The simplest is to use 1 fund - and that's typically the Vanguard FTSE All-World UCITS ETF (TER 0.25%) (VWRD/VWRA/VWRL/VWRP etc.)
The often discussed way to do it cheaper is to buy developed world and emerging markets separately. Developed world can be covered by iShares Core MSCI World ETF (IWDA) or SPDR MSCI World ETF (SWRD), accompanied by iShares Core MSCI EM IMI (EIMI). Net TER now drops to 0.13-0.20%.
Since that's all I've seen, I figured that was cheapest, until this conversation happened.
So with the gauntlet thrown down, @engineerahead picked it up and slapped me with itglorat wrote: ↑Thu Aug 22, 2019 10:31 amI haven't seen anything cheaper than the SWRD+EIMI combo. Sorry, I don't believe the claim of 6-7 ETFs with net TER of 0.12% for non-US people. The only way I can imagine doing this is with US domiciled funds (rather than Ireland domiciled funds) but that will incur the hidden dividend tax cost that will double the TER cost.engineerahead wrote: ↑Thu Aug 22, 2019 12:12 am[...]
Even though it's easy to go two big stocks, I've recently encountered an idea where the people that don't mind the hassle of having multiple ETFs go for the All World allocation manually, which is about 6-7 ETFs altogether, but the total TER goes from around 0,20 to 0,12, but at the cost of additional expenses PER trade depending on your broker - my calculations are that in the longer investment horizon and higher value of portfolio this is the cheaper result over years even though you pay extra per exchange.
And here's the portfolio given by @engineerahead (and @selters):
57% iShares Core S&P 500 (TER 0.07%)
10.4% iShares Core Emerging Markets (0.18%)
18.4% iShares Core Europe (0,12%)
7.1% iShares Core Japan (0.15%)
3.7% iShares Core Pacific ex Japan (0.2%)
3% Shares MSCI Canada UCITS ETF (0.48%)
netting you an interesting 0.11-0.12% TER
What do people think about this portfolio? How does it track compared to the "simpler" choices? Would you give it consideration
Disclaimer: I'm all on VWRD variants because an extra 0.05% cost isn't worth my mental time/effort to maintain extra ETFs but for more than 0.1% it at least gets some attention
Edit: Corrected the TER for SWRD+EMIM from 0.18% to 0.13%