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Index funds and Degiro

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  • 01-07-2020 8:05pm
    #1
    Curious Geroge
    Registered Users Posts: 1,013 ✭✭✭


    Looking to invest in a few index funds (S&P, Vanguard) and wondered if doing is suitable on degiro or should I approach a broker?


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    #2
    iAcesHigh
    Registered Users Posts: 447 ✭✭iAcesHigh


    Curious Geroge wrote: »
    Looking to invest in a few index funds (S&P, Vanguard) and wondered if doing is suitable on degiro or should I approach a broker?

    Degiro is a brokerage and completely fine for that, as long as you're aware of tax implications for ETFs in Ireland (kind of a broken record on this forum already)

    Good place to start HERE


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    #3
    Curious Geroge
    Registered Users Posts: 1,013 ✭✭✭Curious Geroge


    How does the ETF different from a BOI evergreen fund for example.
    Would the same capital gains not be applicable - with similar returns I'd prefer to take a less hassle approach

    The index fund I was looking at with Degiro was the VANGUARD S&P500
    https://www.vanguard.nl/portal/site/loadPDF?country=nl&docId=6017

    The BOI evergreen fund
    https://fundcentre.bankofireland.com/#factsheet/f-546-null/


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    #4
    iAcesHigh
    Registered Users Posts: 447 ✭✭iAcesHigh


    Curious Geroge wrote: »
    How does the ETF different from a BOI evergreen fund for example.
    Would the same capital gains not be applicable - with similar returns I'd prefer to take a less hassle approach

    The index fund I was looking at with Degiro was the VANGUARD S&P500
    https://www.vanguard.nl/portal/site/loadPDF?country=nl&docId=6017

    The BOI evergreen fund
    https://fundcentre.bankofireland.com/#factsheet/f-546-null/

    I'll leave somebody else to advise you on tax on mutual fund as I was never really into them, but beware that mutual fund has much higher, on average, fees than average ETF so it's a fine line between choosing bigger/more complicated ETFs when it comes to tax filing compared to mutual fund with probably less tax hassle (not sure, but presume so), but arguably smaller (if any) gains.


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    #5
    Shedite27
    Registered Users Posts: 9,364 ✭✭✭Shedite27


    Curious Geroge wrote: »
    How does the ETF different from a BOI evergreen fund for example.
    Would the same capital gains not be applicable - with similar returns I'd prefer to take a less hassle approach

    The index fund I was looking at with Degiro was the VANGUARD S&P500
    https://www.vanguard.nl/portal/site/loadPDF?country=nl&docId=6017

    The BOI evergreen fund
    https://fundcentre.bankofireland.com/#factsheet/f-546-null/
    Similar Performance? If you'd invested 10k in both those funds 5 years ago you'd now have 11,500 (15% profit with BOI) and 15,000 (50% profit) with Vanguard.

    Tax would be similar, though admittedly that's not my forte.

    Savings charges with BOI are about 1.5% per annum, and then there's a 1% levy if you go through New Ireland (BOI subsidiary). Degiro avoids that, Vangaurd charge should be about 0.2%.

    In my experience, going through a cpmpany adds charges, that most people can do themselves to avoid. Those charges add up over time to have quite different returns.


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    #6
    Jim2007
    Moderators, Business & Finance Moderators Posts: 9,988 Mod ✭✭✭✭Jim2007


    Shedite27 wrote: »
    In my experience, going through a cpmpany adds charges, that most people can do themselves to avoid. Those charges add up over time to have quite different returns.

    On the other hand if you had a decent fund manager and invested 10k with them...

    investment.png

    Sometimes it is worth paying a bit extra. Fundsmith.


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    #7
    Saudades
    Registered Users Posts: 378 ✭✭Saudades


    Is there a specific reason why Irish residents can't invest in Vanguard funds directly through Vanguard?

    Ireland missing from the list here - https://global.vanguard.com/portal/site/home

    Seems rather odd considering the funds are domiciled here.


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