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What is the VWRL ETF?

Pepperstone
Trading Guides
2022年10月26日

What does the VWRL ETF invest in?

The VWRL ETF stands for the FTSE all-world Exchange Traded Fund (*ETF). It is an investment fund that acquires securities with the intention of tracking the performance of the FTSE All-world Index.

*An ETF is an Exchange Traded Fund. They look to track the performance of a basket of assets, commodities or, in this case, an index. An ETF is traded like shares on a stock exchange. It is a pooled investment fund. Trading CFD ETFs through Pepperstone is a derivative of the underlying product.

The Objective

The VWRL fund seeks to provide long-term growth of capital by tracking the performance of the index, a market- capitalization weighted index of common stocks of large to mid-cap companies in developed and emerging countries.

Weighted investments

The top 5 holdings within the fund make up 11.83% of overall investments with over a 4% allocation in Apple Inc.

Preview

Figure 1 marekts.ft.com 10/10/2022

Invested Sectors

It is plain to see from the single stock allocation that the VWRL is weighted towards the technology sector.

Preview

Figure 2 marekts.ft.com 10/10/2022

A look from a technical perspective  

Historic price

Since its inception in May 2012, the VWRL ETF witnessed an increase of nearly 200% (from a 31.18 low to a 93.36 high).

Preview

Figure 3 TradingView VWRL rally

Although we have seen a correction the downside, we are still holding within a bullish channel formation with trend line support located at 68.50.

Preview

Figure 4 TradingView bullish channel

A look from a technical analysis perspective.

VWRL Weekly Chart

The weekly chart offers two possible bullish technical formations for the ETF:

  • We look to be holding within an Expanding Wedge formation (dashed black lines). This pattern has an eventual bias to break to the upside.
  • The last rally stalled close to the 78.6% Fibonacci level of 90.07 (from 93.36 to 77.90)
Preview

Figure 5 TradingView Expanding Wedge and 78.6%

If 77.90 holds (the swing low from the week 13th of June), we could see an extension to the upside to complete a Cypher pattern known as a bearish Butterfly formation.

Preview

Figure 6 TradingView possible Butterfly pattern

To learn more about technical analysis, please click here.

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