Looking for opinions and those who invest in these 2. Which did you choose from? And which platforms did you invest through?
Hello, I started investing this year and became familiar with ETFs being one of the safer investments you could make. I am still confused on how VOO is different from SPY by SPDR. Is it safer? Or just has better historical performance?
First post here btw and glad I found this community!
Videos
I found these 3 world ETFs and don’t know which one to choose:
iShares Core MSCI World UCITS ETF (IE00B4L5Y983)
SPDR MSCI World UCITS ETF (IE00BFY0GT14)
Vanguard FTSE All-World UCITS ETF (IE00BK5BQT80)
They are all accumulating
Vanguard ETF includes emerging markets and is pretty new
TER: iShares 0.20 %, SPDR 0.12 % and Vanguard 0.22 %
I have not yet invested in any of them and would like to know which one you chose/would choose and why? If I chose iShares or SPDR, do you think I should invest in emerging markets as well?
Btw. I found out that for all of these ETFs there is USD, GBP and EUR version. Since I don't use any of these currencies, which one should I choose? Or is it pretty much irrelevant?
I noticed that SPDR & Invesco fees are lower than Vanguard or Ishares. For example SPY5 is only charging 0.03%. Are there any issues with them, are they just trying to compete on price?
Is Vanguard and SPDR just different companies tracking the same S&P500? If so, why do the prices of each share respectively differ by 30 USD?
In general, what are some Ishares and Vanguard ETF's that are more profitable?
The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF Trust (SPY) will give you nearly identical results and would track one another very closely. If I had to choose one over the other, I would pick VOO over SPY only because VOO has an annual expense ratio of .03% whereas SPY has an annual expense ratio of .095. Other than the expense ratios, these two ETF’s should offer nearly identical performance.
They track the same index so should have all the same companies at the same weightings but they have different expense ratios so they will diverge over time as the expenses eat away slightly at the number of shares of the underlying company each share of the fund represents.
For example lets say I started a fund that tracked two stocks and on day one one of my shares was equal to one share of company A and one share of company B. Assuming there were no stock splits or expenses after 10 years one share of my fund would still be worth 1 share of company A and one share of company B. However I need to make money for my fund so I have an expense ratio. I can't send you a bill for the expenses so instead I take it out of the value so now one share of my fund might be worth 0.99 shares of company A and 0.99 shares of company B where that 0.01 shares of each was sold and eaten as my expense ratio.
That is not to say the price of fund will tell you which one has lower expenses because they were started after different times and the newer fund will start out priced closer to the underlying average but if it had a higher expense ratio it would still diverge quicker.
What should I invest more as far as long term holding? Any performance differences between those two? Or doesn’t matter? TIA!
Hey All,
A little background, I invested all of my savings of $1900 in March 2020. I didn't know what to buy, so I bought what I thought were good companies: AAPL, DIS, T, XOM, KO, AMD and a lot of ETFs. I wasn't sure what to buy so I bought SPY, SDY, SPHD, SPYV and VOOG, VTI, VWO, VXUS, and VYM.
I was reading John C. Bogle's The Little Book of Common Sense Investing and it talks about the tyranny of compounded costs and expenses ratios of a mutual/index/Exhange-traded funds. So I was looking at all the expense ratios on my ETFs and I see that the SPDR ETFs expense ratios are higher compared to the Vanguard ones except for SPVY.
So, my question is should I just sell all my SPDR ETFs and just buy Vanguard Equivalent ones with the lesser Expense ratios or should I just keep the ETFs as is. I don't know if the capital gains tax is big enough factor for such a small portfolio. ($3500) I understand that there is no sales load for ETFs but the expense ratio adds up for long term.
Additional information: Investing since 2020; $1900 put in 1 share of SDY, SPY, & SPYV 5 Shares of SPHD
1 share of VOOG & VYM 2 shares of VTI, VWO, VXUS
intending to hold all of these ETFs for long term.
I have Vanguard 500 Admiral shares in my 401k and am thinking about opening Roth IRA and putting some VTI in it and leaving it forever.
The difference in expense ratio between SPY and VOO is $60 per year per $100,000 invested. It’s such a small difference it’s not worth worrying about.
It's unfortunate you didn't put these funds in an IRA in 2020 - in that case you'd have no tax considerations in making the switch. This is a primary reason why taxable accounts are the very last investment vehicle recommended in the Prime Directive and Boglehead approach.
You'll need to consider whether the capital gains taxes are more or less than any potential differences in earnings over time. In most cases it will be best to leave the funds as they are, but put future contributions in the proper accounts and indexes.
Hi all. I’m a 22 year old who has, over the past few years, been taking control of my finances to set myself up for the future.
After thorough research on platforms, I’m planning to invest long-term through InvestEngine, using a stocks and shares ISA and SIPP. Initial contribution of £300/month (£150 each) and increasing this over time (every year by £50-£100 in each until happy).
The main two I’ve been looking at are SPDR MSCI ACWI (ACWI, 0.12% TER, IE00B44Z5B48) and Vanguard FTSE All-World (VWRP, 0.22% TER, IE00BK5BQT80). I’ve also been considering Invesco FTSE All-World (FWRG, TER 0.15%, IE000716YHJ7). I’m also open to ANY suggestions.
My goal is simple long-term growth, 100% stocks, accumulating, global diversification.
I understand VWRP has more holdings (3,600 vs 2,200) and includes more mid-caps than SSAC. Though I know mid-caps have historically outperformed, I’m not sure how significant that is here, since they only make up a portion of the ETF.
