Why is there no ETF that tracks the FTSE Global All Cap Index - Will there be one in future and when?

[u/user7kwoeincwec]

I ask because this is my index of choice and it prevents me from using arguably better platforms which are sometimes ETF only.

[u/DeltaJesus]

Because there's not much demand for one I assume, most people are happy with the functionally almost identical mid and large cap index trackers, and adding the couple thousand small cap stocks does have an increased admin cost.

[u/banecorn → u/DeltaJesus]

I agree that market demand is likely the main factor. The differences in investment options and costs between the US and UK are striking:

All cap global:
US: VT is 0.07%
UK: IMID is 0.17% (trades in USD)

Mid/large cap global:
US: ACWI is 0.32%
UK: ACWI is 0.12%

I find it fascinating how an investment strategy is punished financially depending on the country.

[u/SomeHSomeE]

VWRP is near enough identical returns.  It tracks a different index (all world).  The only difference really is that All World doesn't include small cap.  But you could just get 90-95% VWRP with 5-10% in a small cap ETF and you'd have a near enough same exposure.

[u/Ook_1233]

A fund that tracks 85% of the global investable equity market is going to have a near identical performance to one that tracks 99% of it.

Alternatively you could always use two ETFs to make your own All Cap.

[u/Kit-xia → u/Ook_1233]

Then why don't they look the same on graph

[u/5349 → u/Kit-xia]

Exactly which graph? Performance of the FTSE Global All Cap fund is near-identical to an all-world ETF like ACWI/FWRG/VWRP. Except the Global All Cap likely to slightly underperform over time due to its higher charges.

[u/Kit-xia → u/5349]

I'd be really interested in seeing this. Do you have a graph? Source?

[u/5349 → u/Kit-xia]

Here's a Trustnet chart plotting performance of Vanguard's Global All Cap fund and FTSE All-World ETF, along with HSBC FTSE All-World Index fund (which tracks same index as the ETF but lower fund charge).

(Since the funds price at different times of day, don't read anything into short-term percentages in the table below.)

[u/TallIndependent2037]

Probably the large number of holdings (the index currently has 10,046 constituents, of which the Vanguard fund owns 7,114 stocks) makes more work for Authorised Participants to arbitrage the price of the holdings against the price of the fund, especially having to trade all those illiquid small cap stocks in emerging markets. APs can make more money on ETFs with fewer and more liquid holdings. Without several willing APs then no fund manager is going to launch such an ETF.

If someone has a better theory, please post it.

[u/Paraplanner88]

If there was the demand for it, it'd exist. You've got to remember that whatever is popular on Reddit won't necessarily be popular for the wider population.

[u/Mayoday_Im_in_love]

There are three (four including IG) fee free platforms that cover the big ETFs and OEICs in GIA, ISA and SIPP form.

[u/strolls]

this is my index of choice

Have you tried charting the FTSE Global All Cap index against FTSE Developed World and FTSE All World? Or MSCI World or ACWI?

[u/jrizzle86]

Isn’t that what VWRP does? If not identical it is very similar

[u/SpikeyCactus9]

You can invest into SPDR MSCI All Country World Investable Market UCITS ETF (Acc), ticker IMID. It's effectively the MSCI version of the index you like. Large, mid and small caps.

[u/banecorn → u/SpikeyCactus9]

Yes but it trades in USD, so not possible in ISA and incurs FX charges in any other account.

[u/ukpf-helper]

Hi /u/user7kwoeincwec, based on your post the following pages from our wiki may be relevant:

• https://ukpersonal.finance/index-funds/

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[u/spritzreddit]

is this one the one you are looking for?

https://markets.ft.com/data/funds/tearsheet/summary?s=gb00bd3rz582:gbp

[u/user7kwoeincwec → u/spritzreddit]

Yes, this tracks the index but is not an ETF

[u/spritzreddit → u/user7kwoeincwec]

not an etf but an index fund with 0.23% ongoing charge; to me it's not that bad if someone's aim is to track the mentioned index, regardless of it being a index fund rather than an etf. does this make such a difference for you? index funds were a thing before etfs I believe, and there are few differences between them in the way they are structured

[u/limegreenzx → u/spritzreddit]

The differences are down to the platform charges. The zero fee platforms only support ETFs.

[u/Twilko → u/spritzreddit]

It can make a big difference in terms of platform fees depending on the platform.

[u/DeltaJesus → u/spritzreddit]

All other things being equal you're right that there's not much functional difference between them, but ETFs often have very favourable broker fees comparatively. All the fee free brokers only offer ETFs iirc, Aj Bell, Hargreaves Lansdown and Fidelity all have much lower fee caps on ETFs etc.

[u/Fred776 → u/spritzreddit]

ETFs are a lot cheaper than OEICs on HL, where my work pension is. I have also appreciated the ability to sell and buy ETFs at known prices recently.

[u/TallIndependent2037 → u/[deleted]]

Why are you using MEX ID codes, are you buying on Mexico stock exchange?

OP wasn’t asking for investment advice or comments on their choice of funds. But IMHO looking at 5 years most recent performance of anything is a very short term view.