Mustachian portfolios

Why not - if it works in my favour? But I‘m not saying to deviate significantly from the index - even though in fact the ETF will (optimised sampling, costs…)

0.18% is the (theoretically) expected tracking error - not necessarily the actual, due to various smaller factors.

In this case, for instance, the iShares SWDA seems to have smaller actual tracking errors than XWDL. Here, for example iShares listed a realised tracking error of only 0.09% for SWDA.

So even though the TER (which does not include all costs and deductions) might be a base point more, the ETF might have better replicated the index - and returned more. Thus my earlier question about the „obsession“ with TER.

In this case anyway, the X-Trackers XDWL is a distributing fund, whereas iShares SWDA is accumulating, which might (also) be a more important consideration than than 0.01% difference in TER (which, as we saw, doesn’t even necessarily mean a more „expensive“ fund had „worse“ returns).

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