The Increasing Popularity of All-World
07 June 2007 at 11:07 am by Gary Gordon
Vanguard has always been at the forefront of making things “easier.” It introduced the Vanguard Total Stock Market (VTI) which covers the whole United States … from small to mid-sized to large to growth to value. Similarly, Vanguard Pacific (VPL) gives you MSCI Pacific index, serving up more than 500 top stocks in Australia, Japan, Hong Kong, New Zealand, and Singapore.
Now Vanguard wishes to conquer the entire world with one investment. VEU seeks to track the performance of the FTSE® All-World ex-US Index – an index designed to measure equity market performance of the global marketplace. More than 2200 stocks of companies located in 47 developed countries and emerging markets comprise this investment.
So what’s wrong with the all-in-one? For one thing, it has virtually no variance from the existing all-world offering, the all-world SPDR MSCI ACWI ex-US (CWI). It also trades less than 100,000 shares daily, which, like CWI, is difficult for price execution.
Like CWI, the Vanguard All-World VEU is too new to pass judgment on. Only time will tell.
Disclosure statement: Some of Pacific Park’s investment clients may hold positions in any of the investments mentioned above.
