Investing may seem complicated, but it doesn’t have to be. There is an option for everyone, no matter their experience or confidence levels. At Vanguard, we think everyone has it in them to become a successful investor.

When you open an individual savings account (ISA) or any other type of account with us, the first thing to consider – and never lose sight of – is why you are investing. It’s also important to think about how you can spread your risks by holding a wide range of investments. And don’t forget to keep costs low, so that you keep more of your returns.

This is the essence of our four investment principles – goals, balance, costs and discipline – which support our 50m investors worldwide1.

Thinking about these things will give you the framework for a personal investment strategy.

How to choose funds

Why funds rather than individual shares or bonds2? Because your risks are better spread. Your money is invested not in one or two different companies (and/or governments, in the case of bonds) but, in many cases, in hundreds, if not thousands.

For example, investing in the Vanguard FTSE Global All Cap Index Fund, means investing in more than 7,000 different companies3. Our Global Bond Index Fund, meanwhile, gives you access to more than 14,000 separate bond holdings4. Some of our multi-asset funds contain even more.

In these examples, both of which are global funds, investors are also able to spread their risk not just across companies, but also countries and regions. But always remember that the value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

So why choose Vanguard funds? We’ve built our reputation on being a pioneer of low-cost investing and the funds that we offer aim to provide investors with everything they need.

You can build your own ISA portfolio by selecting across our mutual funds5, exchange-traded funds (ETFs)6 and Lifestrategy fund range.

Or if you want more of a helping hand when you invest into an ISA, our managed service will select investments based on your attitude to risk. We take a deeper diver into this service later.

What if I want to do it myself?

Our funds come in different shapes and sizes: they may have a regional focus or be global; they may contain only shares or bonds; they may track an index and therefore offer the market return or be actively run by managers seeking to beat the market; or they may seek to align your investments with your environmental, social and governance (ESG) preferences.

With our ETFs, you can trade in real-time with a ‘live’ market price on the London Stock Exchange, in the same way you might with individual shares. Our Quote & Deal service gives you certainty about the price you buy your funds at but involves a £7.50 dealing fee. 

To avoid this, you can choose to trade at the ‘next available price’ which we then perform via bulk dealing - this is where we combine your trade with that of other investors and place bulk deals twice a day. Both ETFs and mutual fund trades take two to three business days to settle, or longer if there is a bank holiday and therefore markets are closed.

On average, our ongoing fund costs are 0.20% while there is one account fee of 0.15% per year (capped at £375 per year for accounts above £250,000). Our fees mean more of your money stays in your pocket. Where it belongs.

Do it all for me?

We recognise that not everyone is the same and that some people might prefer a little more guidance. This is where our managed services can help.

With a stocks and shares ISA that we manage for you, we’ll create an ISA investment plan for you – one that aligns with your attitudes to risk and aims to grow your wealth. 

We start by asking you a few questions to understand how you feel about risk and then use those answers to match you with one of five portfolios. 

The reason we do it this way is because research7 shows that an investor’s mix of shares and bonds – what’s known as their ‘asset allocation’ – is a key driver of long-term investment success. 

Thinking about the appropriate balance of your investments, and their different risk and return characteristics (for example, shares historically experience more volatility, or fluctuations in prices, than bonds), will be influenced by where you are on your investment journey, how far away you are from your goals and any other assets you might own.

We also believe that the most successful investors are those that stay the course. That means not making knee-jerk reactions such as panic-selling when markets are choppy. We will make sure your managed ISA stays the course and only make changes to keep you to the right level of risk when we think it is necessary.

And as you would expect from Vanguard, it’s low cost at just 0.6% a year all-in – this includes your account fee, management fee and fee fund charges. Every penny you save on fees is a penny that can be reinvested for your future. 

Whatever your preferences, our low-cost product offering gives you a wide range of choices to be a successful investor.


1 Data as at 31 January 2024. Source: Vanguard

2 Bonds are a type of loan issued by governments or companies, which typically pay a fixed amount of interest and return the capital at the end of the term.

3 7,121 stocks as at 31 January 2024.

4 14,253 bonds as at 31 January 2024.

5 A mutual fund is a pooled collection of assets that invests in shares, bonds and other securities.

6 ETFs offer you a way to invest in a wide range of bonds or shares in one package. They'll typically track a specific market, like the FTSE 100.

7 Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, 1995. "Determinants of portfolio performance." Financial Analysts Journal 51(1):133–8. (Feature Articles, 1985–1994.)

Vanguard ISA

Learn more about our Stocks and Shares ISA.

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

The eligibility to invest in either ISA or Junior ISA depends on individual circumstances and all tax rules may change in future.

Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.

Investments in smaller companies may be more volatile than investments in well-established blue chip companies.

Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.

The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.

Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.

ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.

For further information on risks please see the “Risk Factors” section of the prospectus on our website.

For further information on the model portfolio risks please see the “Risk Factors” section for the prospectus of the underlying funds on our website.

Other important information

Vanguard Asset Management Limited only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product[s] described, please contact your financial adviser.

For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website.

This is designed for use by, and is directed only at persons resident in the UK.

The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units of, and the receipt of distribution from any investment.

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