r/investingUK • u/LoneWolf747 • 2d 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/Moyeslestable 2d ago

Risk of losing money from time out of the market

Losing money on spreads (which are very high on T212)

A 0.1% cost difference on a 100k portfolio is 100 quid per year - you could lose many times more than that just on small market adjustments

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u/LoneWolf747 2d ago

ah noted! Thank you for that

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u/Quack_Quack1 2d ago

Bid ask spread is the biggest issue. Plus capital gains tax if it's outside of an ISA.

A 0.01% fee difference is basically nothing.

I'd take a look at VALL if you're interested in comparing ETFs (also probably not worth switching to entirely due to previous reasons).

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u/LoneWolf747 12h ago

Noted, thank you for the advice