Buying ftse250 tracker - what fees to expect


#1

I like the look of vanguard’s ftse250 tracker VMID.
I have seen on Hargreaves Lansdowne it’s 0.1% on going charge for the fund. If I buy on freetrade will I still have to pay that? I’m ok for the slower buying service and will be outside of an isa.

Also, are there any other fees I’m missing?


(Vladislav Kozub) #2

Yes, this is the management fee charged directly by Vanguard and is payable regardless of who the broker is (even if you are directly with Vanguard).

For Freetrade, as long as you use basic trades without an ISA, there will be no other fees.


(Kenny Grant) #3

Do you know how these fees are charged on Freetrade, are they included in the ETF pricing, or do we need some cash to cover fees like this in our account?


#4

The fees are included in the price. Any ongoing fee is normally taken by the ETF provider selling down some of the holdings.


(Alex Sherwood) #5

Following on from that, to borrow Nicola’s answer:

(the 0.07% fee that she mentioned there is specific to the ETF that was being discussed)


(Kenny Grant) #6

Thanks both. :smiley: