5J·

Decision/reallocation? synthetic vs. physical ETF

Meal time folks,

the title already asks the right question.

At the moment, 40% of my current portfolio consists of the $WLD (-0,87 %) . I started in small steps about 4 years ago and honestly didn't do too much research. It was important to me to get started and I was looking for a world ETF at the time, I honestly don't know exactly how I came across this one 😬.

I'm thinking about how I should proceed and also reduce the TER of 0.3% a little.

Sell piece by piece $WLD (-0,87 %) sell (taking into account the saver's lump sum) and switch to $MWOE (-0,81 %) and reallocate. Alternatively $HMWO (-0,85 %) .
Stop the savings plan at $WLD (-0,87 %) stop, let the position continue and from next month simply save a new position with $MWOE (-0,81 %) (TER 0.12%) / $HMWO (-0,85 %) (TER 0.15%).

Amundi is actually a heavyweight where you don't have to worry too much, so I tend to go for variant 2.

What does the community say?

Greetings and have a nice holiday 😊

Maverick

13 Commentaires

Kreon@Kreon

I was faced with the same consideration. I chose option 2. Due to EU regulation, the risk is no higher with synthetic ones.

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Mav83!@Maverick4831

@Kreon i.e. leave the position and save in one of the alternatives from now on? Thank you for your assessment.

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Kreon@Kreon

@Maverick4831 you can of course just keep saving in the old one. But I guess you're like me and would rather have the physically replicating one now (without any real advantage) to feel better :-)

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Mav83!@Maverick4831

@Kreon that is correct. Savings plan order already adjusted😂

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Cristian@Naitsirc

Amundi, no thanks! Xtrackers has the same ETF with a TER of 0.12%, SPDR with 0.17%. Apart from the high TER, Amundi may well merge its ETFs and make you liable for tax.

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Mav83!@Maverick4831

@Naitsirc it will probably be the $HMWO, as I save with ING, distributing is a prerequisite and I like the TER of 0.15% + fund size. Which merger do you mean exactly? If the taxes are due because of the merger, so be it. Do you have to pay them at some point anyway?

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Cristian@Naitsirc

@Maverick4831 Amundi has bought up smaller companies and merged ETFs in an inconsistent manner. If the ETFs were located in different countries, this leads to a tax liability. It is in your interest to keep the money earning interest for as long as possible to maximize returns.

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Soprano@Soprano

Neither of these are great ETFs. Why are they necessarily distributing? One is also a French ETF.

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Mav83!@Maverick4831

@Soprano can you also explain why the $HMWO is not great? Because I prefer it pouring.

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Soprano@Soprano

@Maverick4831 I haven't seen it. You could use that one. Yes, I didn't know that you had deliberately chosen distributing.

I also bought a distributor for my mother. There's no way around the $VWRL for me. It's not quite as cheap as the other one, but you're really well diversified with the All World and it's still cheaper than your previous ETF. So at least you get a decent advantage for not simply taking the price winner from UBS.

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Mav83!@Maverick4831

@Soprano do you mean the advantage because of the diversification? I think I'll stick with $HMWO because of the more favorable TER and the hope of slightly better performance, even if it's a little less diversified...

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Soprano@Soprano

@Maverick4831 Take another closer look. The VRWL currently pays a dividend of 1.58% and the HMWO a dividend of 1.43%.

So although the VWRL has higher costs of -0.07% (TER 0.15% vs TER 0.22%), you get +0.15% more dividends. Overall, the return on the VWRL is therefore +0.08% higher.

And the diversification is really noticeably greater with 3600 companies against 1300 companies. Even compared to the ACWI, the diversification is significantly higher.

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Mav83!@Maverick4831

@Soprano the diversification is right. Thank you for your arguments. Both have also performed comparably over the last 12 months. Perhaps the $VWRL is the better "new" basis for my portfolio after all. It is also with the kids😁

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