VALL vs VT: The Same Fund in Two Tax Wrappers
This is the cleanest comparison on the site: VALL and VT track the exact same index — FTSE Global All Cap — at the exact same 0.07% TER, both run by Vanguard, both physically sampled. Nothing about the underlying portfolio differs. What differs is the wrapper: VT is US-domiciled and distributes dividends quarterly; VALL is Ireland-domiciled UCITS and accumulates them. For an investor outside the United States, that wrapper is the entire decision.
Key Differences
- Identical index (FTSE Global All Cap) and identical TER (0.07%) — the portfolios are the same
- US estate tax: VT is a US-situs asset, exposing non-US investors to up to 40% estate tax on holdings above $60,000. VALL, being Irish, is not. Income tax treaties (including the Chile-US treaty in force since 2024) do not cover estate tax
- Dividends: VT distributes quarterly and is a taxable event; VALL accumulates internally, deferring the decision and removing the reinvestment friction
- Liquidity: VT has ~$48B and years of tight spreads; VALL launched 18 August 2026 with a few hundred million — expect wider spreads for now
- VT is the better instrument for US residents in a taxable account; VALL is the structurally cleaner choice for most non-US investors
Live Comparison
Interactive comparison with real data. Toggle dividends and tax settings to see the full picture.
Bottom Line
If you are a non-US investor, VALL is what VT should have been for you: same index, same fee, without US estate tax exposure and without forced quarterly distributions. The only real caveat is age — VALL has traded since August 2026, so its spreads and tracking difference are unproven, and your broker may not offer it. If you are a US resident, VT remains the better instrument. Existing VT holders outside the US should weigh the estate-tax argument against the capital gain they would realise by switching.