Hello
I’m a beginner
I’ve invested in a CW8 on Bourse Direct and would like to invest more
I don’t have any monthly payments scheduled
But does it make sense to buy CW8 when it has climbed to €700?
If the idea is to invest long-term in a PEA, aren’t we more likely to see a gradual decline?
Thank you for your informed advice.
We’re going to have historic growth, a crash, stagnation perhaps. But it’s impossible to know from the price of the CW8. Psychological levels based on price, €700, €1000 soon, do not represent insurmountable thresholds in any way. Economic growth itself potentially has no end, at least not before the end of the world.
The price of this ETF is simply designed to track the MSCI World index, nothing more, nothing less. And it has no more significance than that. If the World increases by 10%, the CW8 will increase by 10%. Other ETFs track the same index and will follow the same evolution with a lower share price. E.g., DCAM and WPEA (which have a lower TER than the CW8 and are generally preferred by the community over the CW8).
it’s even certain (no stock, to my knowledge, has only gone up throughout its entire life), just as much as the rises. We call these variations (or rather their frequency and magnitude) volatility. What’s important is that at some point the balance is positive.
If you’re not okay with that (and there’s nothing wrong with that), you move toward something else: that’s the principle of measuring your risk aversion. Reading this forum (and others) can help better understand these issues and many others.
The difficulty at 700 if you have a small budget will mainly be for rebalancing, where it’s simpler with shares under 10€.
Otherwise, for the rest it’s the same.
The question is mainly: does it make sense to buy a World ETF with 0.38% fees when there are 2 others with 0.20% fees?
Ah yes, the double square? I didn’t think so. So that finishes off the one at 700 for new buyers 
If we look at it since its launch, we cannot say that DCAM beats CW8 despite its lower TER. The clear advantage of DCAM is the lower share price.
I disagree. Lower assets under management, a lower share price, leads to a higher spread risk. These factors favor CW8.
The lower TER is an advantage for DCAM and it’s probably the most determining factor. DCAM beats CW8 over 18 months, knowing that over 18 months, we obviously shouldn’t expect a 5% difference.
The low share price does not mean a higher spread. However, it is convenient for monthly investing.
The fund size yes, but we’re talking about a fund that already has ~1.5 billion in AUM, for a small monthly order it’s the same on both, the order book is tight and you won’t cross it with your 1000€ order.
Looking quickly at data from Bourso, the two funds each win 9 months out of the last 18. We also see that DCAM is above but with a smaller gap than the TER difference and quite fluctuating.
So I maintain that the big visible difference in practice will be the share price. And if you really want to optimize for long-term buy and hold, you need to go with CTO (even larger TER difference and huge inheritance advantage).
You’re on a beginner thread and your message contradicts itself. You indicate that the TER is not decisive and you recommend going with an ETF to reduce the TER…
As for the spread, note that I use the term « risk ». A tick size of 1 cent induces a much larger variation in the underlying asset on a share price of 10 euros than at 700 euros. This is a risk to be aware of, beyond the it’s better because it’s cheaper.
No, I’m just saying that the micro-optimization of TER is not the fundamental criterion for choice here but the share price.
And it’s quite surprising to criticize me and then talk about the effect of share price on the spread, the performance impact is ridiculously small, even more so than the effect of TER. Moreover, DCAM is quoted to the thousandth of a euro.
Beginners will precisely optimize things that aren’t very important (the spread on ultra-liquid ETFs for orders of a few hundred euros) and find themselves hindered in useful things like being able to do their monthly DCA because the share price is too expensive.
I’m still trying to understand why people buy a so-called World ETF when the top 10 holdings are Nvidia, Apple, MSFT, Alphabet, Meta, etc… might as well buy a PANX or a PUST with better performance
The argument can be turned around in two ways.
Hello Laurent,
Don’t forget that an ETF replicates an index. The Nasdaq is focused on Tech. Regardless of the index rebalancing, you will only have Tech. Today it is also predominant in the World ETF, but the automatic rebalancing can change things. That’s the advantage of having a non-sector ETF.
Good evening Laurent
Could you clarify « might as well buy a PANX or a PUST with better performance » that you mentioned, please?
I remind you that I’m a beginner and I’m learning little by little.
Thank you.
There’s a simple yet important argument: don’t bother and let the market take care of it 
The ETFs I mention are primarily concentrated on US tech stocks:
PUST: it replicates the Nasdaq100 index
PANX: it focuses on the 50 largest US tech stocks with ESG criteria
CW8: diversified across 1,500 global companies but is actually heavily concentrated on US tech stocks
Quick reminder since there are messages indicating being beginners:
« Past performance does not predict future performance! »
It’s easy to look at recent years and think:
It’s important to specify today. The CW8 replicates the MSCI World index, and today tech is indeed dominant. But tomorrow another sector could take the lead. The MSCI World index will follow this change. However, Tech ETFs will always remain focused on Tech.
Choosing a Tech ETF is equivalent to betting that it will always be among the best capitalizations when you consume your capital.
Buying CW8 no longer makes sense (its ongoing charges are higher than other available World ETFs, and the share price is high).
Nowadays, it’s advisable to buy, depending on your broker’s trading fees, either DCAM (Amundi) or WPEA (Ishares).