SIPP investment choices - VWRL, VRWP or something else?

ex-pat_scot

I've just switched over to Fidelity, and have a huge amount of cash to invest back into the market.
Sadly I switched in cash rather than in specie, so I've been out of the market for a week or so.

I was fully in VWRL, and still find it hard to justify anything else frankly. Global tracker. Low cost. 
I have noticed there is a similar VWRP ETF, which seems an accumulation version (ie dividends are auto reinvested) but seems otherwise identical.
I'm also conscious that the market is bouncing around a lot at the moment - not helped by political issues, short term expectations on interest rates, FX challenges etc.

In spite of my avowed passive stance, I am therefore hesitating somewhat before piling back fully into the market, and pausing to reflect if there are any similar alternatives that might do the same job (global diversified ETF, low cost).

Any suggestions or thoughts? 

Chickereeeee

If VWRL is for you, VWRP is simpler, and probably cheaper, to manage. No dividends to track, sitting there doing, and possibly costing to re-invest.

Alexland

It's best when ETFs can be easily traded in volume with a tight spread so I would favour paying Fidelity the £1.50 every 3 months to auto reinvest dividends with VWRL than hold VWRP which is less common and always seems to have a higher spread. Personally I don't want the circa 10% EM exposure so I hold developed world only VEVE at almost half the OCF in my Fidelity SIPP and in recent years have been a very happy customer of that combination. I find the cash leftover after reinvesting dividends into more whole ETF units helpful to pay the account fees as I don't contribute new money into the SIPP because it's more efficient to sal sac into my workplace pension.

billy2shots

Also with Fidelity.

For ease of management and to minimise cost I moved from VWRL to VWRP. .

£6 a year to reinvest like Alexland suggests is quite dent in a total outlay of £45 to hold the fund with fidelity. 
In fact it's 15% more than it needs to be by doing it that way. 

Albermarle

As a part alternative , you could use an ETF tracking the global mid cap market .
No big tech stocks and less US/wider geographic spread .
Performance has been below the normal global trackers ,but gives some diversification .
iShares Edge MSCI World Size Factor UCITS ETF USD (Acc) Key Statistics | IE00BP3QZD73 | Fidelity

Not a recommendation, just an idea .

Thrugelmir

ex-pat_scot said:

In spite of my avowed passive stance, I am therefore hesitating somewhat before piling back fully into the market, and pausing to reflect if there are any similar alternatives that might do the same job (global diversified ETF, low cost).

Appears to be an active investment decision process though. Passive investors would remain fully invested and allow the fund manager to rebalance the portfolio. 

ex-pat_scot

Alexland said:

It's best when ETFs can be easily traded in volume with a tight spread so I would favour paying Fidelity the £1.50 every 3 months to auto reinvest dividends with VWRL than hold VWRP which is less common and always seems to have a higher spread. Personally I don't want the circa 10% EM exposure so I hold developed world only VEVE at almost half the OCF in my Fidelity SIPP and in recent years have been a very happy customer of that combination. I find the cash leftover after reinvesting dividends into more whole ETF units helpful to pay the account fees as I don't contribute new money into the SIPP because it's more efficient to sal sac into my workplace pension.

Thanks - you're right that the bid-offer spread is tighter for VWRL, albeit both look pretty close.
I was planning on leaving a few £100 in cash to cover ongoing fees etc.
I'll have a look at VEVE.

Alexland

billy2shots said:

£6 a year to reinvest like Alexland suggests is quite dent in a total outlay of £45 to hold the fund with fidelity. 
In fact it's 15% more than it needs to be by doing it that way. 

VWRP spread tends to be around 0.10% higher than VWRL so that's £100 on each £100k invested and I find the leftover cash from holding a distributing ETF useful. Still I guess there is some minor exchange rate impact from converting dividends back to GBP although Fidelity assured me this is done at source so doesn't incur their FX fees.

Looking at trade data for VWRP on the LSE someone did around £100k at lunchtime today at a reasonable price which shows it's possible to trade with some scale but then on VWRL people were placing more orders, some of which were between £300k and £500k, and there was still no price impact.

Secret2ndAccount

VWRL tracks the FTSE All World Index, and charges 0.22%
HSBC FTSE All-World Index S      charges  0.12%
Can you get the HSBC version on Fidelity? It's available as Accumulation or Income versions

ex-pat_scot

Secret2ndAccount said:

VWRL tracks the FTSE All World Index, and charges 0.22%
HSBC FTSE All-World Index S      charges  0.12%
Can you get the HSBC version on Fidelity? It's available as Accumulation or Income versions

There's something very similar - 

HSFWI

HSBC FTSE All-World Index Fund C Income (they also do an Acc version)

Alexland

Secret2ndAccount said:

HSBC FTSE All-World Index S      charges  0.12%
Can you get the HSBC version on Fidelity?

S class? I believe the C class is still 0.13% but presumably the OP is looking for an ETF not a fund in order to cap their ongoing platform fees. But otherwise yes I agree VWRL is expensive for what it is. With enough money maybe a combination of VEVE and VFEM with the odd trade fees to rebalance would be cheaper if the EM is really required.