Vanguard FTSE Global All-Cap ETF 0.07%

[Phooey]

Interesting development in the ETF space. Vanguard have just launched a global all-cap etf with a fee of 0.07%!

https://www.vanguardinvestor.co.uk/articles/latest...

[Countdown]

Bit confusing.

How does that differe from their other Global All-Cap ETFs (VGLA/VWRL/VWRP/VT)?

[NowWatchThisDrive]

Countdown said:

Bit confusing.

How does that differe from their other Global All-Cap ETFs (VGLA/VWRL/VWRP/VT)?

VWRL and VWRP are FTSE All-World, which is large + mid cap across developed + emerging markets.

VT and VGLA are the same as this (FTSE Global All Cap, so the above + small cap) but neither have a GBP/London listing.

All market cap-weighted though so in practice the differences will be almost imperceptible.

[Phooey]

All-cap includes small companies whereas all-world is just large and mid sized companies. Both heavily weighted to the US as large and mid move the needle much more than small but if you want a broader index the All-cap is the one. ETF is basically a fund that trades on the stock exchange so has live pricing whereas the non-etf version trades (I think) once a day.

[okgo]

I’ve got a fairly decent amount spread across the old Global All Cap and VWRP - the fee saving seems to be substantial - is anyone else in my boat and considering switching?

Am I missing something obvious or a downside to doing so? (Apart from potential days out of market I guess)

[forest172]

My saving would be substantial enough to swap all my VWRP too. I ll definitely consider it

[The Gauge]

NowWatchThisDrive said:

VWRL and VWRP are FTSE All-World, which is large + mid cap across developed + emerging markets.

VT and VGLA are the same as this (FTSE Global All Cap, so the above + small cap) but neither have a GBP/London listing.

All market cap-weighted though so in practice the differences will be almost imperceptible.

Is VWRL receiving dividends wheres VWRP is accumulating?

[forest172]

Yes exactly that

[okgo]

forest172 said:

My saving would be substantial enough to swap all my VWRP too. I ll definitely consider it

I see VWRP dropped their fee a few weeks ago to 0.14% - but yes. FTSE Global All Cap remains at 0.22% as above.

[chip*]

I saw a YT video last month stating Vanguard was releasing 7 new ETFs including the FTSE All Cap, but they weren't t going live / available on the platforms until Jan27 so a fare few months away. Is this being released earlier now?

[Ch0nky]

At a 0.15pp gap (0.22% → 0.07%): £3,333,333 would need to be switched to generate £5,000/yr in fee savings.

Awesome sign me up.

[okgo]

chip* said:

I saw a YT video last month stating Vanguard was releasing 7 new ETFs including the FTSE All Cap, but they weren't t going live / available on the platforms until Jan27 so a fare few months away. Is this being released earlier now?

Live now

[P40L VX]

I cant find the new ones on T212, has anyone else?

[VR99]

Phooey said:

Interesting development in the ETF space. Vanguard have just launched a global all-cap etf with a fee of 0.07%!

https://www.vanguardinvestor.co.uk/articles/latest...

I currently use SPDR ACWI and FWRG for the bulk of my main investments which are 0.12% and 0.15% respectively. 0.07% is very competitive and glad we are finally seeing better vfm. Historically, am fairly sure US investors have it better than us (lower fees) for comparable products.

[ChrisH72]

okgo said:

I ve got a fairly decent amount spread across the old Global All Cap and VWRP - the fee saving seems to be substantial - is anyone else in my boat and considering switching?

Am I missing something obvious or a downside to doing so? (Apart from potential days out of market I guess)

Yes I'm also considering switching but wondering if there's a catch I haven't thought about. I have VWRP at the moment but also considering ditching my s&p500 and putting it all in this new VALL etf.

[Phooey]

ChrisH72 said:

Yes I'm also considering switching but wondering if there's a catch I haven't thought about. I have VWRP at the moment but also considering ditching my s&p500 and putting it all in this new VALL etf.

There will be a small one-off transaction charge on VALL but other than that you could be out of VWRP and in to VALL almost instantly with them both being ETF's. One little tip is if purchasing large amounts of an ETF (VALL for example) the unit price is sometimes in your favour by doing a manual purchase as opposed to automatic (where many orders are pooled together increasing the unit price). So when I get around to doing it I will do an automatic sell of VWRP and an hour later buy VALL by manual transaction (£7.50 on Vanguard)

Edited by Phooey on Friday 21st August 13:10

[duckson]

Will have to consider moving wife s and kids pensions to VALL as they are all in Global All Cap fund currently as long as it s comparable (can t see why it would t be).

They are all in Vanguard themselves so will have to see if there is an affect on price etc other than the headline cheaper % cost.

[ChrisH72]

Would it pay to wait until its more established?

Not much info on it just yet.

Although being Vanguard and also presumably just a copy of the current Global all cap index maybe its a safe bet to just dive in?

[The Gauge]

Are they offering this new VALL within an ISA?

I have current ISAS with VAFTGAG (non ETF) and was about to open another. Is VALL the same, other than being an ETF?

Is the 0.07% fee the main attraction?

Edited by The Gauge on Friday 21st August 17:37

[ChrisH72]

Yes it's available through their ISA