Can you create Vanguard's Global All Cap in T212 (Newbie Friendly)

I’ve been sat with a pen paper and spreadsheet today to try and figure out the best way of going about recreating Global all cap in Trading 212.

I think I’ve just about found the optimum way that covers most bases. With autoinvest and pies just around the corner it seems the perfect time to try and do cool stuff with them! :pie:

I’ve gone for:

CSP1 / iShares S&P 500 / Accumulating
VEUR / Vanguards FTSE Developed Europe / Distributing
CPJ1 / iShares Pacific Region Excluding Japan / Accumulating
VJPB / Vanguards FTSE Japan / Accumulating
EMIM / Emerging Markets / Accumulating
WSML / iShares Global Small-Cap / Accumulating

Best of all if you copy the ratios as All Cap is currently set up the fees are half of going to Vanguard direct (even before you factor in their account fees).

I’ve scribbled the full post to my medium here:

“How to own the world on the cheap” by Codf https://link.medium.com/z2kXwwPO46

Hope this sort of content is useful to people!

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I’m not sure if recreating an index fund is really a good idea. Unless you want to manage it on a ongoing basis… Rebalancing by percentage won’t help as the weighting of holdings is usually determined by market capitalisation. You would also need to manage removing and adding companies to the index.

I’m still going to hold my ETFs and pay a manager to do this work for me. I’ll make my own fund for sure, but i’m not going to try to replicate anything.

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I tend to agree that there needs to be a fair bit of work to re-balance to make sure each holding maintains it weighting relative to market capitalisation. Seems much easier to just by a global ETF (such as Vanguard FTSE All-world).

I suppose the benefit of trying to make up your own basket of ETFs is that you can reduce the overall costs which over the long term can be significant.

Just to reiterate this is to be used with the pie feature meaning it will automatically rebalance itself.

Yep makes it easier with Auto-invest. But you would also need to keep track of global market caps. So lets say over time US market cap shrinks to 50% and Emerging Markets increases to say 40% you would need to know that to be able to then adjust your pie percentages. Granted this isnt something you would need to do frequently but also it isnt a set it up and forget about it.

I like VWRL but I also want to add some small cap exposure too.

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Yeah absolutely. Got you. Suppose this would have to form part of a yearly review.

I buy VWRL and bollocks to the small caps to be honest haha!

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I would imagine in a recession the small caps will take longer to recover than larger companies anyway.

Yeah they probably capitulate the minute credit gets tight and VCs close their wallets.

Have you set up a pie following this? I was just investing in VWRL but I’ve created a pie with:

IUSA
VEUR
VJPN
VFEM
VAPX

TER is about 0.1% and performed marginally better than VWRL. Decided not to add small caps yet. I will maybe add a few % later in the year.

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I have done similar to create a “VWLR ex-US” (something I cannot buy from Vanguard). The percentages match current weightings and OCF comes to 0.13, compared to VWRL’s 0.22%. I do not intend to make adjustments if the weighing of a componemt, say Japan, in VWRL changes by small amount, I will review in a year.

To permit users to more closely replicate the operation of an ETF there would need to be an option to “purchase/sell proportionally by shares”. ie to increase/decrease the number of shares owned in each slice of fhe pie by the same percentage.

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Any reason why you excluded US?

I excluded US for two reasons, Firstly, I hold many US company shares directly, so my portfolio is already heavily US. Purchases of this ex-US pie can balance that out. Secondly, it is more tax efficient to receive US company dividends directly, rather than lose 15% of that revenue to the US withholding tax paid by VUSA or IUSA. The yield on my US shares is about 2.8% compared to VUSA’s 1.5%.

These ex-US components make up about 40% of VWRL, which is about 60/40 US and non-US. My personal holdings are closer to 80/20.

Vanguard have a Vanguard FTSE All-World ex-US ETF (VEU), but this is not available to us. One can look there to figure out percentages for an ex-US ETF. Or take the VWLR percentages and work from those.

image

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VNRT may be a better option than VUSA for replicating this mutual fund, a little more expensive but it includes Canada.

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That’s true. Dividend yields are 1.63% (VUSA) and 1.62% (VNRT). OCFs are 0.07% and 0.10%. Difference in performance - hard to see? The Canadian component is 4%. VUSA is more actively traded and so has smaller bid/offer spread.

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I hold these varying vanguards - did some research and figured I’m pretty much all over the world right now (ex Japan which will join my stocks this month)

I also hold MSCI healthcare and iShares UK property.

I hold other stocks individual (mainly UK)

Would you say that’s a healthy looking portfolio? I’m still in my infancy in owning stocks and learnt through a few months research (and reading on here a lot)

Thanks for your feedback (as always) its very gratefully received (as always :grinning:)

Might be easier for you to buy VWRL to cover off all those funds and then use FTAL or VUKE etc to give a bit more uk exposure if you want that than the market weighting. Try to keep any individual share no matter how much you believe in it to less than 5% as I didn’t do that heading into the crash and regret it

Why would you want more UK exposure? It’s literally a market full of zombies.

VWRL and VUKE / FTAL does not replicate Global All Cap.

I was answering the previous posts question as it was slightly different to the main thread post.

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Not sure I want to necessarily go the easy route. I kind of eggs in multiple baskets but checking my baskets look good. I’m not so much a season hand yet…I like Vanguard and have friends who go directly through them and don’t use this platform was just checking it looks like a well balanced portfolio in regards to ETF’s (can’t wait to be able to transport to PIE)

That’s rubbish, I have a handful that I hope survive.

Thank you :slight_smile:

Seems reasonable enough to me, but if I was to nitpick…

You may want to avoid duplication by picking VUSA or VNRT rather than both.

Personally, I’d split the UK allocation between VUKE and VMID to capture the Ftse 250 too.

You could also look at adding a global bond ETF, such as VAGP, if you don’t have any other fixed-income exposure.

It’s just my 2p worth though!

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