ETF alternative to HSBC FTSE All-World Index Fund

minimumcost

HSBC FTSE All-World Index Fund suits my ultra-passive approach. I'd like to find an alternative ETF so that I can trade on the quoted price rather than be at the mercy of the 3rd party execution.

Any suggestions please? Also, a low cost platform that carries the ETF?

Rollinghome

All platforms should have Vanguard FTSE All-World UCITS ETF,  VWRL distributing or VWRP accumulating. OCF 0.22%  The best platform for you will usually depend on how much is invested and how often traded.

Thrugelmir

minimumcost said:

HSBC FTSE All-World Index Fund suits my ultra-passive approach. I'd like to find an alternative ETF so that I can trade on the quoted price rather than be at the mercy of the 3rd party execution.

Any suggestions please? Also, a low cost platform that carries the ETF?

ETF's can discount to wide spreads and also trade at premiums. Not always do they trade at fair value of the underlying assets. 

minimumcost

Rollinghome said:

All platforms should have Vanguard FTSE All-World UCITS ETF,  VWRL distributing or VWRP accumulating. OCF 0.22%  The best platform for you will usually depend on how much is invested and how often traded.

VWRL has too much UK weight. Also, the extra cost, 0.22% vs HSBC's 0.14% is a bit of a turn off. Anything else?

Re platform, iWeb's right for me.... low fixed dealing charge / no annual, but I don;t think they carry any ETFs.

underground99

minimumcost said:

Rollinghome said:

All platforms should have Vanguard FTSE All-World UCITS ETF,  VWRL distributing or VWRP accumulating. OCF 0.22%  The best platform for you will usually depend on how much is invested and how often traded.

VWRL has too much UK weight. Also, the extra cost, 0.22% vs HSBC's 0.14% is a bit of a turn off. Anything else?

Seems you may misunderstand what you are looking at.

You specifically asked for a fund that tracks the FTSE All-World index, which is the index the HSBC FTSE All-World index tracker fund you were looking at is trying to track, which suits your passive approach. But you wanted it to be an ETF.

So, the Vanguard ETF that tracks the FTSE All-World index is called 'Vanguard FTSE All-World UCITS ETF' and trades on the London stock exchange under the ticker VWRL and VWRP.

As it is tracking the same FTSE All-World index that the HSBC fund is tracking, it will have the same UK weight. They both follow the same index which FTSE publish  (latest factsheet for the index is at https://research.ftserussell.com/Analytics/Factsheets/Home/DownloadSingleIssue?issueName=AWORLDS&IsManual=false ).

So, you can't say it has 'too much UK weight' and yet be happy with the UK weight of the HSBC fund that tracks the exact same index weights. They both have the same sort of tracking error.

Yes, it's marginally more expensive, but it's the same price, give or take. You are talking an OCF difference of under a tenth of a percent per year, so only a percent per decade or so. And it sounds like you do not even intend to hold for a decade anyway, as you are looking to buy or sell quickly and speculatively at a real time live price which is why you value the ability to get a quote and make a deal in seconds at an agreed price.

Given the index value can fluctuate more than a percent in a day, that ability is surely worth at least 0.1% a year. So, it should not be a 'turn off' to pay 0.08% a year in extra operating costs for that facility.

Re platform, iWeb's right for me.... low fixed dealing charge / no annual, but I don;t think they carry any ETFs.

As well as open ended funds such as the HSBC fund you were looking at, IWeb offer shares and ETFs that trade on the London stock exchange.

"Global investment search

Use the search facility to look for any Shares, Funds, ETFs or Investment Fund"

https://www.markets.iweb-sharedealing.co.uk/investments-search/?term=Vwrl

Albermarle

my ultra-passive approach.
so that I can trade on the quoted price 

People with an ultra passive approach, do not trade .

Chickereeeee

Albermarle said:

my ultra-passive approach.
so that I can trade on the quoted price 

People with an ultra passive approach, do not trade .

Even ultra-passives buy.

Eyeful

The suggestion comes from Jack Bogle who founded Vanguard. He basically said you should stick to passive investing and not speculate on trading passive ETF's as you seem to want to do.

Eyeful

If all you want is to replace the quoted fund with an ETF that follows the same approach there is, VWRL, HMWO.

Rollinghome

minimumcost said:

Rollinghome said:

All platforms should have Vanguard FTSE All-World UCITS ETF,  VWRL distributing or VWRP accumulating. OCF 0.22%  The best platform for you will usually depend on how much is invested and how often traded.

VWRL has too much UK weight. Also, the extra cost, 0.22% vs HSBC's 0.14% is a bit of a turn off. Anything else?

Re platform, iWeb's right for me.... low fixed dealing charge / no annual, but I don;t think they carry any ETFs.

VWRL is a FTSE All-World Index tracker, as is HSBC FTSE All-World Index Fund.  The clue is in the name.  If you don't like the weighting of the FTSE All-World Index then why are you looking for an ETF that tracks it?    Are you getting muddled with the Vanguard LifeStrategy funds which are fettered fund of funds?

Do you understand what an index tracker does? You won't have much luck finding the index-tracking ETF you want if you don't know which index you want to track.

You might also spend a minute or two finding out what the platform you're paying for offers.  And yes of course Iweb offers ETFs including most of the popular ones. See their listing https://www.markets.iweb-sharedealing.co.uk/etf-centre/

minimumcost

OP here. Trading for me means selling only to fund retirement. The benefit of the ETF, I assume, is that I can time the sell to avoid the short term random loss introduced by dealing through the platform's decision on the timing.

Given the size of my investment vs the amount I take out means the 0.8% extra cost off sets any gain I might get in choosing the time to sell.

Just to be clear this is not me trying to time the market. I'm just delaying a sale until it gives me the amount of money I need to take out. Otherwise I have to sell more than I need to ensure I have the funds required.