Simulate VAFTGAG

General
1

I am looking to simulate, as best possible, the Vanguard FTSE Global All Cap Index Fund (VAFTGAG) (TER 0.23%) with existing accumulating ETFs on IE, with low TER.

Have come up with this:

SPDR S&P 500 UCITS ETF – SPXL-(TER 0.3%) - 65%

Vanguard FTSE Developed Europe UCITS ETF – VEUA (TER 0.10%) - 15% (this Europe ETF also includes UK).

iShares Core ASCI Emerging Markets IMI UCITS ETF – EMIM (TER 0.18%) - 10%

Vanguard FTSE Developed Asia Pacific Ex Japan UCITS ETF – VDPG (TER 0.15%) – 5%

iShares Cord MSCI Japan IMI UCITS ETF – SJPA (TER 0.12%) – 5%

The total holdings are 4383.

Any opinions would be welcome. Is there a simpler way to do this, or should I be adding more ETFs such as small cap?

2

Hi , why not just use Vanguard ESG Global allcap etf , ticker V3AB , ter of 0.24 percent with around 5375 stocks in total ,

1 Like
4

Thanks, I missed that one.

5

Thanks for info on FTSE and MSCI overlap and gaps. This is harder than I thought, could be worthwhile dropping VDPG and staying with EMIM. Does not seem to be much choice on the small caps and the high fees!

I had looked at the FWRG, definitely worth considering.

6

SWLD - MSCI World Large/Med ~80%
WLDS - MSCI World Small Cap ~9%
EMIM - MSCI Emering Markets All Cap ~11%

Portfolio TER - 0.14%
6538 Holdings

3 Likes
7

@nedjohn - curious to see what you think about FWRG vs ACWI (by SPDR). Now SPDR have reduced the fee on ACWI to 0.12%, it seems like a much better option than Invesco FWRG.

Holdings are very similar (2362 for ACWI vs 2646 for FWRG), but ACWI has a lower TER of 0.12%, has much larger AUM (over £2bn for ACWI vs under £0.4BN for FWRG), and has lower trading spreads (indicative spreads of 0.07% for ACWI, vs 0.15% for FWRG).

Really seems like Investengine are missing a trick by not having SPDR ACWI as an option!

I personally to date have gone with 90% VHVG and 10% VFEG, which gives an average TER of 0.13%, and 4236 holdings.

2 Likes
9

I personally wouldn’t recommend PRIW. Even though it has a notional TER of 0.05%, it is luxembourg domiciled, which I believe means it pays 30% witholding tax on US Dividends. Assuming US is 60% of market cap, and dividends yield is 1.5%, this adds around 27bps to the return of this fund. Typical spreads are also high at around 17bps.

A cheap MSCI world like SWLD has a TER of 0.12%, but is Irish domiciled and so pays only 15% witholding tax, and has spreads of only 3bps.

I think tracking difference of this fund should be superior to PRIW.

You can avoid paying witholding tax by going for a swap-based US tracker like SPXP, though makes it difficult to add countries like Canada into the portfolio.

1 Like
11

Do you only have FWRG or have you added a small cap as well?

13

To give you an update I added Xtrackers MSCI World ex USA (XMWX). This is a good compliment to the S&P 500. I’m leaving off adding an emerging market ETF.