Vanguard FTSE Global All Cap Index versus VWRP

dealyboy

Hi junebaby (OP) ... you may be interested in these Monevator articles ...

https://monevator.com/best-global-tracker-funds/
https://monevator.com/low-cost-index-trackers/

... they are slightly out of date now (from last year), the HSBC FTSE All-World Index Fund C OCF is now 0.12%, but may be relevant for background/research.

GeoffTF

Linton said:

JohnWinder said:

We can try to quantify the anticipated small difference in returns of those two funds. Over the last 50 years US small cap has returned about 0.3%/year more than other US stocks, on average without a lot of variation. So by choosing the fund with small cap in it you might anticipate returns  to be better on average by about a twentieth of 0.3%, because only about 5% of one of those funds is small cap. That's 0.015%/year difference in returns between the two funds.  

Yes, though I have seen people get excited about a 0.015% difference in charges, so perhaps not to be ignored.

Charges are certain. Differences in performance are speculative. 0.015% is more than my brokerage charges.

junebaby

Thanks for all the helpful comments. Looks like I won’t go wrong with either one. 

ChesterDog

Although VWRP hasn't been around very long, its distributing version VWRL has been around since May 2012.

I was intending to plot it, with income reinvested, against the All-cap OEIC, but Trustnet has ground to a halt on me.

GeoffTF

ChesterDog said:

I was intending to plot it, with income reinvested, against the All-cap OEIC, but Trustnet has ground to a halt on me.

Try Morningstar. VEVE is cheaper but does not include emerging markets. You can add some VFEM if you are bothered by that.

ericlered7

Hi all.
I currently have a Vanguard S&S ISA made up of VLS100 only.

Considering transferring this to IWEB.

At some point I'd like to move the holding from VLS100 to a Global Tracker. 

If I switch funds within my VG ISA first, will it make any difference when I transfer to IWEB if I convert to the ETF or Fund being compared in this thread? 

And going forwards, if I then want to then switch the holding in IWEB to HSBC FTSE ALL WORLD (MDAABG) would it be better if I was invested in the ETF or Fund?

Hope that makes some sense!

GeoffTF

ericlered7 said:

Hi all.
I currently have a Vanguard S&S ISA made up of VLS100 only.

Considering transferring this to IWEB.

At some point I'd like to move the holding from VLS100 to a Global Tracker. 

If I switch funds within my VG ISA first, will it make any difference when I transfer to IWEB if I convert to the ETF or Fund being compared in this thread? 

And going forwards, if I then want to then switch the holding in IWEB to HSBC FTSE ALL WORLD (MDAABG) would it be better if I was invested in the ETF or Fund?

Hope that makes some sense!

Those funds are all similar. Nobody knows which fund will do best, but it is not likely to make much difference. You could lose money whenever you switch, because of swing pricing with the OEICs and the spread and premium/discount of the ETF. It is probably best to do nothing.

ericlered7

GeoffTF said:

ericlered7 said:

Hi all.
I currently have a Vanguard S&S ISA made up of VLS100 only.

Considering transferring this to IWEB.

At some point I'd like to move the holding from VLS100 to a Global Tracker. 

If I switch funds within my VG ISA first, will it make any difference when I transfer to IWEB if I convert to the ETF or Fund being compared in this thread? 

And going forwards, if I then want to then switch the holding in IWEB to HSBC FTSE ALL WORLD (MDAABG) would it be better if I was invested in the ETF or Fund?

Hope that makes some sense!

Those funds are all similar. Nobody knows which fund will do best, but it is not likely to make much difference. You could lose money whenever you switch, because of swing pricing with the OEICs and the spread and premium/discount of the ETF. It is probably best to do nothing.

Hi Geoff, thanks for your comment. I am a bit worried about losing money when I switch from VLS100, is there anyway mitigate this problem you know of? Apart from sticking with the UK bias! Cheers

alanyau88

There won't be much difference in the funds although the key is to have the lowest OCF, is accumulating, make sure it doesn't have any hidden charges, and the currency exchange fees and spreads of your platform if applicable.  I would prefer to have a higher proportion of emerging markets than the low percentages devoted by the global funds at this current time.

GeoffTF

ericlered7 said:

GeoffTF said:

ericlered7 said:

Hi all.
I currently have a Vanguard S&S ISA made up of VLS100 only.

Considering transferring this to IWEB.

At some point I'd like to move the holding from VLS100 to a Global Tracker. 

If I switch funds within my VG ISA first, will it make any difference when I transfer to IWEB if I convert to the ETF or Fund being compared in this thread? 

And going forwards, if I then want to then switch the holding in IWEB to HSBC FTSE ALL WORLD (MDAABG) would it be better if I was invested in the ETF or Fund?

Hope that makes some sense!

Those funds are all similar. Nobody knows which fund will do best, but it is not likely to make much difference. You could lose money whenever you switch, because of swing pricing with the OEICs and the spread and premium/discount of the ETF. It is probably best to do nothing.

Hi Geoff, thanks for your comment. I am a bit worried about losing money when I switch from VLS100, is there anyway mitigate this problem you know of? Apart from sticking with the UK bias! Cheers

You have not said how much money we are talking about, but for large holdings where the transaction costs are negligible as a percentage, you can switch in stages. The UK market has done badly over the last ten years, but it did well previously. It is now cheap and may do well over the next ten years, particularly as you do not pay withholding tax on UK dividends. It probably is not a good time to be dumping a UK bias.