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).
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 :)
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.
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! 👍
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 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.
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
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?
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.
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.
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.
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.
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!
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
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.
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.
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.
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 🙂
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.
Exactly. There are a lot of ETFs with optimized sampling, wich not even buy half of the Positions they are supposed to buy and that's how they achieve these low TER fees.
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.
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...
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
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!
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 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.
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!
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
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.
@@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.
Thank you Angelo! Just a question I can not find the answer to: do we (living in Germany/Austria) pay less taxes on profits after retirement? If yes, by how much? Thanks in advance!
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
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!
Angelo, when you start buying another etf, you sell your positions on the previous? For example i started investing on the VUAA few months ago but im thinking to swift on the SXR8 instead. Should I just start buying the latter or sell the vuaa first? Also I'm in the S&P500 just now while the US is on top but one day I may switch to global when I see the tide turning somewhere else, so if i start buying the VWRA for example, should i close the positons on the s&p? Thank you!
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%
@@AngeloColomboFiit got a pretty back Tracking Error though which is no wonder since more than 60% of the index' companies are missing due to sampling (Vanguard is at 90% and Amundi is heading to 100% due to full replication, which could be a reason it already got 3x more volume compared to Invesco even though the latter is older). Anyhow, thanks for this video. I recently quit saving (buying) Vanguard FTSE All-World as well. Still an excellent product though. And who knows what products will show up in 5 or 10 years. :-)
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.
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
@@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.
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.
I'm currently doing 80% Vanguard All World Acc and 20% Invesco FTSE All World Acc. If the newer fund does well I can always swing it one way or another.
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. 🚀
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!
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?
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
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.
@@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?
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❤
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
@@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👌
@@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👌
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!
Hi Angelo, I'm Austrian too and was wondering about the taxes part as I have never heard that before. Can you explain what is special and different? I picked the SPDR MSCI World Acc which isn't efficient in your list. Shouldn't it be 27,5% on all ETF gains in the end?
Ok no worries, just watched your other video and no its clear. All will end on 27,5, but the pre tax is just lower which results in higher gains over the years. Thanks for your great videos and the spreadsheet!
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.
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.
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!
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
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.
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.
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
The fact sheet says that it is only available for private investors in Germany, Liechtenstein and Austria and for professional investors in Switzerland.
Great video once again . Thank you Angelo. What's you opinion about xtrackers ? Would you suggest it for austrian citizen's or invesco is always the best option?
Sadly xTrackers ETFs don't seem to be as tax-efficient in Austria compared to Vanguard and physical Invesco ETFs. This list and the video linked on top might help: angelo.fi/kest
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"
Sadly there are differences based on the country you're in, likely due to missing KIIDs etc. I would personally just stick to VWCE if it's not available for you (yet), the differences are minimal anyway
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.
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.
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).
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!
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!
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
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.
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!
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?
@@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
@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.
Do you now recommend Invesco FTSE as the only title in the portfolio? But a year ago you presented six strategies with different combinations of EFT titles, so now I don't know how to decide. Hold one title or diversify more?
Hi Angelo, If you were to start investing again from 0, would you still go for Invesco FTSE All World, or rather go for Vanguard Developed World? Thanks in advance :)
Yes, right now I'd still pick the Invesco FTSE All-World! If I wasn't living in Austria (where Invesco's fund is more tax-efficient to hold), I would probably consider the SPDR MSCI ACWI as well, which recently had its fees lowered to 0.12%. The Vanguard FTSE Developed World is a great option as well though, if you don't mind excluding Emerging Markets.
@@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.
@@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.
Angelo, my mortgage is 3% and my passive investments are bigger than 3%. At the end of the year I get between 10k and 20k of savings. Should I invest these 20k in the investment funds, rather than payoff the mortgage?
Thanks for the very useful info. I also think it's a wise decision. S&P 500 (ACC) - Vanguard also seems to be a good choice, it only has 0.07% cost and seems to be tax efficient according to the nice excel sheet you created. May I ask why don't you consider that?
@@bartz4439 so in 10 years there may be a company from EU or China that would do great, but is not included in S&P500. FTSE All-world will rebalance and include it, while S&P500 will not.
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?
