Portfolio after KIID problems in Europe

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thenojs
Posts: 1
Joined: Mon Jun 05, 2023 1:18 pm

Portfolio after KIID problems in Europe

Post by thenojs »

Hello everyone!

I want to start investing. Decided to have only 1 ETF as my whole portfolio because I'm "only" 30 years, so can take bigger risk. Also have couple of question:

1.) Which one option ?

I have already Saxo Broker account, unfortunately I'm from Poland and Vanguard didn't supply the broker (and probably will not) with polish KIIDS, so I'm not able to buy VWCE (Vanguard FTSE All-World UCITS ETF). So IUSQ (iShares MSCI ACWI UCITS ETF) is the only option for me here.

The second option is to close this account, and create in IBKR because as I believe they allow people from countries without translated KIIDs to buy Vanguard ETFS - have no idea how this works.

So basically:
Option A - buy iShares MSCI ACWI UCITS ETF on Saxo
Option B - close Saxo account, create Ibkr account and buy Vanguard FTSE All-World UCITS ETF

2.) How often should I buy?
Will once per 4 months (3 times per year) be enough? Or should I buy it more often?

Thanks in advance for any responses.
000
Posts: 8211
Joined: Thu Jul 23, 2020 12:04 am

Re: Portfolio after KIID problems in Europe

Post by 000 »

What are the expense ratios (ER) of the two funds and the broker fee/commission structures of the two broker options?

You're not a citizen anywhere other than Poland?
daviddem
Posts: 274
Joined: Wed Jul 06, 2016 12:53 pm

Re: Portfolio after KIID problems in Europe

Post by daviddem »

Altogether IBKR is a better option than Saxo for a brokerage (no custody fees on ETFs, cheaper commissions).

Not sure if switching would fix your KIID problems though. Maybe someone in Poland with a IB account can check whether the ETF you want is available in IB.
BogleJohn
Posts: 20
Joined: Fri Nov 15, 2019 5:27 pm

Re: Portfolio after KIID problems in Europe

Post by BogleJohn »

Can we write to our representatives in the EU and tell them that English KIIDs are sufficient and we don't want this much bureaucracy?
TedSwippet
Posts: 5181
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Portfolio after KIID problems in Europe

Post by TedSwippet »

BogleJohn wrote: Wed Jun 07, 2023 7:24 am Can we write to our representatives in the EU and tell them that English KIIDs are sufficient and we don't want this much bureaucracy?
I am sure you can. The question, of course, is whether or not they will pay any attention.

FWIW, the UK government is currently consulting on revoking PRIIPs for UK investors. The hope is that the replacement will (finally) permit UK investors to again at least use US domiciled ETFs. For some use cases (though not all), these can be more tax efficient for UK investors than equivalent Ireland domiciled funds and ETFs. (And of course, it would relieve a massive headache for US citizens living in the UK.)

The consultation isn't exactly running quickly, though -- it's more than three years now since the UK left the EU (sigh!), and more than seven since the Brexit vote, so it's not like there hasn't been enough time yet for anything to have changed. Also, if the UK government's track record is anything to go by, it is likely that whatever they put in place to replace PRIIPs -- "FRF", apparently; just what we need, another acronym -- may well simply be worse. :-(
BogleJohn
Posts: 20
Joined: Fri Nov 15, 2019 5:27 pm

Re: Portfolio after KIID problems in Europe

Post by BogleJohn »

TedSwippet wrote: Wed Jun 07, 2023 7:37 am
BogleJohn wrote: Wed Jun 07, 2023 7:24 am Can we write to our representatives in the EU and tell them that English KIIDs are sufficient and we don't want this much bureaucracy?
I am sure you can. The question, of course, is whether or not they will pay any attention.

FWIW, the UK government is currently consulting on revoking PRIIPs for UK investors. The hope is that the replacement will (finally) permit UK investors to again at least use US domiciled ETFs. For some use cases (though not all), these can be more tax efficient for UK investors than equivalent Ireland domiciled funds and ETFs. (And of course, it would relieve a massive headache for US citizens living in the UK.)

The consultation isn't exactly running quickly, though -- it's more than three years now since the UK left the EU (sigh!), and more than seven since the Brexit vote, so it's not like there hasn't been enough time yet for anything to have changed. Also, if the UK government's track record is anything to go by, it is likely that whatever they put in place to replace PRIIPs -- "FRF", apparently; just what we need, another acronym -- may well simply be worse. :-(
I think it makes sense that these rules only restrict our ability to invest safely and create inequalities between the bigger countries for which the ETF issuers bother to create KIIDs and the smaller ones. There are far easier ways to lose money (including in the markets) than because an ETF doesn't have a KIID in your particular language but only in English.
msi200
Posts: 7
Joined: Sat Feb 29, 2020 2:14 pm

Re: Portfolio after KIID problems in Europe

Post by msi200 »

Saxo has high custody and other fees + bad support and is owned by a chinese company(Geely). Since the beginning of 2023 they cut access to many UCITS ETFs for their customers from smaller markets. I am currently trying to close my account with them and the USD withdrawal process took 2+ weeks.... and I still haven't received the transfer :)

I would open an account with IB. You will have access to VWCE and costs are much lower. Keep the account at saxo as backup.
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