Best ETF available on Davy AVC?

[Aeolus]

I'm transferring my AVC PRSA from Zurich to Davy.

Zurich doesn't offer many passive funds and their active funds seem to index huggers with opaque portfolio listings and high fees.

I want to invest in an accumulating passive index tracker especially since pensions are the only investment vehicle exempt from deemed disposal.



Davy trading fees are much lower for ETFs domiciled in Ireland and UK.

I've narrowed it down to SUSW, IWDA and ISAC



SUSW is developed world with ESG filters (only 381 holdings).



IWDA is also developed world tracker, without ESG criteria ( 1562 holdings).


SSAC/ISAC covers developed and emerging markets so is the diversified (1607 holdings).



I have my doubts about whether ESG is actually effective both in regards to increasing performance or punishing the non-ESG sectors.

Emerging markets have historically underperformed, but could this change in the coming decades?

SUSW is traded in euros, the other two in dollars.

Is there any disadvantage in buying an ETF traded in dollars rather than euros?



Which do you think is the best choice?

 

[Indigo]

I have a PRSA with Davy, invested in an ETF. (IUSQ which is the Frankfurt (euro) listing of SSAC/ISAC. I chose it so I could include emerging markets without the hassle of having to rebalance my portfolio while availing of a low TER (0.2%). I believe it excludes small caps so is somewhat less diversified than the Vanguard equivalent. For me, I wanted as much diversification as I could get while keeping it as simple as possible.

I can’t tell you which of those three options is the best choice, but I would like to point out that it might not always be most cost effective to choose ETFs on the UK and Irish exchanges. The reason I opted for the Frankfurt exchange was the simplification of having it in euro. I know the underlying fund is in dollars but a currency conversion charge appears to be levied by Davy for non-euro listings. It looks to be around 0.7% when you use their calculator that estimates charges. But then again, their estimate of the overseas charge is always around 0.14% but on an actual trade, I found it to be 0.06% so take the estimates they give with a pinch of salt.

If you’re investing smaller amounts, the €25 custody charge will have a bigger impact, so sticking with the UK and Irish exchanges makes more sense. Otherwise, it might be worth getting clarity from them on their currency conversion charges as it may be both cheaper and more convenient to hold a particular ETF in euro.

 

[SPC100]

Some thoughts.

I haven't used it but I think Davy permit currency accounts? So potentially you could use external competitive fx transfer for your new contributions.

The fx and reading fees are one or two times (assuming you mostly buy once and sell once, and you use new contributions to rebalance), but the fund charges are every year on your money. So 20-50 years.

For the amc charged every 6 months you will need some cash. If you stop contributing I guess they will sell some of your accumulating fund to pay the fee? So having some non accumulating may be convenient.