Invesco FTSE All-World vs Vanguard FTSE All-World: 2026 Cost & Tracking Showdown
Two funds, one index — the workbook shows what actually differs.
Free 10-page Comparison Workbook: tracking difference vs TER, domicile, and a printable template for this exact comparison.
I profile the fund fully in my FWRA factsheet.
The complete TER-and-tracking table lives in my full cheap all-world comparison.
I compare them line by line in my WEBN-vs-FWRA comparison.
See also: WEBN vs webg.
We cross-checked all figures against the latest Invesco FWRA and Vanguard VWCE KIDs. Additionally, we used justETF tracking-difference data.
Global equity exchange-traded funds (ETFs) now anchor most European portfolios. In practice, two giants dominate the FTSE All-World arena. The first is the Invesco FTSE All-World UCITS ETF (ticker FWRA / FWRG). The second is the Vanguard FTSE All-World UCITS ETF (VWRL distributing / VWCE accumulating). In 2026, the head-to-head turns on several factors. Specifically, these include ongoing charges, tracking precision, swap-free physical replication, securities lending revenue, Irish-domicile tax treatment and broker listings of the Invesco challenger. For wider context, see our best Invesco ETFs for European investors hub and the VWCE vs alternatives comparison hub. For more detail, see our guide: FTSE All-World ex UK Index.
See also: IWDA EMIM vs VWCE.
To see what a few basis points really cost over 30 years, the ETF expense-ratio math projects the gap in euros.
Headline numbers at a glance
The simplest framing of Invesco FTSE All-World versus Vanguard FTSE All-World examines published costs, fund size and replication method side by side. Both funds qualify as UCITS-compliant and Ireland-domiciled. Notably, both incur a 3% effective US withholding leak via the US-Ireland tax treaty. Moreover, they track the same FTSE All-World index. This index covers roughly 4,200 large and mid-cap stocks across 49 developed and emerging markets. However, the differences sit in fees, scale and how the engine room is built. For more detail, see our guide: FTSE All-Share Index.
| Attribute | Invesco FTSE All-World | Vanguard FTSE All-World |
|---|---|---|
| Acc ISIN / ticker | IE000716YHJ7 / FWRG | IE00BK5BQT80 / VWCE |
| Dist ISIN / ticker | IE0006WW1TQ4 / FWRA | IE00B3RBWM25 / VWRL |
| Ongoing charge (TER) | 0.15% | 0.14% |
| Replication | Physical, sampled | Physical, sampled |
| Domicile | Ireland | Ireland |
| Fund AUM (May 2026) | ~€1.9 bn | ~€19 bn (VWCE) + €13 bn (VWRL) |
| Inception | June 2023 | 2012 (VWRL) / 2019 (VWCE) |
| Securities lending | Yes (capped, BNY Mellon) | No (Vanguard policy) |
| Distribution policy (Acc) | Capitalising | Capitalising |
Headline take: Invesco shaves 7 basis points per year off the ongoing charge. For example, on a €100,000 portfolio compounding at 7% annualised over 25 years, that gap reaches roughly €3,400 of avoided fee drag. Therefore, it counts as meaningful but not life-changing. By contrast, Vanguard counters with 10× the AUM. Additionally, Vanguard offers a three-year-longer track record on the Acc share class. Some Bogleheads-style investors also treat its no-securities-lending policy as a structural safety feature.
Rates referenced here follow our EU ETF tax dataset (2026), checked against official sources.
Tracking difference: who actually delivers index return?
TER is the sticker price. However, tracking difference (TD) is what you actually pay. TD equals index total return minus fund NAV return over the same period, net of all costs and any securities-lending revenue rebated to the fund. According to justETF’s 12-month tracking-difference data pulled in May 2026:
- Vanguard VWCE: TD of approximately -0.18% trailing 12 months. Notably, that beat even the then-0.22% TER (Vanguard has since cut it to 0.14%). This outcome looks unusual but reflects efficient sampling and tax-treaty optimisation in Ireland.
- Invesco FWRG: TD of approximately -0.12% trailing 12 months. In absolute terms, that figure edges VWCE slightly. Most of the gap reflects the lower headline TER plus modest securities-lending revenue.
Two caveats apply. First, FWRG only launched in June 2023. Consequently, we have under three full calendar years of tracking data versus a decade-plus for VWRL. In short, statistical noise in a short window can flatter or punish either fund. Second, Vanguard documents its sampling approach on All-World in their UK institutional factsheets. Historically, it delivers TD inside the TER. Invesco has yet to prove that same consistency across a full market cycle.
Securities lending: free money or hidden risk?
