I've been investing in two ETFs over the past few years. Both ETFs have very similar compositions:
VAS - Vanguard ASX300 shares
STW - SPDR ASX200 shares
Both VAS and STW track very close to each other. VAS has an expense ratio of 0.15%, while STW has an expense ratio of 0.29%. I've been thinking of selling my STW units, and buying VAS in its place. There are CGT and other expenses involved (brokerage and buy/sell spreads) involved in switching over.
Over the long term (say 5-10 years), the returns on VAS will be quite a bit higher compared to STW because of the differences in the expense ratio. Is it worth switching over investments, or is it worth waiting to see if STW lower their expense ratio to match VAS? How likely is this to occur?
VAS - Vanguard ASX300 shares
STW - SPDR ASX200 shares
Both VAS and STW track very close to each other. VAS has an expense ratio of 0.15%, while STW has an expense ratio of 0.29%. I've been thinking of selling my STW units, and buying VAS in its place. There are CGT and other expenses involved (brokerage and buy/sell spreads) involved in switching over.
Over the long term (say 5-10 years), the returns on VAS will be quite a bit higher compared to STW because of the differences in the expense ratio. Is it worth switching over investments, or is it worth waiting to see if STW lower their expense ratio to match VAS? How likely is this to occur?
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