Honest question, what do you think about SPDR MSCI ACWI IMI ? I understand that you continue investing on ftse all world, but have you considered the spider ETF? I havent yet started investing as i would like to be sure about my decision for a long term plan and I'm between these two indexes. Vanguard and Invesco for the ftse all world, on your case means even diversifying with your provider choice. I think is a good choice.
It's a fantastic pick I would have no issues with, if it wasn't significantly less tax efficient in Austria compared to Vanguard and Invesco. We have a silly way of pre-taxing ETFs on a yearly basis based on what they do internally. Its TER is only slightly higher at 0.17%, but you could argue that might be worth it if you're looking to include more small cap stocks.
@AngeloColomboFi why/how the Austria tax system makes things different among these etfs? Are not they doing the same things? (Acc., all world, units, etc.)
Hi Angelo! What about us who started our savings plan with Vanguard few months ago? Can I just swich to Invesco? Do I lose anything if I change my 1-etf savings plan portfolio from Vanguard to Invesco? How compounding works in this case? Does it start from zero, or it continues? Thanks for everything 🤗
You can just stop investing in the Vanguard ETF and start investing in the Invesco if you wish to. Do not sell the Vanguard, just let it sit and it will still grow overtime.
You may have some transaction fees. But more "critical" can be the profit, which of course depends on the amount of money you invested into the Vanguard. Selling them might result in taxes you have to pay (directly) so you might get less money out than you have invested. So, it will depend on local tax laws.
Thank You for the videos! I am wondering how the Austrian taxes works - if you sell e.g. Vanguard All World "only within the broker account" and buy Invesco All World within the same broker account and you do not transfer the profit/money to your own Austrian bank account outside of the broker, do you still need to pay taxes from the profit even though you immediately buy another ETF? Is this considered a "realized profit"?
For me the invesco stock is over 6.5k a piece, whilst I can buy the Vanguard ones for 125 a piece. So adding slowly over time is way easier with 125 euro stocks haha
Hi Angelo! In one of your previous videos you said that if you had not already bought the Vanguard FTSE All World you would have gone for the SPDR MSCI ACWI IMI because of its greater exposure to small caps as well as emerging markets. So I'm curious to know why you eventually picked the Invesco Ftse All World instead... Thank you!
Since you're the third one to ask already, forgive me for copy-pasting my response :) It's a fantastic pick I would have no issues with, if it wasn't significantly less tax efficient in Austria compared to Vanguard and Invesco. We have a silly way of pre-taxing ETFs on a yearly basis based on what they do internally. Its TER is only slightly higher at 0.17%, but you could argue that might be worth it if you're looking to include more small cap stocks.
@@AngeloColomboFi I also started with 1-ETF on SPYI after watching that video of yours. I am based in Germany, is this Austrian pre-taxing similar to Germany "Vorabpauschale"? Thanks!
It's similar in that we also pre-pay a bit of tax on a yearly basis, but it sadly has zero to do with the performance of the ETF itself (which is what counts in Germany). What funds do internally matters in our case, as that's what the "pre-tax" is based on. In Germany that doesn't make a difference.
Hallo. Bin aus Ö und habe hauptsächlich Distr ETFs daher nutzt mir das Excel wenig. Ich würde es aber gerne nachbauen für meine Dis ETFs. Wenn ich den Invesco jetzt hernehme und bei der ÖKB in die Jahresmeldung reinschaue, sehe ich folgende Zahlen: Ausschüttungsgleiche Erträge 27,5% 0,0537 sowie Anzurechnende ausländische (Quellen)Steuer 0,0021. Wie komme ich von diesen Zahlen zu deinen Zahlen im Excel Spalten E und F. Vielen Dank und LG aus Wien - Robert.
ah ich glaub ich habs gefunden, versteckt sich offenbar im Reiter "Ertragssteuerliche Behandlung" Subpunkt Punkt 12 "Österreichische KESt, die durch Steuerabzug erhoben wird"
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
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.
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.
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…
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!
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.
Hi, thanks for your video; it’s really helpful! I have a question about where to buy the FWRA ETF. When I search on Interactive Brokers, I see different options on exchanges like the Italian and London exchanges. I live in Germany and prefer to trade in euros, although I notice that the volume is higher in London. Could you please tell me which option you would recommend and what exchange code I should use?
