Recently I have been looking a little more closely at the $UI4L (+0.27%) and compared it with a classic world index like the $VWRL (-0.47%) especially in terms of costs.
Performance in comparison (approx. values, cost-adjusted)
1 year:
- UniGlobal: ~+10-11 %
- FTSE All World: ~+12 %
3 years:
- UniGlobal: ~+49 %
- FTSE All World: ~+53 %
5 years:
- UniGlobal: ~+60-61 %
- FTSE All World: ~+68 %
Meaning: Despite active management, the $UI4L (+0.27%) slightly behind the broad market (and even relatively consistently).
If you look at the overall picture, it quickly becomes clear that the cost structure in particular plays a decisive role. While the $UI4L (+0.27%) comes with running costs of around 1.8% (plus a possible performance fee), an ETF on the FTSE All World is usually only around 0.15-0.25%. This difference has a massive impact on returns in the long term and explains a large part of the underperformance.
Nevertheless, I do not see the $UI4L (+0.27%) as a "bad" product across the board. Especially for investors who do not want to actively manage their portfolio or deliberately opt for active management, a fund like this can make perfect sense. The psychological factor also plays a role, you give up some of the responsibility and have the feeling that someone is actively steering you through market phases.
It was exactly the same for me: the $UI4L (+0.27%) is currently my core position and has given me a certain sense of security, especially in my first few years on the stock market, thanks to active management. At the same time, however, I am noticing more and more that I am becoming increasingly critical of the high costs and am thinking about at least partially reallocating the position.
In the end, the comparison shows me one thing above all: there is no clear "right or wrong" here. One $VWRL (-0.47%) is the more favorable and efficient solution from a rational point of view, while an active fund such as the $UI4L (+0.27%) may well be justified for certain types of investors - especially at the beginning.
How do you see it? Do you consistently invest in ETFs or do you also consciously hold active funds in your portfolio? If so, why?
~ No investment advice ~
