Share price vs yearly fee - what's more relevant?

Hi everyone,

I was comparing CUKX (FTSE100 from iShares) and VUKG (FTSE100 from Vanguard) and I’m not sure which to buy.

Basically CUKX shares are more expensive (p16,074.00 or £160.) but the yearly ongoing fee for the fund is 0.07%, whereas VUKG shares are cheaper (£41.985) but the yearly ongoing fee is 0.09%.

I thought since I plan to hold long term, maybe it’s better to buy iShares’ more expensive shares with a lower yearly fee. But is it smarter to buy cheaper shares even with a higher ongoing fee? Or does it make no difference?

I suppose if I Pound cost average, the share price overtime is irrelevant and so the ongoing cost is more important and I’d go for CUKX. But if I invest a lump sum now the share price might have more weight, and I’ll chose VUKG but I’ll get hit with a higher yearly fee. It might make sense if I planned on selling quik but if I hold for decades it seems smarter to chose lower fees.

Any advice?

Thanks

I don’t know either (I don’t use funds/trackers) so maybe I’m missing something…

However, surely the share price is completely irrelevant. The only thing that the share price defines is how many shares you get. However, whether you have 1 share at £1000/share or 1000 shares at £1/shares is irrelevant if they both go up/down by the same %.

What is important it both the management fee and the spread. If one has a 1% spread and the other has a 5% spread then that would obviously make a difference albeit the difference is more significant the less time you hold

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Thanks I was wondering if the number of shares mattered too. What you say makes sense.
I hadn’t thought about the spread so I’ll looked into that. I checked on Morningstar cause I couldn’t find the info on Trading212. Right now the spread for CUKX is 0.05% and for VUKG it’s 0.08%, so basically the same.
I reckon I’ll pick CUKX though…

You can buy fractional so fees.

Think of it this way. All being the same they both sell you an apple that keeps growing, one has just been growing for longer so demands a higher notional price for a whole apple.

They’re both still apples end of day, one just comes with a higher fee.

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Thanks :slight_smile: I’ll buy CUKX - lower fees

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