Invest in passive fund which tracks S&P500, at lowest cost

banchang · 14-11-2018 2:22am #1

Looking to invest in a fund which tracks S&P500. Purely passive.

Has anyone prepared a list of such funds available in Ireland & their associated costs ? I understand that costs decrease the more you are prepared to put in, especially if talking to Irish banks & investment houses, but either way their charges of 0.7-1.0 are still ridiculously high for a passive investment.

Thoughts appreciated.

simongurnick · 14-11-2018 3:02am

Trade SPY. Basically an etf so expense ratio is low. I don't live in Ireland anymore so not sure if you can do this...but if you can open a self directed account with one of the US firms like ameritraDE you will only pay about 8 usd to buy or sell

heffo500 · 14-11-2018 10:32am

Hi

I would open a Custody Degiro account and purchase either of the below:

https://etf.invesco.com/gb/private/en/product/invesco-sp-500-ucits-etf-acc/performance

https://www.ishares.com/uk/individual/en/products/253743/ishares-sp-500-b-ucits-etf-acc-fund

Both are traded on the LSE.

I think the Invesco fee is 0.05% and the iShares is 0.07%.

They are both accumulating so all dividends are reinvested.

I would go for the Invesco ETF as the fee is lower.

banchang · 14-11-2018 11:23pm

heffo500 wrote: »

Hi

I would open a Custody Degiro account and purchase either of the below:

https://etf.invesco.com/gb/private/en/product/invesco-sp-500-ucits-etf-acc/performance

https://www.ishares.com/uk/individual/en/products/253743/ishares-sp-500-b-ucits-etf-acc-fund

Both are traded on the LSE.

I think the Invesco fee is 0.05% and the iShares is 0.07%

They are both accumulating so all dividends are reinvested.

I would go for the Invesco ETF as the fee is lower.

Thanks for prompt reply.

1. Why a custody account in DeGiro ?

2. Cursory review of the Invesco shows a mix of German & Dutch stock, along with no Apple Inc ? Any idea why ?

3. Looking though the backup for Invesco, they talk of swaps etc used to manage the fund which may attract charges. I'm looking for a plain vanilla fund which simply tracks S&P500, with no bells & whistles or extraneous exposures. Thoughts ?

heffo500 · 15-11-2018 10:46am

To answer why a custody see below:

Custody
A Custody profile is different from a Basic profile in that the securities are held separately from the lending pool of DEGIRO clients’ securities and are thus unable to be loaned to third parties. Debit Money, Debit Securities, and Derivative trading is not available with a Custody profile and you cannot change to an Active, Trader, or Day Trader account. A Custody Profile has different conditions and fees. However you will still benefit from our low transaction costs and save money through trading with DEGIRO.

Basically with a normal account Degiro can lend out your securities and make a return on them.

Looking at the Invesco Fund you are right it does seem to hold European equities per the website perhaps contact them and ask is it correct as it does seem odd. If not go for the iShares fund.

banchang · 15-11-2018 8:09pm

heffo500 wrote: »

To answer why a custody see below:

Custody
A Custody profile is different from a Basic profile in that the securities are held separately from the lending pool of DEGIRO clients’ securities and are thus unable to be loaned to third parties. Debit Money, Debit Securities, and Derivative trading is not available with a Custody profile and you cannot change to an Active, Trader, or Day Trader account. A Custody Profile has different conditions and fees. However you will still benefit from our low transaction costs and save money through trading with DEGIRO.

Basically with a normal account Degiro can lend out your securities and make a return on them.

Looking at the Invesco Fund you are right it does seem to hold European equities per the website perhaps contact them and as is it correct as it does seem odd. If not go for the iShares fund.

Thanks for reply.

Is there any reason why I cannot deal direct with Invesco Ireland, & not through DeGiro ? They are regulated by the Central Bank here. Rates would be the same ?

heffo500 · 15-11-2018 8:13pm

banchang wrote: »

Thanks for reply.

Is there any reason why I cannot deal direct with Invesco Ireland, & not through DeGiro ? They are regulated by the Central Bank here. Rates would be the same ?

The Ishares and Invesco funds I mentioned are Exchange Traded Funds which are traded on the London Stock Exchange therefore you need to need to place your trade through a broker, I suggested DeGiro as they are the cheapest online broker I know off.

heffo500 · 15-11-2018 8:14pm

heffo500 wrote: »

The Ishares and Invesco funds I mentioned are Exchange Traded Funds which are traded on the London Stock Exchange therefore you need to need to place your trade through a broker, I suggested DeGiro as they are the cheapest online broker I know off.

To clarify they are traded on more than the London Stock Exchange, the website should explain where they are listed.

heffo500 · 27-11-2018 10:08am

Did you invest yet?

banchang · 27-11-2018 6:54pm

No still researching what's best.

Naos · 02-12-2018 1:28am

I thought you cannot buy ETFs through Degiro?

heffo500 · 03-12-2018 12:22pm

Naos wrote: »

I thought you cannot buy ETFs through Degiro?

You can.

Invest in passive fund which tracks S&P500, at lowest cost

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