The Lemon Fool

It's an excellent global ETF, but don't forget that 6.1% of it is currently invested in UK stocks, so that bit may overlap with your existing holdings in some way.

TedSwippet wrote:It's an excellent global ETF, but don't forget that 6.1% of it is currently invested in UK stocks, so that bit may overlap with your existing holdings in some way.

Yes, that's the theoretical difference between a global fund and an international fund. "Global" includes the UK (or US if that is where the fund is based) and "International" is foreign only. Not that the name is a 100% reliable indicator of course.

The same issue can arise with European ETFs - some include the UK and some do not, wryly reflecting our ambivalent approach to the EU, perhaps?

Another approach is to hold a US ETF, a "Europe ex-UK" ETF, and some combination of Asian and Emerging Markets ETFs to cover the 94% or so of the global market cap that isn't the UK. Such an approach should self-rebalance in most circumstances.

Lootman wrote:Another approach is to hold a US ETF, a "Europe ex-UK" ETF, and some combination of Asian and Emerging Markets ETFs to cover the 94% or so of the global market cap that isn't the UK. Such an approach should self-rebalance in most circumstances.

That's what I do, though with funds and not ETFs. My oldest portfolio pre-dates cost-effective global funds/ETFs. It is a bit more fiddly than the one-ring-to-rule-them-all approach, but not horrible, just mildly annoying.

I find looking at the differences that have opened up between funds since I set it up initially the most irritating part ("...if only I'd put it all in the US rather than spread it around!"). That would all be opaque in the one-fund solution.

I think you mean VWRL.

Is it going into a SIPP? If so you might want to consider a US listed ETF instead, such as Vanguard's Total World Stock ETF (VT). This has a lower TER of only 0.14%, but more importantly will pay dividends from the contained US shares completely free of withholding taxes. This will rely on your SIPP provider supporting this zero-WHT option. Hargreaves Lansdown and Youinvest do.

Vwrl is the version aimed at the uk buyer, vwrd is the same thing but aimed at other markets.
Veve is a developed world only version at .18% against .25% for vwrl and if you threw in a side of vfem (emerging markets) at .25% , ratio say 9 parts vwrl, 1 part vfem you effectively have the same thing at a lower cost.

Hariseldon58 wrote:Veve is a developed world only version at .18% against .25% for vwrl and if you threw in a side of vfem (emerging markets) at .25% , ratio say 9 parts vwrl, 1 part vfem you effectively have the same thing at a lower cost.

Or for folks who don't want a UK component, the Vanguard FTSE Developed World ex-U.K. Equity Index Fund at 0.15% with a similar smattering of VFEM for an even cheaper mix.

https://www.vanguard.co.uk/adviser/adv/detail/mf/overview?portId=9210&assetCode=EQUITY

Interestingly, VFEM is a better match for Vanguard Developed World ex UK than the Vanguard emerging markets OEIC.

On the assumption that stirling is low at the moment and will rise in the future(*) is it sensible to buy a World Tracker now?

(*) I accept that this assumption may be rubbish.

QCG1

I would be cautious about making assumptions about the next movement for Sterling.

The answer is who knows ? I have watched the $ : £ rate for 30 years and around 1.60 is my gut feeling for fair value but in the 70's it was more like 2.40 and my parents who lived in the states in 40's and 50's remind me they saw much higher rates as the norm in the past.

My equity exposure was already low sterling and I brought my exposure down to about 15% in February which seemed a good idea, to follow momentum and looks that way now, but what will the next movement be ? I presently have no idea, my currency gains may vanish or increase.

What I do know is that I am happy with a globally diverse portfolio, I will be equally happy in 5 years time and I will take it as it comes unless something occurs to provide clarity. Foreign exchange moves are very difficult to predict and I am aware that my previous success is probably just luck.

If you wish to consider a position in a global equity portfolio and don't know whether now or later is a good time then I would suggest you drip feed the money in over a couple of years, you will be neither right nor wrong but will strike an average and in the absence of a reliable crystal ball thats as good as any.

Hari,

good idea re:Drip feeding. And I do accept that predicting currency movements are hard (!?).

Cheers for the input.

QCG

Nobody knows whether sterling will rise or fall. You can hedge your bets by buying 50% UK and 50% overseas, which is currently about what I have.

An alternative plan is to put 50% in an overseas tracker, and 50% in sterling cash/bonds, which hedges your bets on currency position and on whether the equity markets will rise or fall.

speaking of vanguard, does anyone know what the lower limit to invest next year will be when they go direct to customer.
fellrunner

If you believe in efficient markets enough to buy a world tracker shares ETF, why would you think that you can predict movements in the (much larger I believe) currency markets?

