Vanguard vs InvestEngine is a common comparison for UK investors looking for a low-cost Stocks & Shares ISA.
Both platforms are popular with long-term investors and ETF investors, but they take very different approaches. Vanguard offers access to its own range of index funds and ETFs, while InvestEngine focuses on commission-free ETF investing.
In this comparison, we look at fees, investment choice, ease of use and which platform may be the better fit for your investing goals.
If you’re still comparing providers, see our Best Stocks & Shares ISA UK guide.
Jump to:
Overview · Fees · Investment Options · Which Is Better For Beginners? · Pros & Cons · Final Verdict · FAQs
Vanguard vs InvestEngine: Quick Comparison
| Feature | Vanguard | InvestEngine |
|---|---|---|
| Stocks & Shares ISA | Yes | Yes |
| ETFs | Yes | Yes |
| Funds (OEICs) | Yes | No |
| Individual Shares | No | No |
| Platform Fee | 0.15% | £0 (DIY Portfolio) |
| Annual Fee Cap | £375 | None |
| Mobile App | Yes | Yes |
| Fractional Investing | Yes | Yes |
Fees: Vanguard vs InvestEngine
When comparing Vanguard vs InvestEngine, fees are one of the biggest differences.
Vanguard charges a platform fee of 0.15% per year, capped at £375 annually. Investors also pay the ongoing costs of their chosen funds or ETFs.
InvestEngine’s DIY portfolios currently have no platform fee, making it one of the cheapest ways to invest in ETFs in the UK. Investors only pay the underlying ETF costs.
For investors focused solely on minimising fees, InvestEngine has the advantage.
Our ISA Fees Explained UK guide explains how platform fees and fund charges affect long-term returns.
Investment Options
The investment choice available is where Vanguard and InvestEngine differ most.
Vanguard only offers Vanguard investments, including index funds, ETFs, LifeStrategy funds and Target Retirement Funds.
InvestEngine focuses exclusively on ETFs but offers access to hundreds of ETFs from providers including Vanguard, iShares, Invesco, HSBC and SPDR.
Investors looking for traditional index funds may prefer Vanguard, while investors wanting a wider ETF selection may prefer InvestEngine.
If you’re unsure how ETFs differ from traditional funds, see our ETF vs OEIC guide.
Vanguard vs InvestEngine: Which Platform Is Better For Beginners?
Both platforms are beginner friendly, but they suit different types of investors.
Vanguard may appeal to investors who want a simple investment journey and access to well-known funds such as the Vanguard FTSE Global All Cap Index Fund.
InvestEngine may appeal to investors who prefer ETFs and want the lowest possible platform costs.
For many beginners building a passive investment portfolio, either platform can be a strong choice.
New investors may also find our Beginner ISA guide useful.
Vanguard Pros and Cons
Pros
- Access to Vanguard index funds
- Simple investing experience
- Strong reputation
- Good educational resources
- Suitable for regular investing
Cons
- Platform fee applies
- Vanguard investments only
- No individual shares
InvestEngine Pros and Cons
Pros
- No platform fee on DIY portfolios
- Wide ETF selection
- Low-cost investing
- Easy-to-use platform
- Suitable for ETF investors
Cons
- No individual shares
- No traditional funds
- Smaller platform than some competitors
Vanguard vs InvestEngine: Final Verdict
For investors who want access to Vanguard’s well-known index funds and a straightforward investing experience, Vanguard remains an excellent choice.
For investors focused on ETF investing and minimising platform fees, InvestEngine often offers better value.
Overall, Vanguard may suit investors who prefer funds, while InvestEngine may suit investors who prefer ETFs and lower costs.
You can also read our Vanguard ISA Review and InvestEngine Review for a more detailed look at each platform.
For a broader comparison of low-cost providers, see our Cheapest Stocks &Shares ISA UK guide.
For information on Vanguard’s current fees and investment options, visit the official Vanguard Investor website.
For the latest details on InvestEngine’s ISA and ETF offering, visit the official InvestEngine website.
FAQs
Is InvestEngine cheaper than Vanguard?
For DIY ETF portfolios, InvestEngine is generally cheaper because it does not charge a platform fee.
Can I buy Vanguard funds on InvestEngine?
No. InvestEngine offers Vanguard ETFs but does not offer Vanguard mutual funds such as the FTSE Global All Cap Index Fund.
Which is better for beginners, Vanguard or InvestEngine?
Both are beginner friendly. Vanguard may be simpler for investors using index funds, while InvestEngine may suit ETF investors seeking lower fees.
Which platform is better for ETF investing?
InvestEngine generally offers a wider ETF selection and lower costs for ETF investors.