Vanguard FTSE All-World UCITS ETF (VWRL.L)

[ADrunkenMarcus]

I'm giving some thought to using passives (ETFs) for the collective portion of my portfolio, to supplement individual shareholdings. Vanguard FTSE All-World UCITS ETF (VWRL.L) seems to be a reasonable option available with my provider for a world tracker which pays a dividend. It is positive that Vanguard has been around for a while, too, as it has a track record and any ETF would be in an unwrapped account.

You can get themed ETFs tracking particular areas such as healthcare stocks, technology, etc.; or ETFs which track dividend-paying securities or stocks which meet particular quality criteria. I'm looking for one which has a distribution option, however modest the income is. Does anyone have experience/recommendations for trackers either for general world exposure (like VWRL); global healthcare; global technology; or global 'quality' themed?

Thanks for any suggestions.

Best wishes


Mark.

[Noslien]

My preference is for WisdomTree Global Quality Div Growth (GGRP). The focus is on quality and momentum, and it is not too overloaded with the major 7 tech stocks. It pays a sensible dividend. Charges at 0.38% are not too bad. I switched from VWRL and so far it is doing a good job.
For info see https://www.wisdomtree.eu/en-gb/etfs/qu ... ts-etf-usd
Regards
Jim

[kempiejon]

Vanguard developed VEVE plus vanguard emerging markets VFEM can give the same cover as VWRL but at half? the fee. Weight approx 9:1.

I have mostly UK shares in ISAs for pre retirement income so in my SIPP, nearly all passive with some fixed income, I preferred to avoid UK shares. I mixed my own global tracker, exUK, using Vanguard ETFs. USA , Japan, Asia exJapan, emerging markets, Europe exUK. Also I only went for 50% USA and 10-15% in the others. In theory I rebalance as I add monthly but I've not checked since April where the weighting are and I know USA has been going up and Asia and EM going down so I might get a shock this April when I work out weightings.

[kempiejon]

We had a discussion on global tracker. viewtopic.php?f=55&t=41909

[monabri]

I'm giving some thought to using passives (ETFs) for the collective portion of my portfolio, to supplement individual shareholdings. Vanguard FTSE All-World UCITS ETF (VWRL.L) seems to be a reasonable option available with my provider for a world tracker which pays a dividend. It is positive that Vanguard has been around for a while, too, as it has a track record and any ETF would be in an unwrapped account.

You can get themed ETFs tracking particular areas such as healthcare stocks, technology, etc.; or ETFs which track dividend-paying securities or stocks which meet particular quality criteria. I'm looking for one which has a distribution option, however modest the income is. Does anyone have experience/recommendations for trackers either for general world exposure (like VWRL); global healthcare; global technology; or global 'quality' themed?

Thanks for any suggestions.

Best wishes


Mark.

Couple of points.
1. Wouldn't you go for the/an accumulating version?
2. There are cheaper options
3. You need to be prepared to declare Excess Report Income ( ERI) via a tax return in a non ISA account.
4. Vanguard, domiciled in Ireland, are " foreign" for tax reporting. Any dividends and ERI to be declared via tax return.

[Adamski]

I've got VWRL as my largest holding in an unsheltered account. They pay dividends in gbp.

Yes they're domiciled in Ireland. If your unsheltered dividends are under £2000 you don't need to fill the foreign pages. However if over £2000 strictly would need to complete foreign dividend pages.

For that reason I split my world tracker holdings between this and Fidelity Index World Inc (oeic) so the unsheltered dividend is below £2k.

[kiloran]

I've got VWRL as my largest holding in an unsheltered account. They pay dividends in gbp.

Is that correct? I believe they pay in USD and the broker converts the received dividends to GBP

--kiloran

[Adamski]

I believe they pay in USD and the broker converts the received dividends to GBP-kiloran

That's right. I should know that

[scrumpyjack]

I've got VWRL as my largest holding in an unsheltered account. They pay dividends in gbp.

Is that correct? I believe they pay in USD and the broker converts the received dividends to GBP

--kiloran

That's correct, skimming 1% off each dividend payment

[Wasron]

I'm giving some thought to using passives (ETFs) for the collective portion of my portfolio, to supplement individual shareholdings. Vanguard FTSE All-World UCITS ETF (VWRL.L) seems to be a reasonable option available with my provider for a world tracker which pays a dividend. It is positive that Vanguard has been around for a while, too, as it has a track record and any ETF would be in an unwrapped account.

