Vanguard reveals the total cost of its funds and ETFs

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Sarenco

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In response to new EU-wide regulations (MiFID II), Vanguard has published the total cost of ownership of its EU-domiciled funds and ETFs.

I suspect the details will come as a bit of a surprise to many on here.
https://www.vanguardinvestor.co.uk/...vanguard-full-fund-costs-and-charges-2018.pdf

Wouldn't it be nice if the Central Bank insisted that Irish life companies and other pension providers were equally transparent about the true cost of their products? I think it's the least we should expect.
 
Hi Sarenco.
why is it a surprise?
Is this not the information which they were already publishing? They range from around 0.28% to 0.68% - but most are in the 0.3% to 0.5% range.

Brendan

upload_2018-1-27_15-10-54.png
 
Brendan Burgess said:
Is this not the information which they were already publishing?
Click to expand...
No, up until now they would only have published the ongoing charges figure (OCF). In many cases, the total cost of investing is actually more than double that amount (and that ignores intermediary commissions and/or platform costs).

Incidentally, I'm not having a go at Vanguard - they are to commended for producing this information in such an accessible format. I'm really just making the point that the total cost of investing (even with a low cost house like Vanguard) is much higher than people generally appreciate.
 
Sarenco said:
No, up until now they would only have published the ongoing charges figure (OCF). In many cases, the total cost of investing is actually more than double that amount (and that ignores intermediary commissions and/or platform costs).
Click to expand...

Brendan is correct, nothing new there but a bit of presentation.
 
Thanks Sarenco,

I must admit that I am a bit surprised by these figures (as in c. 10 basis pts more than I would have guessed). Useful info - thanks.
 
Sarenco said:
Well, the investment costs over and above the OCF are not new but this is the first time that they have been published.
Click to expand...

Of course they have been published! You many not have known where to find then in the prospectus and reports, but they are there.
 
Managed funds have been exposed for what they are - bad value. Most funds are not actively managed, but rebalance against a benchmark index.
Imagine telling someone, over a ten year period, you would lose 15% of your investment to fees and charges.
 
Jim2007 said:
Of course they have been published! You many not have known where to find then in the prospectus and reports, but they are there.
Click to expand...
Sorry Jim but I'm afraid you are just plain wrong.

You will not find the figures broken down as per the above chart in the prospectus or financial statements of any of those funds.

You will find details of the tracking error and the aggregate amount of transaction costs in the relevant financial period in the financial statements but you will not find the above figures.
 
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