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 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.
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?
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.
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.
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?
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
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?
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
- Costs and Fees
My fundamental reviews of Equity ETFs and Asset Allocation include:
- How to build a Long Term Portfolio for Financial Independence - Guide to creating a Smart & Simple Long Term Portfolios with ETFs
- All you need to know about International ETFs - including Developed vs Emerging Markets, Small vs Mid/Large Caps and country allocations with List of Best ETFs
- The Simplest Equity Portfolio - Comparison of Best Total World Equity Index Trackers
- How to pick the perfect ETF? - Investing in Europe is not quite the same experience as in the US but this guide will solve all your issues. Spoiler - don't use TER! (applies to US Investors as well)
- Which Assets do I need in my Portfolio? - Clean up your portfolio from assets you don't need. High Performance and low maintenance Asset Allocation Strategies
- How do I benefit from a market crash? - In the long run no crash (including Japanese style) can derail you if you do it right
- How to Invest for Short goals? - Medium Term Investing is more risky than long term portfolio - pay attention to the right asset classes
My fundamental reviews include:
- Spectacular Market Crashes - how much can you lose? How long will it take to recover? How to take advantage of the next recession
- What about currency risk? Should I hedge my Portfolio? - Hedge or not to hedge? Guide to hedging currency risk in your Equity and Bond ETFs
- Should you buy Gold? - Is it necessary to have an asset that generates no yield? What really drives Gold price?
- International and European Bond ETFS - For Long Term International Investors Bonds are key to protect their Equity Portfolios
- US Bond ETF Guide - Comprehensive Review of Blend Bond Funds, Treasuries, Corporates, High Yield, Inflation Linked, Muni ETFs
- Top 3 Corporate Bond ETFs - If you want to increase income buy these ETFs to invest alongside the FED [for US Investors only]
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