Important information - investment values and income from investments can go down as well as up, so you may get back less than you invest.
UK investors have a new favourite fund - at least if you believe the most popular investing blogs and influencers.
The Vanguard FTSE Global All-Cap UCITS ETF has only been around since August but has already set the investing community abuzz. The launch of a new ETF - or ‘exchange-traded fund’ - wouldn’t normally make a ripple outside industry circles, but the Vanguard fund has made a notable splash.
Cheerleading YouTube videos have racked up hundreds of thousands of views with headlines like ’Vanguard’s New UK ETF Just Destroyed the Competition’ and ‘I invested £40,000 into Vanguard’s new ETF’. Any dissenting voices - ‘5 reasons why you shouldn’t switch to Vanguard’s new fund’ - have been in the minority.
The enthusiasm is beginning to be reflected in sales figures, too. The Vanguard FTSE Global All-Cap UCITS ETF jumped straight to the top of the list of best-selling ETFs on the Fidelity platform in September. It is already the seventh best-selling ETF of 2026 overall, despite launching in August.
Key to its appeal is its low cost. With an ongoing charge of just 0.07% the fund is significantly cheaper than its (already very cheap) rivals. Moreover, the fund’s global, all-cap remit means it gives comprehensive coverage of global stock markets - on a market capitalisation-weighted basis, at least.
This combination is making it a favourite of the growing army of investors who want to track global stock markets for the cheapest possible price, with as little need to switch in and out of investments as possible.
So - is this really one fund to rule them all? We’ve lifted the bonnet on the Vanguard FTSE Global All-Cap UCITS ETF to help you decide.
Vanguard’s new ETF - what are you getting?
The Vanguard FTSE Global All-Cap UCITS ETF - known by its a four-character identifying code ‘VALL’ - is a passively managed exchange-traded fund which tracks the FTSE Global All-Cap index. That means it aims to deliver whatever return is produced by that index - no more, no less.
To do that, it invests in (almost) all the companies in the index, according to the proportions in which they appear. Vanguard has a long tradition of running this type of passive fund and investors have trusted it to do the job with as little ‘tracking error’ - the difference between the fund’s performance and the index’s performance - as possible.
There is no fund manager or team of analysts making investment calls, which helps keep the cost low. The ‘All-Cap’ index it tracks includes some medium and smaller companies that other global index-tracking funds may not.
This is an ‘exchange-traded fund’ which means, unlike traditional mutual funds, it is traded on the stock exchange. Like a company share, VALL can be bought and sold throughout the trading day whenever the stock exchange is open.
Anyone consider investing in ETFs needs to be aware that you may be charged differently to invest in them, depending on the platform you’re using. This can make them more or less attractive depending on the type of investor you are - check the section on costs below for more on this.
How does Vanguard’s new ETF compare to alternatives?
VALL competes with many global tracker funds of different kinds. To make a worthwhile comparison, it makes sense to judge it against two of its closest relations:
- Vanguard FTSE All-World UCITS ETF - another Vanguard global index ETF, with the code VWRP, that tracks the FTSE All-World rather than the FTSE All-Cap;
- Vanguard FTSE Global All Cap Index Fund - does the same job of tracking the FTSE Global All-Cap Index, but as a traditional mutual fund rather than an ETF.
Both of these are also strong sellers among Fidelity customers, and both might be options for investors looking for global stock market exposure in one place.
VALL vs. VWRP
The Vanguard FTSE All-World ETF (VWRP) and the Vanguard FTSE Global All-Cap (VALL) differ mainly due to the indices they track. The All-Cap version includes more medium-sized and smaller companies that are excluded from the All-World version.
VALL carries an ongoing charge of 0.07%, compared to 0.14% for VWRP.
Vanguard allows investors to download a full list of holdings in its funds. The analysis that follows is based on a download of those holdings from 21 October. Note that these figures are liable to change as funds grow in size and make additions possible.
Based on downloaded holdings, it includes 6,986 holdings, versus just 3,865 in the All-World version. Look closer, however, and the difference is less significant. The extra companies held in the All-Cap version account for about 7.7% of the total fund size.
You can see how this alters the characteristics of these two funds by looking at a breakdown of the sectors and countries they invest in.
The new All-Cap ETF is slightly less exposed to the dominant tech sector - although tech remains its biggest sector exposure by far. It contains slightly higher exposures to industrials, basic materials and real estate.
In terms of country exposure, both funds are dominated by the US, which comprises 60% of the All-Cap ETF and 62% of the All-World version. The All-World ETF has marginally higher exposures in the largest developed markets.
These small portfolio differences will lead to small differences in performance over time. Although we don’t yet have meaningful performance data for the recently launched Vanguard ETF, we can compare the performance of funds which track the FTSE Global All-Cap Index and the FTSE All-World to gauge the difference over time.
Even over a very long period - this chart runs from 2016 - the difference in performance is slight. The slight advantage of the All-World is perhaps explained by the slightly higher allocation to large tech companies that have driven market returns for much of the period.
VALL vs. Vanguard FTSE Global All-Cap Fund
The Vanguard FTSE Global All-Cap Fund is the mutual fund version of VALL and tracks the same All-Cap index. As such, it shows only marginal differences at a portfolio level. The mutual fund version holds 7,357 companies compared to 6,984 for VALL, although these account for a difference between the portfolios of less than 1%.
There is a significant difference in price, however. The Vanguard FTSE Global All-Cap Fund has an ongoing charge of 0.23% compared to 0.07% for VALL.
Practicalities and trading costs - fund vs. ETF
One of the biggest considerations for someone investing in the new Vanguard ETF instead of the mutual fund version is the impact this has on costs.
The ETF version saves you 0.16% in ongoing charges every year versus the mutual fund - not to be sniffed at.
However, this difference can be dwarfed by other trading costs that may apply, depending on how you make your investments. These charges will be specific to the investing platform you are using - we’ll focus on the Fidelity fees here.
Whether you buy the ETF or mutual fund version of Vanguard FTSE Global All-Cap, you will be charged a platform fee of 0.35% (for balances between £25,000 and £250,000).
There is no charge to invest in the mutual fund version but buying the ETF incurs a buying charge of £7.50.
A significant difference in cost arises if you want to invest regularly via a monthly Regular Savings Plan. This option is free if you are investing into a mutual fund but incurs a £1.50 for each regular monthly payment into an ETF.
Were you to pay £100 a month in the ETF, for example, this fee would represent an additional 1.5% annual charge on your contributions, far outweighing any saving you make from the ongoing charge. The relative impact is reduced if your regular payment is higher - once you get to monthly contributions of around £937.50 the ETF version becomes cheaper.
Should I invest in Vanguard FTSE Global All-Cap ETF?
The new ETF from Vanguard is deserving of the attention it is getting. A 0.07% charge to track the world’s stock markets, with a slice of smaller and medium-sized companies thrown in, will be eye-catching for those investors laser focused on simplicity and cost.
Whether it make sense to invest however, is likely to depend on how you invest and the platform charges at play. Where you face a charge to invest regularly into an ETF, the small advantage in ongoing cost is wiped out unless you are paying in much higher amounts.
In which case, the mutual fund version may be the smarter choice.
Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. There is no guarantee that the investment objective of any Index Tracking Sub-Fund will be achieved. The performance of the sub-fund may not match the performance of the index it tracks due to factors including, but not limited to, the investment strategy used, fees and expenses and taxes. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Before investing, please read the relevant key information document which contains important information about the fund. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
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