Managed Funds Vanguard Retail VS ETF

Discussion in 'Shares & Funds' started by KJB, 29th Oct, 2016.

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  1. KJB

    KJB Well-Known Member

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    Just trying to get my head around total fees involved with these 2 products

    Assuming I want to Dollar cost average and contribute $750 fortnightly to a fund

    VAS (.14%) vs VAN0010AU Retail fund (.75%)

    (e trade Brokerage costs $19.95) vs bid/ask 0.1%

    How do I figure out which is better over the long term? is there a online calculator someone could recommend?

    The obvious pros for VAS are the low annual fee but the broker cost add up to $518.7 per year

    Where the opposite is for the retail fund (higher annual fee) but under $20 for the years investments

    My first thought it to go with VAS as the low annual benefits will get larger as my asset base does and overtime overtake the difference the retail would be of been ahead in the first Cpl of years.

    Also I could start much sooner with much less as opposed to the $5000min for the retail fund. Additionally if I went with monthly instalments I could halve the fees..?

    I think I might of just answered my own question hahaha

    Any thoughts ?

    Cheers

    Kayne
     
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  2. Hodor

    Hodor Well-Known Member

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    I would go ETFs over the retail for long term, the fees will add up over 20 years. I would consider quarterly purchases to really cut brokerage, though I might start monthly just to get started.

    With some of the retail funds you really can set and forget with regular bpay and get better diversification if that's your aim.

    Disclaimer I use ETFs and LICs
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    i went retail ( on-market ) buying

    i wanted control and flexibility , i stopped buying VAS ( but still use the DRP ) in late 2011 .

    but buy differnt flavors of LICs and ETFs to tweak the portfolio growth as i see best
    for example ,
    lately i have been buying HVST

    ( unofficially ) from Yahoo!7

    Top 10 Holdings (99.99% of Total Assets)
    Company Symbol % Assets
    Vanguard Australian Shares ETF N/A 64.15
    Macquarie Group Ltd MCQEF.AX 9.04
    Australia and New Zealand Banking Group Ltd ANEWF.AX 9.02
    National Australia Bank Ltd NAUBF.AX 8.96
    Westpac Banking Corp WEBNF.AX 8.82




    i hold MQG, VAS and WBC ( in order of $value NOT $$ at risk )

    taking advantage of cheap NAB and ANZ current valuations

    ( HVST pays monthly divs and DRP .... compounding on steroids but at extra costs )


    VAS , MQG ,WBC and HVST are all DRPed ( so far ),

    i do invest in fixed interest/variable rate , bonds , notes and hybrids but it is hard to replace redeemed ones with suitable quality replacements ( also i was hoping for a GFC-like crash by now )
     
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  4. twisted strategies

    twisted strategies Well-Known Member

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    Vanguard Index Australian Shares Fund
    COSTS

    First $50,000

    0.75% p.a.
    Next $50,000

    0.50% p.a.
    Balance over $100,000

    0.35% p.a.
    Buy / Sell spread cost

    0.10% / 0.10%
    FEES


      • Establishment fee: Nil
      • Application/contribution fee: Nil
      • Withdrawal fee: Nil
      • Termination fee: Nil
      • Switching fee: Nil
    KEY FUND FACTS


      • Benchmark: S&P/ASX 300 Index
      • Asset Class: Australian Shares
      • Domicile: Australia
      • Distribution frequency: Semi-Annually
      • Fund inception: 26 Oct 1998
      • AUM: $478.8 Million as at 30 Sep 2016
      • Access to funds: Withdrawals are normally paid within three business days
      • Underlying fund: Vanguard Index Australian Shares Fund All
      • Underlying fund commencement date: 30 Jun 1997
      • Total AUM: $9.57 Billion as at 30 Sep 2016
    MINIMUM INVESTMENT AMOUNT


      • Initial investment: $5,000
      • Minimum account balance: $3,000
      • Minimum withdrawal or switch:$1,000
    ADDITIONAL INVESTMENT


      • Cheque: $1,000
      • BPAY: $100
    FUND CODES


      • APIR: VAN0010AU
      • ARSN code: 090 995 770

    sorry folks tried to put a comparison of portfolio holdings

    between this and VAS ( the ETF )

    the IMPORTANT difference for me is VAS pays 3 monthly and this pays 6 monthly ( this is where the calculator is your friend )



    VAS ( ETF )

    PRICES
    Estimated Intraday NAV (AUD)
    As Of 28 Oct 2016 17:00

    $67.22
    iNAV code (IRESS):VASINAV.ETF

    NAV Price (AUD)
    FINAL as of 28 Oct 2016

    $67.23
    COSTS
    Management costs

    0.14% p.a.
    KEY FUND FACTS


      • Benchmark: S&P/ASX 300 Index
      • Asset Class: Australian Shares
      • Domicile: Australia
      • Distribution frequency: Quarterly
      • Fund inception: 04 May 2009
      • ETF AUM: $1.72 Billion as at 30 Sep 2016
      • Underlying fund: Vanguard Australian Shares Index Fund
      • Underlying fund commencement date: 30 Jun 1997
      • Total AUM: $9.57 Billion as at 30 Sep 2016
    FUND CODES


      • ISIN: AU000000VAS1
      • ASX: VAS
    CURRENCIES & EXCHANGES


      • Listed currencies: AUD
      • Base currency: AUD
      • Exchange: ASX Limited
    looks like i caught the correct horse ( for me ) after all .


