1Wk·

VWCE or FWRG for long-term investing?

Hi everyone,

I’m 20 years old and have been investing for about a year now, mainly in an S&P 500 accumulating ETF through a monthly plan. Recently, I decided to diversify globally and bought $VWCE (+1.03%) , but I’m having second thoughts.

I’ve been reading about $FWRG (+0.93%) (Invesco FTSE All-World Acc), which tracks the same index but has a lower TER (0.15% vs 0.22%). Since both are accumulating and follow FTSE All-World, I'm wondering if it makes sense to switch to FWRG for better long-term efficiency.

Would it be worth selling VWCE and going with FWRG instead? Or should I just stick with VWCE since it’s more established and has more liquidity?

Any thoughts from long-term investors would be really appreciated!

6 Comments

Pedi@Pedi

1Wk

$FWRG holds fewer stocks, which is one reason why it's cheaper. If you have to pay taxes on the sale and don't have a tax allowance, it will take a while before something like this becomes worthwhile. There are many calculators online that can show you when the break-even point would be. I think it's probably better to just leave it and start investing in the new one. I wouldn’t sell at a loss anyway — better to hold it. It will always come one with less TER, it makes no sense to jump from one ETF to another without calculation. Im full in $VWCE and If i Switch, my break-even point is over 13 years.

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market_expert_deqcq@market_expert_deqcq

1Wk

Yeah, that makes sense — I was definitely planning to keep VWCE and just start the new one on FWRG going forward. I didn’t want to sell at a loss or trigger taxes either. Just figured it might be smarter to switch gradually rather than all at once.

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Nuno A.@Darknoites

@Pedi exactly, just buy, don't sell

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Bas Roumen@BasRoumen

1Wk

I was in the same situation 4 months ago. I went with $FWRG because of the lower TER. So for 4 months I had both ETFs and I noticed that $FWRG performed slightly better. Of course this could be different now. Due to the stock market declines of Trump my $VWCE came back to my purchase price and I sold everything and put it in FWRG. FWRG is also starting to grow in fund size.

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Darth Vader@TheRealDarthVader

Both! but if young I would go with $FWRG

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Nuno A.@Darknoites

Just start buying the cheaper one but dont sell your old one. Basically, never sell or you will be paying fees and losing all the advantage of this investments. And thats it. Just buy whatever is best and leave them be, don't sell. All other advice is inconsequential.

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