We also have a reader offer with Nutmeg, which provides 12 months fee-free management (terms and conditions apply).
Vanguard vs Nutmeg - which is better?
| Vanguard | Nutmeg | |
| Services | LifeStrategy funds
Target Retirement funds Personal financial advice for retirement planning SustainableLife funds |
Fixed Allocation portfolios
Fully Managed portfolios Socially Responsible portfolios Smart Alpha portfolios Thematic investing |
| Products | ISA, GIA (General Investment Account), Junior ISA, SIPP
Managed ISA |
ISA, GIA (General Investment Account), Lifetime ISA, Junior ISA and SIPP |
| Minimum investment | £500 or £100 monthly investment | £500 (£100 for JISA and LISA) |
| Platform fees | 0.15% annual account fee (capped at £375)
0.45% annual account fee for its Managed ISA (capped at £1,125) Additional underlying fund charges |
On the value of your portfolio up to £100,000 - 0.75%
Over £100,000 - 0.35% Additional underlying fund charges |
| Customer reviews (Trustpilot) | 4.1/5.0 | 4.1/5.0 |
| Money to the Masses offer | n/a | No management fees for 12 months (terms and conditions apply) |
Vanguard vs Nutmeg - services
Vanguard is best known for its popular Lifestrategy range, which offers 5 risk-rated portfolios at a low cost. It also has Target Retirement funds as well as financial advice for those planning their retirement. It recently launched a Managed ISA offering a range of 5 risk-rated ready-made portfolios. The portfolios are aimed at those new to investing or who perhaps prefer to let somebody else make the investment decisions for them. It's worth bearing in mind though that Vanguard's portfolios are made up of only Vanguard's own funds.
Nutmeg, meanwhile, has 10 risk-rated portfolios in its Fully Managed and Socially Responsible offerings. For those looking for lower costs, the Fixed Allocation portfolios have limited intervention in terms of management, with the assets reviewed once a year. At the other end of the spectrum, Nutmeg's Smart Alpha portfolios are managed by a team from J.P.Morgan Asset Management and are adjusted in line with market and conditions.
Nutmeg also offers three thematic investment styles – Technological Innovation, Resource transformation and Evolving Consumer. Nutmeg's thematic investment option provides a globally diversified, risk-adjusted portfolio with a tilt (up to 20% of equity exposure) towards your chosen theme. The majority of the portfolio is actively managed by Nutmeg's investment team, whilst the 'tilted' part of the portfolio is made up of the ETFs which will be reviewed annually.
Vanguard vs Nutmeg - products
Both Vanguard and Nutmeg have similar product ranges, offering ISAs, GIAs, Junior ISAs and SIPPs. However, Nutmeg additionally has a Lifetime ISA, which allows people to save for their first home or retirement. If you are particularly interested in a Lifetime ISA, read our article "Lifetime ISAs explained - are they the best way to save?", which outlines the criteria you need to meet and the advantages and disadvantages of this vehicle.
Vanguard vs Nutmeg - minimum investment
Vanguard and Nutmeg have a minimum investment requirement of £500, although this falls to £100 for Nutmeg's Junior ISA and Lifetime ISA. Additionally, Vanguard has the option to make a regular £100 investment instead of paying a £500 initial lump sum.
Vanguard vs Nutmeg - platform fees
Vanguard is known for having particularly low fees, charging a flat fee of 0.15% irrespective of the amount invested, although there is a cap of £375 per annum for accounts worth over £250,000. This makes it markedly cheaper than Nutmeg's platform fees, although the range of funds you are invested in will be more diverse than with Vanguard, which constructs its portfolios solely from its in-house fund range.
Vanguard vs Nutmeg - customer reviews
Vanguard and Nutmeg both scored 4.1 out of 5.0 on Trustpilot securing an overall "Great" score on the independent reviews website. Vanguard has over 3,000 customer reviews with 63% of reviewers giving it a 5-star rating and 14% of reviewers giving it a 1-star rating. Nutmeg, on the other hand, has over 2,000 reviews with 70% giving it a 5-star rating and around 14% giving it a 1-star rating.
Summary - Vanguard vs Nutmeg
If you are looking to keep costs down, Vanguard's highly competitive pricing structure is hard to ignore. However, if you prefer to not be limited to Vanguard funds for your underlying portfolio, Nutmeg includes a range of different investment houses. It also has the option to go for its Fixed Allocation or Smart Alpha portfolios, which might be better suited to certain types of investors.
For more information on both platforms, read our Vanguard review and Nutmeg review.