@Matchedbettingfaqs I think the platform is alright and the ISA is the best available for many people. However their actions after receiving one fair bit of criticism say a lot about their morals and ethics - I will not work with again.
@@SashaYanshin fair enough. Your Channel seems pretty honest though so I hope you give measured guidance and thoughts on how they treat customers as a whole given that's who you talk to but I'm sure you will and you have to be honest if you had that experience etc. I have stake also. Can't do 212 obviously.
Had to pause after 49 seconds to like and comment - THANK YOU for getting straight to the point. So many other people would waffle on for 5-10 mins before saying what their recommendation would be. Now I can spend the rest of the video taking in your points and reasoning behind it
Thanks James - I sometimes suffer from that myself but usually in a video where I really have to explain the point or it won't make any sense otherwise but at least my videos are relatively short so in any case I am going to be on the point quick enough anyway :)
Finally! Investing from Europe is so constrained. Most times, it about knowing where and how to get started on. Also considering the recent global economic challenge right now especially with the decline of the dollar and euro, would it be considered wise to keep holding?
Our constant need to accomplish things on our own has put us in a perilous financial position. Notwithstanding the present economic crisis, I remain a strong bull on the euro. Knowing when to enter and exit the market, having a fundamental understanding of how the market functions, and delegating are all essential for allowing one to study at their own pace. Technical and initial fundamentals always have more to them. I have been able to generate up to $50k in return on a $100k investment by following Yvonne Annette Lively's instructions while learning at my own pace in less than 3 months.
Thanks Sasha. I'm coming to this video late, but found it really valuable. Also fairly new to investing. Just subscribed :) Buy my estimation the S&P 500 has declined by circa 7.3% over the past days including today (15/06 @15:00), however the VUSA appears to be down circa 4.5% for the same period. Is this due to the dollar strengthening against the pound? Is there a way to reduce the delta so that i can buy the full "S&P 500 dip"? Thanks
Question: Would you ever consider calculating the cost differences of using trading121 vs Vanguard with a theoretical amount to see how drastic the financial differences are? For example, £100 via 121 trading and £100 via Vanguard? I'd love to see how that pans out with your expertise, and it'd help me to know more than just the possible percentages.
Europe prohibiting to buy American ETFs directly is an utterly disgrace. They claim the products are too risky but in fact simple stocks are even riskier. They're just preventing people to make money by themselves and most of European brokers loosing their jobs.
It's not really to do with the risk - all to do with the reporting that these ETFs do and the way these differ by different markets. There's perfectly adequate alternatives for the S&P 500 ETFs based on the London Stock Exchange so I don't think it's that big of a deal.
Great video but I beg to differ on VUSA dominating VUAG. I believe whether VUSA dominates VUAG or the other way around, given spreads and dividend yield and forex, depends on your holding time. For example, with the forex of HL of 1% (!), with a spread for VUAG of 8 basis points (bp), VUSA of 3bp, and a dividend yield of 1.12%, the extra cost of getting in and out of VUAG is 5bp, which is less than what you would be paying for forex cost at HL with a holding time of only 5 years, a minimum to get into shares. If you invest for 10 years, you save half the cost. And so on. Alternatively, AJBell charges 0.5% for forex, but has a maintenance fee.
You touched on it briefly however it's actually quite a big point - when you buy VUSA you are buying it in £ which Vanguard then converts to $. If the value of the £ increases against the $ while you are invested in VUSA, the value of your investment will go down. Example: if S&P500 doesn't move over 1 year (0% gain) but the £ increases in value against the $, you will have a negative % over that 1 year. This can be avoided by investing in hedged ETFs - completely removing the currency risk.
Hedged as in... investing in UK companies? This exact risk exists for investing in any US or non-£ company in the same way. That's a choice for everyone. I personally don't subscribe to hedging the currency risk because the net growth trumps the fluctuation for me but I guess this is one where everyone needs to make their calls.
@@SashaYanshin There are S&P500 ETFs that are hedged against GBP - so whether the value of GBP against USD increases or decrease no longer matters. If you look at VUSA over the last 1 year vs. GSPX which iShares S&P500 hedged ETF you will see that I mean (+29% vs. +43%). Profits from VUSA have been eroded over this time period because GBP has been increasing in value against USD.
