Chepest ETF ALL World

I am having a few weeks looking for the cheapest ETF in terms of ongoing fees [ just accumulation ones]

At the moment I have this

  1. FWRG with 0.15% ongoing fee
  2. VWRP with 0.22% ongoing fee
  3. HSBC FTSE ALL WORLD INDEX CLASS C - ACCUMULATION (GBP) seems to be 0.12% but I can not see it on Trading 212

Does anyone know any other ETFs that are following the above that have a low ongoing fee?

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3 is a mutual fund so you won’t get it on 212, and tracks a different index to the other two.

You could look at HMWO instead - easier to work on exchange tickers!

I will not want Distribution - so the cheapest option seems to be FWRG which is very close to HSBC one anyway.

I think you’ve got the all-world one covered. SSAC’s worth a mention too.

Developed world ETFs, such as PRIW and VDEV, are cheaper but don’t include emerging markets.

Maybe a search, for example, on justETF site?

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Deleted by the author.

PRIW charges a 3% entry fee and a 3% withdrawal fee!!! Ongoing fee is low but if my maths is correct you’d need to hold for over 60 years to break even compared to FRWG (assuming the same market performance as they’re tracking slightly different indicies).

SSAC and VDEV are in USD I think. Better to go with VWRP or VHVG if looking for a GBP alternative.

Sorry I meant VEVE rather than VDEV. I’m sure SSAC’s listed in GBP/GBPX too.

As for PRIW, if you read the KIID carefully – you’ll see those fees don’t apply.

“Entry and exit charges will only apply when shares are subscribed or redeemed directly from the Sub-Fund, and will not apply when investors buy or sell such shares on stock exchanges.”

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Ah, thanks for pointing that out. Though I don’t fully understand what the statement means TBH.

No worries. In a nutshell, it means you won’t have to pay the entry or exit fees.

It’s worth considering a developed world option. I’ve always wanted to like PRIW but it tracks a non-Ftse or MSCI index which puts me off.

I read Franklin launched one at 0.9% the other day so that could be an alternative though it may not be liquid enough yet.

I was going to ask about Fidelity Index World Fund P class (GB00BJS8SJ34). Can’t find it anywhere. Would love that in my S&S ISA

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I think this is a fund rather than exchange-traded fund. T212 doesn’t offer non-exchanged-traded funds, unfortunately.

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Have a look at this; it has a 0.07% TER. Are you looking at distributing or accumulating products?

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Interesting, uses it’s own index so not sure if it would take on the bigger players.

Personally, I really don’t care too much about TER as long as it is reasonable. I just care about overall gains.
The benchmark is usually SWDA (1YR=22% TER=0.20)
You might want to consider
XDEQ for quality picks (1YR=28% TER=0.25) or
XWQS for quality ESG world picks (1YR=30% TER=0.25%).

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@SteveSi and @livi05 , it’s perfectly understandable to consider the 1-year historical performance of an ETF when making investment decisions, as it provides a snapshot of recent trends and can highlight funds that are currently performing well. However, relying solely on this metric may not provide a comprehensive view of the ETF’s potential or risks. Personally, I would consider additional factors to help your decision-making process:

  1. Long-Term Performance: Evaluating the ETF’s performance over multiple years can reveal its consistency and resilience across different market conditions. This can help you identify whether its recent success is part of a sustained trend or a short-term anomaly.

  2. Volatility and Risk: Looking at metrics such as standard deviation and beta over longer periods can help you understand the ETF’s volatility. An ETF that has performed well in the past year but with high volatility might not align with your risk tolerance.

  3. Expense Ratio: Even if an ETF has performed well recently, high fees can erode returns over time. Comparing the expense ratios of different all-world ETFs can help you select one that offers better value.

  4. Geographic and Sector Diversification: Although an all-world ETF provides global exposure, verifying that the geographic and sector distribution aligns with your investment strategy can be worthwhile. Some all-world ETFs might have a heavier concentration in certain regions or sectors, which could impact your portfolio’s performance and risk profile.

  5. Benchmark Comparison: Comparing the ETF’s performance against relevant benchmarks over multiple periods can help you gauge whether it consistently outperforms or merely follows market trends. This can provide insight into the ETF’s true effectiveness.

  6. Tracking Error: For index-based all-world ETFs, examining the tracking error can help you understand how closely the ETF follows its benchmark. A lower tracking error indicates a more accurate replication of the index.

Considering these additional aspects can provide a better perspective on an ETF’s suitability for your investment goals. Balancing short-term performance with a broader analysis can help you make more informed decisions and potentially achieve better long-term outcomes.
I hope this helps, and if you need more clarifications, just let us know :slightly_smiling_face:

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Quality is the only type of ‘factor’ ETF that I’d consider investing in. I reckon there’s a decent chance a quality-screened MSCI world will outperform in the long run.

WEBG’s a good shout as well. That one flies under the radar: 0.07% including emerging markets is a bargain.

I’ll be sticking with SPXL though. As well as being cheap, it’s relatively liquid and uses full replication which I prefer to sampling or swaps.

Thanks, @topher , for bringing up different ETF structures. However, SPXL tracks the S&P 500 while we are looking into All-World products. Anyway, I would like to take this opportunity to provide some further information to ensure clarity for those unfamiliar with these structures. Understanding the differences between replication, sampling, and swaps can help us clarify why we might prefer one over the others.

Full replication, like SPXL uses, involves holding all the securities in the index. This method offers precise tracking and transparency but can be costlier and less feasible for indices with many or illiquid assets.

Sampling holds a representative sample of the index’s securities. It’s more cost-effective and flexible but can lead to higher tracking errors and requires sophisticated models to ensure accurate representation.

Swaps involve agreements to exchange the ETF’s returns with a counterparty. They can offer accurate tracking and access to hard-to-replicate indices but come with counterparty risk and complexity.

Conclusion

SteveSi preference for full replication makes sense for its accuracy and transparency. Although not being an All-World product, SPXL is a solid choice here. However, considering other methods, like swaps for specific exposures, could enhance somebody’s strategy. Diversifying our approach can sometimes help balance risks and optimize performance. Happy investing!

LGGG ? kind of all world

Thanks for pulling that out @kirisaak ! Although the LGGG is not an all-world ETF, it does include several developed countries. This ETF focuses on tracking the Solactive Core Developed Markets Large & Mid Cap index. Here are some details:

L&G Global Equity UCITS ETF (LGGG)

  • Objective: Tracks the Solactive Core Developed Markets Large & Mid Cap index.
  • Expense Ratio: 0.10% per annum.
  • Replication Method: Physical (Full replication).
  • Dividend Policy: Accumulating (dividends are reinvested).
  • Launch Date: November 13, 2018.
  • Number of Holdings: Over 1,200.
  • Top Holdings: Includes large-cap stocks from developed markets such as the United States, Japan, UK, and European countries .

Conclusion

LGGG is a low-cost option for gaining exposure to developed markets, but it does not include emerging markets or provide full all-world coverage. You might want to visit the link below for further details.

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