Hey Angelo, Started investing in stocks a few months back via index ETFs after watching your videos. Thanks a lot for sharing the knowledge :) Could you please explain how can you be sure that an ETF that covers 55% of the index is better than an ETF which is covering 84% of the same index ? Like I said earlier, I am a newbie to investing and logically this new Invesco ETF should have more tracking error (in future at least)
I'm very happy to hear that! There is no way to be sure yet, we only have one year worth of (promising) data (as in tracking difference) so far, so it's still a bit of a leap of faith based on Invesco's excellent track record and experience with other ETFs. Its number of holdings is growing quickly, so I'm hoping it will be a lot closer to Vanguard's number of stocks in a year or so. Also, I only explained my reasoning for adding Invesco's ETF into my arsenal, Vanguard's FTSE All-World still remains an excellent pick and I fully understand anyone that feels better continuing to invest into the latter for any number of reasons (fund size, age, long track record, number of stocks, etc.).
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
Did you also check the video I linked in Google sheets? It explains the differences a bit: th-cam.com/video/s_UK3n1PVHs/w-d-xo.htmlfeature=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).
Hi, I'm curious why you didn't choose, for example: Amundi Prime All Country World UCITS ETF (IE003XJA0J9) whose TER is 0.07% , the SPDR MSCI ACWI UCITS ETF has reduced costs from 0.40% per year to 0.12% per year.
Both of them are less tax-efficient in Austria (this is irrelevant for any other country) and Amundi's track record has not been great the last 1-2 years (mentioned in the video)
I am confused on which stock exchange it makes sense to buy an ETF like FWRA. For example in Interactive Brokers it is available on 3 stock exchanges: London, Italy and Swiss. The ETF has a Fund currency in USD however I can buy it in USD on the London Stock Exchange, in Euro in the Italian Stock Exchange and in Swiss Francs on the Swiss Stock Exchange. My Home currency is Euro so I was gravitating towards the Italian Stock Exchange but then I realised these might be less liquid. What is your opinion about this?
Also, on IB fees differ greatly betweem London and Switzerland for instance. This also makes me perplexed vs easy and straightforward US ETFs market and fees
2:26 Well then the tracking difference of the Vanguard ETF is better and worse for the Invesco ETF. The goal of an index fund is not to outperform the index but to track the performance of the underlying index. .01% tracking error is close to perfect. Plus .07% lower expense ratio is nothing when looking at portfolio sizes of retail investors.
Hi Angelo, ich bin auch aus Ö und verstehe nicht ganz was du mit dem Excel Sheet zur Besteuerung genau meinst? Ist es nicht einfach 27,5% KESt? Wonach kann ich zu dem Thema recherchieren?
Hey. Can you do a video on taxes? How are you managing taxes while investing through IBKR. Believe they don’t provide an auto generated tax certificate.
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?
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
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).
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 :)
@@AngeloColomboFi by who do you buy invesco etf by bvme ebs or lseetf?
BVME, since that's the option in €. I mention it at minute 10:14 - I'll be buying it as a recurring investment
@@AngeloColomboFithanks missed that
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.
Does invesco FTSE all world have a USD based ETF? If yes, can you provide the tickr to me.
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! 👍
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.
@@aguven What if Vanguard just keeps that extra return for itself?
@@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.
@@boglehead5822 have you considered a possibility that Invesco can do exactly the same and their goal is to make profit? 🤯
I was exactly thinking the same! Any over performance is also a tracking error
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
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?
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.
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.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
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.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
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.
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!
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
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.
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.
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.
And are you going to tell us which ETF you use? -_-
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 🙂
Cappuccino 7€? Do you live in Switzerland 😂
@@JayKayGame. 7 Euro ... every 6 months one = two per year = 3,5 Euro per Cappuccino. Did you miss some math lessons during primary school? 💰🤑
and we still don't know which ETF you use, which the only relevant part of this coffee chat
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.
Exactly. There are a lot of ETFs with optimized sampling, wich not even buy half of the Positions they are supposed to buy and that's how they achieve these low TER fees.
I already started my journey with Invesco after watching your videos and I’m happy with that. Thank m8
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.
You are doing it wrong.
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...
