ETF Dealing Comparison

149oaks

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Just want to check my research & calculations.
Early next year I’m going to invest 50k in ETF’s in order to balance my investments.
I plan to divide this across 6 – 10 ETF’s. Based on other threads I’ve looked at NIB, Sharewatch & TD Waterhouse and in summary:

1. NIB Min 20e/trade or 0.75% up to 15K, no annual fee (but have to open a current a/c with them which probably would have fees).
2. Sharewatch Min 14.95e/trade or 0.3%, no annual fee
3. TD Waterhouse 20e/trade and a 15e fee/qtr if no transactions take place + VAT

I couldn’t find anything re VAT on NIB or Sharewatch?
So lets say for argument I divide the 50k evenly across 8 ETF’s – 6250e each. I calculate:

  • NIB – 375e
  • Sharewatch – 150e
  • TD Waterhouse – 160e + 15e/qtr if no more tranactions.

So in this case Sharewatch is best? What about VAT anyone?
Are there any other options I should consider?
Whats the Security with Sharewatch?
 
I don't know enough about Sharewatch so therefore am unable to pass comment. TD Waterhouse are a large firm and are quite credible as far as I know. I would sat that VAT is applkicable to all fees involved with any transaction as are with other types of transactions.
 
You should look at Keytrade also as an option as there is no annual fee, just a once off transaction fee. Also, I'm not sure why you are dividing across 6-10 ETFs. You should be able to find a single broad ETF that covers all sectors if this is your aim.

In particular, have a look at Vanguard or Statestreet ETFs as they have very low expense ratios - some even as low as 0.02% for a broad based ETF (S&P 500). One of Vanguards ETFs has a base of 3,000 U.S. stocks with an expense ratio of 0.07% and an international one has a base of 2,800 international stocks and an expense ratio of 0.3%.

I have no connection with either of these companies (but do hold the unnamed ETFs).
 
Del3D thanks for the pointers. Do you know the trade fee?
As regards the 6-8 ETF's, well my thinking here is twofold:
1. I don't want to have all my eggs in 1 location/region, and
2. If I spread across a number of ETF's say UK, US, Canadian, Euro, SE Asia, Swiss & Australian I'd be limiting Currency risk also.

Any thoughts on this strategy or am I missing something?
 
There is no VAT on stockbroking transactions. Sharewatch now use ODL Securities in London to execute all trades and The InvestR Centre has known and dealt with ODL for five years - no hitches

Rory Gillen
 
Hi !
Can I ask about safety of ETFs after you buy them.
My understanding of the process is that you but units of ETFs through the broker
and these are held in your name in the brokers account. Is this correct?
If the broker goes 'bust', everything is lost ?????
Is it possible to buy the ETF units and not have the broker holding them for you?
Or do any brokers issue certs any more?
I would really like to invest in ETFs and am trying to understand the pitfalls.

I have seen that ETF fund 'runners' like Vanguard for example provide brokerage services
at very reasonable prices.
https://personal.vanguard.com/us/whatweoffer/stocksbondscds/feescommissions
Personally I would prefer not to convert to USD because of currency risk.
Is anybody aware of an ETF fund company who provides brokerage services in Euros?
THis would also make more sense to me to hold the ETF units with the actual fund, rather than
a 3rd party brokerage.
Can it be done in Euroland?
 
Last edited:
Whatsmoney, if you wish I will send you by e-mail a synopsis of ETFs as provided by my Irish broker. With the full facts to hand you will then be able to make your own mind up. There are no risk free riules to ETFs. What there is however and under normal ETFs is transparancy, something that does not really exist in the Investment funds business in Ireland.

I will ask my broker if I am able to circulate the Adobe attachmemnt. If you want same PM me with your e-mail address and same will be sent once I have the OK.
 
Mercman were you able to send the synopsis? If you were could you also send to me?

Anyone any further thoughts on my diversification strategy?
 
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