Vanguard Launches Three New Global ETFs

GeoffTF

Vanguard launched three new global ETFs:

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/three-new-global-equity-etfs

That includes a FTSE Global All Cap with an OCF of 0.07%.

masonic

The FTSE Global All Cap ETF will be a very nice option for those avoiding percentage based platform fees. Question is when will relevant platforms carry this, and when will it grow large enough to be worth considering?

I don't see it listed anywhere at the moment. According to LSE, the relevant ticker is VALL for GBP Acc share class. There is also a USD Acc and Inc class.

The FTSE Global ex-US might be of interest to those wishing to dial down their US exposure, although other options already exist.

GeoffTF

I don't see it listed anywhere at the moment. According to LSE, the relevant ticker is VALL for GBP Acc share class. There is also a USD Acc and Inc class.

I have just logged into my Vanguard account. I have some cash in my SIPP, which was left over from a previous purchase. I can place a buy order for VALL at the next bulk buying point. I expect that the other platforms will soon catch up.

It will take a while for the turnover to pick up. It is not going to be much until the other platforms list it. There will be almost no sellers in the early days, so buyers will pick up almost all the cost of buying the underlying stock.

Bobziz

@masonic "The FTSE Global ex-US might be of interest to those wishing to dial down their US exposure, although other options already exist"

But do the existing options include EM ?

masonic

https://forums.moneysavingexpert.com/discussion/comment/82109818#Comment_82109818

That's a good point. I don't think there is another single fund covering developed ex-US and EM.

Sg28

https://forums.moneysavingexpert.com/discussion/6680480/vanguard-launches-three-new-global-etfs

This looks like a big saving compared to my HSBC FTSE all world fund at 0.13%.

The only difference I can find between the 2 is that the global all cap includes small cap companies.

"There will be almost no sellers in the early days, so buyers will pick up almost all the cost of buying the underlying stock."

Are you saying there would be a disadvantage in buying this fund as soon its launched?

VXman

https://forums.moneysavingexpert.com/discussion/comment/82109922#Comment_82109922

I am not an expert but I have been following the discussion about this launch for a while. I heard on a reputable YouTube channel that usually the fund would initially offered to large corporate investors before it was let loose on small individual investors such as us. Not sure whether this has been the case or not. It does seem to have become available quicker than many were anticipating.

PixelPound

https://forums.moneysavingexpert.com/discussion/comment/82109922#Comment_82109922

Depends on how accurate the launch price has been set and what timescale you are looking at. Sometimes they fall after a month or so because they are getting the AUM up because they are offering more shares than demand, e.g. institutions buying below par. If the price has been set right it will at some point get back to it if there is sufficient demand,

Remember

• It's from a big provider, so people will be confident to buy
• The low TER of 0.07% for a global ETF will get plenty to switch
• Including small caps might also be perceived as "more global" and appeal

Many prefer to wait until 6-12 months have gone, but if you do get in early, just DCA through any dips rather than panicking.

mrklaw

https://forums.moneysavingexpert.com/discussion/comment/82109922#Comment_82109922

you have FWRG as an often cited All world (not all cap) index at 0.07% which would match the vanguard fee but keep your index coverage?

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82109922#Comment_82109922

Are you saying there would be a disadvantage in buying this fund as soon its launched?

Perhaps for some people. If you are thinking of investing £100 per month in a global tracker, go ahead. If you have £1 million in a global tracker and are thinking of switching, you are going to want to assess the costs and benefits. You can do that with ETFs. You can look at the quoted spread. You can asses the actual spread (which will be smaller) by looking at trades in the market. You can look at the NAV which is published daily and compare that with the market price. If you have an OEIC, you cannot do that. The cost of trading is hidden from you.

GeoffTF

https://forums.moneysavingexpert.com/discussion/comment/82109963#Comment_82109963

There were some trades on the LSE yesterday, but nothing before that. Assets Under Management and the NAV are blank:

https://www.londonstockexchange.com/stock/VALL/vanguard/company-page

It does not look as though large corporate investors have been given first bite. Vanguard had to wait for the approval of the Irish regulator before launching the fund. That has happened before the date in the prospectus.