Vanguard Funds for European Investors

What are the Vanguard ETF Equivalents for European and UK Investors?

As a European or UK Investor you would have to slightly adjust the way to construct a two/three or four fund Portfolio using UCITS ETFs. Here is what you need to know:

  • 100% Vanguard – While Vanguard is relatively small in Europe you can still build a 100% Vanguard Index Fund Portfolio
  • Stick to ETFs – Investing through Vanguard ETFs is easier than Mutual Index Funds in Europe  
  • Research Brokers – You will need to find a European broker that gives access to Vanguard Funds. Keep an eye on transaction fees, custody fees, membership fees, service and currency exchange fees

While there are other things to consider when choosing an ETF, European investor may also opt for a 100% Vanguard Portfolio. And there is lots of reasons to back them including excellent reputation and unique ownership structure with low conflicts of interest

What is the European equivalent of VT ETF?

vanguard VT europe uk equivalent UCITS

Vanguard Total World Stock Index Fund is an ETF that gives you access to all  markets: 

  • Developed and Emerging
  • Large, Mid and Small Caps

It tracks the FTSE Global ALL CAP Index.

The closest European and UK UCITS Equivalent to VT ETF is 
Vanguard FTSE ALL-World ETF with accumulating Class in GBP and EUR. Distributing classes are available in GBP, EUR and CHF.
 

Note that Vanguard FTSE All World tracks the FTSE All World Index (it does exclude Small Caps) but performance is closely related

If you are looking for other options (e.g. including Small Caps), I have done an extensive analysis about World ETFs that give you all the convenience in Investing through a single Index Fund

What is the European equivalent of VTI ETF?

VTI UCITS etf equivalent for UK and European investors

The Vanguard Total Stock Market Index Fund is an ETF that gives you access to the entire US Market – Large, Mid and Small Caps. This includes about 3,500 companies.

It is a popular choice and gives you a larger coverage than just the S&P 500 that only tracks 500 Large Caps.

The closest European and UK UCITS Equivalent to VTI ETF is Vanguard S&P 500 UCITS ETF with accumulating Class in GBP and EUR. Distributing classes are available in GBP, EUR and CHF.
 

Note that this Vanguard ETF tracks the S&P 500 (it does exclude Small and Mid Caps). However, since both indices are weighted by market size the performance is very similar.

As a European or UK Investor you don’t necessarily need to control the allocation to US Large Caps Stocks. A more efficient way may be to split your portfolio into Developed and Emerging Markets ETFs. You can learn more about how the ETF World is divided through my analysis of ETF Benchmarks from two leading providers – MSCI and FTSE.

What is the European equivalent of VXUS ETF?

Vanguard Total International Stock Index Fund is an ETF used by American Investors that want to control exposure to all International markets ex-US. 

There is no European and UK UCITS Equivalent to VXUS ETF given that European and UK Portfolios are not US Centric.
 

As a European or UK Investor you don’t necessarily need to control the allocation to ex-US. Similar to the above, a more efficient way may be to split your portfolio into Developed and Emerging Markets ETFs. You can also add your local country benchmark e.g. FTSE 100 / CAC 40 or DAX 30 to overweight exposure to your local Equity Market. This approach is not without potential traps and biases. You may follow a Banker portfolio as described here if you want to control for your local market. 

What is the European equivalent of BND ETF?

BND UCITS equivalent for European and Uk Investors

The Vanguard Stock Bond Index Fund is an ETF that gives you access to the US Bond Market

It is a one stop solution to give you exposure to the entire Bond Market including Government Bonds, highly rated corporate Bonds and Mortgage Bonds. 

The BND ETF Tracks the Bloomberg Barclays US Aggregate Index

The closest European and UK UCITS Equivalent to BND ETF is Vanguard Global Aggregate Bond UCITS ETF (VAG ETF series including VAGE, VAGF, VAGS and VAGP) with accumulating Class in GBP and EUR. Distributing classes are also available in GBP and EUR.
 

Note that the VAG ETFs track the Bloomberg Barclays Global Aggregate Bond Index 

As European or UK Investor you want access to High Quality Bonds available in your currency. That’s why tracking a Global Aggregate Benchmark hedged to your currency is the best practice when building your portfolio. Alternatively, you can also invest in your local Government/High Quality corporates but this provides lower diversification while not necessarily higher returns.

If you want to learn more about the different Bond ETF Types (including the Vanguard ETFs listed above) and how to make it fit into your portfolio have a look at my analysis related to International Bond ETFs

How do I construct a Vanguard Portfolio?

how to construct a vanguard ETF portfolio using UCITS etfs

Choosing a 100% Vanguard Portfolio could be a great and cost-efficient way of Investing. But, remember that you have your individual circumstances that should dictate the way you invest. Some factors include:

  • Fund size and age
  • Currencies
  • Costs and Fees
  • Taxes

Click on the image above to understand how to construct a portfolio to reach Financial Independence. You may also want get familiar with key things that really matter when selecting a UCITS ETF.

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DISCLAIMER

All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries or suggestions expressed or implied herein, are for informational, entertainment or educational purposes only. The information provided on Bankeronwheels.com is general in nature only and does not constitute personal financial advice

Before acting on any information contained on Bankeronwheels.com you should consider the appropriateness of the information having regard to your objectives, financial situation and needs, and seek professional advice where appropriate

I only talk about products, services and companies I use / would use myself. Read the full disclaimer


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Stay safe & healthy, 

Raph

 

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