You can get themed ETFs tracking particular areas such as healthcare stocks, technology, etc.; or ETFs which track dividend-paying securities or stocks which meet particular quality criteria. I'm looking for one which has a distribution option, however modest the income is. Does anyone have experience/recommendations for trackers either for general world exposure (like VWRL); global healthcare; global technology; or global 'quality' themed?

Thanks for any suggestions.

Best wishes


Mark.

I use four ETFs, but only one is distributing.

VWRL (the only one paying dividends), I have a lot of this in ISAs to keep them simple

I also hold SGLN for gold exposure, SMGB for exposure to the semi-conductor industry, and EWSP for more US-exposure on an equal-weighted basis.

Diversification is described as the only free lunch in investing, so an equal-weighted tracker of the S&P 500 seemed like a no-brainer (this is a fairly recent investment, but I’m not sure why it took me so long to find it)

Regards

Wasron

[JohnW]

‘or global 'quality' themed?’

Here’s 16 years of a quality selected fund history. Is it really worth the trouble? https://www.bogleheads.org/forum/viewto ... 0#p7636691

global healthcare; global technology;

This would be a move away from diversification in the direction of picking winners. You’re ‘giving some thought’ but haven’t fully embraced the ‘passive investing’ idea yet. Everyone’s journey is different. Specifically, here’s a hazard with thematic funds:
'Lighting your Money on Fire with Thematic ETFs' https://rationalreminder.ca/podcast/185

Diversification is described as the only free lunch in investing, so…

Why move away from the diversification of a global tracker by adding US only stocks and semi-conductor stocks? Diversification means different things to different folk, but as far as ‘free lunch’ goes its meaning is ‘market cap weighted’ as per the efficient market hypothesis I think. The best risk adjusted return is from the cap weighted market. You can't do better than that without taking more risk unless you know something others don't, because all known information is already reflected in asset prices.

[ADrunkenMarcus]

Thanks everyone for the input.

Couple of points.
1. Wouldn't you go for the/an accumulating version?
2. There are cheaper options
3. You need to be prepared to declare Excess Report Income ( ERI) via a tax return in a non ISA account.
4. Vanguard, domiciled in Ireland, are " foreign" for tax reporting. Any dividends and ERI to be declared via tax return.

3 & 4: understood. 2: Always, but you look at all factors. 1: No, dividends would be taken so distributing is better.

My preference is for WisdomTree Global Quality Div Growth (GGRP). The focus is on quality and momentum, and it is not too overloaded with the major 7 tech stocks. It pays a sensible dividend. Charges at 0.38% are not too bad. I switched from VWRL and so far it is doing a good job.
For info see https://www.wisdomtree.eu/en-gb/etfs/qu ... ts-etf-usd
Regards
Jim

Thanks for the reference, looks useful.

Vanguard developed VEVE plus vanguard emerging markets VFEM can give the same cover as VWRL but at half? the fee. Weight approx 9:1.

I have mostly UK shares in ISAs for pre retirement income so in my SIPP, nearly all passive with some fixed income, I preferred to avoid UK shares. I mixed my own global tracker, exUK, using Vanguard ETFs. USA , Japan, Asia exJapan, emerging markets, Europe exUK. Also I only went for 50% USA and 10-15% in the others. In theory I rebalance as I add monthly but I've not checked since April where the weighting are and I know USA has been going up and Asia and EM going down so I might get a shock this April when I work out weightings.

Yes, UK shares haven't tended to do so well.

We had a discussion on global tracker. viewtopic.php?f=55&t=41909

I'll check it out, thanks.

‘or global 'quality' themed?’

Here’s 16 years of a quality selected fund history. Is it really worth the trouble? https://www.bogleheads.org/forum/viewto ... 0#p7636691

global healthcare; global technology;

This would be a move away from diversification in the direction of picking winners. You’re ‘giving some thought’ but haven’t fully embraced the ‘passive investing’ idea yet. Everyone’s journey is different. Specifically, here’s a hazard with thematic funds:
'Lighting your Money on Fire with Thematic ETFs' https://rationalreminder.ca/podcast/185

Lots of material. Thanks. I guess going for particular geographies or sectors with passives is a bit of a half way house.
Best wishes


Mark.