There’s been quite a bit of a debate going on here at EconoWiser’s about index funds. Let’s have a close look at the distribution of different index funds (stocks only) we find interesting.
World-Wide (or Global) TER 0.5% (now including dividend tax break of 0.4% to 0.5% creating TER of about 0.1%!)
European TER 0.5%
Emerging Markets TER 0.65%
The conclusion is that there aren’t any Emerging Markets stocks in our World-Wide fund. Apparently, this differs from the American Total Stock funds. I’ve already told you about the dividend tax return that now makes the World-Wide fund with Meesman extremely interesting.
The husband now wants to increase his monthly investments with €100 as well. He’s now thinking of distribution his euros into 2/3 World-Wide and 1/3 Emerging Markets and just let the European stocks he already owns sit there without adding extra euros in that department. Again, he expects a lot more growth in ER.
I’m thinking of going from 80% World-Wide and 20% Eurobonds to 80%, 10% Emerging Markets and 10% Eurobonds. Or some other divsion? Argh!
I think I’ll retract my monthly order with SNS Bank because the World-Wide Fund including tax break sounds like a much better deal.