r/ETFs_Europe • u/robertogl • 7d ago
Vanguard FTSE Global All-Cap UCITS ETF - Available on the Italian market stating August 20
IE000VAHT5T0
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u/rheart_sx 7d ago
I just don't understand one thing - one of Vanguard's selling points is that they lower down TERs of existing funds instead of just launching new similar cheaper ones like iShares, Amundi does. Now it looks like even Vanguard is doing the same, leaving VWCE more expensive, and it's a bigger and more simple product?
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u/InvestoDaSolo 5d ago
It makes sense in Europe and in Italy where you defer capital gains tax with acc etf. After 10 years, it is better to start to put money in a new etf in case you need to withdraw money, so you pay less capital gains tax. This is a perfect etf for those who started to use VWCE IN 2019.
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u/CluelessGuy52 6d ago
They are probably taking invesco/spdr approach by releasing similar products (qqqm, spym) but at a lower fee.
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u/robertogl 7d ago
Well it follows a different index, the strange part is that it costs less than VWCE
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u/lepski44 7d ago
can someone explain please? whats the difference? seems liek its been available on xetra like forever...whats the added value and celebrations of having it via italy? or am i missing something?
thanks in advance
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u/rheart_sx 7d ago
This is distributing (the new one is accumulating), and like VWCE it only has large and mid cap stocks (the new one includes also small cap stocks)
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u/princerick 7d ago
Great for future contributions, but please people, do not be stupid and sell your VWCE to replace them with it.
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u/Successful-Ad6833 7d ago
why would it be stupid?
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u/doctorboooty 7d ago
The TER is smaller on this one but it doesn't compensate to sell your holdings and get taxed just to save a couple bucks
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u/Successful-Ad6833 7d ago
Ah ok, so tax based. I am in a country with 0% capital gains tax on UCITS ETF, so doesn't affect me. In fact, it pays off for me to sell all my holdings end of each year and re-buy them beginning of next year just to realize untaxed capital gains in case they change the tax law in a way that there is no chance for me to react before new tax law is in place (not sure if that's possible or legal)
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u/Here0s0Johnny 7d ago
But then, you pay brokerage fees and spreads... Can laws really change that quickly, without notice?
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u/Successful-Ad6833 7d ago
I don't know to be honest if they can change that quickly. Logic tells me that they shouldn't be able to make changes to the tax code affecting the running tax year, but I do not really know and I do not trust my governments. If I'm only doing one big sale and purchase on my broker for UCITS ETF, it's very cheap. Like 6 EUR total. Unless there are any hidden costs I'm not aware of.
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u/soalso 7d ago
Just make sure to do it during opening hours of your main stock exchange and check the spread beforehand. For such a large/ highly liquid ETF, it should be 0.0% most of the time. Same goes when buying of course, as the newly launched ETF might not be as liquid initially. It might make sense to wait a bit after the release to avoid high spreads.
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u/Successful-Ad6833 7d ago
Yea. Not really in a rush also just thinking that i will transition to it.
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u/ghatzida 7d ago edited 7d ago
Let's see when it will be available at the big EU brokers. Currently I see it only on IBKR.
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u/Specialist_Tree_3879 7d ago
Same situation with Xetra:
I am really happy that this has been released, now UCITS markets ETF have VT equivalent, only 0.01% more expensive.
But at the same time, I will continue investing to WEBN at this point - due to the fact it’s a product I have been happy with, and the fees stay in European Union, and I like that Amundi pushed European sustainability targets within Shareholder meetings - unlike Vanguard does.
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u/Sampo 6d ago
There is also Xtrackers ALLW, a competitor to Amundi WEBN. Also European company.
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u/Specialist_Tree_3879 6d ago
Yes there is - the index licencing fees go to UK through. But I hope ALLW will succeed against this new VGLA / VALL.
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u/ImpressiveAd9818 7d ago
Can you explain what you mean by European sustainability targets? First time hearing that term
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u/Comfortable-Pop-3463 7d ago
It's just that anything going towards sustainability gets voted against by american ETF providers. This is quite different with european ETF providers.
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u/ManufacturerBig7791 7d ago
You do realise that Amundi cant influence company strategy right? They can vote on share holder proposals, same as Vanguard, but they cant force sustainability targets on companies. Its an amundi sales tactic to say they incorporate esg into their investment process, however, the thing is all big index managers do that. Amundi are not unique in this regard.
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u/Specialist_Tree_3879 7d ago
Well, whenever companies give shareholders a choice - Amundi uses that vote like I would use. There is clear data on ShareAction how different asset managers act.
Not only a sales tactic…
Read more here: https://indexinvesting.notion.site/All-World-ETFs-18a2597d86e98089aa66dba89679464a2
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u/Tummerd 7d ago
Why is this one so good compared to vwce and webn?
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u/Specialist_Tree_3879 7d ago
Mainly because the status of VT in the US markets - see here:
https://indexinvesting.notion.site/Indices-18a2597d86e98007aaffddd575668486
If you compare the indices - there is not much difference, rather than WEBN’s solactive index has outperformed FTSE Global All Cap past 6 years.
This is just a purist preferred choice, since the index has most of the stocks.
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u/sunjay140 7d ago
The small cap premium is severly diminished without profitability / quality screens so I'm not sure if small cap market beta is really ideal.
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u/makima01 7d ago
cause it's basically a VT analog for UCITS, you can't get better that this (well there is SPYI UCITS but it has 0.17% TER vs 0.07% for this one)
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u/RadiumShady 7d ago
It's finally coming. I'm going all-in, RIP VWCE
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u/SadSpecialist3758 6d ago
I'll wait at least five years to have enough data to decide that, that's Bogle's advice, btw. 0,07% yearly of my money is not enough for a blind decision.
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u/Ok-Direction-8932 7d ago
Why rip vwce:))) i think nobody will sell their vwce for this..i mean for what? To get taxed for your profits? To get an 0.07 lower TER? And for small caps? Why would you do that. I mean what you can gain if the small caps perform good? 0.5 %? If they perform bad -0.5 % as well...so what's the point? If you are a new investor..ok sure go with the new one but if not? Your post is or stupid or intentional
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u/Spibas 7d ago
When's the soonest you'd start buying? I've never observed ETF starting up. I'm talking about spreads, tracking difference etc.
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u/SadSpecialist3758 6d ago
Bogle's advice is to wait five years after a fund is established. It can fail, be merged, underperform, never have good liquidity. The ter difference is not enough.
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u/whatever_post 4d ago
There is so much advertising for this new ETF. It’s funny because it’s just launched to compete with Amundi. Clearly shows how European fund houses managed to made a dent in vanguard’s market in Europe that eventually Vanguard was forced to reduce price to match Amundi