Vanguard ETF Questions & Dividends

[tylerdurden2019]

Hi All,

I recently have purchased a variety of Vanguard ETF's via the IG share trading platform. I have a few questions that I hope you can help me on!

1) I want to diversify and limit my exposure to any one ETF so will look to hold a wide variety of different Vanguard products - is this sensible vs massively investing in 3-4?

2) With respect to the above - is it more costly via IG to have the multiple vanguard products?

3) Dividends paid out - does anyone know if this goes straight into the cash account on IG?

Thanks!

 

[Zaxon]

I can't address IG specifically, but I can speak to ETFs, and how brokers handle things in general. If you wanted to, you could buy 1 single, broad-based, low-cost index fund. There are "total market" and "total world" type ETFs. That's a viable approach.

Taking it to the next level, buying multiple ETFs can be about diversifying, but if you're in a broad fund like the ones I mentioned above, it can be about overweighting in areas you want more of. Just check what's in the fund. You will find a lot of ETFs overlap. In which case you're adding needless complexity by buying more ETFs and getting no benefit.

When you buy ETFs, you pay the same brokerage as shares. The more ETFs you buy, the more individual brokerages you'll pay.

Each ETF will charge a MER (management fee), so know what they are. They are percentage based, so you don't pay more if you spread across more funds (if the MERs are the same).

Dividends are paid into an account you nominate with your broker. That could be your brokerage account, or an external bank account.

 

[tylerdurden2019]

Thanks

 

[Dona Ferentes]

ASIC issues infringement notices against Vanguard for greenwashing​

Cecile Lefort
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ASIC has issued three infringement notices to investment manager Vanguard Investments Australia for alleged greenwashing.

The regulator is said to be concerned that Product Disclosure Statements for the Vanguard International Shares Select Exclusions Index Funds may have misled the public by overstating an exclusion, otherwise known as an investment screen, claimed to prevent investment in companies involved in significant tobacco sales.

The Vanguard Funds were structured to exclude certain investments in tobacco, however, while this screen applied to exclude manufacturers of cigarettes and other tobacco products, it did not exclude companies involved in the sale of tobacco products.

Vanguard paid $39,960 in compliance with the infringement notices on December 1. Payment of an infringement notice is not an admission of guilt or liability

 

[divs4ever]

am surprised Vanguard was unique in this infringement , maybe there are more penalties coming elsewhere

but yes , i have been greatly amused by funds claiming to be 'ESG ' whilst being profitable

( BTW i deliberately and selectively invest in 'sin stocks ' )

( tobacco sales probably includes WOW , EDV , COL , MTS , and there would be other small groups )