In turn, I’d end up with a slightly more diversified portfolio with VWRP, but not sure if that’s enough to justify the higher 0.22%?
I’m leaning towards SSAC due to the lower fee, but just wanted to run it through this sub before I do. It just seems as if SPDR isn’t on the radar, wondering if I’m missing something?
I may have made a few mistakes in this post, so please let me know if anything I’ve mentioned isn’t correct! Thanks in advance, looking forward to hearing your thoughts.
I'm surprised I see so much Vanguard (in general) and iShares World, due to their TER (total expense ratio, the measure of the total costs associated with the ETF).
Sure, there are some differences in portfolio coverage (long-term: hard to estimate the impact) and in volatility (when buying/selling only infrequently: not too bothering).
But long-term, the impact of TER seems important to me:
The difference between an expense ratio of 0.15% and 1.5% might not seem like much, but the effect of the compounding over an investing lifetime is enormous. After 30 years, a fund with a 1.5% expense ratio will provide an investor with several hundred thousand dollars less for retirement than a 0.15% index fund with the same growth.
Some examples for World:
-
Vanguard VWRP: 0.22%/year
-
iShares SWDA: 0.20%/year
-
SPDR SWLD: 0.12%/year
For Emerging:
-
Vanguard VFEG: 0.22%/year
-
iShares EMIM: 0.18%/year
-
SPDR EMRG: 0.42%/year
Personally, I look heavily at TER when selecting an ETF.
What am I overlooking?
Hi all. I’m a 22 year old who has, over the past few years, been taking control of my finances to set myself up for the future.
After thorough research on platforms, I’m planning to invest long-term through InvestEngine, using a stocks and shares ISA and SIPP. Initial contribution of £300/month (£150 each) and increasing this over time (every year by £50-£100 in each until happy).
The main two I’ve been looking at are SPDR MSCI ACWI (ACWI, 0.12% TER, IE00B44Z5B48) and Vanguard FTSE All-World (VWRP, 0.22% TER, IE00BK5BQT80). I’ve also been considering Invesco FTSE All-World (FWRG, TER 0.15%, IE000716YHJ7). I’m also open to ANY suggestions.
My goal is simple long-term growth, 100% stocks, accumulating, global diversification.
I understand VWRP has more holdings (3,600 vs 2,200) and includes more mid-caps than SSAC. Though I know mid-caps have historically outperformed, I’m not sure how significant that is here, since they only make up a portion of the ETF.
In turn, I’d end up with a slightly more diversified portfolio with VWRP, but not sure if that’s enough to justify the higher 0.22%?
I’m leaning towards SSAC due to the lower fee, but just wanted to run it through this sub before I do. It just seems as if SPDR isn’t on the radar, wondering if I’m missing something?
I may have made a few mistakes in this post, so please let me know if anything I’ve mentioned isn’t correct! Thanks in advance, looking forward to hearing your thoughts.
Hi, I am choosing my main ETF and my first pick is iShares Core MSCI World UCITS (IWDA/EUNL). However, I noticed that SPDR MSCI World UCITS (SWRD/SPPW) tracks the same index for lower TER.
What pros and cons do you see for each of these? Would you recommend one over the other?
The iShares fund is larger, older and more traded than the SPDR one. But does this compensate the higher cost? The SPDR ETF has little history to compare tracking differences.
For context: I am in the beginning of the journey so I will keep it extra simple and stick to a single ETF for now. This can keep my costs lower. It is unpleasant to start while the market is at all time high but I will be entering bit by bit, instead of all at once.
All the best!
Wenn ihr heute neu mit einem ETF Sparplan (mindestens 20 Jahre Laufzeit) beginnen würdet, welchen dieser thesaurierenden ETFs würdet ihr wählen und wieso?
Vanguard FTSE All-World (A2PKXG)
Invesco FTSE All-World (A3D7QX)
SPDR MSCI ACWI IMI (A1JJTD)
Vanguard arbeitet erfahrungsgemäß sehr steuerfreundlich. Ich stütz mich da auf Berechnungen vom Wertpapier-Forum (siehe hier), also für mich auch klar Vanguard die erste (und auch einzige) Wahl.
Falls du den bei Flatex besparen magst, kommst du mit dem Invesco am billigsten davon, da der bei den Premium ETFs ist. Ist aber kein riesen Unterschied.
TER:
Vanguard: 0,22%
Invesco: 0,15%
SPDR ACWI: 0,17%
Just curious what the difference is between the different indexes. Are there any strengths or weaknesses to one versus the others? r/personalfinance is always talking up Vanguard indexes, and I was curious whether there was any basis.
Good morning all, European investor here.
I'm currently sort of following Bogle's investment philosophy by investing (DCA monthly, I know I know, It's more efficient to lump sum but I don't feel comfy about it so...) in a long-term (30y+) all-stock total world ETF.
I'm currently investing in VWCE and I just stumbled on SPDR MSCI - both ETFs seems to be comparable (allocations are slightly different, but still comparable) where SPDR has a more efficient TER (VWCE -> 0.22, SPDR->0.12).
What do you guys think? Thank you
I am planning to convert all my vanguard mutual funds to equivalent ETFs. I could find equivalent vanguard etfs for most of my vanguard funds except one which happen to be activie fund. I am looking at SPHY to replace Vanguard VWEAX. I did not find any other etf which came close to VWEAX. ANy recommendations or thoughts on this ? Thanks