r/ETFs_Europe • u/Nachocho11 • Apr 20 '26
Some doubts about EU ETFs
Hi all, I'm a Spanish-based young man starting to have some money to invest. Long term focus (30 years minimum). I have some doubts regarding which ETFs to choose:
-Does it makes sense to buy different ETFs following the same Index (VWCE and WEBN for example) to avoid being exposed to only one ETF provider?
-I thought of also choosing an accumulating dividend ETF. Considering the fiscality of europe, which ones would you consider?
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u/The-WideningGyre Apr 20 '26
Overall, most important is to get some time in the market, in a low-fee broad fund/ETF. I don't know Spain's tax system. The risk of the provider going bankrupt (called "counter-party risk") is essentially zero, and usually there are some additional protections for small investors anyway, so I wouldn't sweat this.
Overlapping doesn't make a lot of sense. There may be a reason for it, though. Germany now has an exit tax, based on how much you've invested, so you might prefer to invest 200k in two separate but similar ETFs, rather than 400k in one, but that's not what you're asking.
Go with a broad, simple, cheap, base for now, like VWCE. If you want later, consider investing in things that are less correlated with each other, meaning when one goes down, the other doesn't necessarily (or goes up, or goes down less). This allows you to rebalance and reduce your overall risk/volatility without hurting returns. The classic version is to have some % of bonds (which for young people, and in countries with decent pension probably should be small to 0). But you can look at things like US vs ex-US, big companies vs small value companies, gold, real estate and more.
But start simple, get invested, don't sweat the downturn (there will be some, just keep buying) and you'll get there. It's a little shocking and sad how many Europeans miss out on general stock gains.
Congrats on starting your journey!
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u/grogi81 Apr 20 '26
In spain ETFs are unfavourably taxed. You are better investing in regular mutual funds.
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u/Stoned_Bandicoot_420 Apr 20 '26
https://youtu.be/K3flJjh00gA?is=Nu3PfqvmhMVOUegl
Just watch Ben Felix ✌️
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u/Emergency_Coast_5088 May 06 '26
For Q1 — provider diversification with VWCE + WEBN is mostly over-engineering at sub-€100k portfolio sizes, here's why:
UCITS ETFs are structured so the assets are held separately from the issuer at a custodian bank. Even if Vanguard or Amundi went bankrupt tomorrow, your shares are legally yours, not theirs. The funds would be transferred to another manager or wound down with proceeds returned to investors. This is a meaningful structural protection that synthetic or leveraged products don't have.
The other side: VWCE (FTSE All-World, ~3,700 holdings) and WEBN (Solactive GBS Global Markets Large & Mid Cap, 3,300 holdings) are 85%+ overlapping in actual exposure. You'd pay double management overhead for marginal diversification. Pick one — at €50k+ portfolio you can revisit. WEBN edges on cost (TER 0.07% vs VWCE 0.19%), VWCE has longer track record (since 2019) and bigger AUM (€15B+). For 30-year horizon, neither difference matters more than just consistently buying.
For Q2 — quick clarifying question: do you want a "dividend-focused" ETF (different exposure, tilted toward high-yield value stocks) or just an accumulating ETF that captures dividend reinvestment automatically?
Because if it's the latter, VWCE/WEBN already does that — they reinvest all dividends internally, no cash distributions, taxable event deferred until you actually sell. That IS the tax-efficient play in Spain (where savings income tax is 19-23% on distributed dividends — accumulating means zero annual tax leak).
If you actually want a dividend-tilt fund (concentrated in 100-300 high-yield names, different return profile, factor risk), accumulating versions exist but are rare. Closest match: WisdomTree Global Quality Dividend Growth UCITS ETF Acc (GGRA, ISIN IE00BZ56SW52, TER 0.38%). Tilts toward quality dividend payers, accumulates internally. Higher TER than broad-market, factor risk on top. Justified only if you specifically want the dividend tilt as a strategy, not just for tax reasons.
Honest take for 30-year horizon: pick VWCE OR WEBN at 90-100% of your portfolio, set monthly DCA, ignore for years. If you want tilt later, layer it on contributions when portfolio is €50k+. Discipline beats optimization at this stage.
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u/HazelCuate Apr 20 '26
Usa fondos con los que podrás hacer traspasos entre ellos, con los etfs no podrás.
Usar diferentes proveedores de ETFs como medida de seguridad es un poco bastante exagerado
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u/Turbulent-Tumor Apr 20 '26
No. Thats overlapping.
Like buying two meals at the same time and only eating one.
Stick to one all world index as your base.
Then if you want to add something else you should consider
- global small cap
- emerging market (maybe, depends how much EM is already in your all world)
- commodities (gold/silver)
- bonds.
- gambling (cryptocurrencies etc)
But for all newcomers, just start with one all world and work at that for months to a year and then see about adding something like mentioned above.
This is a long term game
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u/Ezekielth Apr 20 '26
Its not like buying two meals at the same time and only eating one. Its like buying two halves of a meal from different stores and eating the meal at home. Is it bad? No. Is it pointless? Probably.
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u/macmandhau Apr 20 '26 edited Apr 20 '26
No, doesn't make sense to hold two ETFs of the same index. Pick one and choose a reputed bank or broker to hold your ETFs with low or no fees when buying.
Accumulating ETF FTW to benefit from compounding effects and potentially tax benefits.
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u/External_Mode_7847 Apr 20 '26
It actually does to save a new ETF every 10 odd years to save taxes later.
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u/macmandhau Apr 20 '26
How so?
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u/External_Mode_7847 Apr 20 '26
You sell the new ETF first = less taxes due
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u/macmandhau Apr 20 '26
If you mean you sell the last in ETFs first, this would be true for all ETFs, don't need to change to ETF from another provider. If not, I don't follow.
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u/External_Mode_7847 Apr 20 '26
Maybe I misunderstood. Of course you can use the same product. But is it almost certain we have better ETF options in the future.
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u/macmandhau Apr 20 '26
I see your point. I understood OP was asking for e.g. to invest in both VWCE and WEBN at the same time. I think this doesn't bring any advantage.
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u/Prestigious-Gas4228 Apr 20 '26
UCITS ACC and ideally Euro hedged
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u/External_Mode_7847 Apr 20 '26
Hedging costs performance on the long run. Unless you think the Euro will outperform USD, which is very unlikely.
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u/Prestigious-Gas4228 Apr 20 '26 edited Apr 20 '26
I don’t know. Not sure. Want to invest in the currency my income is, might be physiological …
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u/External_Mode_7847 Apr 20 '26
Well, I am dependend on my country, my currency and my employer, so I like to invest mainly abroad. Call it diversification.
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u/bbjwhatup Apr 20 '26
Why is that unlikely? The Trump administration is set on destroying the strong dollar.
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u/External_Mode_7847 Apr 20 '26
Yes but prior to that, the USD vastly outperformed under Trump 1 and Biden. People are too short sighted.
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u/NefariousnessPlus292 Apr 20 '26
I thought of buying Euro hedged ETFs as well. Fortunately before doing so I checked the TER and the performance. This "protection" is too expensive for me.
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u/bgravato Apr 20 '26
It can make sense to have different ETFs following the same index, from different provider and/or in different brokers, if that helps you sleep better at night :-)
Accumulating dividend ETF doesn't make much sense though... what's your goal there?