You’re right. Calculating the percentage to the reduced tax value doesn’t make sense. I forgot that the tax value was also reduced when I wrote the above comment.
Hi guys
After years of stockpicking and trading options, I finally moved to a holding a few ETFs with my entire portfolio (VT, VOO, QQQM) - pretty US heavy - the US Market performed very well in recent years and I still believe in US Tech Dominance.
Anyway, I was thinking of moving some of my assets more towards EU and rest of the world due to the recent developments - was thinking of VEU or something. Any of you having similar thoughts? Other recommendations than VEU?
Just go all in VT at that point.
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Thought of that too - not there yet.
But I increased my share of chspi to 10% of total portfolio and sold off a bit of US stuff.
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Hello everyone,
Perhaps already mentioned in this post, but what are your thoughts on having the majority of your IBKR portfolio in USD?
I currently have about 60% of my portfolio in ETFs related to US companies, such as the S&P 500. I also own ETFs from developed countries outside the US, but I purchased them as US ETFs, so they’re in USD (IDEV and AVDV).
I didn’t necessarily want to buy the EUR versions of these ETFs to avoid adding yet another currency, but in the end, is having a portfolio mostly in USD too much of a bias?
Ideally, I’d like to have these same ETFs in CHF, but I don’t want to go with hedged ETFs.
Maybe through another broker — do you know of any good non-US ETFs that can be bought in CHF? Of course, with a Swiss broker, it would probably be more expensive to purchase, plus there’s the stamp duty.
Thanks for your feedback
The currency you buy, hold or sell an ETF in doesn’t change the underlying value.
Maybe someone will link to one of the longer explanations already existing on this forum.
In short:
Imagine you buy a carrot. No matter the currency you buy it in or that the price is displayed in, at any point in time it will sell at the price of a carrot in any currency.
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We really need some kind of chatbot instant answer for the currency question 
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Thanks for the link. Maybe I did not understand it well but my point was more about the “risk of change”. On my broker account, I would have “won” a bit of money if I just look at the actual value of my assets compared to the price I paid to buy them. But as a major part of my account is in USD, if I sell everything today and convert the money back to CHF, it’s as if I hadn’t won anything because of the actual bad exchange rate chf/usd.
If your concern is with the currencies making it hard to understand if you’ve got a profit or a loss, IB has a setting for which currency the portfolio value is shown in. If you want to see if you’ve made money in CHF, just set that to CHF.
If your concern is that you’ve lost money due to currency fluctations and think that would not have happened if you’d invested in CHF-denominated ETFs, you’re wrong for the reasons explained in that link.
you still dont see that in you P/L. the value of your portfolio in CHF for example could change, but your P/L still showing the same number. You basically need to track it separately.
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I think if base currency is CHF then Portfolio analyser (IB) would show net returns in CHF
Isn’t it?
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Hello!
I just noticed via an Instagram post by “finanzdepot_ch” that Vanguard has just listed the VWRL ETF in its accumulation version under the VWRA ticket with the possibility of buying it in CHF on the SIX exchange:
UBS has also just released an accumulation version of its SPICHA under the SPIA ticket:
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It seems to be correct.
I crosschecked with my spreadsheet and it gives me the same value.
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Would have been nice if Vanguard can try to match its competition in terms of price
SPDR ACWI -: 0.12 %
WEBN/G -: 0.07%
FWRA -: 0.15%
SSAC -: 0.20%
VWRA -: 0.22%
Is Vanguard not planning to be competitive anymore?
Maybe they’re slow due to being able to collect the fees consistently and SSAC, which is the only credible competitor in terms of size, has nearly the same TER. Other than SSAC the other ETFs are minnows in comparison with VWCE and VWRL.
Or they just don’t care about Europe?
I think it‘s a cashcow for them at this point. It‘s the biggest ucits market fund.
And people won’t pull out due to taxes in most countries.
There would need to be much lower inflows that go to competitors at this point, to lower the fees.
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The claimed TER is really not that important though no?
You want the ETF to follow the index as closely as possible, and if you look here you can see that VWRA’s average tracking difference over the last 5 years was 0.02%. So in reality it was way cheaper to own than the claimed TER.
Compare SSAC which had much bigger deviations from the index.
The other mentioned ETF’s are not old enough to really have data about how well they track the index. While FWRA outperformed it by 0.4% last year, that’s actually not really a good thing as this can go the other way as well.
Common misconception with the tracking difference here. The index assumes the worst possible withholding taxes for the constituents countries. Like for example 30% for the US. Meanwhile VWRL has 15% for US stocks, as an Ireland fund.
That already gives you a big headstart on tracking the index. And makes it appear that the fund doesn’t cost you anything. Which is just hidden.
A fund that would track the same index, with good execution but lower cost, would have a sizable positive tracking difference even.
That might be true but it still shows that just comparing TER is quite meaningless no?
The Tracking difference is what you really pay so you want it to be low (or even negative according to you) and stable.
By looking at TER you would prefer SSAC to VWRA while the TD speaks heavily in VWRA’s favour.