    VAS ( according to Yahoo!7 )

    Overall Portfolio Composition (%)
    Stocks: 99.32
    Bonds: 0.00
    Top 10 Holdings (45.59% of Total Assets)
    Company Symbol % Assets
    Commonwealth Bank of Australia CBAUF.AX 8.46
    Westpac Banking Corp WEBNF.AX 6.73
    Australia and New Zealand Banking Group Ltd ANEWF.AX 5.51
    National Australia Bank Ltd NAUBF.AX 5.04
    BHP Billiton Ltd BHPLF.AX 4.90
    Telstra Corp Ltd TTRAF.AX 4.31
    Wesfarmers N/A 3.38
    CSL Ltd CMXHF.AX 3.33
    Woolworths Ltd WOLWF.AX 2.03
    Macquarie Group Ltd MCQEF.AX 1.90

    (DYOR)
     
    Last edited by a moderator: 1st Nov, 2016
  5. PeterT

    PeterT Active Member

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    Kayne, If you are starting from zero, and planning to put in $750 a fortnight, you are right that the brokerage fees on such small transactions, as a percentage of the amount you invest, will sting. In order to get your savings to work as soon as possible, why not use something like Acorns as a vehicle to accumulate your money in? The most aggressive of the 5 portfolios is 54% Aussie large cap stocks, if you are particularly interested in investing in Aus equities. Accumulate within Acorns until you have a decent chunk, say at least $5k, which you can then withdraw and re-invest in VAS (or whatever your choice of ETF), without getting whacked quite so hard on the brokerage. Acorns has a monthly fee, but you can deposit and withdraw as often as you like at no charge. Just a thought.
     
    Last edited by a moderator: 2nd Nov, 2016
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  6. Hodor

    Hodor Well-Known Member

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    Interesting I had never heard of or looked at Acorns before.

    The buy/sell spreads can be up to 0.5% or 1% to buy and sell - I haven't looked at what they are actually likely to be.

    You will have to deal with capital gains or losses to exit your acorn and enter your chosen ETFs if that is your plan.

    The asset allocation is interesting too, not sure if they would be to everyone's taste.

    At a glance a reasonable product that would be useful for many people.
     
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  7. twisted strategies

    twisted strategies Well-Known Member

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    i am making a wild assumption that Acorn's = Acorn Capital Investment Fund Ltd (ACQ.ASX)

    Acorn Capital Investment Fund Limited is an open ended equity mutual fund launched and managed by Acorn Capital Limited. The fund invests in public equity markets of Australia. ( but can go outside ASX listed investments )
    ( please correct me if i am wrong )

    i also look at BAF which takes that mandate a little further , into water assets and physical property

    i hold neither ACQ nor BAF but acknowledge a time when a future re-assessment will be wise ( trying to spread risk away from listed equity )

    ( DYOR)
     
  8. Hodor

    Hodor Well-Known Member

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    A little too wild, check this

    Acorns Australia

    Basically a cheap way to set up a small diversified portfolio. Can start in equities with only $5.
     
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  9. twisted strategies

    twisted strategies Well-Known Member

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    thank you for the correction ( enlightenment )

    i wasn't aware of this product(s ) and would hope it is responsibly marketed ( rather than aggressively marketed )

    some facets of this ( like a pre-selected mix of ETFs ) are unattractive to me , and could see an unsophisticated investor (in the naive sense ) having some comprehension issues .

    i definitely prefer a more 'hands-on' approach , maybe because of the eye-raising moves of my former super-fund ( was really happy to cash out of that )

    it will suit some though ( the research time poor for example )
     
  10. Heinz57__

    Heinz57__ New Member

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    I had heard of this in the USA, was unaware it existed here, thank you.
     
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  11. sfdoddsy

    sfdoddsy Well-Known Member

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    Have you considered opening a Vanguard Personal Investor account?

    There is a .2% yearly fee, but you get access to the wholesale Vanguard fund rate (.16% in the case of the VAS equivalent, instead of .75% for the retail) and if you have a big portfolio it is capped.

    They also give you free brokerage if you buy a Vanguard ETF.
     
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