The Lemon Fool

I have a number of Investment Trusts in an ISA using my HSBC Share Dealing Account and I am looking with next years ISA at starting to build up a holding of HSBC's own world tracker.

The question I have is whether it would be cheaper to just buy them as shares directly or set up a separate account (I guess) to buy them as a fund. I am thinking a fund may be better anyway as I can smooth the purchase by buying monthly.

Obviously I will look into this more and probably talk to someone at HSBC but I wondered if anyone had had a similar scenario and what solution they went with? Thanks.

dmukgr wrote:I have a number of Investment Trusts in an ISA using my HSBC Share Dealing Account and I am looking with next years ISA at starting to build up a holding of HSBC's own world tracker.

The question I have is whether it would be cheaper to just buy them as shares directly or set up a separate account (I guess) to buy them as a fund. I am thinking a fund may be better anyway as I can smooth the purchase by buying monthly.

Obviously I will look into this more and probably talk to someone at HSBC but I wondered if anyone had had a similar scenario and what solution they went with? Thanks.

Do you mean this one? https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-all-world-index-class-c-accumulation

If so, I don't understand what you mean by "just buy them as shares directly" ... I'm assuming you don't mean buying all the 3000+ constituents yourself!

This is a fund (OEIC) and the only option is to buy it as such. The thing to look out for is that, IIRC, HSBC have two types of account, one that is fixed annual cost and only allows shares/ITs/ETFs, and another that is % annual cost and allows funds (OEICs/UTs). If so, and depending on the % and your amount, you may be better off getting a fixed cost account that allows funds, e.g. something from the Halifax stable (Lloyds, Halifax, IWeb) or maybe Interactive Investor.

You can use an ETF World tracker, or an ETF All-World tracker that includes the Emerging Markets:

https://monevator.com/low-cost-index-trackers/

I meant either buying the share lon:hmwo in my normal share dealing portfolio or signing up to the equivalent fund directly through either a monthly subscription or a lump sum.

dmukgr wrote:I meant either buying the share lon:hmwo in my normal share dealing portfolio or signing up to the equivalent fund directly through either a monthly subscription or a lump sum.

That is an ETF tracking the MSCI world index (which does not include Emerging Markets). Vanguard's VEVE tracks the FTSE world index (which contains more stocks, but also no Emerging Markets) and is cheaper. You trade these ETFs on the London Stock Exchange, not directly with the fund manager.

dmukgr wrote:I meant either buying the share lon:hmwo in my normal share dealing portfolio or signing up to the equivalent fund directly through either a monthly subscription or a lump sum.

Which "equivalent" fund? I don't see one. HMWO tracks the MSCI World Index, which is not the same as the HSBC FTSE All World fund, if that's what you're referring to. The latter includes emerging markets, the former doesn't.

Have you checked out my earlier comment on the possible relative holding costs with HSBC of holding ETFs vs funds?

mc2fool wrote:Have you checked out my earlier comment on the possible relative holding costs with HSBC of holding ETFs vs funds?

Not yet, but I fully intend to.

Thanks for the replies guys.