{"id":1352,"date":"2024-04-04T13:10:27","date_gmt":"2024-04-04T13:10:27","guid":{"rendered":"https:\/\/aimingforfire.com\/?p=1352"},"modified":"2024-04-11T16:01:42","modified_gmt":"2024-04-11T16:01:42","slug":"vwrp-vs-global-all-cap-whats-the-difference","status":"publish","type":"post","link":"https:\/\/aimingforfire.com\/vwrp-vs-global-all-cap-whats-the-difference\/","title":{"rendered":"VWRP vs Global All Cap: What\u2019s The Difference?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"intro\"><strong>Intro<\/strong><\/h2>\n\n\n\n<p>Having recently switched from the Global All Cap to VWRP (FTSE All-World) due to the fee structure at my new broker. I thought I\u2019d dig into the detailed difference for anyone else looking at which fund is right for them.<\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li ><a href=\"#intro\">Intro<\/a><\/li><li ><a href=\"#what-is-vwrp\">What is VWRP?<\/a><\/li><li ><a href=\"#what-is-the-global-all-cap\">What is the Global All Cap?<\/a><\/li><li ><a href=\"#accumulation-and-income-variants\">Accumulation and Income Variants<\/a><ul><li ><a href=\"#for-clarity\">For clarity:<\/a><\/li><\/ul><\/li><li ><a href=\"#vwrp-vs-global-all-cap-summary\">VWRP vs Global All Cap Summary<\/a><\/li><li ><a href=\"#diversification\">Diversification<\/a><ul><li ><a href=\"#vwrp-vs-global-all-cap-geography-market-cap-weightings\">VWRP vs Global All Cap &#8211; Geography &amp; Market Cap Weightings<\/a><\/li><li ><a href=\"#vwrp-vs-global-all-cap-sector-holdings\">VWRP vs Global All Cap &#8211; Sector Holdings<\/a><\/li><\/ul><\/li><li ><a href=\"#vwrp-vs-global-all-cap-top-10-holdings\">VWRP vs Global All Cap &#8211; Top10 Holdings<\/a><\/li><li ><a href=\"#minimum-investment\">Minimum Investment<\/a><\/li><li ><a href=\"#expense-ratio\">Expense Ratio<\/a><\/li><li ><a href=\"#trading-and-liquidity\">Trading and Liquidity<\/a><\/li><li ><a href=\"#performance-dividends\">Performance &amp; Dividends<\/a><ul><li ><a href=\"#trailing-returns\">Trailing Returns<\/a><\/li><li ><a href=\"#dividend-yield\">Dividend Yield<\/a><\/li><\/ul><\/li><li ><a href=\"#vwrp-vs-global-all-cap-which-should-i-choose\">VWRP vs Global All Cap: Which should I choose?<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-vwrp\"><strong>What is VWRP?<\/strong><\/h2>\n\n\n\n<p>To give it its full name, the Vanguard FTSE All-World UCITS ETF is an exchange-traded fund (ETF) that tracks the FTSE All-World Index. This means it comprises Large and Mid-cap stocks in Developed and Emerging markets. It does not incorporate Small Cap stocks (the key difference from the Global All Cap).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-the-global-all-cap\"><strong>What is the Global All Cap?<\/strong><\/h2>\n\n\n\n<p>The Vanguard FTSE Global All Cap Index Fund is a Fund that tracks the FTSE Global All Cap Index. It comprises Large, Mid, and <strong>Small-cap<\/strong> stocks in Developed and Emerging markets.<\/p>\n\n\n\n<p><em>If you aren&#8217;t sure of the difference between an ETF vs a Fund, I have written a <a href=\"https:\/\/aimingforfire.com\/etf-vs-fund\/\" target=\"_blank\" data-type=\"post\" data-id=\"1380\" rel=\"noreferrer noopener\">quick explainer<\/a> for you.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"accumulation-and-income-variants\"><strong>Accumulation and Income Variants<\/strong><\/h2>\n\n\n\n<p>Both the FTSE All-World UCITS ETF and the Global All Cap come in income\/distribution and accumulation variants. In terms of the data in this post, there is no difference between either variant.