Vanguard vs InvestEngine: Which Is Better in the UK? (2026)

Vanguard vs InvestEngine is a common comparison for UK investors looking for a low-cost Stocks and Shares ISA.

Both platforms are popular with long-term and passive investors, but they take different approaches. Vanguard provides access to its own funds and ETFs, while InvestEngine is an ETF-only platform offering investments from Vanguard, iShares, HSBC, SPDR and other providers.

For investors comparing Vanguard vs InvestEngine, the main differences are account fees, investment choice, portfolio tools and whether you prefer traditional funds or ETFs.

This guide compares Vanguard and InvestEngine ISA accounts, including their current fees, investment options, beginner suitability and key pros and cons.

If you are still comparing providers, see our guide to the Best Stocks and Shares ISA platforms in the UK.

Quick answer: Vanguard vs InvestEngine

InvestEngine is generally cheaper for investors using a DIY ETF portfolio because it currently charges no platform fee or dealing commission. Investors still pay the ongoing charges of their chosen ETFs.

Vanguard charges £4 per month when the combined invested balance across relevant self-managed Vanguard accounts is below £32,000. At £32,000 and above, it charges 0.15% a year, capped at £375.

Choose Vanguard if you want access to Vanguard mutual funds, including funds such as LifeStrategy and the FTSE Global All Cap Index Fund.

Choose InvestEngine if you want a wider choice of ETFs, no DIY platform fee and portfolio tools such as fractional investing and automated rebalancing.

For many investors, the decision comes down to traditional funds and simplicity versus wider ETF choice and lower platform fees. Vanguard’s current self-managed fee structure and InvestEngine’s zero-fee DIY portfolio pricing are confirmed on their official sites.

Vanguard vs InvestEngine comparison table

Feature	Vanguard ISA	InvestEngine ISA
Stocks and Shares ISA	Yes	Yes
Self-managed account fee	£4/month below £32,000; 0.15% above, capped at £375	£0 for DIY portfolios
Dealing commission	No charge for funds or bulk ETF dealing; optional live ETF dealing may cost extra	£0 for DIY portfolios
Investment choice	Vanguard funds and ETFs only	870+ ETFs from multiple providers
Mutual funds/OEICs	Yes	No
Individual shares	No	Yes
Fractional investing	Available for eligible investments	Yes
Managed portfolio option	Yes	Yes
Best for	Vanguard funds and simpler fund investing	Low-cost DIY ETF portfolios
Main drawback	Limited to Vanguard investments and minimum fee below £32,000	ETFs only; no traditional mutual funds

Fees checked in July 2026. Investment fund and ETF charges still apply. Vanguard’s £4 minimum applies to relevant self-managed accounts where the combined invested balance is below £32,000; Junior ISAs and certain managed-only arrangements are treated differently.

Vanguard vs InvestEngine fees

Fees are one of the clearest differences between Vanguard and InvestEngine. The Vanguard vs InvestEngine fee comparison becomes particularly important for portfolios below £32,000, where Vanguard’s fixed £48 annual fee represents a larger percentage of the investment.

Vanguard ISA fees

Vanguard’s self-managed Stocks and Shares ISA charges:

• £4 per month, or £48 per year, when the combined invested balance across relevant Vanguard accounts is below £32,000;
• 0.15% per year when that balance reaches £32,000 or more;
• a maximum annual account fee of £375.

Investors also pay the ongoing costs of their chosen Vanguard funds or ETFs. Vanguard’s published fund management costs currently vary by investment.

InvestEngine ISA fees

InvestEngine currently charges:

• no platform fee for DIY portfolios;
• no dealing commission for DIY ETF purchases and sales;
• underlying ETF charges determined by the investments selected.

InvestEngine also offers Managed and LifePlan portfolios. Its current help page states that these charge 0.25% per year, so the zero-fee comparison only applies to DIY portfolios.

Which is cheaper: Vanguard or InvestEngine?

For DIY ETF investors, InvestEngine is cheaper on explicit platform and dealing fees because it charges neither.

Vanguard’s £48 minimum annual fee is particularly noticeable on smaller portfolios. For example, £48 represents:

• 0.96% of a £5,000 portfolio;
• 0.48% of a £10,000 portfolio;
• 0.192% of a £25,000 portfolio.

At £32,000, Vanguard’s 0.15% percentage fee also equals £48. Above that level, the fee increases with the portfolio until reaching the £375 cap.

However, platform fees are not the only consideration. Vanguard provides mutual funds that InvestEngine does not offer, and the total cost also depends on the underlying fund or ETF charges.

