Author Topic: Popular ETFs (S&P, All world etc) with low administrative fees as an European in  (Read 594 times)

cipriandragoe

  • 5 O'Clock Shadow
  • *
  • Posts: 2
From what I have understood when you buy an ETF it has an yearly fee that is taken out from it's total value.
Correct me if I am wrong: I have 2 etfs worth 100 euro each with an administrative fee 0.1%. On 31 december I will pay in fees 0.2 euro ( 2 * 100 * 0.1) and my total portofolio value will be (assuming it has not grown/shrunk in value) 99.98 euro.

I want to invest in the following ETF types:
- All world
Best ETFs I have found so far: VWRL / IE00B3RBWM25 (0.25% admin fee) & LCWD / LU1781541179 (0.07% admin fee). Witch one do you recommend and why ?
- High dividend
Currently the best I have found is VHYL / IE00B8GKDB10 but it has 0.29% admin fee. Do you know of any other to recommend ?
- S&P 500
The best I have found so far is VG73 / IE00B3XXRP09 with 0.07 admin fee, do you know to recommend another ?

Thanks !

Andy R

  • Bristles
  • ***
  • Posts: 324
Yes you are correct, 0.1 means each year you lose
0.1 EURO for every 100
1 EURO for every 1000
1,000 EURO for every 1,000,000

VWRL is just about the best, yes, it contains developed and emerging all in one, which is very nice. It is missing small caps, but that's optional and you are already globally diversified without it.

It is the distributing one recommended at bogleheads for EU investors.

For countries where you can can delay tax on dividends being re-invested and have it treated as capital gains, accumulation funds are better and the option is generally IWDA/IEME, which is a little cheaper too and also mentioned in the above link.

I can not get to the Lyxor site. They have a damn popup asking me to check the box for terms and conditions and then click if I am a private investor or a professional, and when I check, it reloads and shows the god damn popup again, so I can't get to the site.

I do recall recently there was one for 0.12 ER, let me try find the thread for you. Ah here it is. I have not looked at it since I am not European, just heard it mentioned there.

Don't waste your time with high dividend stocks. The amount paid out as a dividend is arbitrary and has nothing to do with your total return, and by tilting to high dividend stocks, you are less diversified, bringing in concentration risk for no benefit.

No need for S&P500 as all and more is already in VWRL and IWDA.

Here is the bogleheads EU sub-forum, with some very knowledgeable people on there to help.
Also worth a search and a read of other posts.

cipriandragoe

  • 5 O'Clock Shadow
  • *
  • Posts: 2
Thank you very much for the reply and pointing out to leave the high dividents ETF because of low diversification.

Good extra resources in the links and thanks as well!