When considering Irish domiciled world ETFs, several main contenders stand out:
Each of these funds has its own unique benefits and drawbacks, so it can be difficult to decide which is the best option for you. In this article, we’ll take a closer look at the differences between each fund and try to help you make an informed decision.
We split the comparisons into 5 ETFs that track either the FTSE All-World Index / MSCI World Index, and 2 ETFs that track the MSCI All Country World Market Index or All Country World Investable Market Index.
5 ETFs that track the FTSE All-World / MSCI World Index
These five ETFs (VWRA/VWRD vs IWDA/IWDD vs SWRD) provides exposure to large- and medium-cap listed companies.
The key difference between first two ETFs vs the next three ETFs is that VWRA/VWRD gives you exposure to companies in both developed and emerging markets while IWDA/IWDD and SWRD are less diversified, giving you exposure only to companies in developed markets.
Here’s a table for a side-by-side comparison of the World UCITS ETFs:
| VWRA | VWRD | IWDA | IWDD | SWRD | |
| Name | Vanguard FTSE All-World UCITS ETF | Vanguard FTSE All-World UCITS ETF | iShares Core MSCI World UCITS ETF | iShares Core MSCI World UCITS ETF | SPDR MSCI World UCITS ETF |
| Index | FTSE All-World Index | FTSE All-World Index | MSCI World Index | MSCI World Index | MSCI World Index |
| Exposure to: | Developed & Emerging Markets | Developed & Emerging Markets | Developed Markets Only | Developed Markets Only | Developed Markets Only |
| Segment Exposure (Market Cap) | Large and Medium | Large and Medium | Large and Medium | Large and Medium | Large and Medium |
| Dividend Treatment | Accumulating | Distributing | Accumulating | Distributing | Accumulating |
| Fund Manager | Vanguard | Vanguard | Blackrock | Blackrock | State Street Global Advisors |
| Expense Ratio | 0.22% | 0.22% | 0.20% | 0.20% | 0.12% |
| AUM | US$13.266B | US$15.16B | US$78.2B | US$317 Mil | US$7.45B |
| Year of Launch | 2019 | 2012 | 2009 | 2023 | 2019 |
| Geographical Breakdown (Top 3) | US – 62.8% Japan – 6.1% UK – 3.7% | US – 62.8% Japan – 6.1% UK – 3.7% | US – 71.46% Japan – 5.88% UK – 3.79% | US – 71.46% Japan – 5.88% UK – 3.79% | US – 71.69% Japan – 5.92% UK – 3.84% |
Vanguard FTSE All-World UCITS ETF (VWRA & VWRD)
Vanguard FTSE All-World UCITS ETF tracks the FTSE All-World Index which gives you exposure to large and medium sized listed companies in both developed and emerging markets.
VWRA is an accumulating ETF. All income received via dividends is reinvested in the fund’s assets, staying within the ETF. As a result, the value of the ETF increases due to the compounding effect.
On the other hand, the VWRD is a distributing ETF. All income received via dividends are paid directly to the shareholders quarterly.
VWRA was launched fairly recently in July 2019 while VWRD was launched in May 2012. Both ETFs have an expense ratio of 0.22%.
VWRA is listed on the London Stock Exchange, NYSE Euronext, Deutsche Boerse and Borsa Italiana S.p.A.
VWRD is listed on the London Stock Exchange, SIX Swiss Exchange, NYSE Euronext, Deutsche Boerse and Borsa Italiana S.p.A.
iShares Core MSCI World UCITS ETF (IWDA & IWDD)
iShares Core MSCI World UCITS ETF tracks the MSCI World Index which provides you with exposure to large- and mid-cap companies in developed markets only. It is managed by Blackrock.
IWDA was launched in 2009 and is the longest running ETF with the largest fund size of US$78.2B among the Irish domiciled world ETFs in this article.