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
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!
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.
@@DanielVasoffin honour of jack vanguard greedly keep fees high
@@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.
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!
I think he mentions her for tax purposes.
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
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.
@@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.
I’d also be interested in this topic.
I also started investing in the vanguard ftse all world bcs of you😉
Me too! Not because of him, but because of the education he provided :)
Thank you Angelo! Just a question I can not find the answer to: do we (living in Germany/Austria) pay less taxes on profits after retirement? If yes, by how much? Thanks in advance!
Angelo, how did you open the account for your daughter? I wish to do the same, but don't know how to do it
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
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!
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
Angelo, when you start buying another etf, you sell your positions on the previous? For example i started investing on the VUAA few months ago but im thinking to swift on the SXR8 instead. Should I just start buying the latter or sell the vuaa first? Also I'm in the S&P500 just now while the US is on top but one day I may switch to global when I see the tide turning somewhere else, so if i start buying the VWRA for example, should i close the positons on the s&p? Thank you!
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.
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%
@@AngeloColomboFiit got a pretty back Tracking Error though which is no wonder since more than 60% of the index' companies are missing due to sampling (Vanguard is at 90% and Amundi is heading to 100% due to full replication, which could be a reason it already got 3x more volume compared to Invesco even though the latter is older).
Anyhow, thanks for this video. I recently quit saving (buying) Vanguard FTSE All-World as well. Still an excellent product though. And who knows what products will show up in 5 or 10 years. :-)
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.
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
@@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.
@@boglehead5822 thanks buddy, seems like an efficient way for me to add emerging markets to my portfolio!
I actually like this channel a lot ! Simple 🎉 love from Tegernsee Germany
In Greece we don't pay taxes on UCITS ETFs. They are tax free.
Are you sure about that? Where I can check? I am new
Hi Angelo, I’m just wondering if you ever gonna make a video about the best REIT ETFs in Europe, love your videos btw
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.
Same question! 😊
@@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.
Have you tried to transfer portfolio from traderepublic to ibkr? How long did it take? How much did this transfer cost?
I'm currently doing 80% Vanguard All World Acc and 20% Invesco FTSE All World Acc. If the newer fund does well I can always swing it one way or another.
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. 🚀
Cool video, but why not XDEQ? MSCI world quality index etf.
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?
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!
Got it, thank you! Big fan of your work, thanks for your invaluable insights!
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?
nope, he is kinda biased. I mean he gives good information but bad decisions.
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
@@Daniel-zr4pk and do you have any other recommendations for european investors? Just to compare strategies and carry out better decisions.
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.
@@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?
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❤
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
@@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👌
@@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👌
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!
A valuable video as always 😊
Hi Angelo, I'm Austrian too and was wondering about the taxes part as I have never heard that before. Can you explain what is special and different? I picked the SPDR MSCI World Acc which isn't efficient in your list. Shouldn't it be 27,5% on all ETF gains in the end?
Ok no worries, just watched your other video and no its clear. All will end on 27,5, but the pre tax is just lower which results in higher gains over the years. Thanks for your great videos and the spreadsheet!
Thank u for great content!
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.
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.
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!
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
@@AngeloColomboFi Do you think that if competition with Vanguard increases, they will find something that will attract clients?
SXRV and SXR8 vs CSPX and Xnas which one you like more as european and How are they different?
ACWI (SPDR MSCI ACWI ETF UCITS) is reducing their fees as of 1 August. It would be 0.12%
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.
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.
👍👍👍
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
@@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.
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).
In other words, TD is slightly unpredictable and not reliable for the future. But when you have it, it's great.
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?
Same.
Thank you for your content. I have actually also changed from Vanguard to Invesco for the same reasons.
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.
My pleasure! IUSQ (iShares MSCI ACWI with a 0.2% TER) is an excellent pick as well in my opinion👌
Invesco FTSE All-World UCITS ETF is missing in my traderepublic profile. Is it available only in specific countries in EU?
I think so ,because i live in Belgium and it doesn't appear either...
The fact sheet says that it is only available for private investors in Germany, Liechtenstein and Austria and for professional investors in Switzerland.
@@bjorn6530 Thanks for the usefull answer:)
great video, thanks
Thanks Angelo, your videos are always very informative and effective. Why have you discarded the idea to go for the SPDR SPYI?
