Goal of the comparison
: determine if it would make sense to replace to replace the often advised IWDA+EMIM combo by the new VWRA or VWCE
: 'costs matter" VWRA/VWCE
has a ER of 0,25% 0.22%
the ishares combo 0,20% hence oe would expact the ishares fund to have a slightly higher total return.
: Use Morningstar to create different portfolios and compare the results via XRAY.
XRAY has results until the end of July. So without the decline of this month.
We have performance results of the funds going back until 31/12/2012. Hence we do not have any info on behaviour during a crash.
It is assumed that neither of this matters in the comparison.
VWRA or VWCE
is really new. It is the accumulating version of VRWL/VWRD. Follows the FTSE All-World index
Morningstar Style box is
28 29 27
05 05 03
00 00 00
Regional split key numbers
Emerging Asie (4 tigers) 4,4 and (ex 4 tigers) 6,0
ER is 0,25% 0.22%
Combination of 87,5% IWDA and 12,5% EMIM
Follows the MSCI indexes - EMIM tracks the IMI index
Similar style box as VWRA/VWCE, similar regional split with higher USA (55,5 vs 53,8)
Combined ER is 0,20% (0,20% and 0,18%)
Combination of 87,5% IWDA and 12,5% IEMA
IEMA is the non-core version of EMIM. It tracks MSCI EM. ER is 0,68%
Added to this comparison to validate the impact of higher ER.
Similar style box as VWRA/VWCE, similar regional split with higher USA (55,3 vs 53,8)
Combined ER is 0,26% (0,20% and 0,68%)
100% VT Vanguard Total World Stock Index Fund ETF Shares
follozing qn index "inspired" on FTSE
US domiciled fund -- might not be available for European investor. Is a distributing fund.
slightly lower % in EM, USA is 54,4%, Europe is 21,3%
Stylebox includes 5% small caps
ER = 0,09%
As this is a US domiciled fund dividend taxation will be different then for the Ireland based funds.
Level 1 taxation is controlled by the tax treaties between the US and the countries of the assets; compared with the Irish tax treaties for Irish funds. The impact of this is included in the published results.
Level 2 taxation: Ireland does not have any level 2 taxation. For US funds this is 30% or
87,5% URTH and 12,5% IEMG
US domiciled funds -- might not be available for European investor. Is a distributing fund.
slightly lower % in EM, USA is 55%, Europe is 21,3%
ER = 0,23%
Code: Select all
ER | 3yr | 5yr |oct | Fund
| | | 2012|
0.25 |10.49|10.54|21451| VWRD
0.20 |10.6 |10.58|22097| IWDA+EMIM
0.26 |10.6 |10.58|21377| IWDA+IEMA
0.23 |10.48|08.9 |21445| URTH + IEMG
0.09 |10.20|10,58|21573| VT
ER: published expense ratio
3yr: 3 year total return as reported by Morningstar Xray
5yr: 5 year total return as reported by Morningstar Xray
Oct2012: total return growth of 10000 Euro since 31/10/2012 until 31/07/2019
The difference is small. The ER seems to be a good predictor of the performance.
US funds underperform - not sure why? maybe the result of differences in the L1 taxation
edit: added reference to VWCE and the lower ER of 0.22%