Both VWRL and VWRP track the same index – the FTSE All World index which contains large, medium and small cap companies in both developed and emerging markets. The only difference between them is their treatment of dividends – VWRL distributes its dividends while VWRP reinvests them on your behalf (hence it’s known as the accumulation version).
Both ETFs cost the same to hold – 0.22% per year which is in line with most other global equity funds. They provide broad global diversification – including stocks from every country in the world, so your investments are unlikely to be too heavily weighted in any one particular market and will benefit from broader economic growth. Read more
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They also include a good proportion of small cap stocks which is an important factor in reducing risk and volatility. As a result they’re an excellent choice for anyone looking to build a truly globally diversified portfolio.
One of the great things about these funds is that they’re so liquid – meaning they can be bought and sold like any other share. This means they’re a perfect option for FIREers – particularly if you use a platform that charges less for holding Funds than ETFs (like Hargreaves Lansdown or freetrade) or doesn’t charge at all for Funds (like Trading 212).