Global Equity Tracker Fund recommendation

theGrinch

Along the lines of those with low fees from the likes of vanguard, ishares, HSBC etc.
Any suggestions to look at welcomed

Alexland

We use a few of them across various accounts and today my LCWL Lyxor World (developed world only) tracker was showing a buy price of £12 and a sell price of £2 which, as the account valuation is based on the sell price, nearly gave me a heart attack so I had to test out some trades to confirm it is still worth around £7. Of all my equity trackers I am most happy with the HSBC FTSE All World fund and only use ETFs to benefit from platform fee capping on the larger accounts. I prefer more liquid ETFs such as Blackrock SWDA despite it being more expensive than LCWL and Vanguard VEVE which I also hold. I also like the Vanguard All Cap fund and VWRL All World ETF.

kinger101

I use Fidelity Index World.
You can compare costs and tracking errors etc here.
https://www2.trustnet.com/passive-funds/global-equities.html

bowlhead99

theGrinch said:

Along the lines of those with low fees from the likes of vanguard, ishares, HSBC etc.
Any suggestions to look at welcomed

I suggest the ones with low fees from the likes of vanguard, ishares, HSBC etc.     You could also add Fidelity, L&G, Lyxor, SSGA etc who all have useful products depending on what you are trying to do.

These days most of the major fund management houses have a passive offering with low claimed tracking error, so it depends what you want to track. Vanguard's Global All Cap is about as comprehensive as you can get if you want proper global (i.e. including emerging markets) and including small cap (although being cap-weighted, only a small percentage will actually be in small cap). It covers tens of trillions of dollars worth of equities, weighted to free float market cap.  However, as you could presume that the weighted average return from the extra companies it tracks will be well correlated with the largest companies which make up the core of a FTSE All-World or MSCI AWCI tracker, you will probably not see a huge difference from buying one of those, which would be simpler to run (due to fewer holdings and more liquidity in the holdings) and therefore a little cheaper.  

My major passive holding in my SIPP was iShares Edge MSCI World Size Factor ETF (an accumulating ETF with 0.3% OCF and available in GBP on the London stock exchange under ticker IWFS). It's designed to track the MSCI World mid-cap equal weight index so doesn't include the Apples and Facebooks of the largecap indexes, but I already had exposure to other funds which would include that type of company. The downside could be cost and liquidity as it's only $500m in size.

I say 'was' my major passive holding, but have been reducing it over the last month as an easy way to cut general equity exposure (easy general equity exposure was the reason I had it in the first place). I now only have £1k of it because having sold out at the end of Feb / start of March, I'd forgotten to cancel my regular monthly purchase and so my platform went and bought me another chunk on Tuesday. Fortunately this week's price is 20% lower than it was some months ago.

TCA

VWRP is the accumulation version of the VWRL All World ETF. Maybe of interest but not all platforms offer it.