I doubt it, given the FTSE All-World sits at a 0.19% TER. We can probably expect something around 0.15%. Anything under 0.10% would be fantastic, but itâs highly unlikely Vanguard will drop their fees that low.
Most likely vanguard is feeling the heat with European ETFs taking share. I wouldnât be surprised if new ETFs are competitive versus VWRL. Hope will be old investors will keep their VWRL investments and new money can flow into new ETFs. Letâs see
I would guess theyâll simply match VWRL or go 1bps higher.
The ex-US ucits etf is extremely welcome though, if TER is not too high.
VTI + that , is now a really risk and withholding tax optimized portfolio for us swiss investors, without juggling many funds and less rebalancing issues. Also with no estate tax issues on the ex-US side.
Fwiw thereâs vanguard ads on some some of the trams (livery) in ZĂŒrich. Seems like they definitely want to grow in Europe (and beyond UK which is their traditional market).
Kinda makes sense given the nudge from eg EU towards equity investing rather than savings account (the market potential is fairly large compared to US where a lot of investments are in equity already).
Maybe, but except their specific structure (Vanguard is owned by its member funds,) which is not even the case for the european entities, I donât know why people would chose Vanguard. The UCITS Vanguard funds are more expensive than their competitors.
Thanks! One quote from that factsheet made me laugh:
By choosing to allocate a portion of their savings into productive investments to finance the EUâs objectives (e.g. climate transition, innovation or defence), citizens can enjoy higher returns and prepare for their future.
Regardless of political opinion, Iâm not convinced that such sector investing will lead to higher returns.
Theyâre comparing to savings account (non savings account investment is really low in many EU countries).
It should also not be super controversial that propping the domestic capital market, while not necessarily giving the best returns (hey Iâm in team VT ) does benefit the citizenry (better companies/jobs/Innovation/⊠itâs hard to compete with the US when the entire world throw their money at them instead of their local companies)
Vanguard is legendary in personal finance scene, donât underestimate the value of this.
ETFs that you mentioned are younger than Vanguard ones and were launched to undercut Vanguard. E.g. (IIRC) VUSA was for very long time the cheapest S&P 500 UCITS ETF, VWRL is still considered the golden standard, etc.
Besides, TER is not everything. Vanguard is usually good at indexing and typically has a low tracking error. Or maybe not, but this is what I imagine due to my opinion of them .
I am not even talking about Vanguardâs security lending efficiency. A Vanguard ETF can have formally higher TER, but generate some bp per year of security lending revenue - for the fund, not only for themselves.
Isnât it that Vanguard have some proprietary peculiarity in their ETFs that increases efficiency that mirrors mutual funds? I remember seeing something like that ages ago, also seeing that in the following years this peculiarity âgoes off patentâ? It probably is only for the US versions, Iâd expect.
Iâll just say this: seeing it in Zurich makes a lot of sense, seeing it IN ATHENS is both good (people being nudged to wake up) and worrying (hype exploited by rabid social media slop being flung by the bucket the last 5 years)! I canât make up my mind if itâs because people have increased real disposable income (depending on who you ask youâll hear either that âthings are going greatâ or the opposite), hype, or a bit of both.
Nice link that one, didnât know, thanks for that!
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) does benefit the citizenry (better companies/jobs/Innovation/⊠itâs hard to compete with the US when the entire world throw their money at them instead of their local companies)
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