Which ETF will you choose - VDEV or IWDA? - Seedly
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Anonymous

Asked on 25 Jun 2020

Which ETF will you choose - VDEV or IWDA?

Looking at international equity ETFS, not sure which one to choose between the 2. Inclined to go with VDEV due to the lower expense ratio, but IWDA has higher trading volume and isn't much more expensive. Was wondering if anyone has researched this?

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Level 5. Genius
Updated on 25 Jun 2020

Just joined this community and chance upon this post as I am doing up some research on these 2 funds too. I don't know what is your investment framework, but here are some basic questions I need to know before committing money:

  • How has the NAV been trending since inception?

  • How has the fund been performing quarter on quarter since inception?

  • How has the dividend been trending since inception?

  • How has the fund size been growing?

  • What are your probabilities to make/lose money?

  • What are your average (+) and (-) returns?

  • Is your fund outperforming or underperforming the benchmark? (For Unit Trust)

As I work in the investment research industry, getting the necessary data to analyse is not a chore. Nevertheless, if you have a financial advisor/investment consultant at your service, they should do their best to gather this data and answer your questions.

Back to your question, agree with Cedric and Boon Peng that these two funds are rather similar, focussing on global developed markets. I am a macro/top-down analyst, thus I can't really comment on the individual stocks within both funds.

What I can suggest is if you are looking for diversification and a fund with greater total assets (fund size), IWDA will be preferable. You can find my research for these 2 funds under https://dl.orangedox.com/fund-analysis-pdfs. It includes the charts and checklists to answer the above-mentioned questions, updated as of today. It's my own research thus note the disclaimer inside the reports. Have 'fund' analysing!​​​

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Frankie Rappaport
Frankie Rappaport

25 Jun 2020

And the other most important parameters are: AUM, should be high (more than 100 Mio) TER, should be low (less than 0.30 %) Replication: should never be 'synthetic' but only 'physical' or ''sampled' Lending to other parties: better not, but possibly not a big problem if yes
ChoonYip Kok
ChoonYip Kok
Level 3. Wonderkid
Answered on 28 Jun 2020

I came across a article mentioning SWRD which has an TER of 0.12%. The post is here: https://www.firepathlion.com/the-bogleheads-3-fund-portfolio-for-singapore-firewalkers/

Any opinions SWRD as it is relatively new fund?

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The Professor
The Professor
Level 4. Prodigy
Updated on 28 Jun 2020

If you're looking to combine it with an EM ETF like EIMI, then neither. VWRA does the job of IWDA+EIMI.

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Cedric Jamie Soh
Cedric Jamie Soh, Director at Seniorcare.com.sg
Level 9. God of Wisdom
Answered on 25 Jun 2020

Both ETFs track developed markets but each ETG owns different stocks.

They track different indexes. MSCI and FTSE.

Anyway don't get paralysed over this, as the difference is not that big. Both are good. vanguard has great reputation of lowering expense ratios.

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Boon Peng
Boon Peng
Level 6. Master
Answered on 25 Jun 2020

Hello there. It is indeed that VDEV has 8 basis points lower than IWDA. I personally own IWDA, but is just my personal preference. Both ETFs are fine actually.

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