VANG FTSE AW USDD

FTSE All-World covers large and mid-cap companies across both developed and emerging markets — roughly 4,000 holdings in about 50 countries, in one fund.

This fund holds roughly 3,700 companies and has been running for about 14 years, with USD as its base currency. That base currency is an accounting detail, not a risk you can avoid by buying a euro line — the underlying companies earn in their own currencies either way.

The fund holds a representative subset rather than every constituent — normal for indices with thousands of members, where buying the smallest names outright would cost more than the tracking error it saves.

It still excludes small caps, which are a few percent of global market value. The practical appeal is that it needs no second fund and no rebalancing between developed and emerging.

One other fund on this site tracks the same index, so they hold substantially the same companies. What separates them is cost, wrapper and distribution policy — not what you own.

On cost this fund ranks 1 of 2 — the cheapest of the group, by ongoing charge. By assets it is number 2 of 2.

Holding two of these together is duplication rather than diversification: near-identical holdings, twice the transaction costs, and two positions to rebalance instead of one.

The ongoing charge of 0.22% is €22.00 per year on a €10,000 holding. It is taken inside the fund, so it never appears on a statement — which is exactly why it goes unnoticed for years at a time.

The more honest figure is the tracking difference: 0.04% — what the fund has actually cost against its index, after securities lending income and withholding-tax treatment. It can be smaller than the headline charge, and occasionally negative.

At this size the fund is among the largest in its category in Europe, which in practice means tight spreads and effectively no closure risk.

DEGIRO charges 0.1% whenever a trade settles in a non-euro currency. Buying the euro line (VWRL NA) on Euronext Amsterdam or XETRA avoids it entirely. The fund’s own base currency is irrelevant here — only the currency of the line you trade counts.

The same fund is a different proposition in each country, and the differences are large enough to change which share class you should own.

Netherlands

Box 3 taxes an assumed return on your wealth, not what this fund actually pays or gains: 6.00% deemed return taxed at 36%, above a tax-free threshold of €59,357. Accumulating and distributing funds are treated identically, so the choice between them is about reinvestment friction, not tax.

Germany

As a distributing fund each payout is taxed on receipt at Abgeltungsteuer, with 30% Teilfreistellung on an equity fund and the Sparer-Pauschbetrag applied first. No Vorabpauschale arises while the distributions cover it.

Belgium

Belgian stock-exchange tax (TOB) applies per side at 0.12% here — the low band. Reynders capital-gains tax does not apply, as the fund is not bond-heavy.

Italy

Imposta di bollo takes 0.20% of the holding every year, with no threshold and no exemption. Capital gains are taxed at 26%, and each distribution is taxed at 26% as it is paid, so the charge lands every year rather than at sale.

Does VANG FTSE AW USDD pay dividends?

Yes. VANG FTSE AW USDD is a distributing fund, so dividends are paid out to you in cash. Reinvesting them yourself means paying your broker's commission each time.

How much does VANG FTSE AW USDD cost to hold?

The ongoing charge is 0.22% per year, which is €22.00 a year on a €10,000 holding, deducted inside the fund rather than billed to you. Its measured tracking difference is 0.04%, which is what the fund has actually cost against its index — a more honest number than the headline charge.

Is VANG FTSE AW USDD free to buy on DEGIRO?

It is in DEGIRO's Core Selection, so the first purchase of the month in each Core fund carries no transaction fee under their published terms. The €1 handling fee and any currency conversion still apply.

Which listing of VANG FTSE AW USDD should I buy to avoid the currency fee?

Buy the euro line (VWRL NA) on Euronext Amsterdam or XETRA. DEGIRO charges 0.1% when a trade settles in a non-euro currency, and the fund's own base currency (USD) is irrelevant to that — only the currency of the listing you trade matters.

What is the difference between VANG FTSE AW USDD and the other funds on the same index?

One other fund here tracks the same index, so they hold substantially the same companies and their returns differ mainly by cost and wrapper rather than by what they own. The lowest ongoing charge among them is 0.22% (VWRA). The choices that actually matter are accumulating versus distributing, the fee, fund size, and whether your broker charges you to buy it.

Why is VANG FTSE AW USDD domiciled in Ireland?

Ireland's tax treaty with the United States reduces withholding tax on US dividends to 15% for a qualifying fund, against 30% without it. Since US companies are the largest block in most global and developed indices, that treaty rate is worth more to a European investor than a domestic domicile would be — it is the single biggest reason nearly every UCITS ETF sold in Europe is Irish.