ETF
I want to invest into the VUSA etf (S&P500) and was wondering if the etfs have any charges ( not 212) which wont get shown? Because if i wanted to invest into this on vanguard i would have to pay every month i believe but on 212 it seens so be free so why dont people use this rather than vanguard to invest into this?
Of do the fees get eaten out from the profits which would be made?
There are no hidden fees. It is indeed cheaper to buy and hold Vanguard ETFs on the Trading 212 platform than it is on Vanguard’s own platform. Vanguard fee is 0.15% platform fee capped at £375 per year. Trading 212 has no platform fee.
VUSA on both has the same 0.07% fee taken by Vanguard, and Vanguard pays 15% US withholding tax on dividends they receive, but you do not see these explicitly. So that amounts to about 0.35% annual loss compared to owning S&P 500 yourself. The Vanguard platform fee takes it to about 0.5% cost.
I expect Vanguard see themselves as needing to compete on fees with the likes of Hargreaves Lansdown and AJ Bell, and do not yet see Trading 212 as a high enough profile competitor to worry about. .
An advantage of the Vanguard platform is that you can buy a huge range of index funds, like the Lifestrategy range, and open a SIPP. These possibilities are not yet available on Trading 212.