@@Duncan94 Yeah - the issue is that hedging works both ways and you can easily lose out because of currency fluctuations as well as gain from the hedge. That and the typically higher fund fees, higher spreads and less frequent rebalancing so I generally don’t use them. Sure - if you are certain the currency is going to swing one way maybe you’ll go for it but I am not in that camp.
What factors should I consider to determine the optimal stock exchange for investing in the Vanguard S&P 500 UCITS ETF (VUSA) from North Macedonia-between options like Amsterdam, Italy, and Germany
I was actually looking into this myself and decided on the ishares accumulating etf because it reinvested dividends for me but I didn't even consider the spread costs and although very little they could add up over the years so I might go with vusa so thank you for this the timing was spot on!
Cheers Darren - I think most people looking at it in detail conclude that the distributing ones are better and they probably WILL BE in the future as the size and traded volumes increase but right now I'm good with VUSA.
Thank you, found this in-depth explanation of Vanguard ETF’s very useful as I’m about to invest in one myself. New to investing and have learned so much from your channel. 👍🏽
Since lockdown started in March last year I've been on the waiting list to sign up to Trading 212 and still not had an email to say they're open for registration.
Same for me, I complained yesterday and they sent me this: "I am sorry to share that since the residential address is located in the UK, we will not be able to proceed with your account verification. The reason for such a decision is that we have launched our entity under which we are registering all clients who are residents of the European Union. We are currently working on finalizing the enlargement in our infrastructure so we may continue registering accounts outside the EU. In addition, be sure to join our waiting list so that you can get informed once the account activation process is enabled."
Thanks for explaining this so clearly Sasha, it's much appreciated for my strategy of buying liquid stocks I can buy and sell easily when needed rather than keep cash in the bank.
Great video…..succinctly delivered. I am not into ETFs because I don’t really understand them. Accumulating index funds do it for me. I have been mulling switching from the developed world ex Uk to the US equity index fund for the same reasons you alluded to, regarding the US economy vis a vis the global market.
@loutol Hi, how is US equity index fund working out for you? I've also opt in for US equity index fund. S&P 500 is a ETF and ETF didn't make any sense to me but most videos out there quote that S&P is index fund which is wrong i believe.
@@nawal7721 Hi. So far so good. The S&P 500 makes up about 75% of the US equity index fund while the remaining 25% is made up of medium, small and micro sized US company. The index captures the entire US market and reinvests the dividends for you. I am pleased with it and intend to hold it for the long term.
Thanks for another great video Sasha. I’m now getting into VUSA in my ISA for this year. I use ii anyway so effectively no extra platform fees for the ISA. £10/mth for ii is a good deal above a certain portfolio size. If you have any advice on the selection of ETFs for global markets or all US then I’d be interested but I’ll trawl down your old videos to see if there’s anything there. Have a good day!
Thanks Gordon! I personally don't really go down the route of big global ETFs and am mostly invested in the US and there is a very good reason for that. We are going through a massive new wave of global industry where most of the highest growing and influential tech and other companies that operate globally are operating from the US. That's where the talent sits, the money sits, the tech sits and these guys are running the show, snuffing out competition in other countries to a degree. So I pretty much feel I have a global investing portfolio when I have money in companies like Google and Apple and I'm personally pretty happy with that.
@@SashaYanshin Thanks for the reply Sasha. I added in INRG and then learnt about how liquidity can affect the ETF price but it’ll sort itself out in time, I’m sure. I’m going to get a whole US market ETF as I’m sure there’ll be plenty growth outside the S&P 500 plus I’m keen to get in on more “green economy” ETFs - so plenty to think about. Looking forward to your next video.
Although I chose the North American etf instead of the S&P 500, this is really helpful Sasha. Especially the bit on spread. I never factored it into my decision-making before but will do going forward. Also Trading 212 is driving me nuts with the wait. But still holding out hopes for a miracle in the next two weeks.
