Simply wow!
Wonder when they launch it!
Which ETF is this? I mean ISIN
I find it weird that they have a flagship proruct VWRL with 0.14% TER and they launch a new one covering all world all caps at 0.07%
This will mean the largest fund VWRL becomes bad choice for its current investors. There must be something we miss
link please?
got it, PDF page 607: https://fund-docs.vanguard.com/etf-prospectus-en.pdf
very nice, I think I found my forever equity ETF
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Interesting that they allow synthetic replication:
Specifically, the Fund may invest in the following FDI:
- Swap agreements (excluding funded swap agreements, but including total return swaps as further detailed below), warrants and equity-linked notes which may be used to gain efficient exposure to the constituents of the Index (for example, where an Index constituent is illiquid or is otherwise unavailable to the Fund for direct investment due to market or regulatory reasons), or to the performance of the Index itself (for example, to reduce transaction costs or taxes or minimise tracking error);
wonder if it’s just opening the option of if they’d actually do it.
Pretty sure passages like this you find at most funds. They just keep that as option, for transitory stages etc.
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Vanguard is so good that it is hard to diversify ETF issuers … I own most of my etf with them now.
What would it bring more compared to the usual suspects such as Xtrackers FTSE All-World UCITS with the same 0.07% TER ?
You get total market coverage including the 15% small caps.
FTSE all world cover 85% of the market, and global all cap close to 100% (depending on your definition)
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And 0.12% OCF for their new All-World Ex-US UCITS ETF
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Indeed. If not for US hegemony in finance, I also would have preferred Vanguard. They are good company with low costs and always focussing on their investors as per philosophy
For now I support regional finance bros. UBS, Amundi, Xtrackers
Oh yes correct, thank you. So it’s like comparing SPDR ACWI and SPDR ACWI IMI versions.
I am always a bit surprised by how wide the gap between the two versions is: AuM size tends to be much higher for non-IMI versions, reflecting smallcaps underperformance during this market cycle.
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Plays a role in part. But also only quite recently the TER of the IMI came down. It was like 0.4% a year+ ago.
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I guess patience runs out after 20 years:)
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Interesting!
So, this new fund brings the ability to enjoy smallcap underperformance on the cheap 
Probably more liquid fund. That makes a huge difference.
Not yet launched, therefore no ISIN is available ATM.
The initial launch offer runs from 30 July 2026 to 29 January 2027. The ISIN and ticker will be announced in due course.
This will be the flagship UCITS All Cap ETF.
VWRL will remain Vanguard’s flagship All-World ETF (excluding small caps). I do not see any cannibalization between the two products, as they cater to two different investor profiles.
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How huge? The half-spread is a one-off cost.
For reference, the spread for buying VT is between 0.01 and 0.02%.
Assuming we talk about multi-million portfolios at retirement age, it seems negligible to me.
That $10 is what VT’s $500m daily volume buys you. The Xtrackers trades about EUR 160k a day on Xetra with a book a few thousand shares deep, quoted spreads 20bp+. Same $155k order there costs a few hundred, and you pay the spread on every trade, exit included.
Vanguard runs £7bn on this index in the UK fund alone, so it has a much better shot at reaching that kind of scale. Negligible for a savings plan, sure. But at the same TER I’ll take the fund that ends up cheaper to trade.
From my experience, it’s not that bad. I typically pay 1 bps of half-spread trading large UCITS on SIX.
What you say is relevant for a fund physically replicating thousands of smallcaps, but I don’t think it makes a noticeable difference for a large majority of any cap-weighted global approach.
Spread must be watched out for very young or very niche funds.
For normal UCITS funds tracking the most common indices, or for synthetic funds, it’s usually fine on SIX.
I sometimes save Degiro’s Ex-Ante report for future reference. The smallest fund I buy is an SPI tracker with an ESG filter. As you can see, even for this relatively niche product, the half-spread is negligible compared to tax savings of buying Swiss shares via CH ISINs.
Of course, it’s better to avoid bank holidays, Fed’s FOMC statement days, etc.
But I can report that I detected no issue when trading on a normal day, at a time when both SIX and NYSE are open.
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