Another Vanguard post - VWRL
Discussion
I didn't want to hijack the other post on the new SIPP product.
While comparing costs between HL and the new Vanguard SIPP platform I noticed something that I should really have been aware of already.
Being primarily invested in VWRL ETF I hadn't noticed quite how high the OCF is compared to other regional Vanguard ETFs. For example VWRL is 0.22 against the North American VNRT of 0.1% and VEUR of 0.1%.
So looking at the regional weightings of VWRL (and finding an MSE relevant post) VWRL can be constructed from VNRT (56%), VEUR (20%), VAPX (6%), VJPN (8%) and VFEM (10%). The charges are respectively 0.1%, 0.1%, 0.15%,0.15% and 0.2%.
Plugging in an overall holding of £900k gives an annual charge of £1071 against VWRL charge of £1980. Transaction costs would be 5 lots of £12 rather than one but still a substantial saving.
Has anyone bothered to do this or see any reason not to?
While comparing costs between HL and the new Vanguard SIPP platform I noticed something that I should really have been aware of already.
Being primarily invested in VWRL ETF I hadn't noticed quite how high the OCF is compared to other regional Vanguard ETFs. For example VWRL is 0.22 against the North American VNRT of 0.1% and VEUR of 0.1%.
So looking at the regional weightings of VWRL (and finding an MSE relevant post) VWRL can be constructed from VNRT (56%), VEUR (20%), VAPX (6%), VJPN (8%) and VFEM (10%). The charges are respectively 0.1%, 0.1%, 0.15%,0.15% and 0.2%.
Plugging in an overall holding of £900k gives an annual charge of £1071 against VWRL charge of £1980. Transaction costs would be 5 lots of £12 rather than one but still a substantial saving.
Has anyone bothered to do this or see any reason not to?
i4got said:
I didn't want to hijack the other post on the new SIPP product.
While comparing costs between HL and the new Vanguard SIPP platform I noticed something that I should really have been aware of already.
Being primarily invested in VWRL ETF I hadn't noticed quite how high the OCF is compared to other regional Vanguard ETFs. For example VWRL is 0.22 against the North American VNRT of 0.1% and VEUR of 0.1%.
So looking at the regional weightings of VWRL (and finding an MSE relevant post) VWRL can be constructed from VNRT (56%), VEUR (20%), VAPX (6%), VJPN (8%) and VFEM (10%). The charges are respectively 0.1%, 0.1%, 0.15%,0.15% and 0.2%.
Plugging in an overall holding of £900k gives an annual charge of £1071 against VWRL charge of £1980. Transaction costs would be 5 lots of £12 rather than one but still a substantial saving.
Has anyone bothered to do this or see any reason not to?
It might be worth understanding how "equal" they are and if different to what extent that concerns you. VWRL covers the followingWhile comparing costs between HL and the new Vanguard SIPP platform I noticed something that I should really have been aware of already.
Being primarily invested in VWRL ETF I hadn't noticed quite how high the OCF is compared to other regional Vanguard ETFs. For example VWRL is 0.22 against the North American VNRT of 0.1% and VEUR of 0.1%.
So looking at the regional weightings of VWRL (and finding an MSE relevant post) VWRL can be constructed from VNRT (56%), VEUR (20%), VAPX (6%), VJPN (8%) and VFEM (10%). The charges are respectively 0.1%, 0.1%, 0.15%,0.15% and 0.2%.
Plugging in an overall holding of £900k gives an annual charge of £1071 against VWRL charge of £1980. Transaction costs would be 5 lots of £12 rather than one but still a substantial saving.
Has anyone bothered to do this or see any reason not to?
"Includes approximately 2,900 holdings in nearly 47 countries, including both developed and emerging markets."
(what is nearly 47? 46?
)How close is the composite solution? How often would you rebalance?
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