1D·

I just can't decide: All-World or World?

After @FKabs kindly and with sound knowledge about the intricacies of the Austrian tax system, I have finally moved away from Amundi and will definitely be adding a Vanguard product to my portfolio.

Now I'm only wavering between the Vanguard FTSE All-World $VWRL (+1,44%) and the Vanguard Developed World $VDEV (+1,58%) as the long-term core for my portfolio.

Do I really need the emerging markets at the core?

If an emerging market performs well in the long term, it will move up into the World at some point anyway, so it would then automatically be included in the VDEV. Is the small EM component in the VWRL (approx. 10%) worthwhile for this or is it more of a drag on returns?

Or do I get the best of both worlds with a lower average TER by simply adding the $VFEM (+0,78%) with e.g. 10% added?

Questions upon questions. Everything is open to me.

How do you see it? Has anyone gone through a similar consideration?

Please help

Simone🤷🏼‍♀️

@TheCleaningLady

2D·

My first step

Hello everyone,

A few days ago I asked here for tips on how to get started and I have collected a lot of great experience reports and information.

Thank you very much!

After a lot of back and forth, I have now decided on the Amundi Prime all Country $WEBG (+1,48%)

Why did I choose it of all funds?

Firstly, it is the cheapest ETF in this category and secondly, I have looked into the taxes a little more and as far as I understood correctly, in Austria you would be asked to pay the tax office once a year to pay an advance lump sum on the reinvested dividends/distribution-equivalent income.

Conversely, this means that a tax deferral of a maximum of 12 months is possible in Austria.

If I had taken an ACC, I would have to pay tax once a year and transaction fees on withdrawal.

But if you take a Dist, like the Amundi, which pays out once a year, you have the best of both worlds: maximum compound interest thanks to a 12-month tax deferral and instead of the tax on the distribution-equivalent income, you have the distribution, with the same tax burden but no transaction costs.

I hope I have not made a mistake in my thinking and that my sources have provided up-to-date information.

So please feel free to prove me wrong

Have a nice evening

04.06

Amundi Prime All Country World ETF

Comprado x190 em € 10,52

€ 1.998,61

2 Comentários

Tobi60@Tobi60

$VWRL and that's it. No rebalancing, no pondering, just put in as much as you can.
And stick with it for years and don't rebalance after 3 months because you read something about a 3GTAA strategy or something like that

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Fabian@FKabs

I was faced with the same decision at the time and opted for the All-World for reasons of simplicity. Rebalancing happens automatically and since I'm not making a bet with my core investment on who will be the winner in 30 years, the All-World is the easiest way to go. You will thank yourself in 30 years :)

The bigger leverage is definitely to increase the savings rate instead of maximizing on the last percentage point of TER and weighting :)

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