Thanks BCCWatcher... i guess i will do it the old skool way... at a personal level, wont u recommend IWDA or VWRA? or maybe a mix of both?
Thanks
They are different ETFs. As in they track different things.
IWDA: 0.20 Expense Ratio
Tracks developed markets according to MSCI index.
VWRA: 0.22 Expense Ratio
Tracks whole world markets according to FTSE index.
If developed markets do better than emerging markets, IWDA will outperform VWRA. (VWRA will still 'catch' the performance of developed markets, but will be dragged down by emerging markets.)
If emerging markets do better than developed markets, VWRA will outperform IWDA. IWDA will not catch emerging market performance at all. VWRA will catch emerging market performance, but only to the extent that it is represented in the basket of shares. (Roughly 12%)
On the flip side, if emerging markets tank, IWDA will not be affected at all, while VWRA will tank slightly (to the tune of 12%).
If developed markets tank, IWDA will tank along with them. VWRA will also tank, but may not tank as much as emerging markets will help to cushion the fall.
In summary, VWRA is more diversified. It is less affected when segments of the markets tanks (as the other parts of the market will buffer.) But at the same time, if a particular market segment rises, it will also not register a full rise as it will be dragged back by other segments of the market.
IWDA if you think developed markets will continue to outperform emerging markets.
VWRA if you're not sure and are willing to have slightly lower gains in order to also catch all markets. (and potentially have slightly less drastic dips.)