Buying ISEQ 20 Index funds

D

Deano

Registered User
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Hi

From looking at other posts, I’m interested in purchasing ISEQ 20 Index funds - http://www.ise.ie/index.asp?locID=412&docID=-1. My SISA is with Quinn Life (Celtic Freeway) and from what I can see it would be cheaper for me to move this lump sum on maturity into ISEQ 20 Index funds. Why pay Quinn Life the management fee when you can do it yourself?

The thing is that I can seem to find a way to buy the funds. I've looked on websites such as Sharewatch, but the fund isn’t listed. Can anyone please tell me where I should be looking? :confused:

Thanks!!
 
try http://www.ncbdirect.com/ncb.html that's where I first found out about them.

by the way it's not sold as a fund. it's sold the same way as shares are. ie the iseq index lists the iseq 20 etf the same way it lists shares for Elan, Ryanair, AIB etc. etc.
 
You can buy them anywhere as they are sold like shares, so online broker is your best bet, goodbody have an online only service or if you have an aib online account you can open a share dealing account with them which is operated by Goodbody also. Im sure theres plenty more online brokers
 
I've had a look through NCB and Goodbody's websites and their info isn't exactly easy to find. Can't find the ISEQ20 ETF fund on sither Sahrewatch or Davy websites. It's not exactly making this process easy. :confused:

For the online dealers it seems that you have to open an account with them and pay a yearly management fee even if you want an execution only account. In my case, I'm just looking to buy a one-off lump of ISEQ20 ETF funds. Can anyone please tell me the best way to do this?

Thanks!
 
Thanks ClubMan. I found the info about the Accounts here. So, Basically, I've to setup an account with a broker (probably NCB - it seems to be the easiest to use and it's the only one that I can find the Buying ISEQ 20 Index funds on!! :confused: ). I still think this whole process could be made easier to help entice new business!!

Has anyone else gone through this process of buying shares/funds for the first time recently? Who did you go with??
 
I bought ISEQ20 shares back in September through Sharewatch. They don't trade automatically on the web site so you have to phone the dealing desk to make the trade. Very painless, only took 2 minutes but you won't get to deal at the price on the ISEQ web site but you should get close..
 
Thanks for the info Sparski. From what I can see from the Sharewatch website, here are the applicaple fees -

UK & Irish Stocks
Annual fee: €60
Cost Per Trade: 0.3% the value of each transaction (minimum €30)
Government Taxes
Government Stamp Duty (applied on all purchases of Irish & UK shares).
Irish Shares: 1% - UK Shares: 0.5%
PTM Levy: This is a levy by the Panel Of Takeovers on all share purchases and sales(applies to Irish & UK shares).
Irish shares: Amounts Greater Than €12,500 €1.25.

So, if I was going to invest €20,000 (from SISA) it would cost me a one-off fee of €60 for the transaction, €60 to set up the account and €60 for every year thereafter (pity - was hoping to avoid a yearly fee!). Also, if I read this right, I have to give Bertie 1% (€200).
 
Almost correct Deano. You're forgetting that one of the attractions of an ETF is that it is exempt from the 1% stamp duty. This combined with the exceptionally low management fee and the twice yearly dividend make it a no brainer. I still haven't paid my €60.00 annual fee to Sharewatch so it must only be due on the anniversary of setting up the account. It does add another 0.3% of a charge to your proposed 20,000 investment but don't forget that you will also be able to use the account to trade in other securites too so you can spread that cost across other trades.
 
sounds like we need a "Dummies Guide to buying the ISEQ 20 ETF" ;)

questions like:
1. how does one go about investing say 10k in this ETF? assume u need to open a broker account some place to do this for u? can etrade.com complete this purchase for u...i currently have an account with them from many years back..??
2. do u as the investor need to actively buy and sell shares in this or can u invest, leave it alone for 5 years and hopefully have made some money off it.
3. do u ever get a statement of the value of your etf at any stage? can online perhaps...?
4. is this fund managed or who looks after it?
5. is the equivalent of this fund the celtic freeway fund from QL?
6. what are the main advantages of the ETF over QL's fund? I know the ETF is exempt from 1% stamp duty, not sure if this applies to the QL fund...
7. Which is actually better to invest in? ETF v QL Celtic Freeway (note im not asking which is going to make/lose more money just which is better value to start up and maintain for say 5-10 year period)?

QL certainly do make investing a hell of alot more straighforward and understandable to be fair.

My 2 cents...
 
