Unfortunately, Fidelity Zero Funds are mutual funds, not ETFs. Nonresident aliens cannot readily use US domiciled mutual funds. (Although even if they could, adverse US tax rules generally make them highly unattractive, and ditto for US domiciled ETFs.)The cheapest equity ETFs I know of are the Fidelity Zero Funds with an ER of 0.0%.[this was originally posted in US investing forum, the first replies reflect that - Alex]
To detail the below tickers:
VWRL – Tracks FTSE all world index. Includes emerging markets. TER 0.22%
VEVE – VWRL minus emerging markets, plus some extra holdings. TER 0.12%
VFEM – Just the emerging markets part of VWRL, plus some extra holdings. TER 0.22%
The proportional relationship appears to be that VWRL = (8/9)*VEVE + (1/9)*VFEM.
However, this is approximate and not exactly the same for each holding (unless someone has figured this out more accurately).
I imagine this is because VWRL has 3,668 holdings, but VEVE has 2,041 and VFEM has 2,202 (total 4,243 holdings) so there will be no exact correlation.
This piques my interest because:
1 - Holding (8/9)*VEVE + (1/9)*VFEM has a TER of 0.13% and total 4,243 holdings.
2 - Holding all in VWRL has a TER of 0.22% and only 3,668 holdings.
Is there any good argument to hold VWRL rather than the above breakdown of both (apart from simplicity - it will be a one off investment).
To delve deeper, is this the cheapest, and most diversified way to invest in equity?
Statistics: Posted by TedSwippet — Tue Nov 12, 2024 2:29 am — Replies 16 — Views 1723