Vanguard All-World ETF Edges Towards Record as FTSE Russell Ousts Indonesian Stocks and DWS Fires Fee Salvo

The Vanguard FTSE All-World UCITS ETF is within striking distance of a fresh all-time peak, trading at 165.44 euros — just 1 percent shy of the 167.10-euro record set on June 22. Over the past twelve months, investors have pocketed nearly 28 percent, with the fund’s year-to-date advance standing at 13.33 percent. The rally has been almost entirely fuelled by the same force: Big Tech.

America now accounts for 61.76 percent of the portfolio. Japan is a distant second at 5.82 percent, followed by Taiwan at 3.29 percent. Within the US allocation, NVIDIA, Apple and Microsoft alone represent roughly 12 percent of total assets — a concentration that has drawn comparisons to the dot-com era but so far has only boosted returns. Those three positions alone have lifted the fund’s net asset value as the artificial intelligence spending spree gathers pace; global technology firms are expected to plough nearly $800 billion into infrastructure by 2026.

Despite the heavy tilt, the ETF has not overheated. The relative strength index sits at 58.9, indicating strength without exhaustion. The price is 3.14 percent above its 50-day moving average and 10.74 percent above the 200-day line — constructive territory for a globally diversified vehicle. The 30-day annualised volatility of 14.18 percent also points to a reasonably calm ride.

Behind the price action, FTSE Russell conducted a punitive June rebalancing. Three Indonesian stocks were ejected from the index underpinning the ETF: PT GoTo Gojek Tokopedia and Harita Nickel were moved to the Development Board by the Jakarta exchange, breaching FTSE’s listing criteria. PT Dian Swastatika Sentosa fell foul of a different rule — more than 95 percent ownership in a single hand made the stock effectively untradeable for passive funds.

Should investors sell immediately? Or is it worth buying Vanguard FTSE All-World UCITS ETF USD Accumulation?

The clean-out underscores the index provider’s strictness. Vanguard buys roughly 3,770 of the thousands of eligible stocks to keep transaction costs low, but even that optimisation cannot hide the fact that the US tech heavyweight effect rules the fund’s performance.

A secondary battle is playing out on fees. Vanguard charges 0.19 percent annually for its $72.38 billion UCITS structure. But in June, DWS slashed the charge on its competing Xtrackers FTSE All-World ETF to 0.07 percent — a brutal price cut. iShares MSCI ACWI sits at 0.20 percent, leaving Vanguard squeezed in the middle. The incumbent is betting its vast scale and tighter spreads on exchanges such as Deutsche Börse will keep institutional clients loyal.

The accumulating share class, which reinvests dividends rather than paying them out, means the current price reflects pure market movement. With the quarterly earnings season looming for the index’s biggest constituents, the next leg higher depends on whether US technology can sustain its momentum. The 52-week high of 167.10 euros is no longer a distant target — but it rests entirely on the shoulders of the same few giants.