Hi dear community,
I am currently thinking about replacing my iShares MSCI World $IWRD (-0,12%) with another one with a lower TER. As an alternative, I am considering adding the Xtrackers MSCI World $XDWL (-0,06%) in my portfolio as an alternative. But why this step?
Situation: I opened my portfolio in September 2022 during my training and have been saving in the iShares MSCI World since then. After my apprenticeship, I decided to go back to school for another two years to catch up on my A-levels. I have now started a dual study program. Now that I have some money coming in again, I can not only resume my savings plans, but also increase them significantly.
I currently have around € 2,500 invested in the iShares MSCI World UCITS ETF. The profit is around €700. As I still have around €800 of tax-free allowance left, I should initially no taxes initially. Therefore, if I make the switch, I should ideally do it in the next few months, as I will probably use more of the allowance next year.
In my view, there are many points in favor of a switch - for example, the Xtrackers MSCI World (IE00BK1PV551) with a TER of 0.12 %. According to the index mapping, the content should be identical. It distributes a small portion and offers a reasonable balance between price gains and dividend payouts.
The only thing that makes me hesitate: With the iShares MSCI World (BlackRock), I think it's rather unlikely that there will be tax-dodging ETF mergers there. Do you think the same applies to Xtrackers?
(Mergers that are purely identical in form are normally treated as tax-neutral in Germany, but mergers can be harmful for tax purposes - for example if they are cross-border or if the ISIN or fund domicile changes. In such cases, accumulated capital gains can be treated as realized capital gains subject to withholding tax).
What do you think about this? Is the switch worthwhile in my situation? Do you have better ETF alternatives, or would you stick with the iShares MSCI World UCITS ETF? I look forward to your constructive feedback!