Updated January 19, 2021
(A quick note before we begin. For anybody interested in investing, you can email me at firstname.lastname@example.org or use the WhatsApp Function below).
How can you invest in Vanguard index funds from Singapore, Dubai or beyond?
I have had many questions from readers over the years, but this has been one of the most common ones.
Whether it is readers from Singapore, India, New Zealand, Australia, Hong Kong, Dubai, the UK or Qatar, this question has come out again and again.
I would make two quick points on this issue. Firstly, whilst Vanguard are good funds, there are countless equivalent funds that will perform in the same way.
Vanguard was the original for this type of fund, but countless other firms (including 3-4 large ones) have close to identical index/tracker funds. Similar costs, portfolio and performance. In fact, almost identical.
Some people do engage in analysis paralysis. Whether you invest in fund A for 0.09% per year, or fund B for 0.08% per year, that tiny difference really won’t make a huge difference.
Second, Vanguard can’t take clients directly from many countries around the world. However, numerous platforms can accept Vanguard and equivalent funds as I have pointed out here.
The videos below also have brief explanations:
For people living in blacklisted countries or places where investments are restricted, the following video would be useful.
Frequently asked questions
This section will answer a few FAQs:
Is now a good time to invest?
- Now is always the right time to invest if you are long-term
- Nobody can time markets but these lower valuations does appear to lower a great opportunity if you happen to be liquid
- The crisis related to the pandemic, shows that many people can’t DIY invest. Not technically but emotionally. I have lost count of the number of people that have panic sold during this period.
- Point 4, could help to explain these figures below. Too many people buy high (1999) and sell low (2008, 2020):
5. This crisis also shows, once again, the benefits of buying and holding both stock and bond indexes. Bonds don’t beat stocks long-term, but usually rise during periods like 2008 and any crisis.
Is there a big difference between index-linked ETFs and index funds?
Not if you are a buy and hold investor and the costs are similar. ETFs can just be sold more quickly which isn’t always a benefit.
Does Vanguard accept directly in most countries?
Vanguard only accepts directly for a certain number of countries. In general, it is better to have access to a platform which also gives you a wider range of investment choices.
Do you offer access to Vanguard, iShares or BlackRock index funds or ETFs?
Yes I do. Minimums are $100,000 or currency equivalent. Fees are 1%, 0.75% above $500,000 and 0.5% above $1million.
Some restrictions might be placed depending on your country of residency.
Additionally I can set up “80:20 portfolios” which combine indexes with higher net wealth assets which you usually can’t get access to directly yourself.
If you are looking for more specific guidance about this, you can book a consultation with me here.