VWRL vs VHYL vs VWRP

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Welsh84
Posts: 4
Joined: Wed Jul 28, 2021 8:32 am

VWRL vs VHYL vs VWRP

Post by Welsh84 »

I see these are popular , but don't see much difference,
Could some one be kind enough to highlight the pro and cons of these.

I'm starting out and what to start a long term portfolio.
UK , aged 36 .

Being advised to go VWRP so far , this the right track? I seek to reinvest all growth to compound the fund, whatever it may be.

Thanks in advance.
Genghis
Posts: 137
Joined: Fri Jun 26, 2020 6:53 am

Re: VWRL vs VHYL vs VWRP

Post by Genghis »

VWRL is a distributing ETF where you can pay in in GBP (I think the CHF one uses the same ticker so be careful) and it tracks the FTSE All World index.

VWRP is the same but the accumulating version. Better for when you’re building up your stash since you don’t have to reinvest dividends. Some brokers only sell VWRL, eg Vanguard Investor.

VHYL is the higher yield (dividend) global ETF. Returns come from capital appreciation and dividend income, in sum total return. As bogleheads I think we should look for total return. By filtering out just higher yielding stocks, you’re lowering the investment universe and diversification. There’s some good articles on this elsewhere, eg
https://bankeronfire.com/dividend-investing
TedSwippet
Posts: 5166
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: VWRL vs VHYL vs VWRP

Post by TedSwippet »

Genghis wrote: Sat Jul 31, 2021 12:37 am VWRP is the same but the accumulating version. Better for when you’re building up your stash since you don’t have to reinvest dividends. Some brokers only sell VWRL, eg Vanguard Investor.
Not relevant to the topic author, since I think they use a non-Vanguard no-fee broker platform, but ...

Vanguard makes a lot of marketing decisions that seem bizarre to me, but not offering some of their own major ETFs on their own UK retail platform tops several of them. It might be forgivable if they offered automatic dividend reinvestment, but (as a non-Vanguard UK customer) I couldn't find any indication that they do.

Maybe they're genuinely trying to encourage customers to use platforms other than Vanguard UK? Their US customer service and platform features regularly deterioriate -- most recent example here. They currently have a lot of unhappy customers.
minimalistmarc
Posts: 1632
Joined: Fri Jul 24, 2015 4:38 pm

Re: VWRL vs VHYL vs VWRP

Post by minimalistmarc »

Use VWRP in tax sheltered accounts and VWRL in general account as it makes tax calculations easier.

If you need something to pair with VWRL in general accounts (to harvest capital gains allowance) then I use VEVE (developed world) as it is closer to VWRL than VHYL (world yield)
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