We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Vanguard Launches Three New Global ETFs
Comments
-
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,Vanguard does not set a launch price. The price is determined by the market.
0 -
Has that been reduced recently then? Last FWRG factsheet I saw was dated 31st July and still had a 0.15% fee.
I think this is a great move from Vanguard - will be interesting to see if others respond.
0 -
The new Vanguard fund is still undercut by PRIW at 0.05%:
I expect that the new Vanguard fund will be more popular.
1 -
For information, that is marked at the top "This fund has been liquidated or merged. Consequently, no fund information is updated anymore. For more information about the fund, please contact the fund provider."
"Amundi Prime Global" now seems to be this Ireland-based (PRIW was Luxembourg) ETF, same charge of 0.05%:
Amundi Prime Global UCITS ETF Dist | MWOZ | IE000QIF5N15
It is developed world, large and mid cap, so coverage perhaps 20% (by capitialisation) less than the Vanguard one.
1 -
It's available on Trading 212 as of today 👍🏾
2 -
no, you’re right. I was checking yesterday but maybe it was something else.
0 -
It was on Vanguard yesterday but not on T212. I checked today and it's on T212 now! This is a masterful stroke by Vanguard and I hope this keeps up following the footsteps of the US fund fees. Other fund providers please take note!
0 -
Of course it does - it's the initial offering
0 -
There generally is a disadvantage to trading very small ETFs due to a lack of liquidity and therefore wider spreads. It is less important for an ETF that we can be sure will grow rapidly into a highly liquid and popular investment, assuming you intend to hold for the long term.
0 -
That is not how ETFs work. Vanguard would have bought a basket of shares at the market price. That is the initial ETF capital. Shares in the ETF are then offered for sale. The ETF behaves like an Investment Trust. If there is high demand for the ETF, the ETF will trade above Net Asset Value. If there is low demand for the ETF, the ETF will trade below Net Asset Value.
If the premium grows large enough for the Authorised Participants to make an arbitrage profit, they will add baskets of shares to the ETF to reduce the premium. If the discount grows large enough for the Authorised Participants to make an arbitrage profit, they will remove baskets of shares from the ETF to reduce the premium.
The market for the underlying shares sets the price at which the baskets of shares can be bought or sold. The market for the ETF shares sets the price of the ETF.
3
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.4K Banking & Borrowing
- 254.7K Reduce Debt & Boost Income
- 456K Spending & Discounts
- 248K Work, Benefits & Business
- 605.3K Mortgages, Homes & Bills
- 178.9K Life & Family
- 263.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards