I switched my ETF(s) to Vanguard

Feb 3, 2021 17:10 · 196 words · 1 minute read financials portfolio

As of February 2021 I switched my savings plan from 70% MSCI World and 30% MSCI Emerging Markets ETFs to a FTSE All World ETF. I had the switch on my mind since a while and a recent post from Banker on Wheels finally pushed me to do it.

The why is quite easy:

  1. Simplicity! One ETF instead of two so I don’t need to care about rebalancing anymore - super-simple.
  2. Quarterly Dividends - VWRD/VGWL is distributing dividends quarterly instead of yearly. Dividends give me a good feeling (especially seeing them grow) and therefore it’s just a personal preference.
  3. Physical replication instead of synthetic replication. Back in 2017 when I set up my initial savings plan the E127 and X010 ETFs were accumulating and therefore a swap was easier for taxes. As they changed to distributing this issue is not existing anymore and I got used to get dividends (see point #2) - therefore no reason to avoid physical repliaction and thus simplifying it a bit more.

Besides these personal reasons the facts also speak for the Vanguard FTSE All-World UCITS ETF Distributing: it’s cheap, fund-size is big enough, and tax-easy in my home country (Austria).

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