3Mon·

All World Performance

$VWCE (-0.09%)
$ALLW (-0.06%)
$FWRG (-0.08%)
$FTAW (+0.11%)

Is the difference in performance only due to the tracking difference? If so, how long should this be monitored? I actually wanted to save the $ALLW (-0.06%) because of the 0.07 TER, but if it's like that in the long term, it's not worth it.

8 Comments

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

3Mon

Sometimes this is precisely the price of the lower TER.🤷🏼‍♂️ I find that the tracking error of ETFs on the same index sometimes differs quite dramatically. Which of course also has something to do with fund volume, replication method, etc.

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value_seeker_402@value_seeker_402

3Mon

@Get_Rich_or_Die_Tryin do you think this has anything to do with the fact that xtrackers and ishares are still fairly new?

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

3Mon

@value_seeker_402 Logo, fund volume is not insignificant for the characteristics of the tracking error.

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value_seeker_402@value_seeker_402

3Mon

@Get_Rich_or_Die_Tryin I see. thank you :)

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

3Mon

@value_seeker_402 always happy to.😉

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Solitair@Solitair

3Mon

i have the invesvo in the dist variant. according to the getquin benchmark, it has outperformed its vanguard counterpart by 0.23% over 3 years. i think it evens out and sometimes one performs better, sometimes the other. but it's all minimal and you can't predict in which direction. TER, on the other hand, is a fixed value.

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Kai Nehr@Webda

3Mon

This may be due to the still low fund volume at $ALLW. They have probably not yet bought all the securities in the full index. This usually only happens as the fund volume grows. I wouldn't read too much into this after around a month from the launch date. Of course, if it still makes such a huge difference after a year or so, something is going wrong.

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Sax@SaxoniaCapitalis

3Mon

The differences are likely just because the xtrackers and iShares funds are still quite new. In a year or two, the differences will be negligible. In the long run, the $ALLW is the best choice for me due to its lower costs, which is why I’ve switched my savings plans to it. Although I still have the $VWCE as a core holding, I’ll just leave it as is.

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