Vanguard Global All-Cap ETF hits $3 billion in six weeks
Vanguard's new FTSE Global All Cap ETF attracted $3 billion in inflows within its first six weeks, becoming one of the fastest-growing funds in Europe. The fund offers broad diversification at a low fee, though Vanguard advises against switching existing positions.
Vanguard launched the FTSE Global All Cap ETF in mid-August, which attracted $3 billion in inflows within the first six weeks. The fund tracks approximately 6,500 stocks across developed and emerging markets, including small caps, with a fee of 0.07% per annum. It became one of the fastest ETFs in Europe to reach $1 billion in assets, excluding initial capital and share class conversions. Daily trading volume exceeds $100 million, and the tracking error is approximately two basis points. Vanguard’s weighted average expense ratio in Europe is currently between 0.10% and 0.13%, compared to 0.07% in the US. The fund’s top 10 holdings constitute 23% of the index, while the smallest 3,000 stocks make up only 2%. Vanguard advises against switching existing world portfolio positions to this new ETF due to tax implications and the disruption of compound interest, noting that the fee difference is too small to justify the transaction costs.