Opening a Vanguard Account (Investment Management Fee)

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Vanguard Australia

• 

  rektrading on 07/10/2021 - 21:12

  -1

  Look at the ETF allocation, pick the top 3 or 5 performers and buy the stonks directly.

  Save on fees while keeping voting power.

  • 

    dust on 08/10/2021 - 09:17

    You'll have to keep rebalancing your portfolio though if that matters to you.

• 

  Stopback on 07/10/2021 - 21:12

  Selfwealth direct

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  avoidfullprice on 07/10/2021 - 21:26

  +2

  Is this the same fee that is already baked in the daily price of the ETF

  Yes, baked in.

  Indicative as shown on https://www.vanguard.com.au/personal/products/en/overview/di…

  I don't understand why Vanguard have to highlight this as the same fee

  It is part of product disclosure, and also to inform you the overall cost of product vs the performance.

• 

  foxmulder on 08/10/2021 - 01:13

  +1

  Thinking recently about vdhg seems to be the ultimate ETFs. 8,% pa last dividend payout and 10% capital increase.

  • 

    dust on 08/10/2021 - 09:18

    DHHF has no bonds if you want a full "growth" ETF.

• 

  ronafios on 08/10/2021 - 08:23

  +1

  An alternative to the ETF if you are going to invest with Vanguard directly is to buy the managed fund version. Essentially the same makeup but without the buy/sell fees.E.g. $9 brokerage on ETF, fee free for managed fund (with minimum $500 investment).

  Vanguard International Shares Index Fund (VAN0003AU) is basically the same as Vanguard MSCI Index International Shares ETF (VGS) (identical holdings, fees and returns).

  There are some other differences, noted here. https://www.vanguard.com.au/personal/education-centre/en/ins…

  But for regular investing, to avoid the brokerage fee I'd give the managed funds a thought.

• 

  animasoIa on 08/10/2021 - 11:34

  Thanks for the responses everyone. We're contemplating on either going with SelfWealth or Vanguard as a broker, but she mostly wants a hands off approach. She doesn't want to deal with dividend payouts/reinvestments and collating transactions for tax time.

  Would Vanguard be a better broker for this scenario? Considering dividend payments are automatic to your cash account and a tax summary is available by every financial end of year.

  Will also look into managed funds as recommended, seems more fit for her than ETFs, or a combination of both.

  • 

    brad1-8tsi on 08/10/2021 - 12:46

    +1

    You get a tax summary from Vanguard no matter where you have bought through. If you have provided your TFN this information is automatically uploaded into MyGov as 4 transactions which is a pain as the statement is for the year.

    You get paid distributions, not dividends. There is a subtle difference.

    I've done managed funds and ETFs and prefer ETFs and direct shares.

    I bet she is also considering distribution reinvestment (because she's either read Barefoot Investor or FIRE strategy). I recommend DRP as it just snowballs the admin when you sell and often the distribution isn't enough to buy a single share. Save your money and buy when you have a meaningful amount to invest.

    Which ETF is she considering? I like VESG.

    • 

      animasoIa on 08/10/2021 - 13:24

      Thanks for your reply. She hasn't really read much, just that she doesn't want her money sitting in her bank account. I've been using Clover which basically just automates and flattens the fees, but ultimately just buys ETFs.

      Seeing the fees are very similar, any downsides to going with Vanguard as a broker as opposed to SelfWealth? This is mainly for purchases of ETFs, and possibly managed funds.

      • 

        brad1-8tsi on 08/10/2021 - 17:56

        You can't buy managed funds through a broker (unless you mean Listed Investment Companies?).

        I just use a normal broker. Currently with Westpac which is pretty crap (I'm too ambivalent to move elsewhere) but $20-$30 worth of brokerage shouldn't worry you in the bigger scheme of things. I probably make 10 trades a year of between $5k-$10k so $300 of brokerage is only 0.5% in fees. You are better off concerning yourself with the ongoing fee structure of the ETF/LIC and even that doesn't matter if they earn a truckload.

        Don't make the mistake of buying every time you have $1k.

        I vaguely remember reading on a FIRE forum about the cons of the Vanguard offering. Is there a yearly flat fee or something?

        • 

          animasoIa on 08/10/2021 - 22:42

          @brad1-8tsi: Based on the fees page I have posted above, doesn't seem to be any apart from the "Investment management fee" which is baked into the ETF price so nothing really specific for Vanguard. Hence why I was thinking of using them as a broker as they are basically the same as SelfWealth now with the $9 brokerage fee per trade.

        • 

          foxmulder on 08/10/2021 - 23:28

          @brad1-8tsi: Account Fees - Is this the one? From 18 August 2021, Vanguard will remove the account fee for Vanguard ETFs, Vanguard managed funds and the Cash account on the Personal Investor platform, while a $9 brokerage fee will now apply for trades of all listed investments including ETFs.

• 

  rektrading on 08/10/2021 - 11:44

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  The actively-managed fund, Volt Crypto Industry Revolution and Tech ETF, was approved on October 5.
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