investing directly with Vanguard in Europe

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Topic Author
greentrees
Posts: 26
Joined: Thu Aug 15, 2019 4:00 am

investing directly with Vanguard in Europe

Post by greentrees »

Hi,

I'm not a resident in a European country where Vanguard supports individual/private investors nonetheless I'd like to invest with them directly and therefore open a Vanguard account in another country in Europe.
From those countries in Europe where Vanguard does provide services to individual/private investors, do you have experience with them accepting non-resident (in the said country) clients? if so, what is the process to open an account with them as non-resident?
TedSwippet
Posts: 3353
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: investing directly with Vanguard in Europe

Post by TedSwippet »

I don't know about other countries, but Vanguard UK is probably Vanguard's most fleshed-out direct-to-customer offering outside of the US, and it certainly does not accept non-UK residents as account holders:

Am I eligible to apply for an account? | Vanguard UK Investor
If you're a UK resident we can welcome you as an investor. You're able to apply for an account with us if you have your main home in the UK and you don't pay tax in another country. If you live elsewhere or pay tax in another country (e.g. US citizen or US tax resident) then unfortunately we can't accept your application.
Valuethinker
Posts: 41791
Joined: Fri May 11, 2007 11:07 am

Re: investing directly with Vanguard in Europe

Post by Valuethinker »

greentrees wrote: Mon Jan 11, 2021 7:40 am Hi,

I'm not a resident in a European country where Vanguard supports individual/private investors nonetheless I'd like to invest with them directly and therefore open a Vanguard account in another country in Europe.
From those countries in Europe where Vanguard does provide services to individual/private investors, do you have experience with them accepting non-resident (in the said country) clients? if so, what is the process to open an account with them as non-resident?
As a non-institutional client, your best bet may be to buy appropriate ETFs through an online broker. They have a number listed on their UK site, all Irish domiciled, I believe.
Topic Author
greentrees
Posts: 26
Joined: Thu Aug 15, 2019 4:00 am

Re: investing directly with Vanguard in Europe

Post by greentrees »

Valuethinker wrote: Mon Jan 11, 2021 9:25 am
greentrees wrote: Mon Jan 11, 2021 7:40 am Hi,

I'm not a resident in a European country where Vanguard supports individual/private investors nonetheless I'd like to invest with them directly and therefore open a Vanguard account in another country in Europe.
From those countries in Europe where Vanguard does provide services to individual/private investors, do you have experience with them accepting non-resident (in the said country) clients? if so, what is the process to open an account with them as non-resident?
As a non-institutional client, your best bet may be to buy appropriate ETFs through an online broker. They have a number listed on their UK site, all Irish domiciled, I believe.
Unfortunately the ETF flavours of their lifestrategy funds have tiny AuMs, and therefore do not meet my criteria to invest in them - I want the index fund versions
JimBeam
Posts: 94
Joined: Wed Jan 29, 2020 3:06 am

Re: investing directly with Vanguard in Europe

Post by JimBeam »

greentrees wrote: Mon Jan 11, 2021 9:28 am
Valuethinker wrote: Mon Jan 11, 2021 9:25 am
greentrees wrote: Mon Jan 11, 2021 7:40 am Hi,

I'm not a resident in a European country where Vanguard supports individual/private investors nonetheless I'd like to invest with them directly and therefore open a Vanguard account in another country in Europe.
From those countries in Europe where Vanguard does provide services to individual/private investors, do you have experience with them accepting non-resident (in the said country) clients? if so, what is the process to open an account with them as non-resident?
As a non-institutional client, your best bet may be to buy appropriate ETFs through an online broker. They have a number listed on their UK site, all Irish domiciled, I believe.
Unfortunately the ETF flavours of their lifestrategy funds have tiny AuMs, and therefore do not meet my criteria to invest in them - I want the index fund versions
You worry about liquidity? If yes, you shouldn't. ETF's liquidity depends on liquidity of underlying assets.
Topic Author
greentrees
Posts: 26
Joined: Thu Aug 15, 2019 4:00 am

Re: investing directly with Vanguard in Europe

Post by greentrees »

JimBeam wrote: Mon Jan 11, 2021 11:42 am
greentrees wrote: Mon Jan 11, 2021 9:28 am
Valuethinker wrote: Mon Jan 11, 2021 9:25 am
greentrees wrote: Mon Jan 11, 2021 7:40 am Hi,

