No More Vanguard: Why I Started Buying Another ETF

[@AngeloColomboFi]

What do you think about my decision? 🇪🇺Trade Republic (ETFs, 3.75% interest): angelo.fi/tr 🇪🇺Interactive Brokers (ETFs): angelo.fi/ibkr 🇦🇹Flatex (ETFs): angelo.fi/flatex 👉Compare ETFs: angelo.fi/comp ⚡Where I Buy Bitcoin: angelo.fi/bit 💶My high-yield savings account with 1% saveback on card payments: angelo.fi/save 📌Invesco FTSE All-World ETF Acc. (FWRA or FWIA) 📌IBKR pricing sheet: angelo.fi/ibpricing 🇦🇹ETF tax comparison for Austria: angelo.fi/kest

[@davidlguerr]

I think your decision it is a little bit jumpy. Why? The FWRA has about 1 year of track record compared to the 5 year of VWCE, and also Invesco may still liquidate or merge the ETF due to not achieving a resonable fund size (i know it is profitable already).

[@AngeloColomboFi]

It's an individual decision you're absolutely free to disagree with. I decided to take the leap of faith based on its fund size, its tracking difference so far and Invesco's track record and experience as a fund provider. It's extremely unlikely for this ETF to be merged/liquidated at its current size of >$400M. Let's not forget that 98% of my ETF portfolio is currently in Vanguard's ETFs and a bit of older xTrackers MSCI World shares, none of which I'm selling :)

[@goodclips2788]

​@@AngeloColomboFi by who do you buy invesco etf by bvme ebs or lseetf?

[@AngeloColomboFi]

BVME, since that's the option in €. I mention it at minute 10:14 - I'll be buying it as a recurring investment

[@goodclips2788]

​@@AngeloColomboFithanks missed that

[@brucemen1]

Great reasoning and explanations . As a rookie investor, I watched a few of your videos and decided to go for the Invesco FTSE All-World (Acc) 2 weeks ago. Seeing that you made the same choice now, reassures me that I made a good decision. Thank you for your videos. A.

[@simoneloizzo4178]

Hard to object to FWRA/FWIA 😁 Particularly interesting (for me) the comparison to the Amundi equivalent, including the warning on ETF merging. Excellent video, keep it up! 👍

[@Hesse-Kassel]

I want to start a new portfolio. While I usually focus on dividends, I decided to add a bit of growth to my investments. I have $80,000 to invest and I'm considering SCHG, AMZN, MSFT, and UNH. Should I spread my money across all of these, or put it all into SCHG?

[@superwomanAnn]

I’ve moved a lot of my invęstments to growth stocks for the short to medium term. I think we're in a bull market and that growth stõcks will do well. Since SCHG is a growth-focused ETF, I think it’s best to invest a great portion in it and then diversify the rest.

[@Frankweily]

Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 75 cash earning 5.25 interest, 685k in roth ira, 120k in 401k, Gold and silver bars. age is 48. My advisr helped me realign my portfolio to my risk tolerance and it boomed shortly.

[@rrandd0]

Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.

[@Frankweily]

Melissa Elise Robinson is the advisr I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

[@rrandd0]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@yuliiakrupenko669]

Great news, congrats! I also chose FWRA last year because of fees and have no regrets. Also, the fund and this ETF develops so fast that I no longer think that it’s more risky than Vanguard.

[@travellerseko]

I already started my journey with Invesco after watching your videos and I’m happy with that. Thank m8

[@SantoRedentor]

I'm a Revolut Ultra member and I buy the VUAA - Vanguard S&P 500 UCITS ETF (Acc). As an ultra user I can do 10 free trades per month (I do 1), so 0 trade fees, and the ETF itself only has a 0.07% yearly expense ratio. For me it's the best I've found so far. I might consider buying all world if it had the same expense ratio as the SP500 one, but the cheapest I've found is 0.15% similarly to what you mentioned. And I'm not willing to pay double the expense for the world diversification.

[@yuanyuanintaiwan]

Thanks for the information!! The invesco is pretty new from 2023, good to keep the audience up to date! I was into SWRD which has also good points but as an MSCI index. I may start this Invesco ETF as well in parallel to start having FTSE all world indexes into my radar

[@boglehead5822]

@@yuanyuanintaiwan Just add EMIM next to your SWRD. If you have 1000 pcs of SWRD you should have 100 pcs of EMIM and if you have 5000 pcs SWRD buy 500 pcs of EMIM. That way you will have the same balance as FTSE All world with lower costs.

[@yuanyuanintaiwan]

@@boglehead5822 thanks buddy, seems like an efficient way for me to add emerging markets to my portfolio!

[@aguven]

Over performing the underlying index is not a good feature for an index that is supposed to "follow" the underlying index... Vanguard following it to 0.01% is amazing. It shows they are doing a great job on following the index. which is the goal.

[@boglehead5822]

@@aguven What if Vanguard just keeps that extra return for itself?

[@aguven]

@@boglehead5822 That's not how it works. The transactions made with the fund's money are transparent and accessible to everyone. The purpose of these ETFs is to mirror MSCI or UCITS indexes with their stock purchases, essentially simulating the experience of buying every stock in the index. The closer the ETF's performance is to the overall index, the better it is doing its job. If the ETF significantly outperforms or underperforms the index, it indicates a failure to accurately track the index, which undermines the purpose of this type of fund.