He lives in Austria.
They have taxes on ETFs like SPDR SPYI, because of the replication method.
@@PavelQuiteGoodis this also an issue in Germany?
@@PavelQuiteGood Doesn´t SPYI and FWIA have the same replication method? I have no idea about that taxation in Austria.
Great video once again . Thank you Angelo. What's you opinion about xtrackers ? Would you suggest it for austrian citizen's or invesco is always the best option?
Sadly xTrackers ETFs don't seem to be as tax-efficient in Austria compared to Vanguard and physical Invesco ETFs. This list and the video linked on top might help: angelo.fi/kest
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?
cool video Angelo - thanks for sharing! very valuable
question - do you think that the lower fees make up for the higher spread you pay?
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"
Thanks @AngeloColomboFI, just about to make a similar switch but what are your thoughts on currency consequences: USD vs Eur ETFs?
How come I can not find Invesco FTSE All-World ETF Acc. (FWRA or FWIA) etf in my Trade Republic?
Sadly there are differences based on the country you're in, likely due to missing KIIDs etc. I would personally just stick to VWCE if it's not available for you (yet), the differences are minimal anyway
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.
thank you for your videos
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.
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).
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!
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.
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!
I am still waiting to announce next dividend, because currently it looks the yield is too high. But I am planning to switch too.
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
Seems like a solid strategy for Belgium residents aswell as the fund is NOT registered in Belgium
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.
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!
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?
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?
Hey i did not know this, where has this been communicated?
deposit guarantee up to 100k is no longer a thing?? Where did you read this. Link please.
@@borjaruiz1712 we never had a 100k guarantee for stocks and etfs. Nothing changed. Please edit your comment.
@@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
@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.
Do you now recommend Invesco FTSE as the only title in the portfolio? But a year ago you presented six strategies with different combinations of EFT titles, so now I don't know how to decide. Hold one title or diversify more?
Hi Angelo, If you were to start investing again from 0, would you still go for Invesco FTSE All World, or rather go for Vanguard Developed World? Thanks in advance :)
Yes, right now I'd still pick the Invesco FTSE All-World! If I wasn't living in Austria (where Invesco's fund is more tax-efficient to hold), I would probably consider the SPDR MSCI ACWI as well, which recently had its fees lowered to 0.12%. The Vanguard FTSE Developed World is a great option as well though, if you don't mind excluding Emerging Markets.
Aren't you less diversified with the Invesco All-World? It only has 2.384 positions compared to Vanguards 3.639
Yes a bit, at the moment it "only" contains about 2.648 stocks, but the number is growing every month.
@@AngeloColomboFi and it replicates the index well, thereby the nr of holdings is not necessarily a "pre-requisite" for a good track record. : ) : )
@@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.
Buehehe
40 stocks is enough for good diversity.
Love to read when people cry if it's 6000 or 6001 claiming valuable difference
@@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.
Angelo, my mortgage is 3% and my passive investments are bigger than 3%.
At the end of the year I get between 10k and 20k of savings.
Should I invest these 20k in the investment funds, rather than payoff the mortgage?
Great video, thank you! what is your opinion about DeGiro in the EU for long term investments? Thanks!
Thanks for the very useful info. I also think it's a wise decision. S&P 500 (ACC) - Vanguard also seems to be a good choice, it only has 0.07% cost and seems to be tax efficient according to the nice excel sheet you created. May I ask why don't you consider that?
S&P 500 is way less diversification than the FTSE all-world index. Also, the magnificent 7 is about 35% of the S&P 500 😅
@@Teccaeso? 60% revenue comes from all the world anyway
@@bartz4439 so in 10 years there may be a company from EU or China that would do great, but is not included in S&P500.
FTSE All-world will rebalance and include it, while S&P500 will not.
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?
Hello, is it just me or is it impossible to buy the Invesco All World on Trade Republic at this moment?
Honest question, what do you think about SPDR MSCI ACWI IMI ? I understand that you continue investing on ftse all world, but have you considered the spider ETF?
I havent yet started investing as i would like to be sure about my decision for a long term plan and I'm between these two indexes.