It Is an accumulating ETF listed on the London Stock Exchange, Euronext Amsterdam, Deutsche Boerse, Borsa Italiana S.p.A., Bolsa Mexicana De Valores and SIX Swiss Exchange.
IWDD is a distributing ETF which was launched recently in Jul 2023 and is listed only on Euronext Amsterdam. Both ETFs have an expense ratio of 0.20%
SPDR MSCI World UCITS ETF (SWRD)
SPDR MSCI World UCITS ETF (SWRD) is similar to IWDA/IWDD, providing you with exposure to large- and mid-cap companies in developed markets. It is newer (having been launched only in Feb 2019), with a lower fund size, and has a lower expense ratio of 0.12%.
It is managed by State Street Global Advisors and listed on the London Stock Exchange, Euronext Amsterdam, Deutsche Boerse, Borsa Italiana S.p.A. and SIX Swiss Exchange.
SWRD is an accumulating ETF. Unlike the other pairs – VWRA/VWRD or IWDA/IWDD, SWRD does not have a corresponding distributing ETF listed in USD. Instead, the distributing ETF is listed in the London Stock Exchange in GBP, under Exchange Ticker SWLH.
2 ETFs that track the MSCI ACWI / ACWI IMI Index
Besides the five ETFs listed above, we’ve also included a side-by-side comparison of two others ETFs that are managed by SSGA that track the MSCI All Country World Market Index or All Country World Investable Market Index.
| ACWD | IMID | |
| Name | SPDR MSCI ACWI UCITS ETF | SPDR MSCI ACWI IMI UCITS ETF |
| Index | MSCI ACWI (All Country World Index) Index | MSCI ACWI IMI (All Country World Investable Market Index) Index |
| Exposure to: | Developed & Emerging Markets | Developed & Emerging Markets |
| Segment Exposure (Market Cap) | Large and Medium | Large, Medium and Small |
| Dividend Treatment | Accumulating | Accumulating |
| Fund Manager | State Street Global Advisors | State Street Global Advisors |
| Expense Ratio | 0.40% | 0.17% |
| AUM | US$2.9B | US$1.73B |
| Year of Launch | 2011 | 2011 |
| Geographical Breakdown (Top 3) | US – 64.59% Japan – 5.35% UK – 3.45% | US – 63.13% Japan – 5.86% UK – 3.68% |
SPDR MSCI ACWI UCITS ETF (ACWD)
The SPDR MSCI ACWI UCITS ETF (ACWD) tracks the MSCI ACWI (All Country World Index) Index which provides exposure to large and mid-cap companies in approximately 49 countries, of which approximately half are developed and half are emerging markets.
ACWD is an accumulating ETF launched in May 2011 by State Street Global Advisors with an expense ratio of 0.40% (the highest in our list). It is listed on the London Stock Exchange, Euronext Paris, Deutsche Boerse, Borsa Italiana S.p.A. and SIX Swiss Exchange.
ACWD current fund size is approximately US$2.9B with an expense ratio of 0.40%, the highest in our list of ETFs.
SPDR MSCI ACWI IMI UCITS ETF (IMID)
The SPDR MSCI ACWI IMI UCITS ETF tracks the MSCI ACWI IMI (All Country World Investible Market Index) Index which provides exposure to approximately 99% of the world. The index covers almost 9000 securities across large, mid and small cap size segments and consists of 47 country indices, of which approximately half are developed and half are emerging markets. This is the only ETF we’ve covered today that provides exposure to small cap stocks.
IMID is an accumulating ETF managed by State Street Global Advisors and listed on the London Stock Exchange, Euronext Paris, Deutsche Boerse, Borsa Italiana S.p.A. and SIX Swiss Exchange.
IMID does not have a corresponding distributing ETF listed in USD. Instead, the distributing ETF is listed in Deutsche Boerse in EUR, under Exchange Ticker SPSA. The ETF was launched very recently in Jul 2024 with a fund size of only US$2.76 Mil.