[@PavelQuiteGood]

@@boglehead5822 have you considered a possibility that Invesco can do exactly the same and their goal is to make profit? 🤯

[@dineshdv]

I was exactly thinking the same! Any over performance is also a tracking error

[@AngeloColomboFi]

I agree that Vanguard's index tracking difference has been excellent so far. Just keep in mind that the index performance is always calculated assuming 30% withholding tax for US dividends, which ETFs domiciled in Ireland are able to lower do 15%. That's why you often see the best ETFs "outperform" the index if you check trackingdifferences.com For example, even the iShares MSCI ACWI has outperformed its index by 0.1-0.2%/year over the past 3 years after lowering its TER to 0.2% p.a. It's of course entirely possible that Invesco's outperformance so far was due to the largest stocks (which they purchased first) outperforming smaller ones, which are being added on a continual basis. But it's still looking good when looking at the TD month by month

[@LisaMaier-t5x]

You should also take a look on SPDR ACWI IMI. Only 0,17 TER and also including small-caps, which historically was a benefit in the long term.

[@AngeloColomboFi]

I shortly mentioned it in the video - if it wasn't less tax-efficient in Austria (here it matters what funds do internally, in other countries it doesn't) then I would definitely have considered it! Or even the SPDR MSCI ACWI which was just lowered to 0.12%

[@TheMisterazzo]

Thank you Angelo for the update on your decision. I've recently found myself not being able to change my recurring investment in the Vanguard FTSE All-World ETF on Scalable Capital only to realize that it could not be bought there anymore. With the knowledge of a better alternative provided by you, I was able to take a decision in moments as to what other ETF could replace that for my long term savings plan. 🚀

[@Kingoroo]

I also started investing in the vanguard ftse all world bcs of you😉

[@tarakalaputi]

Me too! Not because of him, but because of the education he provided :)

[@brakmaster]

In Greece we don't pay taxes on UCITS ETFs. They are tax free.

[@ΛευτέρηςΣακελλαρίου-τ4ρ]

Are you sure about that? Where I can check? I am new

[@hugocosta9017]

In IB, you're investing in FWRA via Milan, which has a lower liquidity and higher spreads. IB, for some reason, still doesn't offer access to XETRA's FWIA, which has the majority of the liquidity. You should revise it (and push them to onboard FWIA). Also, SPYY is going to drop to 0.12%, take a look, similar index, smaller TER

[@AngeloColomboFi]

If you buy it as a recurring investment (which is what I do to ensure the lowest fee using tiered pricing), it's not an issue - my execution prices were in line with XETRA. Yes, SPYY is now another excellent global ETF! Sadly SPDR is less tax-efficient in Austria during the holding period, so it's not an option for me.

[@saurabhsethi2129]

​@@AngeloColomboFi Hi Angelo, Thank you for your videos. It would be great if you can make a video on tax-efficient factors to consider when buying ETF. I have seen in many videos you talk about that you prefer Invesco as its efficient in Austria. Curious to learn what does that mean? What factors do you consider? I am investor from Germany and always question if the Vanguard (FTSE) ETF i have is tax efficient or not.

[@TheAnonymus1994]

I’d also be interested in this topic.

[@mikealex6372]

Well, you could have mentioned that the Invesco ETF holds 2384 companies and the Vanguard ETF holds 3639 companies (according to justetf)... I think that explains the reduced TER and probably also the better performance...

[@AngeloColomboFi]

I mentioned that Invesco's ETF is currently holding 2648 stocks at minute 8:24 with more being added every month. They should be a lot closer in number of stocks by next year

[@bjorn6530]

It always brings a smile on my face when I read people buy a different ETF because of the lower costs. Here -0,07%. If you invest 10.000 Euro, that makes up 7 (!!!) Euro per year. So every six months one cappucino. Cheers.

[@dialexnunes]

And are you going to tell us which ETF you use? -_-

[@DziadDziki]

Sorry but you're wrong. Let me give you an example: 1mln $ investment for 30 years, average return 6%. Total cost for TER 0,22%: 347,057$. TER: 0,15%: 238,889$. If it is nothing for you than okay, for me it matters very much 🙂

[@JayKayGame.]

Cappuccino 7€? Do you live in Switzerland 😂

[@bjorn6530]

@@JayKayGame. 7 Euro ... every 6 months one = two per year = 3,5 Euro per Cappuccino. Did you miss some math lessons during primary school? 💰🤑

[@dialexnunes]

and we still don't know which ETF you use, which the only relevant part of this coffee chat

[@Kevin-hw6kl]

Hi Angelo, I’m just wondering if you ever gonna make a video about the best REIT ETFs in Europe, love your videos btw

[@cryme6964]

Thank you for a clear explanation and honest opinion! You are my go-to KZbinr when it comes to investing in Austria! ☺️

[@ivanminkov3317]

Best time to purchase ETF is not 9-17:30, best time is when most underlying asset markets are open and that is between 15:30-17:30 your CET time, when NYSE/NASDAQ, London and EU markets are opened. There's lot of volatility on US market during first 30 minutes, so you should wait a bit which leaves you only 30 minutes window for purchase - 17:00-17:29

[@AngeloColomboFi]

Strictly speaking of spreads, waiting until 15:30 or even 17 CET is not necessary. If you're buying US stocks then sure, but I have not found any benefits for All-World ETFs.

[@simonp6339]

I've seen some measurements recently that sometimes best spread is before 15:30 in Europe, e.g. on Tradegate around 11am or something. Unfortunately forgot the source.

[@chridenner7806]

This is a great recommendation. I'm always wondering why Vanguard charges fees between 0.06 and 0.10% only in the US, whereas in Europe they're charging 0.20% and above.

[@bencepetheo1661]

I keep wondering about that too for a long time. My guess would be that there's more agressive competition over there, and also fund managers are competing with each other for a longer time. This, combined with different taxation rules. But that's just my personal guess, I didn't bother deep diving into the topic so far.

[@rocksummit3375]

Thank you Angelo I will take this into consideration. Buying the Amundi prime all country right now so really happy you made a segment on it to explain why you arent.

