn't include any franking which is not an asset of the fund. Result is higher % franking.

Stand to be corrected on that of course which means interesting but irrelevant to me.

 

Double counting if LICs included whereas the conglomerates aren't despite having a smattering of other listed companies in them?

 

The expense is calculated and charged daily. If the MER is 0.10% then the fund's assets will be deducted by (0.1/365)% x Portfolio value.

Not sure exactly when during the day the expense is charged, but whether it's already happened or not is immaterial when looking at the live share price (0.10%/365 = 0.00027%)

 

LICs are simply “listed” managed funds. What did the FA think they are - ham sandwiches? Based on knowledge perhaps his / her title should be changed to (knows) SFA.

 

Thanks guys, so for a standard investor, it doesn't really matter for day to day but the lower the fee tge better for all!

 

Lol....my understanding is according them MF like Magellan W Infrastructure etc.

I do get your point though! Perhaps, they are restricted by the license and can recommend what is part of their research or gold level etc.