Singaporean Three-Fund Portfolio: ETF choices
Data as of 6 Aug 2021.
6 Aug 2023 update: added SPDR MSCI ACWI IMI (IMID), as in Mar 2023 the TER has been cut from 0.40% to 0.17%, undercutting iShares MSCI ACWI (ISAC) at 0.20%. Also updated fund AUMs, though note that these are only per-share class, the underlying funds may be much larger if there is another distributing variant.
9 Dec 2023 update: added IBKR fractional share support status.
Global Equity
This is a non-exhaustive list, only a few ETFs are highlighted. All are Irish-domiciled UCITS funds.
Developed Markets
For developed markets, large and mid cap, in accumulating form:
| iShares Core MSCI World | SPDR MSCI World | Vanguard FTSE Developed World | |
|---|---|---|---|
| Links | justETF | justETF | justETF |
| Type | Developed markets, large and mid cap | Developed markets, large and mid cap | Developed markets, large and mid cap |
| Ticker on LSE in USD | IWDA | SWRD | VHVE |
| TER | 0.20% | 0.12% | 0.12% |
| Net AUM of Fund | USD | USD | USD |
| Number of holdings | 1563 | 1543 | 2200 |
| IBKR Fractional Shares | No | Yes | Yes |
There are various distributing funds but they are not cheaper. The iShares Core fund is the largest and most popular fund, the SPDR fund is the largest fund at 0.12% (also the other funds at that TER are distributing), and the Vanguard fund is the FTSE index fund.
Emerging Markets
You can take the Developed Markets single funds above, and add some emerging markets exposure. An MSCI World fund can be complemented by an MSCI Emerging Markets fund. A FTSE Developed World fund can be complemented by a FTSE Emerging Markets fund.
| iShares Core MSCI EM IMI | Vanguard FTSE Emerging Markets | |
|---|---|---|
| Links | justETF | justETF |
| Type | Emerging markets, large mid and small cap | Emerging markets, large and mid cap |
| Ticker on LSE in USD | EIMI | VFEA |
| TER | 0.18% | 0.22% |
| Net AUM of Fund | USD | USD |
| Number of holdings | 2994 | 1863 |
| IBKR Fractional Shares | Yes | Yes |
An MSCI EM IMI fund is used instead of an MSCI EM fund, as the TER is identical to the MSCI EM funds, so you might as well get a bit more coverage for the same price. (MSCI EM IMI includes emerging markets small cap, on top of MSCI EM.)
Developed and Emerging Markets, single fund
For developed and emerging markets, large and mid cap, in accumulating form:
| Vanguard FTSE All-World | iShares MSCI ACWI | |
|---|---|---|
| Links | justETF | justETF |
| Type | Developed and emerging markets, large and mid cap | Developed and emerging markets, large and mid cap |
| Ticker on LSE in USD | VWRA | ISAC |
| TER | 0.22% | 0.20% |
| Net AUM of Fund | USD | USD |
| Number of holdings | 3618 | 1607+ |
| IBKR Fractional Shares | Yes | Yes |
(This particular iShares MSCI ACWI fund holds bits of three other iShares funds, so the effective total number of holdings is likely a bit higher than stated here.)
Developed and Emerging Markets, combinations
Combinations of the above to get developed and emerging markets, large and mid cap, in accumulating versions, with the blended TER presented:
| Funds | TER | |
|---|---|---|
| IWDA + EIMI | 0.198% | iShares Core. Most popular / largest AUM choice. Includes EM small cap. |
| SWRD + EIMI | 0.127% | iShares/SPDR. Cheapest choice. Includes EM small cap. |
| VHVE + VFEA | 0.132% | Vanguard. Vanguard choice. |
| VWRA | 0.220% | Vanguard one-fund option. |
| ISAC | 0.200% | iShares one-fund option. |
Developed and Emerging Markets, including small cap
MSCI World + MSCI Emerging Markets includes large and mid cap, for about 85% of the market cap. Small cap is the next 14%, to reach about 99% market cap.
| SPDR MSCI ACWI IMI | iShares MSCI World Small Cap | |
|---|---|---|
| Links | justETF | justETF |
| Type | Developed and emerging markets, large mid and small cap | Developed markets, small cap |
| Ticker on LSE in USD | IMID | WSML |
| TER | 0.17% | 0.35% |
| Net AUM of Fund | USD 0.6bil | USD |
| Number of holdings | 1977 | 3443 |
| IBKR Fractional Shares | Yes | Yes |
There is no suitable FTSE Global All Cap / Global Small Cap fund.
Developed and Emerging Markets, including small cap, combinations
| Funds | TER | |
|---|---|---|
| IWDA + EIMI + WSML | 0.219% | iShares. |
| SWRD + EIMI + WSML | 0.158% | |
| ISAC + WSML | 0.221% | iShares. No EM small cap. |
| IMID | 0.170% | SPDR. |
Summary
| Funds | TER | |
|---|---|---|
| SWRD | 0.12% | Developed L/M. |
| VHVE | 0.12% | Developed L/M. |
| SWRD + EIMI | 0.127% | Developed L/M, Emerging L/M/S. |
| VHVE + VFEA | 0.132% | Developed L/M, Emerging L/M. |
| SWRD + EIMI + WSML | 0.158% | Developed L/M/S, Emerging L/M/S. |
| IMID | 0.170% | Developed L/M/S, Emerging L/M/S. |
| IWDA + EIMI | 0.198% | Developed L/M, Emerging L/M/S. |
| ISAC | 0.200% | Developed L/M, Emerging L/M. |
| IWDA | 0.200% | Developed L/M. |
| IWDA + EIMI + WSML | 0.219% | Developed L/M/S, Emerging L/M/S. |
| VWRA | 0.220% | Developed L/M, Emerging L/M. |
| ISAC + WSML | 0.221% | Developed L/M/S, Emerging L/M. |