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"for-clarity\"><strong>For clarity:<\/strong><\/h3>\n\n\n\n<p>VWRL = Vanguard FTSE All-World UCITS ETF Income<\/p>\n\n\n\n<p>VWRP = Vanguard FTSE All-World UCITS ETF Accumulation<\/p>\n\n\n\n<p>VFGAIGI = Vanguard FTSE Global All Cap Index Fund Income<\/p>\n\n\n\n<p>VAFTGAG = Vanguard FTSE Global All Cap Index Fund Accumulation<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"vwrp-vs-global-all-cap-summary\"><strong>VWRP vs Global All Cap Summary<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><strong>VWRP<\/strong><\/td><td><strong>Global All Cap<\/strong><\/td><\/tr><tr><td>Type<\/td><td>ETF<\/td><td>Fund<\/td><\/tr><tr><td>Index Tracked<\/td><td>FTSE All-World Index<\/td><td>FTSE Global All Cap Index<\/td><\/tr><tr><td>Start Date<\/td><td>22 May 2012<\/td><td>8 Nov 2016<\/td><\/tr><tr><td>Number of Holdings<\/td><td>3,672<\/td><td>7,129<\/td><\/tr><tr><td>Expense Ratio (TER)<\/td><td>0.22%<\/td><td>0.23%<\/td><\/tr><tr><td>Fund Size<\/td><td>\u00a310.9 Billion<\/td><td>\u00a33.5 Billion<\/td><\/tr><tr><td>Performance (2023)<\/td><td>22.03%<\/td><td>14.72%<\/td><\/tr><tr><td>Dividend Yield<\/td><td>1.56%<\/td><td>1.61%<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><em>Source: wherever possible throughout this article I have taken the data directly from the <\/em><a href=\"https:\/\/www.vanguardinvestor.co.uk\/\" target=\"_blank\" rel=\"noopener\"><em>https:\/\/www.<\/em><\/a><em><a href=\"https:\/\/www.vanguardinvestor.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">vanguardinvestor<\/a><\/em><a href=\"https:\/\/www.vanguardinvestor.co.uk\/\" target=\"_blank\" rel=\"noopener\"><em>.co.uk\/<\/em><\/a><em> website<\/em><\/figcaption><\/figure>\n\n\n\n<p>VWRP\/L and the Global All Cap track two different indices and one is an ETF and the other a Fund.<\/p>\n\n\n\n<p>VWRP\/L tracks the FTSE All-World Index, which comprises almost 50 countries in developed and emerging markets. It\u2019s in the top 10 of the largest ETFs in the UK by fund size.<\/p>\n\n\n\n<p>The Vanguard FTSE Global All Cap Index Fund also tracks developed and emerging markets but includes small-cap stocks, giving a much broader holding in terms of the number of companies held.<\/p>\n\n\n\n<p>You can see the difference in diversification below.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"diversification\"><strong>Diversification<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"vwrp-vs-global-all-cap-geography-market-cap-weightings\"><strong>VWRP vs Global All Cap &#8211; Geography &amp; Market Cap Weightings<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><strong>VWRP<\/strong><\/td><td><strong>Global All Cap<\/strong><\/td><td><strong>Difference<\/strong><\/td><\/tr><tr><td>Developed Markets<\/td><td>92.52%<\/td><td>92.59%<\/td><td>-0.07%<\/td><\/tr><tr><td>Emerging Markets<\/td><td>7.48%<\/td><td>7.41%<\/td><td>0.07%<\/td><\/tr><tr><td>Large Cap<\/td><td>82%<\/td><td>74%<\/td><td>8%<\/td><\/tr><tr><td>Mid Cap<\/td><td>18%<\/td><td>20%<\/td><td>-2%<\/td><\/tr><tr><td>Small Cap<\/td><td>0%<\/td><td>5%<\/td><td>-5%<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><em>Source: <\/em><a href=\"https:\/\/www.fidelity.co.uk\/\" target=\"_blank\" rel=\"noopener\"><em>https:\/\/www.<\/em><\/a><em><a href=\"https:\/\/www.fidelity.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">fidelity<\/a><\/em><a href=\"https:\/\/www.fidelity.co.uk\/\" target=\"_blank\" rel=\"noopener\"><em>.co.uk\/<\/em><\/a><em>&nbsp;<\/em><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>VWRP and the Global All Cap are very similar in terms of diversification with the notable standout of small-cap, which tilts the Global All Cap slightly away from Large Cap in comparison.