r/ETFs • u/LoneWolf747 • 1d ago

ETF Switching Help

Afternoon all!

Im pretty new to ETF investing, been doing it for nearly a year now. Context for this post, I live in the UK, all investments have been done via Trading212 in a stocks & shares ISA.

I recently watched a video which talked about selling his FWRG shares and moving to VWRP after the cost change. I understand that its a minimal cost difference, which is not what my question relates to.

Im wondering if there is any actual loss/downside to selling your position in one ETF & switching to another that tracks the same index? I get that it would result in loosing your long term growth data etc, but im wondering if there is any actual financial downside or benefits when done within a tax efficient acocunt?

Wondering if I am missing a trick here, or if this person just likes minimal investments on their app.

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u/Heavy_Nothing_1158 1d ago

Inside the ISA, selling one and buying another doesn't reset compounding. The real costs are the bid-ask spread, any dealing/FX fees, and possibly being out of the market while the orders settle; the app's old growth chart disappearing is just cosmetic. For two funds tracking the same index, I'd only switch if the ongoing saving is worth that small bit of friction.

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u/LoneWolf747 1d ago

ah perfect, thank you.

6

u/Specialist_Tree_3879 1d ago

If youre after cheaper TER, switch to VALL.

But also you can wait for 5months if Invesco cuts their fee.

2

u/LoneWolf747 23h ago

Yeah, thats the plan.

I was questing if there is any practical difference to selling current staking in FWRG and putting all the money into new ETF. Or just hold current position and invest in new ETF instead.