Vanguard and Invesco for the ftse all world, on your case means even diversifying with your provider choice. I think is a good choice.
It's a fantastic pick I would have no issues with, if it wasn't significantly less tax efficient in Austria compared to Vanguard and Invesco. We have a silly way of pre-taxing ETFs on a yearly basis based on what they do internally.
Its TER is only slightly higher at 0.17%, but you could argue that might be worth it if you're looking to include more small cap stocks.
@AngeloColomboFi why/how the Austria tax system makes things different among these etfs? Are not they doing the same things? (Acc., all world, units, etc.)
@@sim6084 replication method is different.
There is a video about taxes on ETFs. He talks there about Austria, too.
Hi Angelo! What about us who started our savings plan with Vanguard few months ago? Can I just swich to Invesco? Do I lose anything if I change my 1-etf savings plan portfolio from Vanguard to Invesco? How compounding works in this case? Does it start from zero, or it continues? Thanks for everything 🤗
You can just stop investing in the Vanguard ETF and start investing in the Invesco if you wish to. Do not sell the Vanguard, just let it sit and it will still grow overtime.
@@davidlguerr Thank you 🤗
You may have some transaction fees. But more "critical" can be the profit, which of course depends on the amount of money you invested into the Vanguard. Selling them might result in taxes you have to pay (directly) so you might get less money out than you have invested. So, it will depend on local tax laws.
Thank You for the videos! I am wondering how the Austrian taxes works - if you sell e.g. Vanguard All World "only within the broker account" and buy Invesco All World within the same broker account and you do not transfer the profit/money to your own Austrian bank account outside of the broker, do you still need to pay taxes from the profit even though you immediately buy another ETF? Is this considered a "realized profit"?
Yes, it still counts as you realizing the profits from a tax perspective
Good, quiet video!
For me the invesco stock is over 6.5k a piece, whilst I can buy the Vanguard ones for 125 a piece. So adding slowly over time is way easier with 125 euro stocks haha
I think you may have misread something there, Invesco's FWRA/FWIA (depending on the broker) is currently only 6.17€/share :)
Hi Angelo! In one of your previous videos you said that if you had not already bought the Vanguard FTSE All World you would have gone for the SPDR MSCI ACWI IMI because of its greater exposure to small caps as well as emerging markets. So I'm curious to know why you eventually picked the Invesco Ftse All World instead... Thank you!
Since you're the third one to ask already, forgive me for copy-pasting my response :)
It's a fantastic pick I would have no issues with, if it wasn't significantly less tax efficient in Austria compared to Vanguard and Invesco. We have a silly way of pre-taxing ETFs on a yearly basis based on what they do internally.
Its TER is only slightly higher at 0.17%, but you could argue that might be worth it if you're looking to include more small cap stocks.
@@AngeloColomboFi Great, thanks! I'm from Italy, so I guess all stock ETFs are taxed the same here, aren't they?
Yes, for you none of our silly Austrian tax laws matter :)
@@AngeloColomboFi I also started with 1-ETF on SPYI after watching that video of yours. I am based in Germany, is this Austrian pre-taxing similar to Germany "Vorabpauschale"? Thanks!
It's similar in that we also pre-pay a bit of tax on a yearly basis, but it sadly has zero to do with the performance of the ETF itself (which is what counts in Germany). What funds do internally matters in our case, as that's what the "pre-tax" is based on. In Germany that doesn't make a difference.
Bravissimo, così studio twice! :)
Hallo. Bin aus Ö und habe hauptsächlich Distr ETFs daher nutzt mir das Excel wenig. Ich würde es aber gerne nachbauen für meine Dis ETFs. Wenn ich den Invesco jetzt hernehme und bei der ÖKB in die Jahresmeldung reinschaue, sehe ich folgende Zahlen: Ausschüttungsgleiche Erträge 27,5% 0,0537 sowie Anzurechnende ausländische (Quellen)Steuer 0,0021. Wie komme ich von diesen Zahlen zu deinen Zahlen im Excel Spalten E und F. Vielen Dank und LG aus Wien - Robert.
ah ich glaub ich habs gefunden, versteckt sich offenbar im Reiter "Ertragssteuerliche Behandlung" Subpunkt Punkt 12 "Österreichische KESt, die durch Steuerabzug erhoben wird"
Actually wasn't a standard rule to invest in efts with a good 10 years record?