Vanguard vs InvestEngine fees: example costs

Portfolio size	Vanguard self-managed account fee	InvestEngine DIY platform fee	Cheaper on platform fee
£5,000	£48/year	£0	InvestEngine
£10,000	£48/year	£0	InvestEngine
£25,000	£48/year	£0	InvestEngine
£32,000	£48/year	£0	InvestEngine
£50,000	£75/year	£0	InvestEngine
£100,000	£150/year	£0	InvestEngine
£250,000	£375/year	£0	InvestEngine

This table compares platform/account fees only. Underlying fund or ETF charges, spreads and other investment costs may still apply.

For more information, see our guide to ISA fees explained in the UK.

Investment choice: Vanguard vs InvestEngine

Vanguard’s UK platform only offers Vanguard investments. These include:

• index funds;
• actively managed funds;
• LifeStrategy funds;
• Target Retirement funds;
• Vanguard ETFs.

This narrower selection may appeal to investors who want a simpler choice and specifically want Vanguard mutual funds.

InvestEngine focuses exclusively on ETFs but offers a much broader range of ETF providers. Its current website advertises more than 870 ETFs, including investments from Vanguard, iShares and other major issuers.

InvestEngine therefore offers broader ETF-provider choice, while Vanguard offers broader investment-structure choice because it includes both mutual funds and ETFs.

For an explanation of the difference, see our ETF vs OEIC guide.

Can you hold VWRP in an InvestEngine ISA?

InvestEngine offers Vanguard ETFs, and its platform may include the Vanguard FTSE All-World UCITS ETF, commonly identified by its accumulating ticker VWRP.

This means an investor may be able to hold a Vanguard global ETF through an InvestEngine ISA without using Vanguard’s own platform.

The distinction is important:

• VWRP is an ETF, so it can be available through ETF platforms such as InvestEngine.
• The Vanguard FTSE Global All Cap Index Fund is an OEIC/mutual fund, so it is not available through InvestEngine.

Availability can change, so readers should confirm the current ETF list directly on InvestEngine before opening or transferring an account. InvestEngine confirms that its platform includes hundreds of ETFs from providers including Vanguard.

Which is better for beginners: Vanguard or InvestEngine?

Both platforms can be beginner-friendly, but they suit different types of beginner.

Vanguard may be easier for someone who wants to choose a single diversified fund, such as a LifeStrategy fund or the Vanguard FTSE Global All Cap Index Fund, and then invest regularly.

InvestEngine may suit a beginner who specifically wants ETFs and values a zero-fee DIY account. Its fractional investing and portfolio tools can make it easier to construct and maintain an ETF portfolio, although selecting several ETFs requires more investment decisions.

A beginner who wants the fewest possible decisions may prefer Vanguard’s narrower fund range.

A beginner comfortable selecting an ETF, such as a global equity ETF, may prefer InvestEngine’s lower platform costs.

New investors may also find our Beginner ISA guide useful.

Vanguard Pros and Cons

Pros

• Access to Vanguard index funds, active funds and ETFs
• Includes LifeStrategy and Target Retirement funds
• Straightforward long-term investing approach
• Strong range of educational information
• Suitable for regular fund investing

Cons

• £48 minimum annual fee below £32,000
• Limited to Vanguard investments
• No individual company shares
• Narrower ETF range than InvestEngine
• Optional live ETF trades may involve a dealing fee

InvestEngine Pros and Cons

Pros

• No platform or dealing fee for DIY portfolios
• Wide selection of ETFs from multiple providers
• Fractional ETF investing
• Automated portfolio and rebalancing tools
• Access to Vanguard ETFs without using Vanguard’s platform

Cons

• No traditional mutual funds or OEICs
• No individual company shares
• DIY investors must choose and construct their ETF portfolio
• Managed and LifePlan portfolios are not fee-free
• Smaller and newer platform than Vanguard

Final verdict: Vanguard vs InvestEngine?

Vanguard may be better suited to investors who want access to Vanguard mutual funds and prefer a narrow, straightforward range of long-term investments.

InvestEngine may be better suited to investors who want to build a DIY ETF portfolio, access ETFs from several providers and minimise platform fees.

For investors who only want a broad Vanguard ETF such as VWRP, InvestEngine may offer the more cost-effective platform because its DIY portfolios have no platform fee.

For investors who specifically want Vanguard mutual funds such as LifeStrategy or the FTSE Global All Cap Index Fund, Vanguard is the more appropriate of the two because InvestEngine does not offer traditional mutual funds.

Ultimately, the Vanguard vs InvestEngine decision depends on whether you prefer access to traditional Vanguard funds or a wider range of ETFs with lower DIY platform fees.

Overall:

• Choose Vanguard for Vanguard mutual funds and a simpler fund-led experience.
• Choose InvestEngine for wider ETF choice and lower DIY platform fees.

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.

Related Stocks & Shares ISA Guides

Still comparing investment platforms? You may also find these UKMoneyLab guides helpful before choosing a Stocks & Shares ISA.

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