facebookNew to investment, choosing between VUAA (S&P 500) or VWRA (FTSE AW)? - Seedly

Anonymous

03 Aug 2020

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General Investing

New to investment, choosing between VUAA (S&P 500) or VWRA (FTSE AW)?

Recently got my finances in check, thanks to Seedly's Framework and 50/30/20 budget guide.
As I want to invest internationally, I opened an IBKR account, sourced for Ireland-domiciled ETF to minimize costs, and narrowed down to VUAA (S&P 500) or VWRA (FTSE AW).
In comparison, VWRA (FTSE AW) provides more diversification than VUAA (S&P 500) but has higher TER (VWRA @ 0.22% vs. VUAA @ 0.07%).
Plan to DCA monthly with limited funds, not sure which factor is more important.

Discussion (14)

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Hi, You did already a very good job (cheap broker with IE domiciled fund unverse, planned asset allocation).

Since the better diversified MSCI ACWI ETFs have relatively high fees,

You could still consider instead MSCI World ETFs (accumulating) with each 0.12% TER:

Lyxor Core MSCI World (DR) UCITS ETF - Acc ISIN LU1781541179

SPDR MSCI World UCITS ETF ISIN IE00BFY0GT14

or distributing the cheapest (0.15% TER) being
SPDR MSCI World UCITS ETF ISIN IE00BFY0GT14​​​

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Hi, I just started investing recently 2 weeks back. I'm allocating as follow:

CSPX (40%) SP500 LSE

IWDA (40%)

EIMI (20%)

I chose IWDA + EIMI combo over VWRA partly because can control the % of the developing market.

As for CSPX, because I want it to be accumulating and LSE is 15% witholding tax instead of 30% from US market.

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Don't worry about the diversification aspect of VWRA. It's not as 'diversified' as you think. The Un...

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