8Mon·

Hi there, I am currently investing 300 euros a month to the $VUSA (-0.08%) ETF but hear a lot of people talking about $VWRL (-0.04%) . I saw that the cost per year is higher with VWRL and was wondering what is the better choice.

10 Comments

Julian@MoneyISnotREAL

8Mon

Only US ( $VUSA ) or the entire world ( $VWRL ). Your choice.

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SimiRigi@SimiRigi

8Mon

Hi there, I like the $VWRL because it’s a global ETF that includes emerging markets, providing more diversification. On the other hand, the $VUSA is fully focused on the U.S. market, which can mean a higher risk—if the American economy struggles, $VWRL is likely to perform better in this situation due to its broader exposure.

Please keep in mind that I’m not a financial advisor, and this isn’t financial advice.

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wezxty@wezxty

8Mon

@SimiRigi I might invest some of it then in the VWRL to spread a bit more. But the VWRL is still very reliant on the US. Currently I have some funds in my portfolio targeting the emering markets but I must say they are not the best. So the search continues haha

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Andreas M.@thor88

8Mon

@SimiRigi If USA struggles the entire world struggles because we trade in $ and economies are interdependable. You can offset the risk with short term bonds 1 to 3 years.

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Andreas M.@thor88

8Mon

@wezxty If you have VUSA and buy also VWRL you will buy the same stock twice since 61% of VWRL derives from VUSA, for example Google or Apple or Microsoft.

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Luffy@Luffy3D2Y

8Mon

If you believe that the USA is outperforming the rest of the world in the years when you need the money, VUSA. If you don't want to take that bet, you can go for VWRL.

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Andreas M.@thor88

8Mon

Compare both with google finance, $VUSA outperforms $VWRL to date. When talking about VWRL 60% of the stock portfolio under it results from the S&P500...hence $VUSA it's better and has lower cost. There are people investing in the VWRL (all world) being afraid that in the medium future 40 years USA will go bust...which is a joke 🤣 and they are preparing for that.

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Teo@teoo

8Mon

why not to own both. Whats the deal, u scared of fees?

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wezxty@wezxty

8Mon

@teoo think vwrl has to much usa so you almost buy usa twice

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Teo@teoo

8Mon

@wezxty yeah this is understandable but bigger exposure to usa might get you more return. . So if usa economy is goin crazy and other parts of the world struggling you are not getting full potential returns with vwrl. So i decided to own both it is doing great!

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