4Mon·

FTSE All World ETF - which one?

I'm thinking about moving from the $VWCE (+0.11%) to the $FWRG (-0.06%) as it has a lower TER. I know it won't make a big difference, but in the long run and the bigger my portfolio gets, it will make a difference of a few euros. In your opinion, why not go for the ETF with the lowest TER? I usually only read about Vanguard here, but not about Invesco. Many thanks in advance.

11 Comments

Schokotaler-HODL-Horst@DoppelSchlechtMinus

4Mon

The actual performance of cheaper ETFs is often not as good as that of more expensive ones, TD and all. For example, it more than compensates for the supposed cost advantage if you take an MSCI World from Amundi instead of iShares Core. That's why I would watch Invesco with its short history for another 1-2 years to see if it can really keep up with Vanguard.

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S.A.U.@SAUgut77

4Mon

@DoppelSchlechtMinus although index ETFs should not really differ much in terms of performance.

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Schokotaler-HODL-Horst@DoppelSchlechtMinus

4Mon

@SAUgut77 Not by much, but by a similar percentage as the TER. And for the person asking the question, the ETF should be performing so much better that the additional costs of switching are worthwhile. I wouldn't rush into it.

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S.A.U.@SAUgut77

4Mon

@DoppelSchlechtMinus It's better to let one expire and start the other.

Personally, I only have an All World from Invesco as a distributing variant.

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userd5c7350bb1304f05@userd5c7350bb1304f05

3Mon

@DoppelSchlechtMinus as long as the lower return is less than the cost advantage, it is still worthwhile.
Especially as Invesco's return for the first full year (2024) was also higher than that of Vanguard.

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Schokotaler-HODL-Horst@DoppelSchlechtMinus

3Mon

@userd5c7350bb1304f05 Sure, I didn't want to advise against Invesco, I just didn't want to encourage you to switch in a hurry. And the lower return after fees really does happen in practice, just compare the actual performance of ETFs on the standard indices at Amundi and an iShares ETF that is three times as expensive, you can certainly find examples where it was not an advantage over several years to take the cheap one. That's why I personally will wait and see.

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Christoph@ChrisBizz

4Mon

One point could be the fund volume. Generally speaking, the smaller the fund volume, the greater the risk that the fund will be closed. The volume clearly speaks in favor of the $VWCE

There are also providers who have recently caused displeasure among investors by merging/closing funds. However, I don't know whether Invesco could be such a candidate.

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Oleg@ScorpionfromBW

4Mon

I doubt whether this 0.07% TER will save you much. Unless you have millions in it. But since I don't think so, I wouldn't be tempted by lower costs to kick aside a Vanguard FTSE that has been tried and tested for years

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Daniel@Der--Investor

4Mon

@ScorpionfromBW is only €700, even at €1 million. That's totally pointless

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Martin W.@MineraLogik

4Mon

Unpopular but I do it the same way: I still keep the old one and only actively save for the new one - with you then $FWRG. It does make for a "mess", but if you still have some free money, I switch over.

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Toki@trader_175

3Mon

$FWRG for sure https://youtu.be/lwUoLSHchS0?feature=shared

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