[@DziadDziki]

Thanks for this insight! I'll wait until it reach 1bn eur assets and then decide. Currently I'm fully in IUSQ in my long term portfolio.

[@AngeloColomboFi]

My pleasure! IUSQ (iShares MSCI ACWI with a 0.2% TER) is an excellent pick as well in my opinion👌

[@brunabodulica4245]

Angelo, how did you open the account for your daughter? I wish to do the same, but don't know how to do it

[@soniavangestel579]

Hi Angelo! Thanks for all your inspiring video's, they helped me a lot to understand how ETF's in Europe works👍 I'm a newbee investor. One of the ETFs where I would like to invest in the future arent available/accessible here in Belgium: 1.SPDR MSCI ACWI IMI 2.Vanguard FTSE All world 3.Invesco FTSE All world 4. Mix of IWDA and EMIM 1 & 3 Are not available on Trade Republic, only on Degiro... IWDA/EMIM was in consideration but i rather keep it simple and just buy 1 etf in stead of 2... And for the Vanguard FTSE All world: As a Belgian resident, I have to take the TOB tax in mind and for the VWCE it is 1.32% ,wich is ofcourse too high... Would I still buy them on Degiro or would I rather stick with the VWCE or the IWDA/EMIM strategy on trade republic, despite the high tob tax( for VWCE)? Greetings from Belgium and keep up the good work❤

[@AngeloColomboFi]

Considering the difference in taxes in Belgium in your case I would go with either option 1 or 3, also to keep things as simple as possible long term (1 instead of 2 ETFs). IBKR could be an option as well, you might have to compare the fees with Degiro: angelo.fi/ibkr

[@soniavangestel579]

@@AngeloColomboFi Thanks for your answer, appreciate it👍 To be honest, I don't feel like starting on Degiro because of the share lending policy, something you warned us about in your other videos. I checked for IBKR but they have a very confusing and complicated website for a newbee investor in my opinion. (Like i dont know where to look for the fees😅) On the other hand, i think Trade Republic is very easy to use, like you explained in one of your last video's.. Only 1 EUR on fees per transaction ,3.75% interest on your balance and 1% saveback on card payments for a periodic investment, that's not bad at all! But like i told, Invesco and IMIE are not available here in Belgium, it is written in their fact sheet that its only for proffesional investors, too bad.. I have looked for other brokers (Saxobank,Mexem and Easybrokers) but they all charge 3 EUR or more per transaction and I think that's quite expensive. Maybe I will consider investing in IWDA/EMIM after all? Their joint TER amounts to 0.38%/year and the TOB tax is 0.12% per transaction. I'm still thinking about it. Thanks for your advice and all your educational & influential videos👌

[@soniavangestel579]

@@AngeloColomboFi Hello Angelo, Thank you for your answer, appreciate it😊 So i was following your advice to chose option 1 or 3 but the problem was that the brokers i had in mind, didn't had these ETF's as an option unfortunately... So i was searching for a better broker. IBKR has a confusing interface, in my opinion. They also have transaction fee of €3 and they don't pay the Belgian TOB tax. I had already lost some confidence in Degiro due to the information you had given us in previous videos, Bolero was too expensive, Mexem and Easybrokers were not convincing me either so my preference is currently going to Saxobank. They have €2 in transaction costs, but the TOB tax is arranged for me, which I thought was the deciding factor compared to IBKR or Trade Republic, where I had to do the taxes myself every month, and to be honest, I wasn't up for that though😅 They also didn't have the ETFs I preferred (Speaking for TR) Saxo on the other hand, does have the option to invest in the SPDR MSCI ACWI or SPDR MSCI ACWI IMI, the one I ultimately preferred in the first place. Which of these 2 would you rather recommend to invest in on long term? The only main difference i see is that one ETF include smallcaps (TER 0,17%) and the other doesn't (TER 0,12%), so it's slightly more diversified... Greetings from Belgium🇧🇪 Keep up the good work👌

[@rainerguenzel7802]

Thank you for your content. I have actually also changed from Vanguard to Invesco for the same reasons.

[@marijalisicyna7082]

Thank u for great content!

[@Jauhl1]

Amundi has gotten a lot of negative attention for their luxemburg domiciled funds not having a dividend tax agreement with the USA. I interpreted moving the world etf to Ireland as them listening to this and trying to become more attractive. Pulling some bait and switch after that seems really stupid. Your ESG concern seems more reasonable, financials in Europe really love it. Although I suspect US funds aren't immune to it either.

[@mimmo-irl]

Thanks Angelo, your videos are always very informative and effective. Why have you discarded the idea to go for the SPDR SPYI?

[@PavelQuiteGood]

He lives in Austria. They have taxes on ETFs like SPDR SPYI, because of the replication method.

[@boubou13330]

@@PavelQuiteGoodis this also an issue in Germany?

[@PetrPitakM]

@@PavelQuiteGood Doesn´t SPYI and FWIA have the same replication method? I have no idea about that taxation in Austria.

[@wown6127]

I started to invest because of you and I'll think I'll just stick to my personal pick which is the iShares MSCI ACWI UCITS ETF USD (Acc), Ticker IUSQ. Don't actually see this one being talked about but it outperformed buy little VWCE, with less holdings (2451) and TER: 0,20%. Think it's a great ETF too for the One Etf stratagie. Greets and keep it up, love the content!

[@DanielVasoff]

Angelo actually covered this one in a video recently, where he compared some of the world etfs on the european market. So far I am sticking to VWCE however, in honor of John Boggle 🤞🏻Vanguard is the way to go for me.

