If you’ve read at all into Early Retirement or Index Funds, you’ve probably heard of Vanguard.
Vanguard is a popular US investing platform made famous by its Index Funds and its low fees.
However, for those of us living outside of the US or the UK, we can still invest with Vanguard?
Unfortunately, Vanguard is only available for US and UK retail (non-professional) investors.
Unless you’re a professional investor, you’re not able to open a personal account in Ireland.
However, you can still invest in Vanguard funds through alternative investment platforms.
You are perfectly allowed to invest in Vanguard’s wide range of funds while living in Ireland.
In this article, I talk about why Vanguard is very popular and whether it is available in Ireland.
I also talk about the difference between ETFs/Index funds and alternative platforms in Ireland.
Finally, I talk about alternative fund options to consider and where to find more information.
Why is Vanguard so Popular?
Founded in 1975, Vanguard is the 2nd largest investment company in the US (after BlackRock).
It has $7 trillion in assets under management and has more than 20 million clients worldwide.
John Bogle, founder of Vanguard, made history in 1976 by creating the very first index fund.
This was a game changer, not just for professional investors but for investors like you and me.
Its name was “first index investment trust”, now it’s called “500 index fund investor shares”.
Nowadays, it offers 191 funds in the US and 224 funds outside the US, 39 of which are ETFs.
Its idea is that buying and holding the broad market gives better returns than stock picking.
This was proven to be true by a 10 year bet made between Warren Buffet and a Hedge Fund.
Not only that, but because index funds aren’t managed by managers, its fees are much lower.
So better performance and lower fees: no wonder Vanguard is very popular among investors.
Is Vanguard available in Ireland?
Before you get your hopes too high, Vanguard is only available for US and UK retail investors.
Unless you’re a professional investor, you won’t be able to open a personal account in Ireland.
This is unfortunate considering Vanguard is present worldwide – just not for retail accounts.
As far as I’m aware there are no plans for Vanguard to expand into places outside the US/UK.
Does this mean that you can’t invest with Vanguard if you live in Ireland? Yes, I am afraid so.
However, you may not be able to invest using their platform but you can invest in their funds.
In Ireland, you are able to invest in a wide range of Vanguard ETFs using alternative platforms.
That’s right, you can buy an ETF tracking the S&P 500, FTSE 100, and any of the main indices.
In fact you have a range of 45+ Vanguard ETFs to choose from – so not bad if you live in Ireland.
But wait, what’s all this talk about ETFs – I thought we were talking about index funds here?
What is the Difference ETFs and Index Funds?
You may be wondering why I say you can buy Vanguard ETFs and not Index Funds in Ireland.
This is because you can only buy Index Funds directly from the provider i.e. from Vanguard.
That means that at the moment in Europe, Vanguard only offers Index Funds to UK residents.
Not to fear, this is where ETFs come in. First of all, ETF stands for Exchange Trader Fund.
The only difference between them is that ETFs can be bought and sold at any time of the day.
Whereas index funds are bought and sold based on the closing price of the day – that’s all.
The bottom line is they should have the same returns as they are tracking the same indices.
So although you may not be able to invest with Vanguard and index funds, no need to worry.
ETFs are the next best thing as they are easily available using multiple alternative platforms.
So what are these alternative platforms that I can use to invest in Vanguard ETFs in Ireland?
Vanguard Alternative Platforms in Ireland
You can’t invest with Vanguard in Ireland but you can invest in their ETFs with other platforms.
Here is a list of some alternative platforms that you can invest with that offer Vanguard ETFs:
- Etoro: You may have heard of this socal investing platform (you can copy/follow investors).
More importantly, you can use eToro’ to invest in Vanguard ETFs if you live in Ireland.
- Interactive Brokers: Also known as IBKR, it is one of the world’s most trustworthy brokers.
It offers a range of financial products (including Vanguard ETFs) for those living in Ireland.
- DEGIRO: A low cost brokerage firm that has become very popular recently due to its low fees.
Similarly, it offers a wide range of ETFs (including Vanguard) to choose from for Irish residents.
- BUX Zero: A new online broker firm positioned as an affordable way for Europeans to invest.
They offer all the same products that the other firms do, including Vanguard ETFs if in Ireland.
What Platform and ETF will You Use?
Just because you can’t use Vanguard in Ireland, doesn’t mean you can’t invest in their funds.
It’s strange you can only invest with Vanguard in US/UK, unless you’re a professional investor.
Nevertheless, at least you can invest in Vanguard ETFs that match their Vanguard Index Funds.
The Vanguard index fund I invest in is the Vanguard FTSE Developed World ex UK Index Fund.
Have a look at the alternative platforms available in Ireland and see which one is best for you.
To find out more about Vanguard and index funds, then check out the book Unshakeable.
In the book, the author talks about everything you need to know about Vanguard index funds.
If you want to find out more about the Vanguard FTSE Developed World, check out my article.
In it, I compare it to the Vanguard FTSE Global All Cap, and talk about which I think is better.
Which Vanguard Index Fund are you invested in? Please share in the comments below!
