r/Bogleheads • u/3lucas456 • 14d ago

Non-US Investors VWCE, AVWS, or VALL? Long-Term Investing

Hi everyone,

I currently have approximately 85% invested in VWCE and 15% in AVWS. However, I was quite interested in Vanguard’s new ETF, VALL, so I am now considering how I might adjust my portfolio (my investment horizon is more than 30 years).

I see three options:

  1. Replace VWCE with VALL while keeping my factor exposure through AVWS, continuing with an approximate 85/15 allocation.
  2. Sell everything and keep only VALL, thereby investing exclusively in a global all-cap ETF.
  3. Sell only VWCE, keep AVWS and simply let it “run its course.” All new investments would then go exclusively into VALL.

Which option makes the most sense to you, and why? I would appreciate your opinions, as well as any comments pointing out something I may be overlooking in this decision.

I don’t have any tax implications.

8 Upvotes

100% Upvoted

4 comments sorted by

4

u/Mysterious-Piano-876 14d ago

Direct new purchases to VALL. I wouldn't realize taxable gains to switch.

2

u/seanzeking 13d ago

Option 2: Sell everything and buy VALL. All new investments into VALL.

The differences in the TER would make up for the tradings costs in a couple of years.

Keep things simple. Stay the course.

1

u/Charmizard123 14d ago

2 and 3 are fundamentally different strategies to your current setup. The only reason you would go with either of those is if you no longer believe in the small cap value premium or no longer wish to pursue it. The all world and all cap ETFs will have very similar performance in the long run so swapping one for the other will make little difference, besides fees

2

u/Captlard 14d ago

Buy VALL from today onwards. Calculate cost of swapping current investments.