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Vanguard Review

as of 06/06/2019 at 2:46 pm

Holly's View

Low-cost. Huge global player. Fair. Good choice to get started as a default option. Vanguard has an almost evangelical following from people who like the low-cost simple mantra of this firm. They offer cheap ready-made investment portfolios which are great options for many but don’t expect much help on navigating your way into them. It’s still a bit lacking in help and support but is worth a look for many. No pension yet.

Our Rating

Recommended For

Beginner Investor

Confident Investor

In a nutshell

Low cost

No access to shares

Straightforward investments

You Say

Your overall rating

Based on 29 reviews

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What to Expect

Investment Choice

Products

Stocks and Shares ISA

Junior ISA

Investment Account

Investments available

Own brand funds

Investment help

Robo advice / ready-made portfolios

The 'Geeky' Details

Provider details

Vanguard is one of the world's largest asset management groups, which recently launched Vanguard Investor so investors can buy its funds directly. There are just investments and ISAs today, however the launch of a pension is looming. You can only hold their investments – so you can’t access other fund managers or buy shares here. 
This low-cost service won’t offer research and shares, bells or whistles; but with its LifeStrategy range of funds it will manage your money in a decent portfolio, spread around lots of global investments which are picked and run for you, for around 0.48% all-in or £4.80 on a £1,000 investment.   

Important Facts & Figures

Provider Size:

New investment service from one of the world's largest asset managers.

Minimum amounts: £100 minimum monthly amount
£500 minimum initial amount
12 month indicative performance:

A medium risk fund (Vanguard LifeStrategy 60%) returned 8.6% in 2017, after charges.

Your Questions

"Hello! I'm looking to start investing and after lots of research I'm torn between Evestor and Vanguard Lifestrategy as they both have low fees and passive investing. I understand Vanguard is more established with a traditional platform, while Evestor is newer to the market with a simple easy to use platform. The entry requirements are much higher for Vanguard (£500 upfront and £100/month) while Evestor starts at £1. Is there any benefit of stretching my investment to use the Vanguard fund? Also do you know with Vanguard if I miss a monthly payment, will I be charged? I know this is possible with Evestor to stop a direct debit, however I'm not sure what the consequences (if any) would be of missing a payment with Vanguard. Many thanks, Charlie"

Charlie, UK

30/07/2019

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"Hello, I have an old company Defined Contribution (DC) pension and a Free-Standing Additional Voluntary Contribution (FSAVC) pot of £430,000. I'm 55 next month and am thinking of moving into a drawdown SIPP (Interactive Investor or AJ Bell). I am thinking of taking my 25% and leaving the rest invested until I need a regular income in my mid 60s. I want to use the lump sum to top up my earnings, as I need use up to £20,000 to change my car and new kitchen. (I have no dependants and don't need a large income) I've looked at different funds and am thinking of splitting the pot into 5 or 6 (3 equity funds - maybe Fundsmith, Vanguard LifeStrategy and one other, along with a property fund and a bond fund. I am trying to find a financial adviser who is willing to spend a few hours to review my plans to make sure I'm not making any major mistakes, and that I won't run out of money (the tools I've found online all seem to come up with slightly different results), but so far they all seem to want an ongoing relationship. Where is the best place to find an adviser who will do a one off review? (I've tried the two main recommended websites for finding an advisor) Also I want to make sure my money is as safe as possible if any of the companies/fund managers get into financial difficulty. I know the Cash protection is £85,000, but I am unsure whether the investment protection is per fund or per SIPP. Thanks"

Susan, London

16/07/2019

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"Hi! Another question for my most trusted money info site! I am thinking of setting up a SIPP. I currently have a workplace pension and a S&S ISA with Wealthify (also two previous workplace pensions, one of which was 6 years in the Met Police). I am trying to diversify my investments and spread the risk, which is what led me to thinking about a SIPP. I looked at AJ Bell. They look fine, but I'm nervous about doing my own investments, given that Wealthify does all that for me, so I don't really know where to begin. Are there SIPPs which do it for you? Or if not, should I continue investing in my previous workplace pension pot which is with Aviva? Or have I got the wrong end of the stick? Argggg, so many questions! Thanks!"

Holly, Sussex

03/07/2019

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