I am going to switch, will save perhaps 30k in fees over next few decades
It's also great that Fidelity has their “zero” offerings, but 1) they are mutual funds so considered less tax efficient in the long term if in a taxable account, and 2) can't be transferred to a Fidelity competitor brokerage, which can also be an issue if in a taxable account.
Also if you are in taxable I would be worried about being locked in if fidelity start charging fees on them.
I think vanguard is a safer bet to keep fees low long term.
And ultimately 4bps is irrelevant.
I think he'd prefer that be the only product Vanguard offered to individuals.
You can be held to your words too!
They aren't the cheapest anymore in almost every category, but their brand recognition has exploded here in recent years.
Investors in the UK are not partners in Vanguards mutual structure, and Vanguards UK platform ("Vanguard Investor") is not run by Vanguard but by a third party (FNZ, a New Zealand fintech).
OCF for VT, a global equity index ETF in the US, is 0.06%
UK equivalent (the Global All Cap Index Fund, or perhaps the VWRP All World ETF) is 0.23% and 0.19% respectively, and the latter excludes small caps and both have fewer holdings than VT
Invesco's All World ETF in the UK, tracking the same index is 0.15% and HSBC have an index fund tracking the same index also at 0.13%
Vanguard UK have a 0.15% platform fee whereas the best UK alternatives are completely free.
Vanguard UK recently introduced a minimum nominal platform fee on top which screwed over small investors.
Vanguard are no longer cheap and not on our side.