[@bartz4439]

​@@DanielVasoffin honour of jack vanguard greedly keep fees high

[@DanielVasoff]

@@bartz4439 well, 1/5 of a percent for globally diversified etf with >3k companies' shares doesnt sound this bad. Let's hope they will be lowering fees anytime soon.

[@rb8947]

I will continue to invest in Vanguard FTSE All-World because it includes more companies, offering greater diversification. However, this also results in a higher Total Expense Ratio (TER). So there is reason why TER is higher. Invesco will for sure increase in future TER!

[@AngeloColomboFi]

Alright, nothing wrong with that. No, that's not how ETFs typically work. Vanguard started with a lot fewer stocks as well and had a 0.25% TER back then. So Invesco is likely to lower rather than increase its fees as its fund size and number of holdings increase as well. The same is true for the SPDR MSCI ACWI IMI, which lowered its fees to 0.17% and has also been growing its number of holdings significantly

[@rb8947]

@@AngeloColomboFi Do you think that if competition with Vanguard increases, they will find something that will attract clients?

[@haywoodjblome4768]

Sorry I'm new here, but why do you only invest in FTSE All world and not also on the SHP500, which is so popular amongst investors?

[@blindwrite87]

A positive tracking difference is probably a bad sign. Not being able to closely follow the index is a clear sign that the found is making some choices instead of following passively the index. In a bull market like this year's this probably means a positive tracking difference, but who knows what will happen in different market conditions? However we ar talking about peanuts.

[@bucheYT]

Seems like a solid strategy for Belgium residents aswell as the fund is NOT registered in Belgium

[@zabir1271]

A valuable video as always 😊

[@non7sens]

Have you tried to transfer portfolio from traderepublic to ibkr? How long did it take? How much did this transfer cost?

[@IlievHristo]

Hi Angelo, in previous videos you mention the highly diversified ETF - SPDR MSCI ACWI IMI as a great choise. Why didn't you choose it this time? It's big ETF > 1.5b and the index contains large, mid and small cap size holdings.

[@mimmo-irl]

Same question! 😊

[@PavelQuiteGood]

@@mimmo-irl he would need to pay higher taxes in Austria. They tax ETFs according to replication method, and SPDR is not tax efficient for Austria.

[@superandre200]

The problem of changing the position on a etf is that the newer one will suffer less compounded interests compared to the previous one where you placed already a considerable amount of money. I would have kept the investment on Vanguard etf

[@AngeloColomboFi]

That is incorrect. You could split the same investment amount over 100 brokers into 100 ETFs covering the same index (same yearly returns) and your investment portfolio would grow the exact same amount overall. The only way you stop compounding is if you were to sell your investments. The returns compound, the amount of money in each is irrelevant

[@superandre200]

@@AngeloColomboFi I don’t agree, as the benefits of the compounded interests come after 100k are placed on the market. The addition of 1k to 100k or having only 1 k, will not generate interests in the same way.

[@AngeloColomboFi]

I'm sorry to say that is once again incorrect. A 10% return on 100K split into two ETFs: ETF1: 50K * 1.1 = 55K ETF2: 50K * 1.1 = 55K Total return: 10K, total portfolio size: 110K It makes zero difference, and nothing structurally changes after you reach any amount.

[@superandre200]

@@AngeloColomboFi Hi Angelo, thanks for your reply, that’s mean it’s just question of having a solid investment (more than 100k) to profit of more interests compared to 10-20-30 k investment just simply due to the bigger sum invested but the concept rest the same

[@world_paths_music]

You’re the best ETF informational channel for europeans. Thank you for sharing. The only thing I am struggling with is to find is ethical ETFs that do not involve investing in detrimental businesses such as McDonalds, Exxon, etc. Any hint of how to find them?

[@Daniel-zr4pk]

nope, he is kinda biased. I mean he gives good information but bad decisions.

[@bartz4439]

Just cuz you exclude them it doesn't mean they won't earn good money in time. If you're against simply calculate profit difference and donate to charity. Ps. Every company is non ethical In some way

[@world_paths_music]

@@Daniel-zr4pk and do you have any other recommendations for european investors? Just to compare strategies and carry out better decisions.

[@AngeloColomboFi]

If by biased you mean I prefer passively investing globally into thousands of stocks based on market cap instead of excluding companies due to some arbitrary ESG rules that keep changing constantly, then yes I am biased.

[@world_paths_music]

@@AngeloColomboFi I agree. I think your strategy is pretty sound. You have a smaller amount for riskier investments and large diversified sums for the long run. And true, most ESG ETFs are arbitrary; that’s why I haven’t found any yet that convinces me. I am looking for 1 or 2 ESG ETFs with strong fundamentals that compared to a traditional one it (if it doesn’t positively impact on the world) at least reduces its negative impact and has a similar good performance. Have you heard of any or have any advice?

[@iMieiInvestimenti]

do you agree that the TER is almost "irrelevant" because what really matters is the tracking difference to the benchmark index? For example, some big and famous ETFs like CSSPX and SWDA have a tracking difference that basically completely offset the annual fee.

[@bjorn6530]

👍👍👍

[@fredatlas4396]

And the bid offer spread could be costing you more. I think that's why it's so important that the etf you use is large enough and liquid. And Most index funds don't have any bid offer spreads

[@iMieiInvestimenti]

@@fredatlas4396 yes. Luckily bid/ask spread is paid once and it’s not recurring every year. But it’s important to keep it super low.

[@simonp6339]

Theoretically yes, the problem is just that TD varies a lot year by year, so TER is still important to consider (to "predict" TD to some degree).

[@simonp6339]

In other words, TD is slightly unpredictable and not reliable for the future. But when you have it, it's great.

[@jesuspadillaruiz5246]

I'm really confused, why there is a difference in the performance (%) of the ETF traded in EUR (BVMA) and the others? Shouldn't it be the same % wise?