Or was that just stocks?
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
Thanks man i learn from you and the way you talk is simple for me ❤
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.
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.
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…
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!
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.
Hi, thanks for your video; it’s really helpful! I have a question about where to buy the FWRA ETF. When I search on Interactive Brokers, I see different options on exchanges like the Italian and London exchanges. I live in Germany and prefer to trade in euros, although I notice that the volume is higher in London. Could you please tell me which option you would recommend and what exchange code I should use?
Same question here.
Search for FWIA listed on XETRA / GETTEX stock exchange in EUR.
Hey Angelo,
Started investing in stocks a few months back via index ETFs after watching your videos. Thanks a lot for sharing the knowledge :)
Could you please explain how can you be sure that an ETF that covers 55% of the index is better than an ETF which is covering 84% of the same index ?
Like I said earlier, I am a newbie to investing and logically this new Invesco ETF should have more tracking error (in future at least)
I'm very happy to hear that!
There is no way to be sure yet, we only have one year worth of (promising) data (as in tracking difference) so far, so it's still a bit of a leap of faith based on Invesco's excellent track record and experience with other ETFs.
Its number of holdings is growing quickly, so I'm hoping it will be a lot closer to Vanguard's number of stocks in a year or so.
Also, I only explained my reasoning for adding Invesco's ETF into my arsenal, Vanguard's FTSE All-World still remains an excellent pick and I fully understand anyone that feels better continuing to invest into the latter for any number of reasons (fund size, age, long track record, number of stocks, etc.).
@@AngeloColomboFi Thanks a lot for the detailed explanation. Looking forward to future videos 😊
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
Did you also check the video I linked in Google sheets? It explains the differences a bit: th-cam.com/video/s_UK3n1PVHs/w-d-xo.htmlfeature=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).
Thank you for a clear explanation and honest opinion! You are my go-to TH-camr when it comes to investing in Austria! ☺️
Hej Angelo, why and when did you switch from degiro?
In August 2023
He explains it in a video
I Moved My ETF - Here's What Happened
Hi, I'm curious why you didn't choose, for example:
Amundi Prime All Country World UCITS ETF (IE003XJA0J9) whose TER is 0.07% , the SPDR MSCI ACWI UCITS ETF has reduced costs from 0.40% per year to 0.12% per year.
Both of them are less tax-efficient in Austria (this is irrelevant for any other country) and Amundi's track record has not been great the last 1-2 years (mentioned in the video)
I am confused on which stock exchange it makes sense to buy an ETF like FWRA. For example in Interactive Brokers it is available on 3 stock exchanges: London, Italy and Swiss. The ETF has a Fund currency in USD however I can buy it in USD on the London Stock Exchange, in Euro in the Italian Stock Exchange and in Swiss Francs on the Swiss Stock Exchange. My Home currency is Euro so I was gravitating towards the Italian Stock Exchange but then I realised these might be less liquid. What is your opinion about this?
Also, on IB fees differ greatly betweem London and Switzerland for instance. This also makes me perplexed vs easy and straightforward US ETFs market and fees
Minute 10:14 in the video has all the answers you're looking for :)
What you guys think of trading 212?
It is OK. There is a video about brokers.
2:26 Well then the tracking difference of the Vanguard ETF is better and worse for the Invesco ETF. The goal of an index fund is not to outperform the index but to track the performance of the underlying index. .01% tracking error is close to perfect.
Plus .07% lower expense ratio is nothing when looking at portfolio sizes of retail investors.
Angelo, i am seeing a difference in Daily performance between VWCE and FWRA.... With FWRA doing 0,10 better....could you explain?
Hi Angelo, ich bin auch aus Ö und verstehe nicht ganz was du mit dem Excel Sheet zur Besteuerung genau meinst? Ist es nicht einfach 27,5% KESt? Wonach kann ich zu dem Thema recherchieren?
Hey. Can you do a video on taxes? How are you managing taxes while investing through IBKR. Believe they don’t provide an auto generated tax certificate.
Have you seen this one already? th-cam.com/video/s_UK3n1PVHs/w-d-xo.html
What country are you based in?
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?