Are you making this mistake with Vanguard's new fund?

@tomtalksinvesting

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Vanguard FTSE Global All-Cap (Acc)

In seeking to achieve its investment objective, the Fund aims to provide a return which, before the application of fees and expenses, is similar to the return of the Index.

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Why it worked

The video addresses a common misconception about ETF pricing, providing clear and concise information that is valuable to novice investors. The use of relatable examples and a direct comparison between two popular Vanguard ETFs makes the content engaging and shareable.

Summary

The video explains that the price of an ETF share is not the primary factor when comparing funds, using Vanguard's new VAL ETF and the established VWRP ETF as examples. It highlights that VAL includes small-cap stocks while VWRP focuses on large and mid-caps, and that the difference in share price is largely irrelevant to overall investment returns.

Structure

1Introduction of Vanguard's new VAL ETF
2Comparison with the established VWRP ETF
3

Original caption

Vanguard have launched a new ETF and it's already very popular but are you buying it for the right reasons?

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Product placement

Vanguard FTSE Global All-Cap (Acc) (VAL): This is an ETF that tracks global stock market returns. It ACTS as a fund that people invest in. Removing it would change the video's topic. Vanguard FTSE All-World (Acc) (VWRP): This is an ETF that tracks global stock market returns, focusing on large and mid-cap stocks. It ACTS as a fund that people invest in. Removing it would change the video's topic. Tom Talks Investing: This is the creator's brand/channel name. It APPEARS as a watermark/handle. Removing it would not change what happens in the video.

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Comment GUIDE and I'll send you the link. Or there is a link in my bio you can grab it.

On-screen text

Are you making this mistake with Vanguard's new fund? Vanguard FTSE Global All-Cap (Acc) £3.72 Not financial advice Capital at risk TomTalksInvesting H A Guide to Investing

Transcript

Vanguard have launched a new ETF. It's called VAL, it's their FTSE Global All-Cap ETF. It's called VAL, it's their FTSE Global All-Cap (Acc). It's been very popular, lots of people talking about it, but I am seeing a lot of people making a big mistake. So a lot of people are looking at the price of Vanguard's new fund VAL, and going, oh, £3.72. And then they're looking at Vanguard's more established fund, VWRP. It's their FTSE All-World (Acc). £144. And I've had comments going, oh, it's so much cheaper. £3.72. No, no, no, that's not how it works. I'm gonna explain now. Just before I do that, I wanted to point out I have launched a free investing guide. If you are interested in grabbing yourself a copy, just comment GUIDE and I'll send you the link. Or there is a link in my bio you can grab it as well. So the way these two ETFs work is they're trying to track global stock market returns. VAL does have small cap stocks as well as large and mid, whereas VWRP only has large and mid caps. So there will be a slight performance of both. Let's just say you invested £1,000 into both and over a good year and the global stock market returned about 10%. Both VWRP and VAL would be hoping to have a similar return. Slight differences, of course, because of what they're invested in. That difference between large, and mid-caps. But the price of the ETF is largely irrelevant. So if I was investing in, I certainly wouldn't be worried about the price. I'd be considering the makeup of the fund, particularly if I wanted exposure to small caps.