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There is no need to work until to you are 65+ in order to access Superannuation benefits and retire. Spreads are particularly significant for traders, or for short term holders. Turnover comes when the underlying ETFs get rebalanced. Investors could not really go wrong with either of them. Both do so by tracking versions of the MSCI World index, which is perhaps the most famous global share market gauge. If it's just time since inception then that's understandable. Are there perhaps some tax considerations (foreign tax credits?) And looking at the end result, iShares and Vanguard’s dividend yields are very similar. By Because iShares’ Australian and Hong Kong staff didn’t have to build IWLD from scratch, and because they can piggyback off existing popular iShares ETFs, they can provide IWLD at an ultra-low cost. David Tuckwell. The fees of the underlying iShares ETFs are then rebated, so there is no double dipping on iShares’ part.

How IWLD's creation baskets are optimised for tracking (wonkish, feel free to skip). At that level the difference is negligible especially since people like Vanguard as a company and the fact that IWLD includes Australia and Vanguard doesn't. Why is VGS so popular?

We asked iShares about this. Most ETF providers are sure to tuck this cash away in futures when certain thresholds are hit. That makes sense. Here, however, VGS has an advantage again. This tax inefficiency would, on the surface, suggest VGS is a better product.

IWLD only just reduced their fees a couple of weeks ago. Vanguard MSCI Index International Shares ETF, VGS has a higher management fee, but lower spreads and internal costs. VGS only includes large and medium-sized global companies. What does the new tech bubble and COVID-19 lockdown imply for value investors? The approach means that the US takes up a two-third majority of both VGS and IWLD’s assets. Personally, I lean towards VGS, just because I like the simplicity and do not have to second guess any of the tax stuff. Is there a catch? New comments cannot be posted and votes cannot be cast, More posts from the fiaustralia community. Thank you for your insights - this is something I will check with iShares (Blackrock). At 35? Now I’m not fully sure how this works in any detail. Why not retire at 45? Australia's best ethical ETF: BetaShares ETHI, Vanguard's VESG, or VanEck's ESGI? Because there is only one ETF with VGS, there is only one place cash drag occurs. As it seems that iShares/Blackrock substantially reduced the fee I think IWLD will become more popular. - IWLD currently quite a bit cheaper since they dropped the price a few weeks ago, - IWLD also contains small caps for both US and ex-US so this is a nice plus over VGS, - IWLD misses US mid caps (which is odd, but not necessarily bad), - IWLD although Australian domiciled so no US estate tax problems, still contains non-Australian-domiciled funds within it instead of holding each of the underlying stocks directly, meaning, A) You don't get the tiny bit of franking credits (probably insignificant). This cash acts as a drag on performance in a rising market (and creates tracking error, discussed more below). MER is 0.09% vs 0.18%, which realistically goes up by 0.02% to account for the loss in franking credits for the 2.5% Aussie exposure in that ETF. Then, as the fund is US-domiciled, it cops US taxes too. And as Australia only makes up 2% of the global GDP, its crucial for investors to go overseas. Press question mark to learn the rest of the keyboard shortcuts. IWLD has the advantages of including smaller companies, which have historically outperformed, and a lower management fee. The portfolio I ended up settling for can be seen below: I just want to make sure that I have made the right choice here regarding world exposure - to me, even after heaps of research, it seems like IWLD is a superior ETF to VGS - please challenge me on this one. It isn't the same outside the US, but their reputation still holds. Hey everyone, I've been a silent observer of this forum and recently pulled the trigger and purchased my first ETFs with the goal of reaching Financial Independence within 7 years (my current savings rate is just under 70%). track a market index rather than taking bets on individual companies It is built as a fund of funds (FoF), meaning it buys other iShares ETFs – all of which are domiciled in North America – and does not directly hold any shares. MER is really attractive for IWLD but VGS is all I ever hear about. I think I once read that hedged ETFs do not perform as well in the long term as unhedged ones - do you think that dollar-cost-averaging my savings into unhedged ETFs will be sufficient to offset any currency risks?

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