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

B

banchang

Registered User
Messages
52
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.
 
banchang said:
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.
Click to expand...

Don't do it through an Irish bank or insurance company then. Their annual management fee is for the cost of running the company, admin, compliance, staff costs, broker commission and some profit. The cost of the actual fund is separate and can actually be quite cheap as the insurance company can negotiate a cheaper cost.

But if you want the cheapest cost, do it yourself through an online broker. If you need someone else to do it for you, they have to charge you...


Steven
www.bluewaterfp.ie
 
SBarrett said:
Don't do it through an Irish bank or insurance company then. Their annual management fee is for the cost of running the company, admin, compliance, staff costs, broker commission and some profit. The cost of the actual fund is separate and can actually be quite cheap as the insurance company can negotiate a cheaper cost.

But if you want the cheapest cost, do it yourself through an online broker. If you need someone else to do it for you, they have to charge you...


Steven
www.bluewaterfp.ie
Click to expand...

Thanks

What about security of eg DEGIRO ? If I invest a sum there is it in my name with the fund or in DEGIROs (ie I hurt if DEGIRO fail) ?
 
banchang said:
Thanks

What about security of eg DEGIRO ? If I invest a sum there is it in my name with the fund or in DEGIROs (ie I hurt if DEGIRO fail) ?
Click to expand...

I don't know about their security. I use accounts that use segregated custodian accounts. They are not free though and the extra security has to be paid for. So while my clients don't pay the lowest cost, they don't worry about their money not being held securely.

If you want the cheapest cost, you have to take the risk of having less security

(see where I am going with this?)


Steven
www.bluewaterfp.ie
 
Gordon Gekko said:
But, but, but, where can I get great service and total safety but not pay for it?
Click to expand...

Not sure what you mean - as I said, I'm not looking for any kind of managed service: purely passive, and just enquiring about DEGIRO's bona fides.
 
Are Degiro considered a secure broker to do stock purchasing ? I thought a lot of AAM users have accounts with the. I read somewhere that there is a guarantee for 20 k ? Is that correct ? Also Steven if you could elaborate on the detail of this extra security and its costs that would be very useful.
 
If you are invested then you have security over the underlying assets in some form or other with most of the platforms I have looked at. If you have more than 1M+ then this might become a consideration to address via multiple accounts or by using a trustee bank etc, otherwise just invest and stop worrying while inflation eats your money up. In Ireland avoiding ridiculous "institutional and associated" fees and more importantly punitive tax laws is more important in my opinion. I like deGiro. Have you not got a pension already where you can avail of the tax position?
 
Last edited:
You must log in or register to reply here.
Back
Top