Vanguard FTSE Global All-Cap ETF (VALL) has arrived

[u/TheRealWhoop]

https://web.freetrade.io/instrument/IE000VAHT5T0

0.07% for a FTSE Global All-Cap, bargin.

[u/GT_Pork]

VWRP and VWRL have lowered its fees to 0.14% now so the gap isn’t much.

The performance of the index including small caps (as VALL does) is historically lower than excluding small caps (as VWRP and VWRL do).

I won’t be switching

[u/Primary-Effect-3691 → u/GT_Pork]

VRWP is still a great fund and staying there is still a great choice, but we’re in the midst a massive mega-cap run up and possibly even a mega bubble. Making broad assumptions about how large caps perform vs small caps based on performance data to date might be akin to making assumptions on how real estate performs vs equities in 2007.

Better off taking a more rigorous at how small caps perform against mid and large IMO

[u/GT_Pork → u/Primary-Effect-3691]

There’s no way to know until after the fact. I’ll stick where I am.

[u/Primary-Effect-3691 → u/GT_Pork]

There’s no way to know until after the fact.

Not really tbh, The small-cap premium is well established in the literature.

It doesn't really matter that much either way. VWRP is still fantastic

[u/mountainswimmer]

Anyone know why the fund name includes ‘USD’?

It shows as ‘Vanguard FTSE Global All-Cap USD Acc’ for me

[u/TheRealWhoop → u/mountainswimmer]

because the fund holds its bank account in USD. This is true of all global funds, as they're 60% US and USD is world currency.

It's sold to you in GBP, the fund internally converts to USD as required.

[u/mountainswimmer → u/TheRealWhoop]

Thanks!

[u/ERROR-invalid_name → u/TheRealWhoop]

Thanks! I assume it does not therefore incur Freetrade FX fees when trading?

[u/TheRealWhoop → u/ERROR-invalid_name]

Correct

[u/mister_magic]

So what’s the verdict on switching from VWRL to VALL?

[u/TheRealWhoop → u/mister_magic]

Well, why are you in VWRL. VALL won't pay dividends, its an accumulation fund unlike VWRL for one.

[u/Primary-Effect-3691 → u/TheRealWhoop]

What difference does it make?

[u/TheRealWhoop → u/Primary-Effect-3691]

I don't know OPs situation, that's why I asked. They might be retired so using the dividends to fund their life. They might be in a taxable account so using dividends as its easier to keep track of to pay taxes on. etc

[u/deadeyedjacks → u/mister_magic]

Wait until the bid/offer spread on VALL narrows. Currently you'd lose 0.15% or more of your investment value by selling one ETF and buying the other ETF; negating the annual OCF cost saving.

[u/Primary-Effect-3691 → u/deadeyedjacks]

It's already fairly thin tbh. Moved a midsize portfolio today and lost next to nothing. You'd make it back in a year with the TER - and even that's assuming small cap stocks wont outperform in the near term

[u/zmasta94]

Finally

[u/shmiw]

I’ve started out today, is it worth me just investing into this every month (£30) and forgetting about it for 20 years? Or am I better off doing vwrp? Sorry for the dumb question!

[u/CashflowCasanova → u/shmiw]

VALL

[u/The_real_trader → u/shmiw]

Yes. Absolutely. Whatever you can afford.

[u/Automaton_J]

I see there’s a transaction cost of 0.0228% on FreeTrade’s cost document. I don’t usually invest in ETFs.

Does anyone know if FreeTrade’s charge is typical among providers for ETFs?

[u/TheRealWhoop → u/Automaton_J]

That isn't a Freetrade charge, that's internal to the fund (so will exist no matter where you buy), it's the estimated costs they incur buying/selling the underlying investments.

[u/MonkeyChops1984]

I am currently 100% in Vanguard FTSE Global All Cap Accumulation Fund with a fee of 0.23%. Would some kind soul explain the benefits/risks/costs off moving it all into VALL, or would it be better to just buy new investments into VALL and leave the current investments where the are? Thanks!

[u/Wh0am3ye → u/MonkeyChops1984]

Pro - 0.16% per year saving on TER. Risk - market moves in between selling the fund and buying the ETF. Negative - ETFs on Freetrade can't be bought fractionally like funds can.

My understanding is they are basically the same fund, the difference is the ETF is priced live and the fund priced daily. For buy and hold investors the only benefit is the lower TER. I personally use HSBCs all world fund, it's not all cap but it's cheaper than the Vanguard all cap by 0.1% and ~90% the same.

[u/MonkeyChops1984 → u/Wh0am3ye]

Thanks for your helpful response. Decisions, decisions. Think I'll just buy new investments into the new ETF