VWCE, an ETF launched by Vanguard in 2019, has been the talk of investors lately.
This ETF optimally follows the FTSE All World index and includes more than 3500 mid and large cap companies in around 50 countries, developed and emerging. The scope of this index is very relevant, claiming to cover more than 95% of the global stock market. At the moment, Vanguard is the only company that appears to follow the FTSE All World Index. VWCE is often seen as the rival of the iShares IWDA ETF as both have vast global diversification. However, IWDA only includes developed countries, having to be complemented with another ETF that only covers emerging countries, for example the IWDA+EIMI combination can cover the global market. Thus, the great advantage of the Vanguard ETF is that with just this asset, it is possible to obtain “almost” total global diversification.
Another interesting factor is the fact that VWCE is available in two of the most used online brokers in Europe with free commissions, if investors comply with a set of rules already exemplified in these two articles: Degiro, XTB.
Analyzing the diversification of VWCE, there is greater exposure to the information technology sector, but overall this ETF is comprehensive, as it diversifies into other areas with similar percentages.
Evaluating the list of companies shows that around 14% of VWCE is represented by its 10 largest companies, a normal and acceptable value given that more than 3500 holdings make up this ETF. The list is made up of very recognized big caps, such as Apple, Microsoft or Amazon. The high geographic exposure of its Top 10 in the USA is notable, only two of the companies are headquartered outside that country, in this case TSCO in Taiwan and Tencent in Hong Kong. Analyzing the stock market results of this TOP 10 individually, a growth trend is evident in all companies in the short and, mainly, in the long term.
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