# IE vs US domiciled funds (VWRL vs VT)

**URL:** https://forum.mustachianpost.com/t/ie-vs-us-domiciled-funds-vwrl-vs-vt/5376
**Category:** Investing / Portfolios
**Created:** [January 25, 2021, 12:49pm UTC](https://forum.mustachianpost.com/t/ie-vs-us-domiciled-funds-vwrl-vs-vt/5376 "2021-01-25T12:49:14Z")
**Posts on this page:** 1
**Showing post:** 36

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### Author: ![San\_Francisco](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/s/ea5d25/32.png) [@San\_Francisco](https://forum.mustachianpost.com/u/San_Francisco)
#### Post date: [January 25, 2021, 8:05pm UTC](https://forum.mustachianpost.com/t/ie-vs-us-domiciled-funds-vwrl-vs-vt/5376/36 "2021-01-25T20:05:28Z")

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> [@Bojack](#):
>
> Here the difference between high and low was 3%. There are more days like this. And the difference between Europe closing and US closing is 6 hours, enough to make a big gap.

I think it doesn’t matter much, once you compare multiple data points. I’m largely with TeaCup on this one. I also tried to estimate it from the ICTAX figures a while ago (even posted it on the forum), and estimated the difference between VT and VWRL to about 1% every six years or so.

> [@Bojack](#):
>
> It’s the other way round, bro. VT (the US one) includes small caps, VWRL does not

While true, isn’t it a bit pointless?

Realistically, an investor that wants to _keep things very simple_ will choose between VT or VWRL (such as thread title suggest). Whatever little nuances in index composition.

I’ll shout out my opinion:

**You’re all getting too hung up on small nuances and overanalysing!** 😼

My take is this:

- It’s safe to assume that a few small caps aren’t going to make a very substantial difference. So VT and VWRL are reasonable subsitutes.
- It’s also safe to assume that a U.S.-domiciled World ETF will be slightly more cost- and tax-efficient (when comparing physically replicating ETFs)
- The difference is not going to be huge. It’s reasonable to assume that it’s more than 0.1% but less than 0.3% per year.

👉🏻 As long as costs are all and everything one care about and one feels compelled out the last fraction of a percentage point in performance, he or she absolutely should prefer VT (though beware of the small tax pitfalls).  
👉🏻 As long as you’re comfortable to pay a bit more and don’t lose sleep over a fraction of a percentage point in performance, you can just as well buy VWRL and stop worrying. Also makes the tax declaration (slightly) simpler.

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