LEGR vs VGWLX Fund Comparison

A comparison between LEGR and VGWLX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on LEGR vs VGWLX

Here's an in depth look at the differences between First Trust Indxx Innovative Transaction & Process ETF($LEGR) and Vanguard Global Wellington Fund Investor Shares($VGWLX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • legr
  • ETF
  • Sector Equity
  • Technology

First Trust Indxx Innovative Transaction & Process ETF

Expenses: 0.65% (Better than 1% of similar funds)

This is a bad choice for a Technology Sector Equity fund. See why »

  • vgwlx
  • Mutual Fund
  • Allocation
  • Total World

Vanguard Global Wellington Fund Investor Shares

Expenses: 0.46% (Better than 1% of similar funds)

This is an OK choice for a Total World Allocation fund. See why »

$LEGR is classified as an ETF while $VGWLX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

LEGRVGWLX
Market Score 1.4 /10 8.0 /10
Category Score 0.0 /10 5.0 /10
Total1.413.0

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $VGWLX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, LEGR has an expense ratio of 0.65% while VGWLX has an expense ratio of 0.46%.

Winner: $VGWLX

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, LEGR is a small fund with 38.3 Million in assets under management. VGWLX, on the other hand, is a large fund with 1.2 Billion in assets under management.

Winner: $VGWLX, Vanguard Global Wellington Fund Investor Shares

Which Should You Choose? LEGR or VGWLX?

Comparing these two funds isn't an apples to apples comparison. LEGR is a Sector EquityTechnology fund, while VGWLX is a AllocationTotal World fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives LEGR a score of 30 and VGWLX a score of 72.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$LEGR

First Trust Indxx Innovative Transaction & Process ETF

30

Read More
Ratings
Rating TypeRating
Diversification Score0/10
Expense Ratio Score7/10
Expense Rating4/10
Market Score1/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
ExchangeNASDAQ
Expense Ratio0.650%
Net Assets38.3 Million
Yield2.13%
Holdings
DescriptionInfo
MarketSector Equity
CategoryTechnology
Sectors
  • Basic Materials 1.69%
  • Communication Services 5.34%
  • Consumer Cyclicals 6.32%
  • Consumer Defensive 1.39%
  • Energy 0.00%
  • Financial Services 36.28%
  • Healthcare 0.00%
  • Industrials 4.09%
  • Real Estate 0.00%
  • Technology 42.63%
  • Utilities 2.26%
Regions
  • Africa/Middle East 0.65%
  • Asia Developed 5.30%
  • Asia Emerging 14.08%
  • Australasia 2.42%
  • Europe Developed 28.78%
  • Europe Emerging 1.55%
  • Japan 4.96%
  • North America 38.75%
  • United Kingdom 3.52%

$VGWLX

Vanguard Global Wellington Fund Investor Shares

72

Read More
Ratings
Rating TypeRating
Expense Ratio Score9/10
Expense Rating5/10
Market Score8/10
Category Score5/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateNov-2-2017
ExchangeNMFQS
Expense Ratio0.460%
Net Assets1.2 Billion
Yield1.94%
Holdings
DescriptionInfo
MarketAllocation
CategoryTotal World
Sectors
  • Basic Materials 2.45%
  • Communication Services 5.46%
  • Consumer Cyclical 7.01%
  • Consumer Defensive 11.06%
  • Energy 4.03%
  • Financial Services 16.49%
  • Healthcare 16.85%
  • Industrials 15.68%
  • Real Estate 3.97%
  • Technology 12.89%
  • Utilities 4.11%
Regions
  • Asia Developed 4.36%
  • Asia Emerging 0.90%
  • Europe Developed 21.56%
  • Japan 10.92%
  • North America 52.26%
  • United Kingdom 10.01%

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