7Mon·

Bye Bye $VWRL (+0.18%) 👎 Hello
$HMWO (+0.26%)
and
$HMEF (-0.18%) 👋

Take this @Vanguard


I have decided to discontinue my savings plan on the $VWRL (+0.18%) and not to invest any more money in Vanguard products in future. The reason is obvious: over all these years as a loyal fan, I have never received a Vanguard sweater. That's no way to treat your best customer, @Vanguard . Someone has to show you your limits 👎.


Instead, I'll be saving in HSBC products from May. Maybe I'll get a sweater from them one day 🤔🧐.


Apart from the sweater, there are a few less important factors that also influenced my decision and which I don't want to withhold from you:


A few weeks ago, I asked about ways to optimize taxes and costs on getquin: https://getqu.in/Ez0kiZ/ . Based on your answers, among others, I made the decision for the following reasons:


  • 0.15% TER vs. 0.22% TER
  • Splitting the portfolio across several ETFs makes it easier for me to optimize taxes in the withdrawal phase
  • In the unlikely event that Vanguard screws something up, ETFs are dissolved / merged, strange laws are passed in the USA, ... the majority of my assets are not held by Vanguard alone
  • That $VWRL (+0.18%) I will of course keep it, but move from Scalable to DKB. Less hassle with Scalable, less "delay risk" if Scalable goes bust, better service from DKB, ...
  • For some, another reason would probably be that I now receive dividends in 8/12 instead of 4/12 months 😅
  • The real benefit is of course manageable, but the effort to change the savings plans costs less than 5 minutes (research in advance has already been done anyway)


I will repeat this procedure in the future. As soon as $HMWO (+0.26%) and $HMEF (-0.18%) (which are saved at low cost with Scalable) together reach the size of the $VWRL (+0.18%) I will save in one (or two) new ETFs. Distributions will only be reinvested in the ETF I currently hold. Rebalancing between $HMWO (+0.26%) and $HMEF (-0.18%) will not take place, as I will not swap winners for losers (besides, I'm lazy). The savings rate will remain constant for both (90/10).


Of course, the whole thing only makes sense above a certain portfolio size. For 10k in $VWRL (+0.18%) I wouldn't even invest the 5 minutes it takes to convert the savings plan 😅.

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69 Comments

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Everything is understandable
But
An e-mail to Vanguard is enough to get at least one T-shirt.
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Hi, I have two questions: 1. have you looked at the tracking difference and used it as a criterion in your decision? 2. what percentage split between World and EM markets are you aiming for?
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Regarding simpler tax withdrawal: you can also avoid FIFO by transferring parts of the portfolio to another custody account. This is not a huge problem, especially if you already have large ETF holdings.
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Better "service" from DKB? 😂 😂😂
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I did the same in January 🫡 Welcome to the club.
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I wouldn't take an ETF simply because of the upfront taxation for Robert and Anna-Lena 😆
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I had already thought about it. But then I didn't do it because the EM ETF from HSBC performs really badly compared to the competition (Xtrackers, UBS etc.). I then had a mix. World ETF from HSBC, EM IMI from iShares. Both distributing.
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Why not use the same index as before with $FTWG?
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Oh man or donkey. I was happy with my ETF selection and now you've got me thinking...
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