[@bluelindgren7569]

thank you for your videos

[@marcoscarbonell2057]

Adding new ETFs during your investment life has an important advantage from my point of view. If you need money for whatever reason you can sell shares of the last ETF that will probably have less gains and you would pay less taxes. Do you think the same?

[@abhineysrivastava3521]

ACWI (SPDR MSCI ACWI ETF UCITS) is reducing their fees as of 1 August. It would be 0.12%

[@AngeloColomboFi]

A fantastic alternative for anyone that's not based in Austria! Sadly here SPDR is less tax-efficient as we're taxed based on what the fund does internally on a yearly basis.

[@steveshuffle]

cool video Angelo - thanks for sharing! very valuable question - do you think that the lower fees make up for the higher spread you pay?

[@AngeloColomboFi]

If the difference in fees remains, then yes absolutely! The 0.017% spread difference in my example in the video is 1/4 of the yearly difference in fees (0.07%), so in theory after 3 months you should already be "break-even"

[@whispie.]

Thanks for sharing your strategy :) I personally will still stick to VWCE for now, but I anyway think it's a good strategy to buy a second similar ETF at some point in time in case for whatever reason you would need to sell and get the liquidy. This way you would be taxed on significantly lower profits

[@AngeloColomboFi]

That's a very good point, it can make sense to add an additional ETF that's similar/equal and to draw from the one with less unrealized profits (in %) first during retirement!

[@borislavbozhankov7425]

I am still waiting to announce next dividend, because currently it looks the yield is too high. But I am planning to switch too.

[@philipphortnagl2486]

great video, thanks

[@cmazas]

I put yesterday an order to buy some for my 7y old daughter and I will continue for dca for the next min 13 years

[@PavelQuiteGood]

Outperforming the index is not good. It can be explained by having a larger share of US and IT holdings than the index. ❗ Also FWRA has about 35% less actual holdings than VWCE: 2384 vs 3639, and from my perspective diversification is an advantage. Otherwise one might as well go with S&P500 and reap juicy gains. At the present moment, but not necessarily in the long term.

[@simonp6339]

The Invesco FTSE is increasing its holding over time though, I think they've already gained several hundred positions over the last few months. It takes some time to build up holdings, as more capital flows in.

[@mislavkirac4597]

Dear Angelo, I have to say that this video seems like an sponsored ad for Invesco. It is a sampling ETF, not physical which you have been strongly against in all your other videos. Has a lower replication accuracy interpreted as "overperforming" which is misleading at best. It has lower volume, higher spreads... It's all the reasons you are telling people should look for when buying ETFs (in other videos). I don't mind sponsored ads as long as they are disclosed.

[@AngeloColomboFi]

I promise you it's not sponsored and I'm making my life harder rather than easier by even mentioning it. I was fully aware some people would be upset or feel like I'm flip-flopping on what I said earlier. Sampling = Still physical replication, the same used by Vanguard in its ETF (it's not holding the full number of stocks from the index either!). I'm taking a leap of faith here by adding a less expensive ETF by Invesco for the same index and based on the fund provider's long-lasting track record and experience with other ETFs I'm confident they'll deliver long-term. But of course everyone should pick what they value most, I mentioned some of the cons in this video as well. I'll happily invest future savings into VWCE again as soon as Vanguard reacts by lowering its fees to a similar level. Until then, I'll happily support Invesco's efforts with my money while obviously still holding on to all of my existing Vanguard shares.

[@morovincenzo817]

Bravissimo, così studio twice! :)

[@Sasom888]

SXRV and SXR8 vs CSPX and Xnas which one you like more as european and How are they different?

[@xeqable]

Dass der Vanguard All World so viele einzelne Positionen hält ist eigentlich mehr Nachteil als Vorteil, da die letzten 1000 Positionen effektiv gar keinen Einfluss auf die Kurs-Performance haben, aber durchaus Kosten verursachen.

[@norbertgergojavor5287]

Hello Angelo! I know you are a long time investor, and ups and downs are parts of the run, but do you have any stop loss or trailing stop loss orders as a direct safety net on IBKR, and if so, what is your strategy behind it? Thanks!

[@luciobarbato1461]

You could propose a law change that you swap etf u don't have to paying taxes. This will improve competition

[@andreyivanov6352]

Angelo, thanks for keeping producing great videos! There is one structural thing which I don’t understand in your investing approach. You are an EU resident and presumably your “base currency”- in which you would measure your investment results in 25 years is EUR (or is it USD?). You show us USD accumulating Total markets ETFs. But… when you show your portfolio performance growth - it is in EUR. Also, except IB, no major EU broker allows you to buy USD denominated ETFs. So could you please clarify - do you buy USD unhedged versions of these Total market ETFs in US dollars, and if yes - on which platform? If, on the contrary you buy these in EUR - please confirm. Thank you in advance!

[@PavelQuiteGood]

in EUR. on IB, as usual. Watch after 10:16. USD is used for internal ETF operations, while this version of ETF is sold in EUR. It is allowed.

[@marcofranceschini3714]

Hi Angelo, Italian in Austria here! I found your channel today, while looking for taxes on ETFs in Austria. I am starting to invest some savings after being introduced to this world by Mr. Rip’s videos, whom I am sure you know. First of all, I really appreciate your work, it’s helpful and very noble. Then, I’d have a question, which I hope you can answer: you opted for the Invesco vs. the Amundi 0.07% TER for the 3 reasons you explained. Regarding the last one, the taxes paid on it in Austria are higher because it is a Non-Tax Reporting Fund (as stated in Justetf)? Or is there another reason? While looking, instead, for the Invesco ETF on Justetf, the tax status is marked as Unknown. But I guess it is actually reporting, or is it? Thank you so much again!

