Non-US Investing • Re: UK pension investment advice

check if the ETFs under equities listed in this page are available at Fidelity

https://www.bogleheads.org/wiki/Simple_ ... portfolios

Basically, two etf for developed + EM:
Ishares MSCI world or Vanguard FTSE developed markets (90% of portfolio)
Ishares MSCI EM or Vanguard FTSE EM (10% of portfolio)

OR have one ETF with the entire stock market
vanguard ftse all world / Ishares MSCI ACWI

I compared the annual performance (%) of my current fund vs this ETF that I consider to invest into:

Fidelity Index World Fund vs Vanguard FTSE Developed World UCITS ETF USD Distributing (VEVE)

I think it's an insignificant difference when the period becomes longer and the performance of both seems pretty similar so it must be now down to the fees.

Fidelity offers also this accumulation fund, that I prefer over VEVE: Vanguard FTSE Developed World UCITS ETF USD Accumulation (VHVG)

However, both VEVE and VHVG are in USD. I don't like to have FX exposure. Can you recommend any similar ETFs on Fidelity that's in GBP? I decided to ditch all emerging markets, so it's only developed world now.

I found this one that seems quite promising and similar to Fidelity Index World Fund: HSBC MSCI World UCITS ETF (HMWO)

It has OCF of 0.15% vs 0.12% for my current fund. Also it has transaction cost of 0.02% vs 0% for the Fidelity fund. Not sure if that transaction cost will make any difference?

I think if I can eliminate the Fidelity platform fees of 0.35%, that seems like a good switch?

1) difference is insignificant because they do the same thing (except very small differences you can ignore)
2) I do not have access to 'Fidelity" ETF so I cannot do that. you have to do it yourself.
3) the nominal currency does not matter really, even if it's in GBP, but yes, you would have currency exchange cost though. VHVG should be in GBP.
https://www.vanguardinvestor.co.uk/inve ... erformance

4) HSBC MSCI world and HSBC MSCI EM are good choices
5) 0.02 is pretty small
6) certainly. go on monevator and check the best option for you. you have to make the calculation
https://monevator.com/compare-uk-cheape ... e-brokers/

I went through all the ETFs at Fidelity that track the MSCI index and came up with this list (in order of preference). I'm still undecided between mostly 1, 2 and 3. The SPDR ETF has a slightly higher US exposure (71.8% vs 71.7% vs 69.64%) which I like. HSBC ETF has most total net assets (£8.1b), followed by SPDR (£5.9b) and Vanguard (£4.5b). Both HSBC and Vanguard have 0.02% transactions cost, while SPDR has none.

It will be appreciated if you can comment on that list, especially on SPDR, as I haven't considered them before at all.

1.SPDR® MSCI World UCITS ETF (SWLD) - 0.12% OCF 72% US exposure
2.HSBC MSCI World UCITS ETF (HMWO) - 0.15% OCF and 72% US exposure
3.Vanguard FTSE Developed World UCITS ETF USD Accumulation (VHVG) - 0.12% OCF and 70% US exposure
4.Xtrackers MSCI World UCITS ETF 1C (XWLD) - 0.19% OCF and 72% US exposure
5.Invesco MSCI World UCITS ETF (MXWS) - 0.19% OCF and 72% US exposure
6.iShares Core MSCI World UCITS ETF USD (Acc) (SWDA) - 0.20% OCF and 72% US exposure
7.iShares MSCI ACWI UCITS ETF USD (Acc) (SSAC) - 0.20% OCF and 64% US exposure
8.Vanguard FTSE All-World UCITS ETF (VWRL) - 0.22% OCF and 63% US exposure

The differences in US exposure are trivial and will make no real difference to your investment outcomes.

I would go for Door Number 3, the Vanguard Fund. Depending on platform fees.

If you wish Emerging Markets, you can do that with a separate fund. I would say about 10-15% of your total equity portfolio.

Statistics: Posted by Hopeful25 — Wed Jul 24, 2024 8:05 am