VWRA - FTSE All-World UCITS ETF (USD) Accumulating

wheel1983

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Is this a good sign to get VWRA instead of IWDA + EIMI combi, especially for those who has not started the global investment leg yet?

Seen posts that VWRA volume is low. Is that a point for concern?
 

Anarchy

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ishares get promoted heavily whereas Vanguard does not. I believe not many people know VWRA existed. Not sure if it will get improved over the years.
 

Anarchy

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Less liquid is for sure.
Higher spread doesn’t really matter for Long unless in and out or etf then yes it is a problem.
Funds too young to study tracking error?
 

assiak71

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less liquid
higher spread
more tracking error

Less liquid - i dont see a practical significance for this. Unless you are selling all at one shot

Higher spread - not really significant for long term holders

Tracking error - i dont see how liquidity equals better tracking error.

So please revise your ans and answer again, what is the practical significance of higher volume?
 

malthead

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Less liquid - i dont see a practical significance for this. Unless you are selling all at one shot

Higher spread - not really significant for long term holders

Tracking error - i dont see how liquidity equals better tracking error.

So please revise your ans and answer again, what is the practical significance of higher volume?

Being less liquid would be an issue for those buying in bigger notional amount. If you want to execute a notional amount of say USD 100k, it will take your longer and more expensive for execution given the volume traded for IWDA is about 40x that of VWRA
 

Anarchy

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yes liquidity cannot fight iwda + emim now. if liquidity is a concern, do iwda + emim.

VWRA cannot be a direct compare with IWDA as both are different. the DM and EM story.

Something to take note is IWDA is now heavier in US market. Their exposure has increase quite a fair bit over the years which now i think is 64%. VWRA is 55% which indirectly investors are paying a higher tax (15%)

From a fee perspective, blackrock will not lower fee (very unlikely) for a long long time. No competitor anyway.

whereas from vanguard, i hope they will reduce to 0.19% to 0.2% to make it competitive.
 
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BBCWatcher

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Something to take note is IWDA is now heavier in US market. Their exposure has increase quite a fair bit over the years which now i think is 64%. VWRA is 55% which indirectly investors are paying a higher tax (15%)
No, not necessarily.

The U.S. is certainly not the only jurisdiction that has a dividend tax, and a 15% rate (Ireland’s and Luxembourg’s treaty rate, as examples) certainly isn’t the highest rate.(*) Moreover, dividend taxes are only one form of taxes. Other taxes also impact the performance of the corporations, therefore their shares, therefore the funds that hold those shares, therefore the investors who hold the funds.

And, on top of all that, taxes represent only one factor, and not the most important one, determining corporate performance.

(*) Apparently Switzerland and Chile have the highest dividend withholding tax rates: 35%.
 
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Anarchy

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That’s correct. It shouldn’t be a major consideration when come to choosing.

Iwda is good if don’t want exposure to EM
Vwra is good if prefer to have EM exposure and a lazy portfolio as don’t need to balance between iwda and emim.

Too many case scenarios to be covered so do your own due diligence.
 

adgjl321

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That’s correct. It shouldn’t be a major consideration when come to choosing.

Iwda is good if don’t want exposure to EM
Vwra is good if prefer to have EM exposure and a lazy portfolio as don’t need to balance between iwda and emim.

Too many case scenarios to be covered so do your own due diligence.
So what you're saying is that VWRA = IWDA + EMIM in terms of exposure from an investors perspective?
 

decibel.

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I prefer Lyxor's although Vanguard is popular I can't fully maximise my cash allocation per month due to the higher price.

Sent from HUAWEI VOG-L29 using GAGT
 

bagyidaw

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VWRA should be very similar to VWRD right?
Is low volume something to concern?
 
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