Vanguard ETF?

Barry_Bear

Does Vanguard do any accumulation GBP global index tracker ETFs for UK retail investors equivalent to VWRL?

ChesterDog

Yes, VWRP.

Prism

If you use the Vanguard platform you will need to use the FTSE All World OEIC instead as they don't have VWRP

Alexland

Prism said:

If you use the Vanguard platform you will need to use the FTSE All World OEIC instead as they don't have VWRP

Surely you mean their Global All Cap as they don't have an All World fund? I believe that VI can be set to reinvest dividends anyway so the OP is probably elsewhere with a specific reason to use an ETF such as no or capped platform fees and wants to avoid reinvestment trade costs.

Johnnyboy11

Are there any US Witholding Tax issues with VWRP, or doos the platform sort this out automatically if held in a SIPP or ISA?

george4064

Johnnyboy11 said:

Are there any US Witholding Tax issues with VWRP, or doos the platform sort this out automatically if held in a SIPP or ISA?

The ETF is domiciled in Ireland, so no foreign tax issues.

Barry_Bear

Thanks. VWRP is ETF USD Accumulation (GBP). The return YTD is a little different from VWRL. What's the USD bit. Is it hedged? Why the difference? The fund has only been active a short time so only YTD to compare with VWRL. So could the returns diverge long-term? I was hoping for the same as VWRL (but accumulating).

george4064

Barry_Bear said:

Thanks. VWRP is ETF USD Accumulation (GBP). The return YTD is a little different from VWRL. What's the USD bit. Is it hedged? Why the difference? The fund has only been active a short time so only YTD to compare with VWRL. So could the returns diverge long-term? I was hoping for the same as VWRL (but accumulating).

What are the actual YTD figures are you looking at? And from where?

underground99

Barry_Bear said:

Thanks. VWRP is ETF USD Accumulation (GBP). The return YTD is a little different from VWRL.  Why the difference? 

The return isn't different (or not materially so) as they are just different share classes of same sub-fund, investing in same portfolio, with one paying out and the other not. Perhaps you were looking at the current year to date figures on the vanguard factsheet for one of them (which is shown as at 28 Feb) and then you looked the other one up elsewhere and got the return for year to date up to this week, instead. Per Vanguard they are both 1.87% 'year to date' to 28 Feb, and 30.07% for 29/2/2020 to 28/2/2021. 

What's the USD bit. Is it hedged?

 Both of them are unhedged and both measure their net asset value in USD, as that's the same currency as the FTSE index that they aim to track, and is how they report their returns and income (which they either pay or don't pay depending Acc or Dist), although they are priced on the London stock exchange in pounds.

It may just be that the place you looked up one of them did not mention USD in their abbreviation of the name, but they both work the same other than acc or inc. The Inc version has a few billion more assets (more popular / been running longer)

The fund has only been active a short time so only YTD to compare with VWRL. So could the returns diverge long-term? I was hoping for the same as VWRL (but accumulating).

You should be able to get a full year, not just the current 2021 calendar year to date. 

But no, the published returns won't diverge in any meaningful way long term. Your practical returns may slightly diverge between the two, as if you are using the distributing version VWRL there would be a time lag with money out of the market if you were manually receiving and reinvesting dividends, and also perhaps FX charges and transaction charges on receiving and reinvesting the USD dividends through your platform/ broker depending who you used.

Barry_Bear

Very helpful reply underground99. Thank you.
In answer to the questions I was comparing data from morningstar.co.uk.
It calls VWRL "Vanguard FTSE All-World UCITS ETF (GBP)" and VWRP "Vanguard FTSE All-World UCITS ETF USD Accumulation (GBP)" So stating "USD" in one and not the other.
Being a newer fund the VWRP only has YTD trailing returns VWRL 2.65% vs VWRP 2.62%. Not material but given the short timeframe would not want performance to materially diverge over the long term.
Thanks again.

Barry_Bear

I cannot find VWRP on Vanguard's UK platform.
But I have found it listed on their "professional" site.
https://www.vanguard.co.uk/professional/product/etf/equity/9679/ftse-all-world-ucits-etf-usd-accumulating#about-this-fund
Maybe it's not possible for retail investors to have this fund on Vanguard's own UK platform.