There are a number of key differences between Moneyfarm and Vanguard that will affect your investment experience. We will explain these differences.
The financial world is changing rapidly, and it’s more accessible than ever before. This has opened up new opportunities for investors, who may previously have been put off by the jargon-heavy nature of the industry and its high entry cost. Thanks to technology, you can now access investment opportunities once reserved only for the super-wealthy. But with so many options available, how do you choose which one is right for you?
When it comes to investing funds, both Moneyfarm and Vanguard offer essentially the same services in similar markets – but there are some areas where they differ substantially. Here’s a breakdown of their pros and cons for UK investors.
Moneyfarm vs Vanguard |
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| Moneyfarm | Vanguard | |
| Investment Options | Managed | Managed and DIY |
| Active or Passive Management | Active | Both Active and Passive |
| Minimum Investment Amount | £500 | £500
(£100 per month if you’d rather invest in monthly instalments) |
| Investment Account Types | Junior ISA, Stocks and Shares ISA, Private Pension, General Investment | Junior ISA, Stocks and Shares ISA, Private Pension, General Investment |
| Access to Socially Responsible Funds | Yes | Yes |
| Annual Average Investment Fund Fee | 0.35% – 0.75% | 0.15% – 0.93% |
| FSCS Protection | Yes | Yes |
| Mobile App | Yes | Yes |
| Trustpilot Score | 4.4 | 4.1 |
Vanguard
Vanguard is a traditional investment company that specializes in low-cost ETF investment funds, as well as mutual funds. With a focus on long-term growth, the company boasts low-cost investment funds, ranging from passive to actively managed. You can invest in Vanguard through its robo-advisor service, which offers a range of different portfolios based on your risk appetite and investment goals. Furthermore platform gives the option to invest in a wide array of financial products, including low-cost ETFs, stocks, and government and corporate bonds. Vanguard offers a traditional investment fund service, where you can purchase shares directly from the company.
As one of the largest investment companies in the world, it boasts an enormous fund range, with over 10,000 different investment funds to choose from. Furthermore, many of Vanguard’s funds are extremely low cost, making them excellent investments for long-term growth. Vanguard also provides users with the ability to have DIY portfolios, giving you the freedom to make changes as you see fit.
Moneyfarm
Moneyfarm is mainly a robo-adviser platform. The online investment platform offers seven different portfolios based on different risk appetites. Portfolios include a wide range of financial assets such as government and corporate bonds, commodities, and real estate as well as a selection of stocks from a wide array of sectors of developed and emerging markets around the world.
Moneyfarm is heavily focused on digital capabilities and provides a wide range of online tools to help users navigate their investment options. Moneyfarm is ideal for those who want to spend less time on investments and a more hands-off approach.
Everything is managed for you by the platform. Although Moneyfarm’s offerings are affordable -making it a viable choice for cost-conscious investors- Vanguard’s management fees are still mostly lower.
Conclusion
Both Vanguard and Moneyfarm offer a wide range of investment funds, as well as low-cost investment options. Another similarity is that both platforms offer access to ethical investing through socially responsible funds. Which one is best for you will depend on your personal investment needs. If you’re looking for a wide selection of funds and the lowest possible fees, Vanguard is the better choice. Moneyfarm, on the other hand, is a better choice for long-term investors, who are interested in managed and diversified portfolios.