I've been drip feeding money into VWRL for some time, so I think the answer to the OP's question is yes, but there is a case to be made for the Vanguard LifeStrategy offerings which combine a passive global equity tracker at a certain percentage with the remaining percentage allocated to bonds.

I have invested my son's child benefit and CTF into VWRL in his ISA as I couldn't be bothered allocating between different ETF's and I don't need a bond component.

In my wife's SIPP I just use Vanguard LS80 and in my own I used to have the Vanguard ex-UK fund to complement my Vanguard UK All share but YouInvest upped the fees so moved to the SPDR and DB X-Trackers ETF versions of each instead.

1nv35t wrote:

hiriskpaul wrote:Is it going into a SIPP? If so you might want to consider a US listed ETF instead, such as Vanguard's Total World Stock ETF (VT). This has a lower TER of only 0.14%, but more importantly will pay dividends from the contained US shares completely free of withholding taxes. This will rely on your SIPP provider supporting this zero-WHT option. Hargreaves Lansdown and Youinvest do.

If you hold more than around $60K of US assets, then if you get run over by a bus your assigned probate team will have to register (and pay) US Estate Tax before the assets will be released. For most that's not so much of a tax risk as US/UK treaty has us on the same standing i.e. something like $5M of asset wealth before tax becomes liable (zero rated), and more of a paperwork/delay risk, perhaps involving a higher cost legal agent who is familiar with the process/requirements.

Not if in a SIPP. A SIPP is not part of your estate and not subject to US estate taxes. AFAIK the SIPP trustees do not even require probate in order to hand the SIPP to beneficiaries. Estate creditors have no right to your SIPP either. Not sure if that applies to HMRC though.

ap8889 wrote:Title says it all: Is Vanguard World the best global ETF?

I ask because I am looking to begin to add a proportion of my funds to a passive investment ETF for overseas exposure to complement my UK focussed HYP, and VWRD seemed to fit the bill. I know I dont want anything other than an ETF to avoid paying a fee to my platform provider, (so dont be suggesting no funds/OIECs/unit trusts etc), and I own several ITs for income already.

So what are my options?

I've come on this a little late. How about SWDA?

paulnumbers wrote:

ap8889 wrote:Title says it all: Is Vanguard World the best global ETF?

I ask because I am looking to begin to add a proportion of my funds to a passive investment ETF for overseas exposure to complement my UK focussed HYP, and VWRD seemed to fit the bill. I know I dont want anything other than an ETF to avoid paying a fee to my platform provider, (so dont be suggesting no funds/OIECs/unit trusts etc), and I own several ITs for income already.

So what are my options?

I've come on this a little late. How about SWDA?

SWDA is nice and cheap but excludes emerging markets but you could supplement it with 10% of VFEM or IEMG.

Plutus wrote:

paulnumbers wrote:

ap8889 wrote:Title says it all: Is Vanguard World the best global ETF?


SWDA is nice and cheap but excludes emerging markets but you could supplement it with 10% of VFEM or IEMG.

SWDA is certainly cheaper by 0.05%. I might want to reduce the 59% US holdings slightly by buying say a small holding in a Developed Europe ETF. That's starting to get "complicated" if you only want one ETF.

Personally, and irrelevantly, I would go with Hariseldon's individual purchases of the constituent Vanguard ETFs in VWRL to reduce the cost and might adjust the US content. It's a solid idea, I think, and not a lot of effort (for me at least!).

Plutus wrote:

paulnumbers wrote:

ap8889 wrote:Title says it all: Is Vanguard World the best global ETF?

I ask because I am looking to begin to add a proportion of my funds to a passive investment ETF for overseas exposure to complement my UK focussed HYP, and VWRD seemed to fit the bill. I know I dont want anything other than an ETF to avoid paying a fee to my platform provider, (so dont be suggesting no funds/OIECs/unit trusts etc), and I own several ITs for income already.

So what are my options?

I've come on this a little late. How about SWDA?

SWDA is nice and cheap but excludes emerging markets but you could supplement it with 10% of VFEM or IEMG.

Hi.

Reviewing this...

https://www.vanguard.co.uk/uk/portal/de ... de=EQUITY##portfoliodata

Do such figures as 0.1% in the Philippines or even 2.2% in China really do anything meaningful to the fund? Seems like it's unlikely to make any large difference in the grand scheme of things, or am I mistaken?