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Old 22.01.2018, 13:27
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ETFs: Vanguard, Blackrock, Schwab

I've been considering adding a small ETF component into my investments (S&P500, NASDAQ or Russell). Leaving aside whether such is a good idea or not, I wondered what is the best way to do it.

I already have an account with Schwab, and so buying the Schwab ETFs would be pretty easy. Anyone have input as to whether there is a compelling reason to buy Vanguard/Blackrock instead?

Last edited by Phil_MCR; 22.01.2018 at 13:56.
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Old 22.01.2018, 13:39
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Re: ETFs: Vanguard, Blackrock, Schwab

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I've been considering adding a small ETF component into my investments (S&P500, NASDAQ or Russell). Leaving aside whether such is a good idea or now, I wondered what is the best way to do it.

I already have an account with Schwab, and so buying the Schwab ETFs would be pretty easy. Anyone have input as to whether there is a compelling reason to buy Vanguard/Blackrock instead?
Since they are all traded there is no advantage or disadvantage in buying Schwab ETF's as they are not selling directly to you.
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Old 22.01.2018, 14:33
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Re: ETFs: Vanguard, Blackrock, Schwab

I have my reasons for not buying ETFs!
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Old 22.01.2018, 15:44
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Re: ETFs: Vanguard, Blackrock, Schwab

Well if they are just trackers, then there are a few questions to answer:
- The method used to replicate the index
- The tracking error
- Expense ratio
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Old 23.01.2018, 16:26
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Re: ETFs: Vanguard, Blackrock, Schwab

I use iShares or Vanguard for ETFs but I think Schwab offer free trading on their own ETFs which gives an advantage to use theirs (save around 5 bucks purchase fee).


As others have said, look at tracking error and expense ratio. I looked at Schwab and it seems they have their own ETF styles rather than an ETF for FTSE100 / SP500, etc.
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Old 09.04.2021, 10:41
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Re: ETFs: Vanguard, Blackrock, Schwab

I am reviving this thread, seeking for some help with regards to basic S&P500 ETFs. I just opened an Interactive Brokers Account, loaded it up with CHF, converted to USD and bought the SPY ETF. However, this implies an FX risk, so I was wondering if there are any CHF denominated S&P500 ETFs. I found this one:

Vanguard S&P 500 ETF, Ticker VUSA (https://www.marketwatch.com/investin...countryCode=CH)

Interactive Brokers gives the following info:
Underlying Information Description/Name Vanguard S&P 500 UCITS ETF (VUSA@AEB)
Contract Information Description/Name VANG S&P500 USDD
Symbol VUSA
Exchange EBS, BATECH, CHIXCH, TRQXCH
Contract Type Stock
Country/Region IEIreland
Closing Price 71.75
Currency Swiss Franc (CHF)
Conid 121613790
ASSETID IB23217978
CINS G9T17W137
ISIN IE00B3XXRP09

This does not help much. Is it a similar ETF to SPY, denominated at CHF? Price is very far away, but I guess this is irrelevant.

Also, is this (https://www.marketwatch.com/investin...od=over_search) the same, denominated in EUR?
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Old 09.04.2021, 10:56
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Re: ETFs: Vanguard, Blackrock, Schwab

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I am reviving this thread, seeking for some help with regards to basic S&P500 ETFs. I just opened an Interactive Brokers Account, loaded it up with CHF, converted to USD and bought the SPY ETF. However, this implies an FX risk, so I was wondering if there are any CHF denominated S&P500 ETFs. I found this one:

Vanguard S&P 500 ETF, Ticker VUSA (https://www.marketwatch.com/investin...countryCode=CH)

Interactive Brokers gives the following info:
Underlying Information Description/Name Vanguard S&P 500 UCITS ETF (VUSA@AEB)
Contract Information Description/Name VANG S&P500 USDD
Symbol VUSA
Exchange EBS, BATECH, CHIXCH, TRQXCH
Contract Type Stock
Country/Region IEIreland
Closing Price 71.75
Currency Swiss Franc (CHF)
Conid 121613790
ASSETID IB23217978
CINS G9T17W137
ISIN IE00B3XXRP09

This does not help much. Is it a similar ETF to SPY, denominated at CHF? Price is very far away, but I guess this is irrelevant.

Also, is this (https://www.marketwatch.com/investin...od=over_search) the same, denominated in EUR?
Yes very much the same, VUSA has multiple currencies too.

The currency risk is misleading, the assets are identical if you wish to track the S&P500

Nestle earns only 2% of it's profits in CHF, a higher amount in Indian Rupees, therefore holding Nestle has a 98% foreign currency risk as it reports profits in CHF. Would you consider hedging for Nestle?

Last edited by fatmanfilms; 09.04.2021 at 11:15.
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Old 09.04.2021, 11:11
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Re: ETFs: Vanguard, Blackrock, Schwab

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I just opened an Interactive Brokers Account, loaded it up with CHF, converted to USD and bought the SPY ETF. However, this implies an FX risk, so I was wondering if there are any CHF denominated S&P500 ETFs.
Currency hedging is pointless for pretty much anything but bonds.
In your specific case - having it denominated in CHF won't matter one bit in the long term.
And you would only pay additionally for the cost of hedging - usually the difference in the interest rates between the two currencies.
So, no need to worry or think that having SP500 in CHF would make a difference.
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Old 10.04.2021, 23:29
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Re: ETFs: Vanguard, Blackrock, Schwab

Especially with IB where the cost of converting chf to USD is minimal (less than 2usd for 10 - 25k).
You could buy large US ETF with minimal fee like Vanguard Total (VT)
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Old 11.04.2021, 00:20
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Re: ETFs: Vanguard, Blackrock, Schwab

Ok, understood! Thanks for the clarifications.
So, based on the above, even if I go for USD denominated ETFs, SPY is no different to VOO for example from a performance perspective, right?
What about taxation in CH? Would it make a difference which one I choose? Or would the CHF denominated ETF be preferable by the Swiss tax authorities (in terms of simplicity of portfolio value calculation or P&L)?
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Old 11.04.2021, 10:39
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Re: ETFs: Vanguard, Blackrock, Schwab

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Ok, understood! Thanks for the clarifications.
So, based on the above, even if I go for USD denominated ETFs, SPY is no different to VOO for example from a performance perspective, right?
What about taxation in CH? Would it make a difference which one I choose? Or would the CHF denominated ETF be preferable by the Swiss tax authorities (in terms of simplicity of portfolio value calculation or P&L)?
No difference
No advantage for tax, the USD one will be more liquid so likely will have a smaller spread, but then you have a spread to buy USD. Irrelevant on a 10 year holding period, but added cost if 'trading'
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