Here the two providers genuinely diverge philosophically. Invesco lends out a portion of FWRG’s underlying stocks via BNY Mellon Markets. The lender takes collateral, typically 105% in cash or G7 government bonds. Then it rebates the majority of the income back into the fund. Consequently, the trailing TD beats what the 0.15% TER suggests. By contrast, Vanguard’s global policy on equity index ETFs is no securities lending. Their stated reason: lending introduces counterparty risk and collateral-management complexity. In their view, the rewards do not adequately compensate a low-cost passive vehicle.
Both views are defensible. UCITS rules (Directive 2009/65/EC, updated guidance from ESMA in 2024) cap lending exposure. Additionally, they require daily mark-to-market on collateral. Furthermore, they force lenders to publish revenue splits. The European regulator framework appears on the ESMA website and offers genuine protection. However, if the prospect of a one-in-a-thousand collateral shortfall keeps you up at night, Vanguard’s no-lending stance is a feature you cannot replicate by paying more for Invesco.
Tax treatment for European investors
Both ETFs are Irish-domiciled UCITS funds. That structure gives both the same baseline. Specifically, US dividends face 15% US withholding under the US-Ireland tax treaty. Additionally, no Irish-level fund tax applies for non-Irish residents. Moreover, UCITS protection extends across the EU/EEA. What differs is how your home country taxes you on the resulting distributions or capital gains.
| Country | Acc share treatment | Dist share treatment | Practical note |
|---|---|---|---|
| Germany | Vorabpauschale on unrealised gains; 30% Teilfreistellung on equity funds; 26.375% Abgeltungsteuer on net | Same 30% Teilfreistellung; tax on cash dividends as received | Acc generally tax-efficient; check the €1,000 Sparerpauschbetrag |
| France | No PFU until sale; 31.4% flat tax on realised gain (or barème + 18.6%) | 31.4% PFU on every distribution as received | Acc is materially more tax-deferred outside a PEA. PEA only accepts EU-domiciled funds wrapped in PEA-eligible synthetics, so neither is PEA-eligible. |
| Italy | 26% capital gains tax on sale; no annual deemed taxation | 26% on each distribution; gains taxed separately as “redditi diversi” | Acc is generally preferred unless you specifically need cash flow; Italian brokers do withholding at source |
| Netherlands | Box 3 deemed-return tax on portfolio value; no distinction between Acc/Dist | Same Box 3 treatment | Tax outcome is virtually identical Acc vs Dist; pick on convenience |
None of this counts as bespoke tax advice. Verify your local treatment with a qualified tax adviser. Alternatively, consult your domestic regulator’s investor education resources. For example, see BaFin in Germany or CySEC in Cyprus. Author note: I hold VWCE personally inside a Lithuanian brokerage account and have done so since 2019. I have never owned FWRG.
Broker availability and dealing costs
The Invesco option only matters when you can actually buy FWRG with low commissions at your broker. Vanguard’s VWCE/VWRL appears on every major European broker. By contrast, Invesco’s FWRG/FWRA is newer, and listing depth varies. The table below summarises what is actually available across the brokers most European investors use. It draws on broker app screenshots and my own dealing history through May 2026.
Related reading: FWRA vs FWRG invesco.
| Broker | VWCE available | FWRG available | Indicative commission |
|---|---|---|---|
| Interactive Brokers (IBKR) | Yes (XETRA, AEB, LSE) | Yes (XETRA, LSE) | Tiered, ~€1.25 min XETRA |
| Trade Republic | Yes, savings plan free | Yes, savings plan free | €1 external order |
| Freedom24 | Yes | Yes | From €2 + 0.02/share |
| XTB | Yes, €0 to €100k/month | Yes, €0 to €100k/month | 0% under volume cap |
| DEGIRO | Yes (core selection on EAM) | Yes (LSE/XETRA, fee applies) | €1 handling + spread |
Practical reading: imagine you DCA monthly through Trade Republic or XTB. The broker-side commission then drops to effectively zero on both ETFs. Consequently, Invesco’s 7 bps TER edge wins on a pure cost basis. By contrast, if you trade on IBKR or DEGIRO, the per-order minimum on small monthly buys can wipe out the TER difference. Importantly, this drag lasts for the first several years on small portfolios. Do the maths. For more detail, our best European ETF brokers hub hosts broker selection deep-dives.
Liquidity, spreads and order book depth
VWCE/VWRL trade tens of millions of euros daily. Specifically, they move across XETRA, Borsa Italiana, Euronext Amsterdam and the London Stock Exchange. Quoted bid-ask spreads on XETRA in normal market hours typically run 1-3 basis points. By contrast, FWRG is younger and lighter, with daily volumes a fraction of VWCE. Spreads on XETRA typically reach 3-7 basis points. Occasionally they widen at the open and close. For a buy-and-hold Bogleheads-style accumulator placing one order a month, this gap matters very little. However, for anyone placing larger block trades, the wider spread on FWRG can erase a year of TER savings in a single transaction.
