Tracking differences for True cost of funds

ChilliBob

@GeoffTF - Apologies for the delay in responding, I missed this when you responded. Many thanks, I had a good look around using say veve as an example, the only place I could find the NAV was on vanguard's own site. Rather inconvenient, as its in USD, but that'd makes sense being the fund currency.

I guess if you're sticking to large funds like this it's probably not a huge concern, likewise the spread (in 'normal' market conditions). I suppose it's only when looking to the smaller thematic etfs and similar when one has to be extra careful really. 

Thanks for the detail  

GeoffTF

ChilliBob said:

@GeoffTF - Apologies for the delay in responding, I missed this when you responded. Many thanks, I had a good look around using say veve as an example, the only place I could find the NAV was on vanguard's own site. Rather inconvenient, as its in USD, but that'd makes sense being the fund currency.

I guess if you're sticking to large funds like this it's probably not a huge concern, likewise the spread (in 'normal' market conditions). I suppose it's only when looking to the smaller thematic etfs and similar when one has to be extra careful really. 

Thanks for the detail  

I believe that Bloomberg copies Vanguard's numbers and gives a discount / premium based on them. You are only allowed a few free pages, so I do not want to post a link, but try searching for "Bloomberg VWRL" for example. Be aware that the cost of creating and redeeming shares is built into the discount / premium and market spread. Look at VUKE which has to pay stamp duty.

For large liquid funds holding liquid assets, in normal market conditions, it is not going to be a big issue. £100K+ trades could potentially give issues. The LSE does not give the Exchange Market Size nowadays, but it was not much more than that even for large ETFs. My advice, if you are doing real time trades is to do a sanity check of the price and spread before you the press the button to accept a trade. (You should do that for any real time trade.) Vanguard seems to get good prices with its bulk trades, but I have only used them for trades of a few £K.