Vanguard Launches Three New Global ETFs

masonic · 26 August at 8:18PM

The S&P500 captures around 80-85% of the total US market, and the rest of the US market is a more significant chunk than the "extra" ROW smaller companies makes up - you'd be missing around 10% of the global investable market. So if capturing broad exposure, a good case could be made for inclusion of the mid-cap 400 if not also the small-cap 600. They will be more expensive, but don't need to be very large allocations. Otherwise it is mid-caps and small-caps everywhere except the US, which seems odd.

That said, I'm personally comfortable with imperfect market coverage. S&P 500 ETF holder here, but I do hold a separate small-cap value fund with plenty of US exposure. I'm overweight US small caps and underweight US mid caps, which I'm fine with. Though that is not a decision I've made to shave a couple of basis points off my fees.

GeoffTF · 26 August at 8:51PM

https://forums.moneysavingexpert.com/discussion/comment/82116000#Comment_82116000

If you are using a separate US fund it is possible to use a synthetic fund that avoids the US withholding tax. There are possible downsides to that though.

PixelPound · 27 August at 9:32AM

https://forums.moneysavingexpert.com/discussion/comment/82116034#Comment_82116034

True, too many just see the fees. That VALL is All-Cap rather than "just" All-World is really a good thing. Many will want a global "buy the whole market " ETF and go for VALL due to the TER rather than understanding the difference.

It's getting popular, daily volume of trades 30M (vs 7M VWRL & 100M VWRP) and bound to increase as it becomes established.