2Semana·

Frustrated more or less!

Some time ago, i made a decision to switch from $VWRL (-4,62 %) to $FTWG (-4,56 %) , but since then i was finally thinking my portfolio is well thought out but it turns out its not.

I made that decision purely out of lower TER, since its 0.07 less.

Today i noticed that dividends of this fund are paid out in USD. As this fund provider has US based currency for distribution, even though that is domiciled in Ireland just like VWRL. But now i wonder i am not on better with lower TER if i have to convert into eur with 2% conversion fee. That is if i decide to reinvest or withdraw. This frustrates me now because i had to pay unnecessary taxes for selling my VWRL positon.

Since i only invested on ibkr. Would be better to start positon on trading212 in VWRL and once its green to make transition again?

What are your thoughts on this? I would really appreciate some opinions to help me figure this out!

Have a great day you all!🙃

4 Comentarios

Robinhold@robinhold

2Semana

As far as I know, both $VWRL and $FTWG are paying the dividends in USD, because the majority of the dividends are coming from US market. So your concern about TER is still making the difference because in terms of the dividend paying currency, they are equally bad :)

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Teo@teoo

2Semana

@robinhold VWRL is a UCITS-compliant fund, which is a regulatory standard for investment funds in the European Union. UCITS funds are typically structured to cater to European investors.
• The base currency of the fund is in EUR to better align with the European market and the majority of the fund’s investors, making it easier for them to trade and receive dividends in their local currency.
VWRL is EUR-denominated to meet the needs of European investors and align with the UCITS framework, making it more efficient for trading and dividend payouts in the European market.

This is pasted from AI, and it might be true because before i liquidated the position i recieved dividends in EUR on TRADE REPUBLIC.

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Robinhold@robinhold

2Semana

@teoo Don't trust the AI always :) the statement for the `UCITS` is true, but both VWRL and FTWG are `UCITS` this is where the AI mistaken, you can double check this by the ISIN numbers in justetf.com.

Here are the links for both:
https://www.justetf.com/en/etf-profile.html?isin=IE00B3RBWM25#basics
https://www.justetf.com/en/etf-profile.html?isin=IE0000QLH0G6#basics

Both are UCITS and for both the fund currency is USD, you are confused because Trade Republic automatically converts dividends for you from Dollar to Euro.

Ie. in my Trade Republic dividend statement I can still see the Dolar sign in `dividend per share` section for the Vanguard one.

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Teo@teoo

2Semana

@robinhold okay thanks for explanation! Have a great day!

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