I have 2/3 on my stocks in mutual funds (high manage fee), and 1/3 in 3rd pillar VIAC global 100. I have scheduled transactions to VIAC every month.
I would like to increase my exposure to world market by a periodical invesment in one total market ETF. Prob I should invest in more than just one ETF. But I would like to start simple, and don’t delay it any more. I have in mind doing it for quite a long time. I could optimize it over the time.
Based on fees and taxes, is it still today Vanguard Total Stock Market ETF the best option?
I have Interactive Brokers account, but I have just invested only in some small cap companies by my cherry picking. I have not invested ever directly in a ETF.
Due to the fees make sense to invest in a ETF every month? or maybe in order to reduce the impact of the buying fees I should save for a few months and invest only every quarter? What is the minimal amount in CHF that makes sense to invest in this ETF at once?
Vanguard Total Stock Market or VTI for short, includes US stocks. Vanguard Total World Stock or VT for short, includes stock from “the whole world”.
It is not a simple task investing by passive investing. There are so many ETFs. From outside it looks very easy, til u need to choose what ETFs to include.
It seems to me that currency exchange thru IB is so cheap that there is a not big gain by investing in ETF with CHF currency.
I see VWRA has an accumulating distribution. As I am a tax resident in Switzerland prob this is not very relevant, but maybe someday I will move to a country with dividend tax. So for future simplicity prob it is better to choose an accumulating one.
I see VWRA has a 0.22% TER. Is a TER of 0.22% really a cheap one?
I just want to start simple, i will learn more about ETFs in future, so I could optimize my portfolio with my future monthly contributions. I just need to configure a good enough passive portfolio foundation.
It shouldn’t be complicated to sell and buy an equivalent one (e.g. VT-VWRA) on the same day, when or rather if it comes to that need.
I would make decisions based on today and “known” near future, not on the unknowns years/decades ahead.
True, I thought that the buy/sell fees would be so significant that I must avoid it.
I found at Interactive Brokers “VWRA - VANG FTSE AW USDA - LSEETF”. Is this the right VWRA?
Even I am saving much more than that, I will start investing in VWRA like 500 CHF. Then after a few month I will decide whether increase my monthly contribution to VWRA or add new other ETFs.
Not on IBKR.
And even if they were more significant, they would likely be compensated by the diff in compounded TER.
I found at Interactive Brokers “VWRA - VANG FTSE AW USDA - LSEETF”. Is this the right VWRA ETF?
What means " LSEETF"? Maybe sth like “leverage shares”? I don’t want now leverage ETFs.
London Stock Exchange likely?
It’s just a google away really…
But this ETF has Domicile: Ireland
Can it be domicile in IE by being in London Stock Exchange?
On what basis will you make this decision?
Right now my knowledge of ETF is very basic. Prob after a few month I will know better what I need/want and I could customize it. I think sticking with an extended ETF as VWRA for the time being is a good idea.
To simulate the cost/impact of TER of your investment(s), you can check:
In Interactive Brokers: in a 500 USD VWRA buy order preview, I have: Commission (est.) 0.35 … 5.00 USD
The range is quite wide. From 0.07% to 1%.
Is there a minimum amount in USD that makes sense to trade in IB in order not to pay excessive purchase commissions? Does 500 USD looks too little?