Choosing your main portfolio's core ETF

Most investors have a main central core ETF plus 1-6 other ETFs as satellite holdings. They then may have 5-10% of their holdings in other more risky shares such as single companies.

In a taxable GIA account, it is best to stick to that one core ETF and keep adding into it as well as your satellite ETFs. Performance over the long term is key. Also the TER should be as low as possible too.

For an ISA, you might choose an accumulating ETF, but for a GIA you probably want to choose a distributing ETF because this usually means they have zero ERI and you won't need to calculate ERI every year when you fill in your HMRC self-assessment tax form.

Here are a few world ETFs you might like to consider...

For a GIA account, PACW seems a good.

However, the Vanguard ETFs VWRP (acc) and VWRL (dist) have almost identical performance to PACW\WEBN but a much larger fund value.

HMWS\SWDA has a higher USA holding (70% vs 60%) and so will do better when the S&P starts to pick up again (which may be a while).

For the long term, the USA concentration may affect the result, but we have no way of seeing the future.

Having a large core world distributing ETF inside a GIA means that we will be taxed heavily if we sell and switch, so that is not usually a worthwhile option unless we want to trim and but a thematic ETF (like a value ETF such as IWVG which had 47% growth in the last 12 months but has not done much in the last 3 months).

IWVG value ETF has a top holding of 14% in Micron which gained 450% in the last 12 months but only 3% in the last 3 months. The all world funds tend to have approx 4% in a top holding and 1-4% in their top ten (inc. mag 7) holdings and so a much less volatile.

Let me know your favourite ETF for your GIA or do you just go 100% in EQQQ and let it ride!