Selling HSBC MDAABG for ACWI

sidneyyoungblood

I currently have around 60k invested

HSBC IDX TKR INV FTSE ALL WORLD INDEX C ACC  (MDAABG)

and looking to sell and rebuy  ACWI  but not too sure the best way of going about it .

The ACWI is around .10 cheaper than the HSBC fund ( ( I think ) . Is it worth the effort - looking to keep it for atleast 10 - 15 years. 

ColdIron

A brief check shows that the HSBC fund is 0.13% and the ETF 0.12%, is £6 pa really worth it to you?

One tracks the FTSE All World index and the other the MSCI All Country World index, essentially the same thing performance wise but the HSBC fund has more countries. SWSD (IWeb) has the same charge for both. What are you trying to achieve?

sidneyyoungblood

ColdIron said:

A brief check shows that the HSBC fund is 0.13% and the ETF 0.12%, is £6 pa really worth it to you?

One tracks the FTSE All World index and the other the MSCI All Country World index, essentially the same thing performance wise but the HSBC fund has more countries. SWSD (IWeb) has the same charge for both. What are you trying to achieve?

sorry my mistake - when I did the search google showed the HSBC Dynamic fund..

Alexland

When selling a fund there is some time out of the market between the valuation point and the money being available in your investment account and then you getting around to reinvesting where market movements are almost random. Then when buying an ETF there is a small market spread (the difference between the buy and sell price) plus perhaps any platform trade fees you may incur.

If the only difference you care about is 0.01% pa then IMHO it isn't worth switching as you might not live long enough for it to payoff.

OneAimMan

I am looking at a similar move and wondering if it is worth it in my case at £150k invested in VANGUARD FTSE GBL ALL CAP ACC (VRXXA), to HSBC IDX TKR INV FTSE ALL WORLD INDEX C ACC (MDAABG)? Fund charge is 0.23 vs 0.13 respectively ~£150 pa. Unfamiliar with ACWI ETF. Thoughts?
 

InvesterJones

They're slightly different funds, the all cap fund includes small companies, the ftse all world and ACWi don't.

OneAimMan

InvesterJones said:

They're slightly different funds, the all cap fund includes small companies, the ftse all world and ACWi don't.

Comparing VRXXA to MDAABG, while they appear to track very similarly in performance, MDAABG appears to be performing better in the last two years slightly (I appreciate short time frame). Also, given the lower fee, is it worth the switch all things being equal, taking in account time out of the market which should be small hopefully.