AJ Bell v Vanguard
6 Jan, 2022
In this series, Boring Money CEO Holly Mackay puts two popular providers up against each other.
How do they fare?
Both AJ Bell Youinvest and Vanguard are very good options for investors but I think they suit totally different needs.
AJ Bell
AJ Bell Youinvest is one of the most fairly priced investment platforms. It has a good range of shares and funds, and also offers ISAs, Lifetime ISAs, Junior ISAs and DIY pensions (SIPPs). The app is good and the website works well.
I think AJ Bell is best suited to those who want a bit of investment choice and enjoy picking and choosing what goes into their ISA or pension. It’s probably better suited to slightly more confident investors (at least – not total novices) who want a reliable solution from a solid provider at a decent cost.
Vanguard
Vanguard is a better choice for less-confident investors or those who want to pay as little as possible for a mainstream investment portfolio. Its Life Strategy range of funds is a really easy way to access a ready-made portfolio of global investments, managed for you, with minimum faff and input required. If you buy one of these funds on their website, stick it into a Vanguard ISA or pension, you can literally then forget about it and it will be well-maintained for you.
In summary:
- AJ Bell has a better website, more choice and more helpful resources and reading. It’s a nice option if you want to learn and develop your confidence. It’s fairly priced.
- Vanguard will be lower-cost, is no frills and won’t offer choice. But its own brand options are extremely credible and low maintenance.