[@rglittle6]

Have you considered any index ETFs that leave out oil & gas stocks? I want to invest in the index but in a decarbonized way. Maybe some of your subscribers are too?

[@maximus6884]

The replication stratergy of both ETFs you said, the old and new, are a bit concerning to me as a beginer. It seems neither truly replicate the stocks in the index but sample them only. Could you please talk a little bit about this? As a beginer, I feel confused.

[@summerrr1]

I’ve got about 500k Euros in ETFs, which I’ll keep there, and another 750k sitting in savings accounts. I’m worried about putting the 750 back into the market in one go. Any recommendations on the best approach/ phasing?

[@NekonoNitchijyo]

Hello, is it just me or is it impossible to buy the Invesco All World on Trade Republic at this moment?

[@alaindupuy9810]

Actually wasn't a standard rule to invest in efts with a good 10 years record? Or was that just stocks?

[@AngeloColomboFi]

It's usually a good idea to wait a few years for an ETF to reach a profitable fund size and to be able to properly judge its index tracking difference. At its current size of $413M Invesco's ETF is already large enough to be run profitably (safe from liquidation) and its tracking difference is looking very promising after its first year. While 1 year is usually too short to draw a confident conclusion, I'm taking a leap of faith based on Invesco's good track record and experience with other ETFs

[@CityStrollAdventures]

Thanks man i learn from you and the way you talk is simple for me ❤

[@neilwadden1749]

Hey Angelo, long time no see (your videos). I started my investment journey around 6 years ago, and I incorporated some of your P2P and investment strategies. … so, nice to see you again. 🙋‍♂️ my question is, do you have any allocation to gold and cash? Take care my friend. Neil

[@joshcaterham2494]

Hey Angelo! As always thanks for the great content 😃 Did I understand correctly that you bought the same ETF on Interactive Brokers, Trade Republic, and Flatex? Is this to save on commission fees? Isn't it easier to buy an ETF using only one broker?

[@AngeloColomboFi]

Yes one broker is plenty 😅 That was only because I had a larger amount to invest all at once (from my P2P exit) and also to show/discuss how to buy it using either of the 3 brokers. My wife and I will likely be buying it mostly as a recurring monthly investment using Trade Republic and IBKR going forward.

[@KrNekiiii]

I can not find FWIA on Trade Republic?!? 😊

[@LisaMaier-t5x]

Good, quiet video!

[@kamil_kolodziej]

Hi Angelo, thank you for another interesting and great material! I'm very surprised that despite having strong competitors, the State Street SPDR MSCI ACWI UCITS ETF (IE00B44Z5B48) has such a high TER of 0.40%.

[@AngeloColomboFi]

My pleasure! Yes, it's about time for that one to be lowered to or below the fee level of their ACWI IMI ETF.

[@gianandrin]

I'm thinking about starting to invest in the Amunid Prime All Country Acc. It's probably gonna grow very fast.

[@AngeloColomboFi]

Alright, nothing wrong with that. Hopefully its size ensures Amundi doesn't change the ETF sometime down the line as they have done with others 🤞

[@carlosadell7204]

Love your content brother!! What do you think about the current situation with the West and the Global South and how is it going to affect these particular funds? (I’m copying your same strategy btw)

[@boglehead5822]

I have SWRD(90%) and EMIM(10%). These 2 ETFs together are the same as FTSE All world. Total TER is about 0,125%

[@koala126]

iShares EMIM alone is 0,18% TER

[@boglehead5822]

@@koala126 Yes, and SWRD has 0,12% TER. If you keep EMIM at 10% weighting, the total TER is a little bit more than 0,12%, because EMIM has 0,18% TER

[@AngeloColomboFi]

That's a great alternative without overcomplicating things too much via two ETFs!

[@borjaruiz1712]

Hey Angelo, this is pretty much off topic but since you have always spoken well of Trade Republic I would like to hear your thoughts on the recent changes regarding interest on cash. The cap of 50k has been removed however deposit guarantee up to 100k is no longer a thing, it seems they could be investing some of that money on funds instead of storing it in a bank, what do you think?

[@nikoss6266]

Hey i did not know this, where has this been communicated?

[@keeskip4589]

deposit guarantee up to 100k is no longer a thing?? Where did you read this. Link please.

[@keeskip4589]

@@borjaruiz1712 we never had a 100k guarantee for stocks and etfs. Nothing changed. Please edit your comment.

[@borjaruiz1712]

@@keeskip4589 my original comment with the link didn't go through for some reason, so I have edited it. You are right we never had that protection for stocks and etfs. However I am talking about the cash you have stored in TR, part of which is used to invest in liquidity funds by themselves

[@borjaruiz1712]

​@keeskip4589 It seems I can't post links in the comments, just go to "Trade Republic FAQ - interest on cash - how is my money protected?" It says your cash is stored in banks and for higher amounts, your cash is invested into liquidity funds, for which deposit guarantee doesn't apply. Only they know how high that amount is.

[@Frenkie_Walla]

Ciao Angelo, aggiungerei che anche un po' di diversificazione sull'emittente male non fa

[@NikolaLful]

Thank you for another great content! How come you are again buying on Flatex? I thought you said since you are doing your own taxes, you don't want to use Flatex because of the fees. Also, you mentioned there are no fees when you buy over 1k (outside of saving plan), but I guess that is specific to this ETF, right? Because usually one pays a fee independent of the amount on Flatex.

[@AngeloColomboFi]

With this ETF as well as with the Vanguard FTSE All-World this year you don't pay any fees when directly buying over 1000€ of it on Flatex (using the exchanges I showed in the video). Since I know Flatex is the easiest option for Austrian residents I wanted to mention it!

