Cheapest way to buy ETFs

padser

Hi,

I'm looking to try and figure out the cheapest way to get some money into ETFs. Probably something like 4 to 8 funds at about €10k each.

Rabo direct will let you into etf funds from blackrock. It's 0.75% to get in, 0.75% to get out and 0.45 to 0.55% annually.

Mgt fee seems fine, but 1.5% to Rabo for getting the money into and out of the fund seems high. Realistically I'd expect to have a 2-4 yr time horizon to take money back out.

Anyone know of a cheaper way to get into ETFs?

Frogdog

Surely you could contact Vanguard or Blackrock directly to find out how? Even some of the Irish stockbrokers?

spear_mint

padser wrote: »

Hi,

I'm looking to try and figure out the cheapest way to get some money into ETFs. Probably something like 4 to 8 funds at about €10k each.

Rabo direct will let you into etf funds from blackrock. It's 0.75% to get in, 0.75% to get out and 0.45 to 0.55% annually.

Mgt fee seems fine, but 1.5% to Rabo for getting the money into and out of the fund seems high. Realistically I'd expect to have a 2-4 yr time horizon to take money back out.

Anyone know of a cheaper way to get into ETFs?

open an account with a broker , those funds rabbo are flogging are not etf,s , etf fees are a fraction of those costs

padser

spear_mint wrote: »

open an account with a broker , those funds rabbo are flogging are not etf,s , etf fees are a fraction of those costs

Thanks. Any recommendation on brokers?

spear_mint

padser wrote: »

Thanks. Any recommendation on brokers?

im with saxo , very good but you will need to post ID to the uk when opening , any of the irish ones would do if you dont plan to trade often , they charge a fortune for trades compared to the big international brokers

T L

spear_mint wrote: »

im with saxo , very good but you will need to post ID to the uk when opening , any of the irish ones would do if you dont plan to trade often , they charge a fortune for trades compared to the big international brokers

You can open with Saxo completely online.

spear_mint

T L wrote: »

You can open with Saxo completely online.

well i had to post over utility bill and pass port copy etc

T L

spear_mint wrote: »

well i had to post over utility bill and pass port copy etc

You can submit both of those online.

I did it this week.

Bateman

And what are Saxo's fees in comparison with .75%?

T L

Bateman wrote: »

And what are Saxo's fees in comparison with .75%?

http://www.saxobank.com/prices/online-funds/

which redirects you to here:

http://www.saxobank.com/prices/stocks/commissions

Frogdog

Some info in today's news about Vanguard listing some Irish-domiciled ETFs on the London stock exchange - low fees:

US low-cost investment giant Vanguard has listed a further four exchange traded funds on London’s stock exchange, bringing its UK-listed ETF offering up to 13. So reports FT Adviser.

The four new Dublin-domiciled ETFs available to UK investors all track different FTSE indices.

The Vanguard FTSE 250 and Vanguard FTSE North America ETFs apply an ongoing charge of just 0.1 per cent, while the Vanguard FTSE Developed Europe ex UK carries a 0.12 per cent ongoing charge.

The fourth new product, the Vanguard FTSE Developed World, charges 0.18 per cent, according to FT Adviser.

Ken Volpert, head of investments for Europe at Vanguard, says the four new launches reflect the company’s commitment to providing a “complete, broadly diversified ETF and mutual fund lineup” for UK investors at a very low cost. So reports Investment Week.

He notes that ETFs “are coming of age in Europe as both retail and institutional investors value their low costs, liquidity and transparency”, according to FT Adviser.

Vanguard, which launched its first ETFs into Europe in 2012, says it now manages more than $10bn (€8bn) in European ETF assets.

Last month the company announced that it was slashing fees across four ETFs tracking the S&P 500, FTSE 100, FTSE Emerging Markets and FTSE Developed Europe ETFs.

Vanguard’s S&P 500 ETF, which was identified by Lipper as the best-selling ETF in Europe during the first half of 2014, has seen its ongoing charge fall from 0.09 per cent to just 0.07 per cent.

Deborah Fuhr, managing partner and co-founder of ETF consultancy ETFGI, said last month that Vanguard is set to overtake State Street as the second-largest provider of exchange traded products globally in “a matter of months”.

Vanguard is currently the third-largest ETP provider worldwide, with $414bn of assets across 109 products, according to figures from ETFGI.

Bateman

They are a big player in the US but like everyone else, will find it hard to get traction over here due to iShares hogging the market