I'm not a resident in a European country where Vanguard supports individual/private investors nonetheless I'd like to invest with them directly and therefore open a Vanguard account in another country in Europe.
From those countries in Europe where Vanguard does provide services to individual/private investors, do you have experience with them accepting non-resident (in the said country) clients? if so, what is the process to open an account with them as non-resident?
As a non-institutional client, your best bet may be to buy appropriate ETFs through an online broker. They have a number listed on their UK site, all Irish domiciled, I believe.
Unfortunately the ETF flavours of their lifestrategy funds have tiny AuMs, and therefore do not meet my criteria to invest in them - I want the index fund versions
You worry about liquidity? If yes, you shouldn't. ETF's liquidity depends on liquidity of underlying assets.
I worry they'll close the ETF if AuM does not go above a certain level, I never invest in ETFs with AuM below 1bn
JimBeam
Posts: 94
Joined: Wed Jan 29, 2020 3:06 am

Re: investing directly with Vanguard in Europe

Post by JimBeam »

Vanguard just launched them so they probably won't be closed anytime soon, but I get your point.
Topic Author
greentrees
Posts: 26
Joined: Thu Aug 15, 2019 4:00 am

Re: investing directly with Vanguard in Europe

Post by greentrees »

JimBeam wrote: Mon Jan 11, 2021 3:10 pm Vanguard just launched them so they probably won't be closed anytime soon, but I get your point.
It's even part of my IPS to avoid ETFs with AuM < 1bn, so their lifestrategy ETFs won't do unfortunately.
JimBeam
Posts: 94
Joined: Wed Jan 29, 2020 3:06 am

Re: investing directly with Vanguard in Europe

Post by JimBeam »

IPS isn't written in stone, it can be modified.
Topic Author
greentrees
Posts: 26
Joined: Thu Aug 15, 2019 4:00 am

Re: investing directly with Vanguard in Europe

Post by greentrees »

JimBeam wrote: Mon Jan 11, 2021 6:07 pm IPS isn't written in stone, it can be modified.
For my IPS is carved on stone, until the day it allows a modification , which is also written in the IPS :D .
I won't break a solid IPS rule for the sake of one investment vehicle - hence the query to invest directly with Vanguard
TedSwippet
Posts: 3353
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: investing directly with Vanguard in Europe

Post by TedSwippet »

There is nothing about a LifeStrategy fund that cannot fairly easily be replicated using just two or three separate ETFs, all with AUMs that will meet your IPS criteria.

Can you say a little about why it is important for you to use a single LifeStrategy fund, rather than separate components?

(For what it's worth, quite a few UK investors prefer to avoid Vanguard's UK LifeStrategy fund offerings, because the funds overweight UK stocks relative to world market cap. As a non-UK investor, overweight in UK stocks is probably not at all what you would want!)
Topic Author
greentrees
Posts: 26
Joined: Thu Aug 15, 2019 4:00 am

Re: investing directly with Vanguard in Europe

Post by greentrees »

TedSwippet wrote: Mon Jan 11, 2021 6:30 pm There is nothing about a LifeStrategy fund that cannot fairly easily be replicated using just two or three separate ETFs, all with AUMs that will meet your IPS criteria.

Can you say a little about why it is important for you to use a single LifeStrategy fund, rather than separate components?

(For what it's worth, quite a few UK investors prefer to avoid Vanguard's UK LifeStrategy fund offerings, because the funds overweight UK stocks relative to world market cap. As a non-UK investor, overweight in UK stocks is probably not at all what you would want!)
the set and forget factor, I'd rather not monitor rebalancing limits nor have rebalancing dates on my calendar - I want someone else to keep the allocation fixed for me.

Isn't there a version of mainland Europe, with EUR as the base currency and the appropriate mainland tilts ?
JimBeam
Posts: 94
Joined: Wed Jan 29, 2020 3:06 am

Re: investing directly with Vanguard in Europe

Post by JimBeam »

greentrees wrote: Tue Jan 12, 2021 9:59 am Isn't there a version of mainland Europe, with EUR as the base currency and the appropriate mainland tilts ?
Why would you want mainland tilt?
Topic Author
greentrees
Posts: 26
Joined: Thu Aug 15, 2019 4:00 am

Re: investing directly with Vanguard in Europe

Post by greentrees »

JimBeam wrote: Tue Jan 12, 2021 10:57 am
greentrees wrote: Tue Jan 12, 2021 9:59 am Isn't there a version of mainland Europe, with EUR as the base currency and the appropriate mainland tilts ?
Why would you want mainland tilt?
no tilt is equally fine as a mainland tilt (I don't mind a bit of home bias nor the lack of it), what I don't want is a UK tilt as I don't live there and I won't retire there.
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