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Steven W.
@Steven83
10Mo·

I was just wondering whether it would make more sense for me to use the MSCI World SRI ($SUSW (+0,38 %)) it would make more sense for me to use the MSCI World ESG Screened ($SAWD (+0,51 %)), as this does not exclude as many companies as the SRI.

It's a bit stupid when companies like Apple, Amazon, Google and the like are missing from your investment for whatever reason.


The ESG Screened is very close to the normal MSCI World, only at a lower share price and therefore not so much money remains in the clearing account for one-off purchases in between ;-)


The difference within the last year was also not entirely without...

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32 Commentaires
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Ironman@Ironman2022
10Mo
Just as a thought experiment: how about an ordinary, inexpensive MSCI World?
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Steven W.@Steven83
10Mo
@Ironman2022 I also have one in there, and I save in it every month.

The second value I was looking for on the World was one that has more favorable unit prices, so that as little money as possible remains in the clearing account for one-off deposits (e.g. €500 yesterday) and is therefore uninvested.

So far I have mostly only discovered World ETFs that are around ~€90 per share
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Ironman@Ironman2022
10Mo
@Steven83 take a look at $SPPW
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Steven W.@Steven83
10Mo
@Ironman2022 Thanks, I've added it to my watchlist
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Ironman@Ironman2022
10Mo
@Steven83 I don't quite understand your reasoning with the clearing account🤔
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Steven W.@Steven83
10Mo
@Ironman2022 For example, I transfer €500 to my custody account from my bank account.
If I now buy an ETF with 90€/share, I get 5 shares (450€) and the remaining 50€ are lying around in the clearing account.

If I buy an ETF that costs €9/unit, I get 55 units (€495) and only €5 is in the clearing account
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Ironman@Ironman2022
10Mo
@Steven83 You can also buy fractions of the ETF via a savings plan. Depending on the broker, this is even possible for individual purchases. So the price per unit is really not a criterion. But rather the TER and the actual content.
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Steven W.@Steven83
10Mo
@Ironman2022 Yes, it works with the savings plan, but I also often deposit gifts received (birthday, Christmas) manually.
Unfortunately, Scalable only allows full shares for manual deposits.

Well, the ESG Screened is identical to the World except for 5%, so I can live with that.
The 75% deviation in the SRI was a bit too big for me in the long run.

If the ESG gets on my nerves at some point, I can take the Amundi MSCI World V suggested here ( $LCUW )
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Steven W.@Steven83
10Mo
@Ironman2022 But I have roughly half of my portfolio invested in $IWDA anyway, which I also save in on a monthly basis.

Instead of the SRI as a savings plan, I now have 50% $IWDA and 50% $SAWD
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Ironman@Ironman2022
10Mo
@Steven83 You can also briefly increase the savings plan by your desired amount 🤷
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Steven W.@Steven83
10Mo
@Ironman2022 I could too. Do you think the ESG Screened has major disadvantages compared to the normal iShares World ETF?
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Voir toutes les 2 autres réponses
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Marcel@Kytez
10Mo
LU1781541179
$LCUW

A €16 MSCI World ETF with a very low TER and a large fund volume.

I also use this as a world ETF.

Should solve your problems 👍🏼
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Steven W.@Steven83
10Mo
@Kytez Ah great, I somehow slipped through. Thanks for the tip, I'll have a look later 😊
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Matt@MWS
10Mo
@Kytez you recommend a Luxembourg ETF?

Is there any reason to incur tax disadvantages?
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Marcel@Kytez
10Mo
@MWS Yes, but only because the TER of 0.12% is the cheapest I can find for an MSCI World. $IWDA, for example, only has a TER of 0.2%. This makes the difference almost 0.

Performance difference in 1 year is < 0.2%.

And if the advantage outweighs the fact that you can invest more due to the no denomination of the shares, I definitely see this as a legitimate option.

