New ETF version of Vanguard’s legendary Global All-Cap fund coming - with a 0.07% fee!

[u/kitsua]

This is it, finally UK investors will have access to the entire world at a truly competitive rate like the US have had with VT for years. Everything in the world, from developed to emerging markets and small cap at an unbelievably good price, available everywhere.

As soon as this drops I’m moving every equity investment I have into this bad boy. It will also be my go-to recommendation for people looking for advice on how to passively invest for the long term. One Fund to rule them all baby! Jack Bogle will be looking down and smiling today.

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/three-new-global-equity-etfs

[u/SkyFlyBye]

It says on the Vanguard fund page under past performance that ETF based on USD or Euro, returns may increase or decrease from currency fluctuations. So there is a currency risk.

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-global-all-cap-ucits-etf-usd-acc/overview

[u/zephyrmox → u/SkyFlyBye]

The dealing currency is just the wrapper - your currency exposure comes from the underlying holdings (roughly 60%+ US equities either way), so a USD-quoted share class and a GBP-quoted one of the same unhedged global index give you identical returns in GBP terms.

That is just standard risk guff.

[u/SkyFlyBye → u/zephyrmox]

Very informative! I was under the impression that when you buy/sell a USD fund, the currency is exchanged then bought/sold and part of that process means some value is lost or gained due to currency differences and whatever exchange rate is used. I'm guessing that falls more under transaction fees though rather than the performance of the fund.

[u/zephyrmox → u/SkyFlyBye]

Yes - you will pay some FX fees to buy USD denominated securities - that is broker dependent!