New Vanguard World funds with 0.07% TER VGLA / VALL

Investing / Portfolios
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Hello everyone. There were a couple of new ETFs issued by Vanguard in August.

There is now a Vanguard World All Caps fund with charges of only 0.07%. Makes VWRL (at 0.14%) look a little expensive? What do we think?

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The end of IBKR + VT: a cheaper, safer, less US-dependent alternative
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Good morning.

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Hey, I wrote that at a time when VWRL had a TER of 0.22% and I expected a hefty premium. Who could have known Vanguard decided to weaponize TER?

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That was always Vanguard‘s thing. At least in the US.

It‘s pretty safe to say imo that without Vanguard, fund costs today would still be alot higher in general.

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While I see a high chance of this to become true, I find it a bit early to make a definitive statement only 7 days after inception.

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It‘s all but guaranteed. It‘s Vanguard not some small fund provider.

The fund is gaining aum rapidly as well. Spreads are tight. Already available on all major exchanges.

This is Vanguard‘s magnum opus for europe and their flagship. The one and done solution, maximum diversification in a single product.

I‘ll bet it crosses the billion aum in like 6 months already.

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I see it becoming the biggest ETF in Europe in a couple of years.

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what’s so good about VALL other then the cost?

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That it‘s from Vanguard and it covers the whole imvestible universe of stocks (or very close to it, like 99%, which is for all intents and purposes of market cap weighting basically the whole universe).

It‘s THE one and done solution. No thinking of “hm which markets should I cover, at what weight?” “Are small caps really needed and should I have an extra fund for that?” “What about longterm support and liquidity?” “US inheritance tax and domcile issues?” etc. etc.

It‘s THE core fund that covers everything. And there is an accumalting version, that you basically can forget about and it just keeps trucking along, while basically having solved the “what to invest in question, with max diversification” question.

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It‘s probably the single best investment (risk/return adjusted) you can make out there.

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It just needs the CHF on SIX option, shame it’s not there at launch

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Absolutely! Do you know if / when it will be listed in CHF on SIX?

@Cortana @leman

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If we don’t get VALL in CHF, I think that the other good all stocks option is XALL (Xtrackers FTSE All-World UCITS ETF 1C).

XALL’s index covers 4200 stocks (vs ~10000 from VALL), so 90% of the investable market instead of 98-99% of VALL.

Regarding TER, they are identical: 0.07%

Both very new: XALL started in April this year, VALL last week.

But the good plus for XALL is that it is available in SIX in CHF: so no currency exchange hassle / costs.

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I wrote Vanguard Switzerland a mail yesterday regarding that. Lets see.

I also want to buy the CHF version on SIX. Smaller fees, no FX fees.

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I don’t understand. Which fees do you mean? Fees compared to other ETFs?

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It’s just a UCITS VT - that’s it and that’s as good as it gets for passive investors

I personally want the distributing version as well - as a Swiss investor, the Acc version doesn’t have any advantage tax wise.

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VALL/VGLA is only one week old, but it gets substnatial inflows. LSE reports $199M AUM London Stock Exchange | London Stock Exchange and Morningstar 179 M Euro (for all share classes) https://www.morningstar.com/etfs/xams/vall/quote

It started a week ago with a single digit AUM.

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I might be missing something, but why would I choose VALL over VT?

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I think tbis was covered a couple times now in the latest posts alone :sweat_smile: I‘d suggest reading a bit, or we will just repeat the same things again and again.

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Great, thanks a lot! I hope they will issue the CHF listing.

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