<\/p>\n\n\n\n<p>Both funds have a 62% allocation to the US.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"vwrp-vs-global-all-cap-sector-holdings\"><strong>VWRP vs Global All Cap &#8211; Sector Holdings<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Sector<\/strong><\/td><td><strong>VWRP<\/strong><\/td><td><strong>Global All Cap<\/strong><\/td><\/tr><tr><td>Technology<\/td><td>26.30%<\/td><td>25.10%<\/td><\/tr><tr><td>Financials<\/td><td>14.30%<\/td><td>14.20%<\/td><\/tr><tr><td>Consumer Discretionary<\/td><td>14.20%<\/td><td>14.20%<\/td><\/tr><tr><td>Industrials<\/td><td>13.20%<\/td><td>14.00%<\/td><\/tr><tr><td>Health Care<\/td><td>10.90%<\/td><td>10.70%<\/td><\/tr><tr><td>Consumer Staples<\/td><td>5.40%<\/td><td>5.30%<\/td><\/tr><tr><td>Energy<\/td><td>4.50%<\/td><td>4.60%<\/td><\/tr><tr><td>Basic Materials<\/td><td>3.40%<\/td><td>3.60%<\/td><\/tr><tr><td>Telecommunications<\/td><td>2.80%<\/td><td>2.70%<\/td><\/tr><tr><td>Utilities<\/td><td>2.70%<\/td><td>2.70%<\/td><\/tr><tr><td>Real Estate<\/td><td>2.30%<\/td><td>2.80%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>As you\u2019d expect VWRP\/L and the Global All Cap are almost identical in terms of their sector weightings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"vwrp-vs-global-all-cap-top-10-holdings\"><strong>VWRP vs Global All Cap &#8211; Top10 Holdings<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Company<\/strong><\/td><td><strong>VWRP<\/strong><\/td><td><strong>Global All Cap<\/strong><\/td><\/tr><tr><td>Microsoft Corp.<\/td><td>4.22%<\/td><td>3.77%<\/td><\/tr><tr><td>Apple Inc.<\/td><td>3.66%<\/td><td>3.27%<\/td><\/tr><tr><td>NVIDIA Corp.<\/td><td>2.58%<\/td><td>2.30%<\/td><\/tr><tr><td>Amazon.com Inc.<\/td><td>2.19%<\/td><td>1.95%<\/td><\/tr><tr><td>Facebook Inc. Class A<\/td><td>1.49%<\/td><td>1.33%<\/td><\/tr><tr><td>Alphabet Inc. Class A<\/td><td>1.13%<\/td><td>1.01%<\/td><\/tr><tr><td>Alphabet Inc. Class C<\/td><td>0.96%<\/td><td>0.86%<\/td><\/tr><tr><td>Eli Lilly &amp; Co.<\/td><td>0.87%<\/td><td>0.78%<\/td><\/tr><tr><td>Broadcom Inc.<\/td><td>0.77%<\/td><td>0.69%<\/td><\/tr><tr><td>Tesla Inc.<\/td><td>0.77%<\/td><td>0.68%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The top 10 holdings in both VWRP and the Global All Cap are the same but the Global All Cap has slightly less weighting to each (because it holds a much larger number of stocks).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"minimum-investment\"><strong>Minimum Investment<\/strong><\/h2>\n\n\n\n<p>Something to bear in mind if you are investing a small amount each month (&lt;\u00a3200 ish) is that both these funds have a stock\/unit price that is over \u00a3100. So if your platform does not support \u2018fractional ETF\u2019 purchases (most don\u2019t due to the concept only recently being approved by the government) then you might be better with the Global All Cap.<\/p>\n\n\n\n<p>Because the Global All Cap is a Fund rather than an ETF then you don\u2019t need to worry about how much 1 unit costs because you\u2019ll get allocated a fraction of a unit where required.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"expense-ratio\"><strong>Expense Ratio<\/strong><\/h2>\n\n\n\n<p>There is very little difference in cost (TER) between VWRL or VWRP and the Global All Cap fund. The TER is 0.22% and 0.23% respectively.