IB question about Ireland domiciled ETF

Hi,

I have now setup my account with IB and i’m trying to get my head around the UI.
My plan is to invest on 3 ETFs that are all domiciled in Ireland:
45% VWRL
40% IWDA
15% EMIM

Now when i’m in the UI and search for VWRL i get several choices for that ETF. LSEETF, AEB, EBS.
Please see the image below.

Which of the VWRL options should i choose?
I’m guessing that LSEETF is London Stock exchange but i’m not sure.

Cheers

EBS is Zürich, but I don’t know which is best. The one with the bigger liquidity I guess

Are you sure you know what youre doing? Why VWRL and IWDA? Why buy the same thing twice? What currency are you trying to buy in? Since you are using IB and can convert currency practicvally for free, I would go for the USD quoted VWRD from LSE

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Please explain why this allocation.

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Once you’ll figure out that your allocation doesn’t make sense, then you should figure out that US ETFs on US stock exchanges are cheaper and more tax efficient, and then you should figure out that web portal of IB is easier to use.

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This - forget about that black devil.
Use the web portal or the mobile app - both super simple and user-friendly.

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To answer your first question, no i’m not sure. I’m new at this ETF investing and the complicated IB app does not makes things easier.
So my reasoning for two ETFs that both follows total world indexes is that they still differ in their investment percentage in different countries around the world. A way of diversifying more. If that is wrong, can you please explain why?

@1000000CHF Same question to you.

Talking about VWRL. I take it that you think that it’s best to buy it in USD, why? What are the percs?

@_MP If you want this forum to prosper: a good wiki is needed.

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They do not diversify differently. FTSE considers Korea as a developed market, while it is an emerging market according to MSCI.
If you decide to invest in an all word allocation (either VWRL or IWDA+EMIM), the difference is void.

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Oh boy, this logic is unfortunately quite a bit off. Please do not invest until you have understood what it is that you are buying.

So, to give you a starting point. What you want to buy are shares of companies, like Apple, Microsoft etc. Then you need to decide at what proportion you want to hold these shares. The allocation by market capitalisation is very practical, because it is a self-rebalancing one (you don’t need to constantly tweak it).

So you would like to ideally hold thousands of shares and own each company proportionally to their market cap, but doing that manually would be a nightmare. For this we have indexes, like S&P 500. But you cannot just buy an index. An index is just like a recipe. What you need is an index-based Exchange Traded Fund. What they do, is that they try to replicate the index for you.

Now, coming back to your question. Check exactly what kind of indexes these ETFs are based on and what are the biggest companies. You will find that one is based on a FTSE index, the other one on MSCI. But both of them will have the same top 10 companies. Both will be almost identical, with small differences between the indexes.

Well, I wrote more than I planned to, but I still only scratched the surface. I think it’s important that you at least understand the basics before you invest.

I suggested this once and we do have a wiki section, but nobody is contributing to it. It would take quite some effort to organize our knowledge, many people would have to contribute. You can make some suggestions on how to restructure our wiki, maybe this will motivate people.

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Thanks for the explanation. Then i will propably go for a solid VWRL.

Like i said i’m a newbie and i’m trying to get the hang of this. I never claimed i was an expert. So i appreciate your long answer. It’s getting clearer.

Btw I see you installed the Desktop software of IB. That is more intended for active traders, and thus is probably a bit complicated. On IB you can actually trade from their “Client Portal” website, which looks much friendlier.

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@Mellow do us a favor. Read the whole forum where there are more explanations about all this stuff. There are some points on the wiki as well. Copy and paste all important information on a document you store. Once (if) there will be a Wiki, you can paste it all in one post and then you or someone else will reformat it to make more sense and everyone will be happy :slight_smile:

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