Does the FAQ not cover some or all of this stuff? If not feel free to post in that thread and we can integrate the additional comments into the FAQ.
 
candyman said:
sounds like we need a "Dummies Guide to buying the ISEQ 20 ETF" ;)

questions like:
1. how does one go about investing say 10k in this ETF? assume u need to open a broker account some place to do this for u? can etrade.com complete this purchase for u...i currently have an account with them from many years back..??
2. do u as the investor need to actively buy and sell shares in this or can u invest, leave it alone for 5 years and hopefully have made some money off it.
3. do u ever get a statement of the value of your etf at any stage? can online perhaps...?
4. is this fund managed or who looks after it?
5. is the equivalent of this fund the celtic freeway fund from QL?
6. what are the main advantages of the ETF over QL's fund? I know the ETF is exempt from 1% stamp duty, not sure if this applies to the QL fund...
7. Which is actually better to invest in? ETF v QL Celtic Freeway (note im not asking which is going to make/lose more money just which is better value to start up and maintain for say 5-10 year period)?

QL certainly do make investing a hell of alot more straighforward and understandable to be fair.

My 2 cents...
Click to expand...

Agree about the dummies guide, theres been alot of posts about this ETF.
I'll try start it off, maybe the admins can add or edit this for a sticky?:
A1. ETF's are traded exactly like buying direct shares so yes you need a broker, online being the cheapest.
A2. You manage the shares yourself if you want, for instance with an online account you simply trade like trading direct shares. ETF's are geared toward the long term investor.
A3. My Goodbody account gives me the value each day or Check the share prices online (www.ise.ie) or in the papers and do the math!
A4. No fund manager
A5 to A8. Dont know the full charges involved with Quinn Celtic Freeway
There are a number of brochures available from the ISE, heres one, (theres a pdf brochure at the bottom of the linked page):
http://www.ise.ie/index.asp?locID=417&docID=-1
 
candyman said:
questions like:
5. is the equivalent of this fund the celtic freeway fund from QL?
6. what are the main advantages of the ETF over QL's fund? I know the ETF is exempt from 1% stamp duty, not sure if this applies to the QL fund...
7. Which is actually better to invest in? ETF v QL Celtic Freeway (note im not asking which is going to make/lose more money just which is better value to start up and maintain for say 5-10 year period)?
Click to expand...
A5. Yes
A6. ETF 0.5% management charge p.a. compared with QL 1% p.a. No stamp duty to worry about for either.
A7. Generally speaking, the ETF is the better option for lump sum investment and QL for regular (e.g. monthly) investments, unless you're investing large sums regularly.
 
thanks a million fellas, thats cleared up some good issues for me...

this site really is a goldmine of good information, fair play to all involved!
 
So what is the cheapest place to buy these shares, people seem to recommend Sharewatch, is that the simplest sollution? I can use my AIB online services (run by Goodbodies) but I believe that is more expensive?

Thanks
 
blobert said:
So what is the cheapest place to buy these shares, people seem to recommend Sharewatch, is that the simplest sollution? I can use my AIB online services (run by Goodbodies) but I believe that is more expensive?

Thanks
Click to expand...

Not necessarily, it would depend on what volume of trading you do.....

AIB (goodbody) charge 1.25% comm and €26 annual account maintenance
Sharewatch charge only .3% comm but €60 annual account maintenance

So for example a one off purchase for long term investment would be cheaper with aib but if you were to trade several times during a year it might work out cheaper with sharewatch.
 
Some great reading here guys - thanks

One slight cost that has to be added to the ETF is the yearly management fee for the stockbroker (if you haven't already got one) and the transaction fee of buying the shares.

I am looking to setup an account with Sharewatch, but I can't see the ETF fund listed with them. Am I looking in the wrong place?? [broken link removed]
 
For some reason Sharewatch don't display a price and you can't trade online. You need to phone the dealing desk and place the order with a real person. Execution is virtually immediate as it is with any trade executed this way.
 
Does anyone know if there is a minimum amount for investing in this fund? For some reason I've the impression that there is a minimum of about 20K - but I can't remember where I heard this.
 
Hi,


i am interested in opening an account myself but i am a bit nervous....
i had looked up the ISEQ 20 ETF after reading your postings is it ovbious that the fund must be made up by individual share purchases, as it is not listed as a fund, which will charged by whatever broker you're registered with... that can be quite expensive....
does anybody have any suggestions?

ps. excuse my innocence, i am very new at this :p ...
 
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