Risk and structural considerations
Both funds carry standard equity risk. Specifically, you bear USD, JPY, GBP and emerging-market FX exposure regardless of share-class currency. Additionally, market risk and concentration risk in mega-cap US tech apply. Neither ETF hedges currency. However, both diversify across roughly 4,200 holdings, so single-stock risk barely registers. Specific to the head-to-head:
- Provider concentration risk: Vanguard Group runs as a roughly $9 trillion AUM employee-owned mutual structure with multi-decade ETF experience. By contrast, Invesco is a publicly listed asset manager with a smaller but credible UCITS franchise.
- Counterparty risk on lending: only FWRG carries this exposure, capped under UCITS rules and 105% collateralised. Material loss scenarios remain remote but non-zero.
- Closure risk: both funds sit above the typical €100m AUM threshold. Below that level, UCITS providers sometimes liquidate. FWRG’s €1.9 bn AUM as of May 2026 sits comfortably out of the danger zone.
Which one should you buy?
Three concrete decision frames apply:
- Pure cost optimiser, DCA on Trade Republic / XTB: Invesco FWRG wins. The 7 bps TER edge compounds, and your broker commission stays at zero either way.
- Long-track-record purist, no securities lending: Vanguard VWCE wins. You get decade-plus operational history via the VWRL share class. Additionally, you avoid lending counterparty exposure. Moreover, you tap the deepest order book.
- Already hold VWCE and considering a switch: usually not worth realising capital gains tax for a fee gap that Vanguard’s cuts have closed. For new money either fund works; for existing positions, leave them alone.
FAQ
Is FWRG safer than VWCE because it has lower TER? No. Lower TER reduces drag, not risk. Both qualify as UCITS-compliant Irish-domiciled physical-replication equity ETFs tracking the same index. Therefore, risk levels stay essentially identical at the fund level.
Why does Vanguard refuse to do securities lending while Invesco does it? Vanguard’s global policy holds that lending revenue does not compensate ETF holders enough for the counterparty and operational risk. By contrast, Invesco, like most other UCITS providers, takes the opposite view. They rebate the bulk of lending income back into the fund. Consequently, FWRG’s tracking difference beats its headline TER.
Can I hold either in a UK ISA? Yes. Both VWCE and FWRG hold HMRC reporting status. Moreover, they appear on UK ISA platforms including Hargreaves Lansdown, AJ Bell and Interactive Investor. UK tax treatment differs from EU treatment, so check current HMRC guidance.
Does FWRG cover emerging markets like VWCE? Yes. Both track the same FTSE All-World index. That index includes about 10% emerging markets (China, India, Taiwan, Brazil etc.) alongside roughly 90% developed markets.
For context: ftse vs msci emerging markets.
Will Invesco cut the TER further? Possibly. The European all-world ETF segment sits in an active fee war. For example, Amundi launched its WEBN at 0.07% TER in 2023. Consequently, the gravitational pull on Invesco and Vanguard runs downward. See our VWCE vs WEBN comparison for the cheapest-of-the-cheap angle.
Related reading: How to Buy VWCE on XTB (0% Commission Walkthrough, 2026).
Sources and further reading
- Vanguard UK professional products page — VWRL/VWCE KIDs and factsheets.
- justETF — tracking-difference data, fund screener, ISIN lookups.
- Morningstar UK — independent fund analysis and ratings.
- ESMA — UCITS framework, securities-lending and collateral rules.
- Bogleheads — the global-equity one-fund philosophy behind this comparison.
Related comparisons
- VWCE vs VUAA: FTSE All-World vs S&P 500
- VWCE vs IWDA: All-World vs MSCI World
- VWCE vs WEBN: Vanguard vs Amundi Prime
- Best Invesco ETFs for European investors 2026
- ISAC vs IWDA: MSCI ACWI vs MSCI World
Disclosure & disclaimer. Kestutis Balciunas is an 11+ year European ETF and dividend investor publishing under AURUM DIGITAL MARKETING LTD (UK, Companies House 15203665). He is not an FCA-regulated adviser. This article is educational only and not personal investment, tax or legal advice. He holds VWCE personally; he does not hold FWRG. See the affiliate disclosure, editorial process and help & FAQ.
Often worth more than the TER gap: the free withholding tax and domicile calculator models fund-level US dividend withholding so you can compare like for like.
See also: VWRA vs VUAA.
