List of mustachian ETFs / Funds

Dear all,

Thanks for the interesting post. Did someone actually updated a database or a list? I would like to contribute :slight_smile:

I’m not sure this is even realistic nowadays. For US listed ETFs, basically all Vanguard ETFs are a viable choice and now Fidelity has even funds with 0.00% TER.

For Europe, there’s now quite a huge choice of ETFs within 0.05-0.09%. For MSCI World, there are at least 3 ETFs with lowish TER (0.12-0.19%) from Lyxor, HSBC and Xtrackers (also in CHF on SIX). The Ishares Emerging Markets IMI with 0.18% TER is as cheap as anything in the US and is probably the single best EM ETF as it includes small caps as well.

I find the only thing really missing in EU-listed ETFs are cheap developed world Small Cap ETFs. The SPDR MSCI World small cap (WOSC) has 0.45% TER (but is available in CHF on SIX), and the Ishares MSCI World small cap (WSML or IUSN) has 0.35% TER.

Actually considering all this, the popular VWRL is not such a good choice anymore due to high TER of 0.25% and high spreads. The same bad spread situation concerns the SIX-listed Vanguard VEVE, VEUR and VFEM.

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That’s my impression as well. Vanguard is good for US listed ETFs, for Europe iShares and X-trackers seem better options.

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Hi, Im a beginner and I am trying to read through as much as the forum as possible to learn how I should invest my savings. I read this thread “List of mustachian ETF’s/Funds” with interest to find out which funds I should consider. However, the post from glina concerns me (because I rate glina’s opinion highly after reading other posts on the forum); glina mentions:

So it leaves me wondering what exactly should I take away from this thread - is the list in the first post from nugget a good list or not? is there an updated list somewhere.

@glina is Vanguard FTSE All-World UCITS ETF (VWRL) still the core part of my portfolio?

I thought that for ETFs the best strategy is to “buy and hold” - if “buy and hold” is the best strategy then how could nuggets list, which is less than 1 year old, suddenly not be realistic? Do you change which ETFs you own depending on market conditions?

Finally, a real beginner question, what is the difference between US listed ETFs and European listed ETFs, for an investor? which is the best option? what is the advantages/disadvantages of each?

This is very kind of you, thank you.

A complete list is not realistic (or at least difficult to make), because there are tens of low cost ETFs nowadays which are perfectly suitable for a Mustachian portfolio (i.e. low cost, liquid, following broad market indices).

The list from nugget is an excellent starting point and still valid.

VWRL via Corner Trader was my start to investing and I’m happy for it because it made me start in a simple, understandable way. If you feel intimidated by Interactive Brokers, then for all means start with a Swiss broker and start investing NOW.

You can always open a second brokerage account later on when you feel more confident. As discussed in another forum thread, this is probably a very good idea anyway to not hold all your eggs in one basket.

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I strongly believe you should form a core portfolio with a minimal number of ETFs which will cover the broad investible market as close as possible, at low cost. VWRL (IE based) and VT (US based) are one stop shops for the beginner investor, but can be improved upon.

My short list for IE-based ETFs:
XDWL + IUSN (or WOSC) + EIMI
covers 100% of the MSCI ACWI IMI universe with a market cap weighted average TER of 0.2%

My short list for US-based ETFs:

Vanguard:
VTI + VEA + VWO
for weighted avg. TER of 0.06%

or
Ishares:
ITOT + IDVE + IEMG
for weighted avg. TER of 0.05%

Keep in mind that whichever way you go, the transaction costs of trading via a Swiss broker will likely be higher than any differences in TER.

There is also nothing wrong in looking for opportunities in countries/sectors or even single stocks which trade at a discount due to recent events. You have to know what you are doing, and why, or simply accept the fact that this is nothing but a bet. For example, buying VW at the depth of the diesel-scandal would return quite a nice profit (+70% as of today). As a contrary example, if you bought a Greece ETF at the depth of the finansial crisis in 2008, you’d lose an additional 80% as of today.

Mainly cost and tax on dividents. See this excellent post buy nugget:

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Thanks so much glina!!!

I am curious to know why the Vanguard bond ETFs (e.g. Vanguard Total Bond Market ETF (BND)) are not included in the list of World Bonds (i.e. why are they not considered by the Swiss mustachians to be good for their portfolios)?

All of the world bond ETFs listed are Ireland domiciled, and I thought that for tax purposes, it is better for Swiss mustachians to have US domiciled ETFs (or is that tax advantage only applicable in the case for ETFs which have stocks)

I think Vanguard BND is limited to USD bonds only (or to US domiciled bonds, one of these options), it’s not global.

Yes I think you are correct @Bojack - I chose a bad example.
But this one ‘BNDW’ seems to be global: BNDW - Vanguard Total World Bond ETF seeks to track the performance of a broad, market-weighted index that measures the investment return of investment-grade U.S. bonds and investment-grade non-U.S. dollar-denominated bonds.

(By the way, BNDW is just a new ETF available since the middle of this year - so maybe there was no equivalent ETF available up until then - which might be the reason why there is no vanguard global bond ETF in the mustachian list)

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Didn’t know it existed. But check out the factsheet.

  • Seeks to track the performance of the Bloomberg Barclays Global Aggregate Float Adjusted Composite Index.
  • Designed to track the market capitalized weights of the global investment-grade bond market.
  • Comprised of the Bloomberg Barclays U.S. Aggregate Float Adjusted Index and the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged).

60% of this ETF is allocated in the US and the rest is hedged to USD. So it’s an ETF for somebody who wants to have a stable return in USD, I guess. I’m really not good with bonds :stuck_out_tongue:

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For stock ETFs, a key parameter would be the average P/E (Price/Earnings ratio), or even better, the CAPE for having a stabilized earnings measure.

Hi currently im investing only in FTSE All-World

But im also thinking about investing in a Swiss-ETF since im a Swiss guy. But i dont know which one. i thought about the swiss dividend ETF. What are your recommondations?

What about your 3rd pillar?

I already using VIAC with 100% stocks option and pay the total amount in it per year. But got some money to spend. I also do some hundert franks into truewealth. i moved all my funds from a swiss bank to truewealth a year ago because of the fees. but the biggest portion i invest currently into FTSE All World

So you are not investing only in FTSE All-World then. :slight_smile:

my bad ^^ no i got some others too. but i question would be which Swiss etf would you recommend along the FTSE All World? or should i add a small cap etf? currently i like dividends. but at the moment im not using them but it is a nice mental effect.

Your FTSE All World has 2.8% CH (https://www.de.vanguard/web/cf/professionell/de/produktart/detailansicht/etf/9505/EQUITY/portfolio)
What is your reason to go for more (than what FTSE All World sets up)?

Personally, I think with your VIAC (if Global 100) you might already be “over-invested” in Swiss ETFs, compared to world market cap.
“Might” because I don’t know what is your portfolio size and allocation overall. :slight_smile:
So, check in with yourself and try to argue why precisely.

And what do you think about Small Cap? Or just to basically try to increase the amount of distributions in %?

With VIAC you can buy your 3a pillar technically until 97% into funds (active & passive). But there is a fee around 0,52% that VIAC will take. Still interesting to look into that.

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