You could just buy on Vanguards platform in the meanwhile and transfer when you’re ready and Trading212 is more stable. Remember time in the market is worth more than the money itself, don’t wait too long!
I agree - who knows what's going to happen. They might introduce yet another fee when they reopen to new accounts or they could pause for longer. I would pick the best platform available and then make choices from there. If you only want to invest in the S&P 500 for example, then Vanguard is probably the next cheapest option if you go for an ISA or Freetrade if you go for a regular investing account.
Sasha Yanshin Yes 😄 can I ask what do you think about opening an account with etoro being from the UK? I’m a bit apprehensive about opening an account with any broker because after reading reviews people are saying it’s easy to make a deposit but hard to withdraw your money, what’s your thoughts on this? Otherwise I will wait for t212 to open with thoughts of FOMO in the meantime 😏
@@cassandrahenry I use eToro as well as Trading 212 and Freetrade and I haven't had any issues - their constraint on the withdrawals is that you can only withdraw to the same payment method you used to deposit which is done for security. That works fine for me but I think some people want to draw the money back into a different account and you can see how anti money laundering becomes a pretty messy thing in those cases.
Sasha Yanshin right I see now. Thank you sooo much for your response. This makes sense now. Really appreciate your reply, feeling more confident now. Thank you 🙏🏽
This video is incredibly helpful! Thanks so much, now we’re 8 months on which platform would you recommend the most for buying the VUSA ETF? Still Freetrade and trading 212 or not?
This would be a good to know! I have opened an account directly with vanguard for the s n p 500, I do have trading 212 but I decided to make it a standing order direct.
Thanks for doing this helpful video. We spoke briefly about fund fees on a different video. I’ve come to the conclusion that although 1% total fund fee might have a bigger impact down the road when my portfolio grows in terms of monies lost, perhaps it’s worth paying if the fund is doing really well and generating great returns. I don’t think the slightly higher fees of say Hargreaves v Vanguard or other platforms deter me. HL is an established platform and has many funds to choose from. I guess these are all points that should be considered when selecting a platform.
You've got to pick what you're comfortable with at the end of the day. I have my preferences and I prefer not to pay £12 per trade but some people value security a lot more and perceive the free platforms to lack in that so it's completely your call!
@@SashaYanshin That’s true. £12 per trade is a lot although funds have no immediate cost except the small ongoing charge. I use FreeTrade for individual stocks. 👍🏻
To be frank, I don’t know much at all about what apps are available in Hungary. I know out of the ones I use and like, Etoro and Interactive Brokers both accept customers in Hungary (I think) but I don’t know who else is available. 👍
You should watch some of my videos about Trading 212 that I made recently! There is no official timeline but I think that new accounts will open up as soon as the new tax year starts personally - but that is just a random guess.
@@SashaYanshin Will do! I've only just discovered your channel, and I'm new to all this. But I love the clarity with which you explain everything. Thank you!
Hello. Thanks for all the info! Can you please explain why it's 'more expensive' to buy the VOO (US based) ETF? Or is that just concerning UK investers due to the tax benifits you have? Have you researched anything about Tastyworks? It seems it's possible for Europeans to buy the US domiciled ETFS through that, and there are no annual fees.
Hi Sasha and thanks for the great and informative video! Maybe you can help me with this question: I have Interactive Brokers set up as Ukraine resident, and I see that Ukraine is on the US Tax Treaty list with values of 15, 5, 0 written in the table. As a novice, it's difficult for me to understand - generally speaking, does this put me on VOO (USA) side of the market, or CSPX (Ireland) side? Can you give your own opinion please? Would love to hear as well from you, fellow RU-vid viewers... Thanks in advance! 💪😊🌟
I am investing in VUSA for the last 3 years,but i can see massive difference between vusa grow and s&p 500...about 10%...this year only...would you be able to point me to somewhere where is explained?
Hi Sasha! Appreciate your videos. I will be relocating from Russia to the UK and your channel is very helpful in terms of investing in the UK! I am curious if you have any Russian origins, you second name is a typical Russian one :) once again thanks!
you said in VUSA dividens are not reinvested automatically, does this means you have to go manually into the platform and choose to reinvest them? or how do you do it if you want the dividends to be reinvested?
