Hi everyone, I’m currently investing my stock allocation in VWRL (Vanguard FTSE All-World UCITS ETF USD Dis). I’m looking for another ETF with the following criteria to diversify risk:
NOT Vanguard
All World (Dev + EM)
Distributing (I’m not reinvesting dividends)
Physical replication (no swaps)
UCITS (avoid US estate tax issues)
My justETF research led to the following options which are not meeting my criteria:
MSCI ACWI:
UBS MSCI ACWI SF UCITS (distributing, but swap based)
MSCI ACWI IMI:
SPDR MSCI ACWI IMI UCITS ETF (accumulating)
FTSE All World:
Invesco FTSE All-World UCITS ETF (accumulating)
Changing the country settings to Germany instead of Switzerland leads to two additional ETFs:
Amundi Prime All Country World UCITS ETF DIST (D) - IE0009HF1MK9
Very small size compared to the Acc version (24 vs 180 Mio)
Problem:
Both of these funds are not registered for Switzerland. Additionally, only the Invesco one can be found in ICTax as the Amundi just launched this year. Can it cause issues that those funds are not registered in Switzerland?
I see the following options:
Get one of those two funds which are not registered in Switzerland (potential trading/tax problems in the future?)
Buy the accumulating SPDR ACWI IMI and replicate the VWRL dividend on a quarterly basis by selling shares (which is additional work)
Are you aware of any Index funds options? So far I’ve only used ETFs.
I don‘t think not being registered in Switzerland can cause problems. US etfs are not either afaik.
That the Amundi is not yet in ictax is because it‘s new. Shoot them an email and they are happy to add it.
I would go with that one probably.
On the dist. Share class of the Invesco: it‘s still the same fund, just different share class. So the total fund size matters here. Only spread may be affected.
I did some thinking myself on this few weeks back and I came to conclusion that following are options
Keep life simple with one ETF -: buy IMID (or SPYI) and sell 2% per year if there is a need of income. SSAC is also possible if small caps is not of interest.
Use multiple distributing ETFs -: HSBC MSCI world + EIMU (emerging markets) + WSML (if small cap exposure is needed)
The other ETFs are new so I would wait for them to grow a bit i.e WEBG could be a very good alternative to VWRL as it grows.
Option #1 is something you were alluding to as well I believe
Thank you for your input. As I want to have just one ETF, I will probably proceed with IMID or wait a bit more until WEBG has enough assets, as the ICTax and missing Switzerland registration don’t seem to be an issue.
I am sure WEBG will grow. The only constraint it would have is that money invested in other ETFs is kind of locked because many countries have capital gains tax and investors might not want to realise them.
Which IMID Exchange should I choose (Swissquote user)?
London SETS - USD - SPDR MSCI ACWI IMI ETF
or
SIX - USD - SPDR MSCI ACWI IMI UCITS ETF
IMID USD = SPYI EUR? I mean, the difference is only the currency, right?
IMID is in Ireland, so I can’t reclaim withholding tax. USA ETFs are better if I declare money (and I fill formular DA-1). If I don’t declare money: Irish ETFs are better, right?
Indeed if you are not filing income tax returns anyways, then the point of reclaiming US withholding taxes is not relevant.
On Swissquote, you can buy this ETF in multiple
ways. I suggest to check for following things
Cost of buying the ETF, IMID (SIX) might be cheaper to buy vs SPYI (XETRA) vs IMID (LSE) . Swissquote has flat fee for some selected ETFs on SIX.
What currency do you have already? For example if you earn in CHF then maybe it doesn’t make a difference because both USD and Euro tickers would need currency exchange costs . But if you also hold Euro for instance then it’s an advantage. Unfortunately I don’t think this ETF is sold in CHF.
You also need to think which currency would be better keeping the end in mind. For example when you sell the ETF, you will get the same currency you paid in the beginning
If you buy SPYI or IMID , it doesn’t matter. It is same ETF. What matters is how much you pay for it and how much you pay when you sell it.
So think about the total costs
buying commissions
selling commissions
currency exchange costs
P.S -: For interactive brokers users. SPYI (XETRA) would be best as it has good spread too when looking at this particular ETF
At the moment I haven’t purchased any ETF and I haven’t any currency on Swissquote.
But if I need to exchange currency I would use Revolut (0.5% fees).
I’m Swiss and there is higher chance that I would need EUR in the future (maybe I will retire in Eurozone) so I may consider SPYI (Xetra) and VWCE (Xetra). If I already hold USD, I will buy some IMID (SIX or LSE) and VWRA (LSE).
I will check all those commissions/costs when I will buy the ETFs, THANKS again!
By the way , you might want to consider a new offer from Neon and compare with total costs at Swissquote
It seems they are launching an offer for savings plan where money goes into accumulating world ETF (FWRA) and they don’t charge commissions for those ETFs from Invesco.
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