<\/p>\n\n\n\n<p>It\u2019s worth mentioning that with VWRL\/VWRP you also have to factor in the spread (the difference between Bid &amp; Offer price) but because it is such a liquid share that spread is insignificant at circa 0.05%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"trading-and-liquidity\"><strong>Trading and Liquidity<\/strong><\/h2>\n\n\n\n<p>Both funds are highly liquid due to their size, but this is where the real-world difference between an ETF and a Fund will come into play.<\/p>\n\n\n\n<p>As VWRP\/L is an ETF it trades like any other share. The offer price you see on your broker&#8217;s screen is the price you\u2019ll pay i.e. it\u2019s real-time and your trade will happen almost instantly. So if you are selling, the proceeds will be available in your account the same day.<\/p>\n\n\n\n<p>Because the Global All Cap is a Fund things work very differently. You won\u2019t know your transaction price until the day after you initiated it, and if you sell you\u2019ll have to wait a couple of days for the proceeds to appear in your account.<\/p>\n\n\n\n<p>If you\u2019re in the accumulation phase of FIRE and investing monthly then all of this makes little difference but it can be a little annoying to wait a few days for your money if you are selling units.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"performance-dividends\"><strong>Performance &amp; Dividends<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"569\" src=\"https:\/\/aimingforfire.com\/wp-content\/uploads\/2024\/04\/VWRL-vs-Global-All-Cap-1024x569.webp\" alt=\"\" class=\"wp-image-1356\" srcset=\"https:\/\/aimingforfire.com\/wp-content\/uploads\/2024\/04\/VWRL-vs-Global-All-Cap-1024x569.webp 1024w, https:\/\/aimingforfire.com\/wp-content\/uploads\/2024\/04\/VWRL-vs-Global-All-Cap-300x167.webp 300w, https:\/\/aimingforfire.com\/wp-content\/uploads\/2024\/04\/VWRL-vs-Global-All-Cap-768x427.webp 768w, https:\/\/aimingforfire.com\/wp-content\/uploads\/2024\/04\/VWRL-vs-Global-All-Cap.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Source: <\/em><a href=\"https:\/\/www.fidelity.co.uk\/\" target=\"_blank\" rel=\"noopener\"><em>https:\/\/www.<\/em><\/a><em><a href=\"https:\/\/www.fidelity.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">fidelity<\/a><\/em><a href=\"https:\/\/www.fidelity.co.uk\/\" target=\"_blank\" rel=\"noopener\"><em>.co.uk\/<\/em><\/a><em>&nbsp;<\/em><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"trailing-returns\"><strong>Trailing Returns<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td colspan=\"4\"><strong>Trailing Returns<\/strong><\/td><\/tr><tr><td><strong>Year<\/strong><\/td><td><strong>VWR<\/strong>P<\/td><td><strong>Global All Cap<\/strong><\/td><td><strong>Difference<\/strong><\/td><\/tr><tr><td>3 years<\/td><td>9.49%<\/td><td>8.86%<\/td><td>0.63%<\/td><\/tr><tr><td>5 years<\/td><td>11.25%<\/td><td>10.88%<\/td><td>0.37%<\/td><\/tr><tr><td>10 years<\/td><td>11.45%<\/td><td>N\/A<\/td><td><\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\"><em>Source: <a href=\"https:\/\/www.morningstar.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.morningstar.co.uk\/<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Unfortunately, we don\u2019t have 10 full years of performance data for the Global All Cap Fund as it hasn\u2019t been around that long. But over a 3 and 5 year period the performance between VWRP\/L and the Global All Cap is very similar with VWRP having a slight edge (because small-cap has underperformed in recent years).