[@trainingwood]

Angelo great video. Do you buy these ETFs directly in EUR or you have to convert to USD? Also as you explained before in regard taxes if I understood correctly you always buy ETFs that are domiciled in Ireland? Is there any downside to this strategy like for example all your investments are in EUR ? I personaly think it would make sense to be diversified in regard curency as well. I personaly was buying individual companies with strong moats and mostly on dips and all in USD. But I would like to start investing in ETFs and probably following your logic since I am also based out of USA... Thanks for educating us and thanks for your reply.

[@AngeloColomboFi]

I always buy directly in EUR. The currency you purchase an ETF in doesn't impact returns though (unless you buy hedged ETFs, which I wouldn't), as an ETF can hold thousands of different stocks from different countries (and currencies).

[@cadence3195]

Thank you for your honesty Angelo! I think that this decision makes sense, seeing your position: chunk of uninvested funds and already a large sum on vanguard ftse all world. Not dumping it all in investco and cost averaging to see how this new ETF performs is the smarter play and covers all your bases: if vanguard responds by lowering fees you get to go back and if they don't, simply keep adding funds for Investco. I will keep investing most of my savings on vanguard's ftse all world but will separate a bit of cash each month to place on Investco 😊 hoping that Vanguard responds!

[@MrLunary]

Hej Angelo, why and when did you switch from degiro?

[@PavelQuiteGood]

In August 2023 He explains it in a video I Moved My ETF - Here's What Happened

[@keren9322]

FWRA/FWIA's 0.15% fee is indeed attractive, but it is not tax-efficient in Denmark where I live. So, I (have to) stick to iShares IUSQ with 0.20% fee...

[@tatianayefimenko9718]

Both of those etfs are Ireland domiciled and both are accumulating. How could there be a difference in taxation?

[@keren9322]

@@tatianayefimenko9718 As far as I am aware, Invesco's ETFs are not on the Danish gov's "positive list". We have limited selections in Denmark.

[@ponca1813]

I have a question though, how does the compounding effect take place when you have different ETF's even if they are tracking the same index? I'm not smart so my logic probably is flawed but isn't it better to have one huge snowball getting multiplied by 7% than 4 medium snowballs?

[@dejviddejvich573]

So Vanguard on just VWCE fees earns 26 milion$?!?

[@AngeloColomboFi]

Almost $60M/year if you include the distributing version of the Vanguard FTSE All-World with the same 0.22% fee p.a. (total fund size of $27.23B)

[@Rafaeldeluca1]

What about the SPDR MSCI ACWI IMI you mentioned as the best pick for a starter short ago, why didn't you go for that one instead?

[@AngeloColomboFi]

Primarily because it's less tax efficient in Austria - we have a silly way of pre-taxing ETFs on a yearly basis based on what they do internally. Its TER is also slightly higher at 0.17%, but then again you could argue that could be worth it if you're looking to include more small cap stocks. It's still an excellent pick though!

[@Rafaeldeluca1]

Got it, thank you! Big fan of your work, thanks for your invaluable insights!

[@andrejytzirkoyt4257]

Hey there! I couldn't help but notice how you always mention your wife in your videos, but we never see her. It reminds me of Lieutenant Columbo and his unseen wife from the classic TV show. And with your last name being Colombo too, the parallel is even funnier! Is this an intentional nod to the series, or just a happy coincidence? Either way, it's a fun little detail that adds some extra charm to your videos!

[@paraponon]

I think he mentions her for tax purposes.

[@martinmilanov1964]

Hello, angelo, seems like that one I cannot find in trading212, I only do find the distributing version on the xetra exchange which I am using. I do use this exchange for tax reasons because I am from Bulgaria and when buying an etf from a regulated European market you do not need to pay any taxes on capital gains. Is the distributing version okay as well. Or would you recommend another exchange. What about the Italian stock exchange for example.Thank you, another great and informative video yet again!

[@marcodipaolo5448]

Angelo, i am seeing a difference in Daily performance between VWCE and FWRA.... With FWRA doing 0,10 better....could you explain?

[@ellyjphilipp]

Hello Angelo. I don't know why, but I cannot find Invesco ETF on my Trade Republic app. Not sure why. Is there a chance you could know why?

[@alesseckar5213]

Same.

[@RaijinTheGreat]

son wake up, angelo has posted

[@nikoss6266]

Thanks Angelo! Question on taxes. You say people are not selling for tax reasons but UCITS etfs are free from taxes! You meant something else?

[@AngeloColomboFi]

UCITS ETFs are generally only tax-free in specific European countries like Greece or Bulgaria, I'm guessing you're based there? :)

[@nikoss6266]

Absolutely right thanks for clarifying

[@floydmahone]

Angelo, is FWRA the same as FWIA? Because that’s the one DeGiro is showing me for the euro option of this ISIN.

[@AngeloColomboFi]

Yes, FWRA or FWIA is what you should be able to find it under using most brokers. Here's the ISIN as well: IE000716YHJ7

[@kampfwuffi]

I have switched a month ago. Good decision.