Otherwise I'm with you and would also prefer to choose $IWDA 💪🏼
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Melly@melly-m
10Mo
But you do know that the TER tells you what the ETF costs you, right?
How many euros a share in an ETF costs is completely irrelevant
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Steven W.@Steven83
10Mo
@melly-m TER is 0.2% for all
How much the share costs is not entirely unimportant, however, because you cannot buy fractions if you buy them manually
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user76a909fd734442d1@user76a909fd734442d1
10Mo
I am very satisfied with the SRI. I also have the EM SRI.
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Magician@income_magician_28
10Mo
Are there any companies in the ESG that you didn't want at all?
Just put them in relation to Apple, Google and the like.
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Steven W.@Steven83
10Mo
@income_magician_28 Good morning. No, actually it's not so important to me that companies are excluded.

When I started investing on my own in 2022, I was looking for a second ETF on the World Index that has lower unit prices so that there isn't so much overhang if, for example, I invest money individually by bank transfer for a birthday or similar.

With a savings plan, the €250, for example, is invested as fully as possible, which means you sometimes get 3.724 shares, which is not possible with a one-off purchase.

For example, I also had a one-off investment of €500 yesterday.
If I had bought this in the normal World, I would have received 5 shares (€450) and €50 would have remained in the clearing account.

With the ESG Screened I got 60 shares and only €0.86 remained uninvested in the clearing account.

The sustainability factor is not so important to me personally.
Yesterday I discovered the Screened, which is probably very close to the Standard World compared to the SRI because it hardly excludes any stocks?
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Kevin E.@KevinE
10Mo
@Steven83 I don't understand that now. In the worst-case scenario, €50 is left uninvested, but that's no big deal? Whether your nest egg is €500 smaller or larger makes no real difference.
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Steven W.@Steven83
10Mo
@KevinC Theoretically not, but I would like to keep as much invested as possible.
The money in the clearing account at 0% doesn't really do me any good 😊

The slight exclusion criteria from Screened wouldn't bother me either as an example, as it still contains ~95% of the MSCI World companies.

It's just that SRI has become a bit too blatant for me, with only just under 25% of the companies remaining.
For example, Tesla is very heavily overweighted in the SRI, which didn't go well last year $TSLA, but companies such as Apple, Amazon, Netflix, Alphabet and others are completely absent from the SRI
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Kevin E.@KevinE
10Mo
@Steven83 I looked into it years ago and realized that the criteria didn't suit me. I opted for the classic MSCI World $HMWO.

As I said, a few euros don't matter. Due to high order fees (€10), I always had to save at the beginning until a purchase was worthwhile. So I always saved up to €1,500 and then invested. I did the math. Investing directly without saving during the periods would have improved my portfolio value by 0.03%. After 6 years of investing now. I think that's negligible. In 30 years it would of course be a little more difference, but the 0.5-1% portfolio value at the end is not decisive for me.
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Matt@MWS
10Mo
I understand your reasons and that's why I switched to ESG!
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Steven W.@Steven83
10Mo
@MWS I have now started today. If the savings plan on the SRI is still executed tomorrow, I will probably liquidate the SRI completely and move it to the ESG
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KingC@RaphGM
10Mo
Do you really want to have environmentally friendly screening, or is it just a coincidence?
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Steven W.@Steven83
10Mo
@RaphGM It's more of a coincidence. I was looking for an ETF that tracks the world as well as possible and where there is little overhang on the clearing account for one-off deposits.

Ideally, the unit price should be around €10
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KingC@RaphGM
10Mo
@Steven83 I am currently investing in $SAWI.
It is still relatively new, but I wanted a world ETF with an environmental screener.

TER is 0.20% which is not that high compared to others.
Performance in the long term is not yet clear, but I like the top positions.
Since it has an SRI screener, this ETF contains 590 companies, which is drastically less than other world ETFs.
But for me it's not bad because I also have other ETFs.

At least it meets one of your requirements, because NAV is only ~5€.
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Steven W.@Steven83
10Mo
@RaphGM Thanks, I'll take a look too.
At first glance, the top 10 positions look quite similar to SRI
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KingC@RaphGM
10Mo
@Steven83 Yes, I think TSMC in third position is actually great.
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