Transfer cost are 10 CHF per position. The “detour” via IB would save me a couple of hundred CHF.
I want to have a second broker besides IB for diverification. That`s why I want stay with Degiro.
Actually I checked with one of the broker and they told me I can switch from SSAC_USD to SSAC_CHF for 50 CHF irrespective of how many shares I own. This is possible because the ISIN is same.
So maybe something similar exists at Degiro too.
But anyways , whatever works for you
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Do they really care? I mean I also sell by them and do not only the FX-transaction.
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I was looking into buying WEBG on DEGIRO in order to avoid currency exchange fees (CHF/EUR) but it looks like WEBG on DEGIRO is only available on XTRA in EUR. Where do you guys buy your WEBG in CHF?
Good point, I missed that. What would be the next best all world ETF traded in CHF on SWX? I know VWRL but are there any other equivalents? Just trying to avoid and FX fees… or are they irrelevant (too small) and you just don’t care usually?
SPDR MSCI ACWI has a 0.12% TER since August. Invesco FTSE All-World (FWRA) has a 0.15% TER.
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Personally i do following for UCITS ETFs
- While buying on IB -: WEBG (EUR, XETRA), TER 0.07%
- While buying on SQ -: SPDR ACWI (CHF, SIX), TER 0.12%
Reason -: IB Forex fees are very low, so its better to simply buy the cheaper ETF.
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Thank you for the suggestion. This one fits well my needs because I want to buy it on DEGIRO so I can buy it in CHF and then on top of that it is accumulating so again I don’t use any money with forex when DEGIRO converts automatically the dividends from USD to CHF.
Be aware of absolute performance differences, because of differing indices, TER and tracking errors.
| ETF | Index | TER | Performance in CHF since 21.02.2024 |
|---|---|---|---|
| FWRA | FTSE All-World | 0.15% | 18.25% |
| SPYY | MSCI ACWI | 0.12% | 18.07% |
| WEBG | Solactive GBS Global Markets | 0.07% | 17.95% |
(Performance starts from 21.02.2024 because that’s the inception date of WEBG.)
Since these are three different indices, I think it is not accurate comparison.
- Ideally FWRA should be compared with VWRL
- ACWI with SSAC after the fee change
- And WEBG does not have like to like comparison yet
I also noticed that WEBG was actually higher than everyone until end of OCT. So in Nov it could be one of the underlying companies did not perform that well. I would personally not put too much emphasis on these differences.
The objective is to buy a lot of companies at low cost. All of them are able to support it.
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I put those three against each other because they were compared above.
Also, why not compare them, if the objective is to “buy the world”?
Because it just shows how the „dissection of the world“ performed based on those indices over last 10 months . It doesn’t say anything about what to expect.
For a person who might not know, they might conclude that WEBG is not good while in reality it is cheapest and expected return for that ETF should be slightly higher versus others like to like funds.
P.S -: this is not to say WEBG is the greatest fund. It might have its own issues.
Based on what facts? On 0.05% lower TER? I thought we shouldn’t compare funds with different indices 
I said for a like to like fund
So for example if someone launches a fund with Solactive & if they have higher TER (like 0.15%) , then it should underperform.
I wouldn’t compare WEBG with VWRL
If you remember , when FWRA was launched , people said we need to focus on tracking error. But in reality FWRA did outperform VWRL because it’s lower cost
I would expect the same for SPDR ACWI vs SSAC for performance as of 1 Aug.
Sorry, I thought your “while in reality it is cheapest and expected return for that ETF should be slightly higher” was meant in relation to the comparison table.
No issues
Perhaps my thinking is a bit different. I personally don’t care much if ETF is exactly tracking world market cap. What I care about is -:
- fund is following some index which is diversified enough
- Fund is tracking close to its index performance
- TER is low
- Trading costs are low
I understand MSCI & FTSE & Solactive would try to claim they have better indices. But in the end they are all just trying to pick as much companies as they can with some sort of rationale.
No one know which grouping will be better in terms of absolute performance. By coincidence , I happen to own ETFs tracking all three indices (VT, ACWI & WEBG)
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That’s certainly a part of it, but FWRA also outperformed the index by 0.33% in the last 12 months, while VWRL underperformed it.
@Dr.PI once explained to me and after that my life was never the same
Tracking errors of UCITS funds are misleading. They use benchmarks with assumed dividend tax of higher rate while they know they will only pay Treaty rates. This is quite prevalent with US dividends.
SSAC, VWRL, FWRA etc should all outperform their benchmark if TER was 0% because of this misleading comparison. The gap you see is most likely because of 0.07% TER difference of FWRA vs VWRL.
In fact there is one YouTube channel from Austrian finfluencer. He simply decided to use VWRL (and not FWRA) assuming it’s tracking error is so low so effective TER is 0. but in reality it was just a misleading benchmark. After few months he switched to FWRA.
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Then why is the performance difference between those two on JustETF 0.4-0.5 percentage points?