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Vanguard questions...

Closed-end funds and OEICs
monabri
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Re: Vanguard questions...

#425015

Postby monabri » July 5th, 2021, 4:56 pm

dmukgr wrote:Thanks guys - the question of tax was more for it being American and the comments earlier in the thread about US tax law etc.

With reference to it being aggressive given it is only for the short term, my thinking was that as it is going into equities, in one sense it doesn't matter as if it tanks then I would be buying the roughly the same amount of IT shares anyway in that they should have also tanked. If it rockets up then I have change left over - so effectively I would be hedging against a rising market if I don't just keep the premium bonds for now.


I'd suggest then that you go for the 20/80 fund which theoretically won't drop as much or stay in cash/ PBs. The VLS yield at 1.3% is probably only a tad more than you might get with average luck in PBs. If the market steps back over the next 2 years, you can benefit.
Just proffering an alternative viewpoint. Of course, the markets might climb further but it would be on a US market which is at an all time high, or near on.


The Lifestrategy fund(s) are domiciled in the UK....the ISIN tells me that ( GB00B4PQW151 for the 80% equities fund).

https://markets.ft.com/data/funds/tears ... PQW151:GBP

( hence although Vanguard is "American " you wouldn't have to fill in a W8-BEN form to buy it).

Alaric
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Re: Vanguard questions...

#425020

Postby Alaric » July 5th, 2021, 5:13 pm

dmukgr wrote: the question of tax was more for it being American and the comments earlier in the thread about US tax law etc.


The Vanguard ETFs are based in Dublin. I'm not sure if the OEICs are as well. In any case the only issue regarding US taxation is when the fund suffers US withholding tax on its investments, thereby reducing its return. The Dublin government structured its tax laws so that funds domiciled in Ireland but held by UK investors don't suffer any more tax than if they had been domiciled in the UK. Sometimes less tax as they don't levy stamp duty taxation on purchase.

monabri
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Re: Vanguard questions...

#425025

Postby monabri » July 5th, 2021, 5:24 pm

Alaric wrote:
dmukgr wrote: the question of tax was more for it being American and the comments earlier in the thread about US tax law etc.


The Vanguard ETFs are based in Dublin. I'm not sure if the OEICs are as well. In any case the only issue regarding US taxation is when the fund suffers US withholding tax on its investments, thereby reducing its return. The Dublin government structured its tax laws so that funds domiciled in Ireland but held by UK investors don't suffer any more tax than if they had been domiciled in the UK. Sometimes less tax as they don't levy stamp duty taxation on purchase.


Dublin : IE followed by a unique identifying number
UK : GB followed by ..ditto.

oxmatt
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Re: Vanguard questions...

#425077

Postby oxmatt » July 5th, 2021, 8:35 pm

NotSure wrote:
Vanguard do run a small handful of active funds in the UK, at least on their own platform. Some are equity, some bonds and at least one is blended. They are quite cheap, for active, but generally have a tiny market cap compared compared to their ETFs/OIECs.

The active ones are flagged on this page: https://www.vanguardinvestor.co.uk/what-we-offer/index-active-products.


I hadn't known this and it is very interesting. Global and EM in particular are an interesting mix of Baillie Gifford and also other managers that a retail investor normally would not come across like Wellington, Oaktree and Pzena. Fees decent too.

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Re: Vanguard questions...

#425088

Postby dmukgr » July 5th, 2021, 9:16 pm

That 20/80 fund suggestion gave me food for thought but the returns didn't seem much better than cash for the risk, especially after fees. I'm now thinking 40/60 may be the way to go as it gives an edge.

Central to these thoughts is that I have a good income so can always get a little more cash for an isa top up if it does drop, and it's all part of the long game.


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