VWRL vs V3AM market coverage

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Topic Author
Mors
Posts: 242
Joined: Wed Aug 16, 2017 10:06 am

VWRL vs V3AM market coverage

Post by Mors »

Dear Bogleheads, who knows tools or sites that can help us identify the market coverage of VWRL and V3AM? I have seen somewhere that VWRL covers about 87% of the investable market, I have not seen anything similar for V3AM though. Thank you all.
Topic Author
Mors
Posts: 242
Joined: Wed Aug 16, 2017 10:06 am

Re: VWRL vs V3AM market coverage

Post by Mors »

For anyone interested, I sort of found an answer to my inquiry. Here are the factsheets of the FTSE All-World Index and FTSE Global All Cap Choice Index, the benchmarks for the VWRL and V3AM etfs respectively. They cover a net market cap of 69,849,300 and 64,383,991 USDm respectively. So it seems that the VWRL has the edge, although it seems that the price in terms of diversification for ESG exposure is not high, when it is desirable.
Cheers.
Valuethinker
Posts: 43352
Joined: Fri May 11, 2007 11:07 am

Re: VWRL vs V3AM market coverage

Post by Valuethinker »

Mors wrote: Sun Nov 21, 2021 6:49 am For anyone interested, I sort of found an answer to my inquiry. Here are the factsheets of the FTSE All-World Index and FTSE Global All Cap Choice Index, the benchmarks for the VWRL and V3AM etfs respectively. They cover a net market cap of 69,849,300 and 64,383,991 USDm respectively. So it seems that the VWRL has the edge, although it seems that the price in terms of diversification for ESG exposure is not high, when it is desirable.
Cheers.
Do you mean it is or it is not ESG tilted?

ESG tilt cuts your diversification. Even its advocates would agree with that.

I am very much of the camp that one should diversify fully. One should not mistake ESG investing for actually doing something to make the world a better place. By exercising choice as a consumer, by supporting groups which campaign eg against palm oil.
Topic Author
Mors
Posts: 242
Joined: Wed Aug 16, 2017 10:06 am

Re: VWRL vs V3AM market coverage

Post by Mors »

Hello Valuethinker.

I mean that if someone wants an ESG filter in his investment products, V3AM is a good choice because it does not seem to sacrifice a lot of diversification.

I am aware that the jury is out on whether it is an effective strategy to only invest in ESG products for ESG reasons. It does not seem to substitute a more active approach indeed.
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