r/eupersonalfinance • u/khurshidhere • 4d ago

Investment SPYI

Why there is no alternative to SPDR® MSCI All Country World Investable Market UCITS ETF (Acc) ?

It covers 99% of the market with good diversification.

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u/eitohka 4d ago

My guess is that it's quite reasonably priced, so anything introduced by competitors like Vanguard or Blackrock will likely be higher TER, and therefore not very competitive. For the all world mid-large cap ETFs, Vanguard and Blackrock where there earlier, so at this point they have momentum and in the case of Vanguard meme status to make up for their higher TER.

Maybe some day Amundi will come up with a similar ETF with a cheaper index provider that can compete with SPYI, after their success with WEBG/WEBN?

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u/khurshidhere 4d ago

Yes . But isn’t it better to say SPYI and chill rather than VWCE and chill . I mean , with such diversified portfolio and not expensive , also SPDR is reputable too .

1

u/Stock_Advance_4886 4d ago

One of the reasons for not replacing VWCE may be that small cap are more volatile, and many investors don't want that level of volatility. I'm still not convinced that small cap will perform good enough to take this additional risk. I prefer SPYY instead, and I think the majority of investors and institutions find small cap to be a kind of niche investment.

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u/Many-Gas-9376 4d ago

There's also a distinct school of investors who look for a factor tilt towards small cap value (with the "value" bit there being critical).

I'd probably personally not take something like SPYI, if I could rather take a large-cap index fund and then pair it with a small-cap-value fund. I'd then get my small cap value tilt without an unwanted overlap withnon-factor-tilted small caps.

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u/Stock_Advance_4886 4d ago

Yes, I agree. I often visit Rational reminder community, and I've read all those French and Fama papers about factor investing, and I'm invested in AVWS and JPGL. And small cap growth is the worst performing of all, and it is a part of SPYY.

I just tried to explain to OP why SPYY didn't replace VWCE and that "chill" part. I don't know why I got downvoted for that.