How to Buy Vanguard Index Tracker Funds – Full Purchase Tutorial
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You know I’m a big fan of Vanguard’s index tracker funds. Index trackers offer investors a way to buy a fund which owns thousands of stocks and/or bonds and tracks the broad market indexes to match index performance. In other words, when markets do well, your tracker follows suit and vice versa.
The beauty of owning an index tracker fund is it removes the guesswork from stock picking, an endeavour 95% of amateur stock pickers lose money at.
In this video, you will learn exactly how to buy index tracker funds. Watch step by step as I make an actual purchase.
You can stick to a simple two or three tracker fund investment strategy for a lifetime and never have to worry about financial advisors or stock picking ever again. Or you can add index trackers to make a diversified investment portfolio.
The annual fees on the two trackers I use are US Equity Index Fund:
https://www.vanguardinvestor.co.uk/investments/vanguard-us-equity-index-fund-gbp-acc (also available in Income class)
- Ongoing Charge (OCF): 0.10%
- Account Fee: 0.15% (waived if your account balance is above £250,000)
- Transaction Costs (inside fund costs): 0.02%
- Total fee: 0.27% for accounts less than £250,000, 0.12% for accounts more than £250,000
Global Bond Index Fund (I’m currently not investing in this fund due to depressed interest rates):
- Fund Ongoing Charge (OCF): 0.15%
- Account Fee: 0.15% (waived if your account balance is above £250,000)
- Transaction Costs (inside fund costs): 0.14%
- Total fee: 0.44% for accounts less than £250,000, 0.29% for accounts of more than £250,000
More information about Vanguard’s fees here and here.
Learn more about which tracker funds I personally buy here.
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