Vanguard cuts fees for many Europe-based ETFs

https://www.ft.com/content/973980de-f4ef-11e9-b018-3ef8794b17c6

Not really Earth-shattering, but it’s nice to see that the fee-trimming trend is coming here. Notably, the fee drops include VWRL (down from 0.25% to 0.22% /yr).

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The detailed list:

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/fee-cuts-show-vanguard-commitment?intcmpgn=olt_featuredhome_link

I’m happy to see lower fees, however the fees are still higher than in the US.
Now, their ETFs are in most cases the cheapest, except for Emerging market: Vanguard 0.22%, Ishares 0.18%.

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85% Developed + 15% EM total TER of 0.135%. Really close to VT now.

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Right, but the FTSE All-World which follows a similar index to VT is still 0.22%. (VT is 0.09%).
Vanguard FTSE Developed World UCITS ETF is a small fund 322 AuM with an higher spread.

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VT would be not more avaliable at IB next year. The way to go if you still want to buy this Index would be FTSE All-World right? Ireland based?

Thank you for letting me know.

There is debate on whether or not this will happen for Swiss residents.

In short, yes VWRL (listed in Amsterdam and Frankfurt in EUR, Zürich in CHF, London in USD or GBP) is the closest to VT, but they follow slightly different indices (FTSE Global All Cap Index for VT and FTSE All World Index for VWRL).

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Performance is almost identical. There is a thread on bogleheads were this is discussed. Since October 2012 VT had 10.58% and VWRL 10.54%. Of course there is the difference with US tax on dividends. But the missing 9% market cap don’t really have any impact.

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OK, so if i unterstand it right. It is not sure that VT will not be avaliable on Interaktive Brokers?
I know that some friends their were no more able to buy VT, this year, with degiro already.

have you guys ever actually compared the US ETFs with their European equivalents? I tried and it’s really hard to notice this difference in TER. Anyway, the much bigger and deciding difference is the withholding tax, that is priced into the European ETFs. 15% * 2% = 0.30%.

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Are the 15% on the whole dividends or just the US part?

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