@Freetrade_Team awesome that VEVE has been added but there is no mention of the word ‘Vanguard’ in the description so if someone searched ‘Vanguard’ this ETF is not returned as an available option.
EDIT: Actually this is the case with all of the recently added Vanguard ETFs.
I think most were fixed already then but VEVE still doesn’t show up when I search Vanguard, but then it hasn’t been 30 minutes yet so that’s not surprise.
When paying into an All-World ETF like VEVE, your exposure is 5% to the UK. Is this the same as having 5% exposure to the FTSE 100 or are you missing out on the 4.5% dividend which the FTSE 100 pays.
If you are missing out on the 4.5% dividend, would it make sense to pay into the ‘ex UK’ version and separate into the FTSE 100 to get the 4.5% dividend?
You’ll get the same dividends in either scenario (assuming you own the same amount of underlying FTSE 100 stocks). This will pay dividends on all the UK and non-UK stocks included.
Tangential point
That’s not to say it’s never worth owning 2 or more smaller ETFs rather than a larger one. One reason it can be worth holding several separate ETFs rather than 1 larger one is to reduce expenses.
For example a global index ETF might cost ~0.2-0.3% but some smaller ETFs can be cheaper (e.g. US might cost 0.07% and make up ~55% of the global index). You can then build up a global one from its underlying components (e.g. US + Dev Europe + Emerging + etc…) however it’s probably not worth the hassle to figure out the correct weightings for each.
This is speculation, but I’m confident it’s at least part of the answer.
Many european stocks only pay dividends once a year, e.g. Germany (France as well afaik but check). This period is usually from April to June. So you get all these paid out now and nothing in the other quarters.
And we’re in a downturn but many companies, e.g. in Germany are paying record high dividends and also partly having record high profits for the past year.