Many similar funds

olb81

I have 40k in s&s isa wrapper with freetrade.

I want it all in a developed world etf fund such as vanguard vhvg 0.12%

However I've seen several other similar funds (I'll use the abbreviations)

HSBC HMWO 0.15%

ISHARES SWDA 0.2%

L&G LGGG 0.10%

INVESCO MSCI MXWS 0.05%

UBS MSCI WRDA 0.06%

Which to use?

Or split into several?

Go by fees alone?

Is there anything I'm missing here?

They all appear very similar.

dunstonh

You say you want to track developed worlds, but you don't say whether you want MSCI or FTSE. Those two benchmarks treat some emerging markets countries differently. IE, with one it might be a developed country, but with the other it might be an emerging market.

Typhoon2000

Your list has a mixture for developed word and world ( including emerging markets) and different indices ( FTSE, MSCI and Solactive). And at least one of them, MXWS, is a synthetic EFT ( so does no hold any physical shares in the underlying assets and comes with some counterparty risk).

I would choose 1. Personally I would choose the VHVG if you wanted just Developed world.

olb81

Thanks what's the difference between ftse and msci?

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82016437#Comment_82016437

They do a similar job, but how they do it uses a different methodology.

If you were doing all-world or all-cap, then there is a limited difference, and it's not worth worrying about. However, as you've made the active decision to exclude emerging markets, there is a difference.

FTSE and MSCI classify different countries as developed or emerging markets. The major one being South Korea. South Korea has been the best-performing major stock market in the world this year. Mainly on the back of its technology companies, including Samsung. So if you went with an MSCI tracker, you wouldn't have Samson or South Korea in there. If you went with a FTSE tracker, then you would.

What is your reason for the active decision not to include emerging markets?

Or are you not excluding it and buying an emerging markets fund separately to decide your own weightings? Which is what developed market trackers are effectively for. They allow you to tilt if you want to go underweight or overweight in emerging markets. Sometimes people do the same with the UK. They'll buy a developed-world-excluding-UK tracker, then have a separate UK fund and a separate emerging markets fund.

olb81

Dunston amazing reply there.

I believe in South Korea and samsung so I will go the ftse route.

This is my reason not for emerging

I do not like the CCP and its influence