Could be, could be not, no one knows. Small size is one of the original Fama-French factors.
The thing is that you decide what portfolio you should have, not the fund provider. Do you want small stocks? – Good. Don’t want them? – Excellent. When you buy an MSCI ACWI you should reasonably expect that the fund matches it, right?
In the end it will not make you much richer or poorer. But my preference goes to index investment vehicles that I can understand and trust to do follow the index. Otherwise there other options, like Avantis funds that do active selection of stocks. Or if you believe in growth, there are some good index options and active ones.
Slightly offtopic, but how does this make any sense?
Shouldnt ACWI performance always be somewhere between World and EM, just like 3 Yr, 5 Yr and 10 Yr?
That puzzled me as well. The only explanation I have is the changing proportional weights of EM and World. The growth in EM took place when it was some 2-5% of the ACWI. So the impact of that growth was less then underperformance of the EM later, when it was a larger share.
EM had its big run, when it was super small (and then became big, like towards 14% and since declining). Therefore its positive effects in acwi were very small over the longterm and its negative effects more pronounced.
But you are not avoiding the chf appreciation issue.
It‘s the exact same fund in usd/eur/chf, it‘s just the currency it‘s displayed in and you trade it in.
Only currency hedged funds, hedge against fx movements, but hedging is not free and comes with it‘s complete set of caveats. Starting at available cheap products.
From the available ucits funds, FWRA or VWRL are available on Six in CHF and you can avoid fx fees then.
Fwra as accumulating and lower ter, is probably the better idea. As you also avoid VWRL distributed dividends in usd, that would need to be converted (or your broker does autmatically for a fee)
If US ETFs aren’t an option, I would go for FWRA as well. 30% less fees than VWRL and a great tracking difference so far (0.15-0.2% better than the index).
Can be bought on neon with 0% fees (except stamp duty) through their monthly savings plan.
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