Complementary small caps etf for VWRL?

Investing / Portfolios
22

To necro this post: I was also interested if there was a small cap fund to complement not just VWRL but FTSE All-World in general.

FTSE indices already include some small cap compared to MSCI, as they cover 90% of investable market compared to 85%. Hence when using an MSCI small cap fund together with the FTSE All-World, there’s some overlap.

Vanguard US has an FTSE All-World ex US Small Cap (VSS), but I couldn’t find one for the US tracking the same index.

Any reason there are multiple ones for MSCI, but none for FTSE?

23

Well, there are tons of US ETFs on US small caps, although small caps value is more popular in this space.

Oh, I see what you mean. Well, the reason is that hardly anyone but Vanguard uses FTSE indices, and for US stocks, US Vanguard uses other indices (CRISP or something).

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24

When I moved from VT to UCITS, I added IUSN (MSCI World SC) to FTSE all world. Just looked at FTSE factsheet capitalization data and used FTSE Developed SC, which is currently 8,3% of the portfolio. It is not a clean solution, there is a 16% overlap in MCW between FTSD Developed World and MSCI World SC, but it is slightly better than not adding.

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25

Any reason you went for FTSE All-World instead of MSCI ACWI IMI if you wanted to include small caps?

26

I like Vanguard. I use VHVE (FTSE developed, 82% +VFEA FTSE Emerging, 9%). These are cheaper than all-in-one ETF, and seem to avoid sampling (not that important, but I don’t like it, and dont understand it in a sense why fund managers need it for most liquid large stocks).