<\/p>\n\n\n\n<p>I would expect the performance of both funds to be very similar going forward due to how similar they are in terms of holdings, geographic distribution etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"dividend-yield\"><strong>Dividend Yield<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Year<\/strong><\/td><td><strong>VWRP<\/strong><\/td><td><strong>Global All Cap<\/strong><\/td><td><strong>Difference<\/strong><\/td><\/tr><tr><td>2023<\/td><td>2.20%<\/td><td>2.07%<\/td><td>0.13%<\/td><\/tr><tr><td>2022<\/td><td>1.65%<\/td><td>1.64%<\/td><td>0.01%<\/td><\/tr><tr><td>2021<\/td><td>1.82%<\/td><td>1.56%<\/td><td>0.26%<\/td><\/tr><tr><td>2020<\/td><td>2.07%<\/td><td>1.79%<\/td><td>0.28%<\/td><\/tr><tr><td>2019<\/td><td>2.55%<\/td><td>2.33%<\/td><td>0.22%<\/td><\/tr><tr><td>2018<\/td><td>1.87%<\/td><td>1.80%<\/td><td>0.07%<\/td><\/tr><tr><td>2017<\/td><td>2.43%<\/td><td>1.97%<\/td><td>0.46%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>You probably aren\u2019t buying either of these funds for their dividend yield (there are funds much better suited if that\u2019s what you are after) but the yield is pretty much identical between the two.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"vwrp-vs-global-all-cap-which-should-i-choose\"><strong>VWRP vs Global All Cap: Which should I choose?<\/strong><\/h2>\n\n\n\n<p>Both funds are so similar that there isn\u2019t much to choose between them and both are great funds to buy for FIRE and offer a true single fund portfolio where you don\u2019t need to hold anything else.<\/p>\n\n\n\n<p>That said there are some factors that would drive my decision as to which fund to hold:<\/p>\n\n\n\n<p>If you are using a trading platform such as Hargreaves Lansdown or Fidelity, who charge significantly more for holding Funds over ETFs or your platform doesn\u2019t offer Funds at all (Freetrade, Trading 212 etc.) then go with VWRP (or VWRL if you want the income version).<\/p>\n\n\n\n<p>It was exactly because of this reason i.e. <a href=\"https:\/\/aimingforfire.com\/transferring-investment-accounts\/\" target=\"_blank\" data-type=\"post\" data-id=\"599\" rel=\"noreferrer noopener\">moving to Hargreaves Lansdown<\/a> that I sold all of my Global All Cap holding and moved it to the Vanguard FTSE All-World ETF.<\/p>\n\n\n\n<p>If your trading platform does not charge more for holding funds (Interactive Investor, iWeb etc.) and you want a truly diversified simple one fund portfolio that includes small cap. Then the Global All Cap Fund is the one for you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p class=\"read-more-container\"><a title=\"VWRP vs Global All Cap: What\u2019s The Difference?\" class=\"read-more button\" href=\"https:\/\/aimingforfire.com\/vwrp-vs-global-all-cap-whats-the-difference\/#more-1352\">Read more &gt;<span class=\"screen-reader-text\">VWRP vs Global All Cap: What\u2019s The Difference?<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":1356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[8],"tags":[],"_links":{"self":[{"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/posts\/1352"}],"collection":[{"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/comments?post=1352"}],"version-history":[{"count":10,"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/posts\/1352\/revisions"}],"predecessor-version":[{"id":1390,"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/posts\/1352\/revisions\/1390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/media\/1356"}],"wp:attachment":[{"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/media?parent=1352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/categories?post=1352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aimingforfire.com\/wp-json\/wp\/v2\/tags?post=1352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}