🌊 The Illusion of Global Investing
Many investors think buying “one global ETF” solves everything. But here’s the catch: not all global ETFs are truly global. Some lean heavily toward the U.S., others focus only on dividends, and some even reinvest your gains differently.
Choosing between VWCE, VUSA, and CSPX might look like splitting hairs, but over decades, the differences can mean hundreds of thousands of euros in your pocket (or not).
⚓ Why This Debate Matters
Index coverage is not the same → Some ETFs cover the whole world, others just the U.S.
Tax treatment differs → Distributing vs. accumulating matters for long-term compounding.
Cost differences add up → TER (Total Expense Ratio) looks small until you compound 30 years.
Portfolio role → Each ETF belongs in a different bucket of wealth management.
🧭 The Ark Comparison Framework
1. VWCE — Vanguard FTSE All-World UCITS ETF
🌍 Coverage: ~3,500 stocks, developed + emerging markets.
TER: 0.22%.
Accumulating version available (reinvests dividends).
Best for: One-fund global diversification.
Wealth Bucket: Growth + Legacy.
2. CSPX — iShares Core S&P 500 UCITS ETF (Accumulating)
🇺🇸 Coverage: S&P 500 (top U.S. companies).
TER: 0.07% (very low).
Accumulating (tax-efficient for EU).
Best for: Cheap, efficient U.S. exposure with compounding.
Wealth Bucket: Growth + Legacy.
3. VUSA — Vanguard S&P 500 UCITS ETF (Distributing)
🇺🇸 Coverage: Same S&P 500 index as CSPX.
TER: 0.07%.
Distributing (pays dividends directly).
Best for: Income-focused investors who want payouts.
Wealth Bucket: Income + Growth.
📊 Ark Deep Dive: Performance Impact
Over 20 years, VWCE gives broad diversification but slightly lower returns if the U.S. outperforms.
CSPX/VUSA concentrates on the U.S., historically the best performer, but less diversified.
Difference between accumulating vs distributing:
Accumulating (CSPX) reinvests dividends automatically → compounding boost.
Distributing (VUSA) pays out dividends → good for income, worse for long-term compounding.
👉 For a European investor, tax efficiency + compounding often make CSPX the smarter long-term play.
💰 Wealth Management Lens
Growth Bucket → VWCE (broad) or CSPX (U.S.-focused compounding).
Income Bucket → VUSA (dividends).
Legacy Bucket → VWCE (global heirs diversification).
Security Bucket → Complement these with bonds/cash, not ETFs alone.
✍️ Quick Exercise
Write down your primary North Star: growth, income, or legacy.
Map it to the ETF:
Growth → CSPX or VWCE.
Income → VUSA.
Legacy → VWCE.
Then ask: Do I want U.S.-only strength or true global coverage?
💡 Contrarian Take
👉 “Most European investors don’t need both CSPX and VWCE. One good ETF is often enough.”
❓ Q&A: ETFs
Q: Why not just buy both CSPX and VWCE?
A: You’ll double up on U.S. exposure, since VWCE already holds ~60% U.S. stocks. That’s over-diversification without benefit.
Q: Isn’t diversification always better?
A: Not if it dilutes returns. Too many overlapping ETFs = closet indexing.
Q: Which is safest?
A: VWCE, because it spreads across the world. But safety ≠ best returns.
🚀 Take Action Today
Pick your North Star (growth, income, legacy).
Choose one core ETF that aligns with it.
Avoid overcomplicating with overlapping funds.
👉 Want to see how I blend ETFs in practice? Copy my portfolio on eToro and follow my allocations.
🔮 Next Week on The Wealth’s Ark
“Inflation vs. Deflation: How to Protect Your Wealth in Either Scenario”
Because both storms can sink an unprepared Ark.
✅ Free Resource for This Issue
ETF Comparison Matrix (PDF) — A one-page table comparing VWCE, CSPX, and VUSA: coverage, TER, dividend policy, bucket role, and use cases.