Yes - once a quarter OR you can put the VUSA in a Trading 212 Pie and then set the Pie to automatically reinvest any dividends - then it'll just do it automatically for you 👍
Awesome 👏 I was going to ask about this dividend reinvestment with VUSA but the pie solves it. Sasha are you tempted at all to open the vanguard life strategy fund this year or will you keep going with trading 212 and add another £20k and just buy more VUSA monthly? I think I will be doing the latter 😌🙌
curious about your opinion whenever to go for the S&P 500 dividend aristocrats vs S&P 500? ( on freetrade as no one getting a trading 212 account any time soon haha) thank you ^^ love content been watching for few months !!
Hello, I am based in Germany, I would like to know which specific ETF is better to invest in with low fees , is tax efficient and will give me more in terms of return on investment. I would like to invest in the S&P 500, but I don't know which one in Germany is better, the accumulating or the distributing type and with all of those I've mentioned above. Thanks and more power to you!
Superb video as always! But im confused about the VUAG dividend point. How can the dividend be used to increase the share price? Surely the price is determined by the market, so I'm confused how the dividend can be used to increase the share price? Unless its vanguard who is setting the price? But you also said the spread is set by the market, so clearly I'm missing something :P
Yeah - the price is determined by the market. But imagine the market agrees that the price of the share is £50 and there are 1,000 shares in total - the total value of the fund is £50k. Imagine that the fund gets £1k in dividends and now there is £51k of value in the fund - the share price will adjust immediately with people only wanting to sell for the higher price given the underlying value. I did mention it because most people don't know this is what happens :)
I believe there is more to the issue than that. The £1k that you mention would be used to buy more underlying shares (Microsoft, Amazon,..), which in turn would lead to additional dividends inside the existing ETF. Over time, this translates into a faster growth rate in the price of VUAG as compared to VUSA.
This has left me slightly confused. I agree with your views on us outperforming all in the future. So if I had to pick one etf for the long term what would that be. Surely it's vuag based on the growth opposed to vusa. Please let me know what's the best etf for long term if its either of these or something completely different
Hi Sasha, I’m your follower and subscriber from the middle east. I was wondering if you have any thoughts for CSPX i have most of my money there. Is it a good etf for foreigners ? I’m really confused
I'm still not clear on why VUSA would be cheaper than VUAG? Does this still hold true? Currently, I don't see any difference in spread between the two (maybe I'm looking at it incorrectly). On Hargreaves Lansdown's site they have the spread for both at 0.08%, translating to a difference of 5p for each. On the other hand you do have costs associated with having to reinvest the dividends as well as the hassle of having to do so manually, neither of which are an issue with VUAG. So I can't see any reason for why VUSA would be the better option. I'm trying to decide currently which I would be better off investing in. If you have a moment, any further thoughts on why you invest in VUSA rather than VUAG would be super helpful! Thanks.
Hi In your opinion if you were to invest just £100 a month s&p 500 and your choice was between 'freetrade' or 'vanguard' Which platform would you use (if it was you)
Out of those I'd pick Freetrade unless I was going for an ISA - with an ISA and a low-ish amount, Vanguard would be cheaper but for larger amounts of over £24k (more than 1 year of contributions), Freetrade will again be cheaper. So not a straight-forward answer there.
Great video Sasha, liked and shared. etoro doesn't allow purchase of actual ETF asset, they only allow CFD, which is risky as you said and you recommended against it. Does Trading 212 allow purchase of actual ETF asset?? I don't want to buy CFD. Thanks
The differences we're talking about are miniscule and given you already bought in, there is no benefit to swapping to VUSA - that tiny microscopic difference in spread is already gone. You won't even notice it.
Which platform do you use to buy US ETF's? I have an IG account and am now unable to trade anymore US ETF's due to change is legislation using a KID document. I'm now thinking of buying the VUSA.
Do you have any of these ETFs on the platform? There are iShares equivalents as well. I am guessing you want to invest in one of the free/cheap funds but I don’t have an account with HL so I don’t know what the options are.