[@leeloo21231234]

heh, I just got started on the vanguard FTSE all world, most of my investment is in SPY 5, the idea is to get some exposure to the rest of the world as well, not only US. I am glad someone is talking about early retirement in Europe. I am 48, and started about 2 years ago. with a plan. to retire a bit earlier than the minimum age of 60, at 58. I made a simple savings account, to cover the haircut my pension would get if I would go out at 58. I would like to do some traveling and. enjoy some hobbies before I start drooling over the desk .( like some of my colleagues with no financial plan and kids who suck them dry well in to their 40's..40 year old kids I mean ) in the beginning of the year I started to do more research, be more aggressive and split my savings half in cash on a savings account and half in SPY5.( my wife specially and me we still have some reserves about going all in on stocks only ) My plan is to. alocate half of the ETF investments in SPDR S&P 500 , half in Vanguard FTSE all world. I actually think I might be able to go even 2 years earlier, but depends as well if my cost estimation of the education of my son is corect. ( in 2 years he starts university, I hope, ) . I am lucky enough to have my fiscal residence in Luxembourg, where if you hold the capital more than 6 months there Is no capital gains tax, so this makes my task a lot easier. I am glad I found you channel, most of the videos are about retiring early in US, and not Europe, and it is a different ball game. I just subscribed and I wish you well in your endeavour and good luck with your channel ! You have very intestine videos and a healthy perspective on things.

[@CasualUmami]

Well it's perfectly you. You want to max out diversification and now you have diversified your investment companies :)

[@PavelQuiteGood]

'Diversifying' into an ETF with less holdings means less diversification.

[@dylanbeck6506]

I'm just wondering if the etf will come to Trade Republic in Belgium, because for now I can not find any Invesco ETFs. At least it makes the choose to switch easy on me 😂.

[@alices5049]

Ciao Angelo, I am Italian but I live in Vienna and I have watched many of your videos on this channel since 1 year. I need to move my ETFs in Vienna and for me it is super confusing to understand the extra taxation. Your excel file is already a start , I checked the Austrian website you linked but I do not understand how does it work. Could you make a video on the calculations for specific Austrian case? :) Thanks a lot for your content

[@AngeloColomboFi]

Did you also check the video I linked in Google sheets? It explains the differences a bit: kzbin.info/www/bejne/qZC4fGakZrWJftUfeature=shared&t=463 Sadly taxation of ETFs in Austria is very complicated, so I'd recommend going with a local broker like Flatex that takes care of all of it for you: angelo.fi/flatex Otherwise at the very least I would pick Trade Republic or Scalable, which provide you with yearly tax reports specifically for Austria, with the numbers you then need to enter in your yearly tax returns (which you then have to file yourself).

[@Paul-xs4rp]

I recently invested in the “Amundi Prime All Country World”. Have I made a mistake? Is it a “bad” investment, or is it just suboptimal compared to the Invesco ETF?

[@AngeloColomboFi]

I wouldn't go that far. Luckily it's already domiciled in the right country (Ireland), so a taxable change in domicile is likely off the table. And I'm hoping that its size and popularity means Amundi will be less inclined to change it in some way against the will of its investors further down the line. Sadly based on their past there's no way to know for sure.

[@georgistanchev5820]

Hi Angelo, love your content. Do you have any tips (videos, links, could you maybe do a video?) on tax, paying tax, specifically the austrian E1kv “Beilage zur Einkommensteuererklärung E1 für Einkünftige aus Kapitalvermögen” ? Thanks a lot in advance!

[@girishgalgali3952]

HI Can you make one video about the leveraged ETF

[@Adrian_697]

Why not SPYI? Msci acwi imi 0,17% TER

[@PavelQuiteGood]

Because Austria has tax on SPYI

[@AngeloColomboFi]

Yes, Austria charges yearly taxes on a fund-level, which are sadly significantly higher with SPYI. That's why it's not an option for me

[@Adrian_697]

@@AngeloColomboFi oh :( . Thanks for your answer!

[@TheApachai]

Aren't you less diversified with the Invesco All-World? It only has 2.384 positions compared to Vanguards 3.639

[@AngeloColomboFi]

Yes a bit, at the moment it "only" contains about 2.648 stocks, but the number is growing every month.

[@Istvan_F]

@@AngeloColomboFi and it replicates the index well, thereby the nr of holdings is not necessarily a "pre-requisite" for a good track record. : ) : )

[@88Nieznany88]

@@Istvan_F we don't have data for multiple years. I consider tracking difference equal to 0.3% as quite big. Yes, in this case it was positive return, but in the future we might have years with -0.3% tracking difference.

[@bartz4439]

Buehehe 40 stocks is enough for good diversity. Love to read when people cry if it's 6000 or 6001 claiming valuable difference

[@PavelQuiteGood]

@@88Nieznany88 it was a positive return only because there was a larger share of US companies than there were supposed to be. This is not good. If I want to go heavy with US stocks, then there is S&P500.

[@karejna]

Hi Angelo! Thanks a lot for your videos. Why do you live in Austria and use Trade Republic for investing in ETFs? I have heard, that ETF taxation is a disaster, if you need to do it by yourself. Why not to use flatex and let them do the job for you? I am asking, cause I’m currently looking for a proper broker (live also in Austria). Trade Republic has really great offers but I afraid, that I cannot deal with taxes…

[@AngeloColomboFi]

I'm using both, in the video I even mentioned how I bought shares on Flatex as well! :) But I'm self-employed and have to file taxes anyway each year, so for most Austrian residents Flatex is the easiest option!

[@edvinsslubovskis]

Hi! Did You sell also Your fractional bonds on mintos?

[@PavelQuiteGood]

AsI understood, he sold everything there.

[@ZeeSlans]

Im a beginner invester. I started investing a year ago on the vaguard FTSE all world. As a student I just wanted to get the dividend rates started. Just 50 a month was the plan at first. Kinda forgot it and currently have 350 in it... But when I have a more steady income I want to invest 30% of that into etf's. Is this wise? or should i change to the invesco and stick with that for a long time..

[@13mowe]

agreed vanguard need to be a little more competeative ,, but what is VWRP? isnt it just VHVG/VFEG? that is 0.12%/0.22%. @ 85 % VHVG & 15 % VFEG im currently out performing VWRP with a gross % of 0.135 & im still in Vanguard. did i get that % right of 0.135?