Hello Sacha, My wife and I are retired and we live in UK. We have 100,000 euros in a bank in Spain, the account grows by around 3,000/month from a pension fund from our tenants. Could you please give us some advice on where to invest? Thank you for your wonderful video.
Hello! I am from România. I could use Revolut to buy with euro or even pounds. What should I do? Which one of the ETFs should I buy? Thank you for your support 🙏
Hi Sasha, as someone looking to invest a few thousand initially and within the hundreds per month, would you recommend a general account or a stocks and shares ISA on Vanguard?
Hi Sasha, are these low trading volumes of vusa something to worry about (Compared to spy and voo)? Could that mean the vusa etf has a risk of closing?
Always smashing out the right subjects. 👍. Could I ask a topic on ETFs that would be good to look at other then VUSA, ones that are available on 212?! Especially £ versions maybe.
Hey Sasha, do you have an idea about the HSPX? It seems like a pretty consistent ETF and it's London-based (so no fees?). I'd love to hear your opinions!
Some people really like them but I'm not a huge fan because the distribution is really wide and you're going to get some years where things go mighty well and others where things really tank - probably not a huge difference to the S&P 500 but I'd expect it to underperform and show more volatility. But then again I'm just a random guy on the internet so do your own research!
Ive got a small question, i can buy VUSA in Euros which is better for me but since that index is US based companies won’t I have to pay 30% tax since Im not a US resident?
Hi Sasha I would like to ask as an European resident not living in UK. Which ETF should I buy on Trading 212 when I use €? If I buy VUSA in £ it will be converted from € -> £. And then dividends will be paid from $ -> £ -> € ??? So 3x conversion? Or how is it? I do not see any VUSA alternative in € on Deutch exchange. Thanks
I am pretty sure you can buy VUSA in Euros on the Amsterdam Euronext and the Deutsche Börse in Frankfurt. Took a look and looks like you can buy it in Euros in Italy as well - you just need a broker who has it on their books. If you buy in Euros, I am 99% sure the conversion will just be USD > EUR without the interim GBP step.
@@SashaYanshin So Trading212 does not have it in eur? Or I just can not see it. I see that it has VWCE which is in € and seems to be same as VWRL in £. But no SAP 500 in €. It is really confusing for people who have account in EUR. Using just Etoro and Trading 212 for now. And thank you for reply :)
@@MultiDELAK IUSA and SXR8 are the iShares equivalents to VUSA and VUAG pretty much but have Euro versions on Trading 212. 👍 Do your own research of course - I'm just a random guy on the internet!
eToro is probably the worst out of the platforms for ETFs - you can't invest in the big European ones like VUSA at all on there and if you invest in something like VOO, you are only buying a CFD (albeit with no fees or leverage involved) but you do not actually own a share in VOO - not buying the underlying asset. So I personally wouldn't use that platform for ETFs as I think there are better options for that elsewhere.
@@coffee7398 Not really except in pretty specific unusual circumstances - if you are not buying on leverage, it becomes a very simple 1:1 instrument. You can buy IUSA directly though - same thing and not a CFD.
He talked about it at the end of the video I believe, I'm sure Vanguard charge a small managment fee so it's probably wiser to invest on an apps such as T212/Freetrade. Although I think it depends on the amount per year.
Hi Sasha, thanks a lot for the video. Considering moving from freetrade to trading 212 this April for my stocks ISA. Will I be able to keep my old account (and not put money in it) and open new account for this financial year? Or i need to sell and close Freetrade before I jump. I understand that we’re allowed only one investment isa per year Many thanks
Yep - you can keep the old one open and open a new one. You can even transfer the old one INTO the new one if you choose to do so (although that'll cost you on FX fees if you hold non-£ stocks in there).
@@SashaYanshin thanks so much Pal, I’d probably leave Freetrade account open. The only niggle is that to keep the account open, I’d have to continue paying £3 monthly fee.
In order to break the £2k 0% dividend tax limit, you would need about £130k invested in the S&P 500 at the current yield level (1.53% in February 2021). For the vast majority of people that's not a consideration that really matters so I didn't even go in there.