Both ETFs have an expense ratio of 0.17%.
How to decide which ETF to go for?
1. Underlying Index
Vanguard FTSE All-World ETF (VWRA/VWRD) tracks the FTSE All-World Index while iShares Core MSCI World ETF (IWDA/IWDD) and SPDR MSCI World ETF (SWRD) track the MSCI World Index. Meanwhile, the SPDR MSCI ACWI UCITS ETF (ACWD) tracks the MSCI ASWI Index while the SPDR MSCI ACWI IMI UCITS ETF (IMID) tracks the MSCI ASWI IMI Index.
Although they are all ‘world’ indices, you’ll be mistaken to assume that they offer the same exposure.
So, what’s the differences between the different indices?
FTSE All-World Index vs MSCI World Index vs MSCI ACWI Index vs MSCI ACWI IMI Index
The FTSE All-World Index and MSCI World Index are market cap weighted indices and focus on mid to large cap stocks.
A key difference is the FTSE All-World Index covers about 90% of the world’s investable market capitalisation whereas the MSCI World Index only covers 23 developed markets.
As such, the FTSE All-World index tracks about 4285 constituents across 49 countries while the MSCI World index only has about 1429 constituents across 23 countries (which doesn’t include China – if you are looking for China ETFs, read this).
Meanwhile, the MSCI ACWI (All Country World Index) Index includes approximately 2,900 constituents across 49 countries, with roughly half in developed markets and half in emerging markets. The MSCI ACWI IMI (All Country World Investible Market Index) Index is even more comprehensive, with nearly 9,000 (8,831) securities spanning approximately 47 countries, covering around 99% of the global equity investment opportunity set.
The MSCI World Index and MSCI ACWI focus exclusively on large- and mid-cap companies, while the MSCI ACWI IMI also includes small-cap companies, offering broader market coverage.
With the FTSE All-World Index and the MSCI ACWI/ACWI IMI indices, you gain exposure to both developed and emerging markets. Historically, emerging markets have presented higher risks for similar performance, though they may occasionally outperform developed markets.
If you seek balanced exposure across the entire world, consider the VWRA/VWRD, which tracks the FTSE All-World Index.
If you prefer to limit your exposure to emerging markets, the IWDA/IWDD or SWRD might be more suitable.
For those looking to invest in small-cap stocks, IMID is an excellent option.
The underlying index affects how diversified the ETFs are, which brings us to:
2. Geographical Allocation
As mentioned above, the FTSE all world index includes stocks in over 49 countries while the MSCI world index covers 23 developed markets, while the MSCI ACWI / MSCI ACWI IMI index covers 47-49 countries.
That said, their geographical allocation overlap greatly because these are market cap weighted ETFs and most of the biggest companies are located in similar countries. In fact, the geographical breakdown of all the ETFs are similar with their top 3 holdings from US, Japan followed by UK. Do note that VWRA/VWRD/ACWD/IMID gives you exposure to China and India while IWDA/IWDD and SWRD do not:
3. Sector Allocation
Along with the differences in the mechanisms of their underlying indices, you should note that there’ll be slight differences in their sector allocation (i.e. how much exposure you’re getting across different industry sectors).
This is good to note as different sectors perform differently depending on the market cycle and investors sentiments.
| *As of 31 July 2024 | VWRA/VWRD | IWDA/IWDD | SWRD | ACWD | IMID |
| Information Technology | 27.5% | 24.87% | 24.98% | 24.90% | 23.47% |
| Financials | 14.7% | 15.38% | 15.43% | 16.29% | 16.07% |
| Health Care | 10.8% | 11.89% | 11.93% | 11.00% | 10.91% |
| Consumer Discretionary | 13.2% | 10.09% | 10.12% | 10.39% | 10.52% |
| Industrials | 12.9% | 10.95% | 11% | 10.51% | 11.46% |
| Communication | 2.8% | 7.39% | 7.43% | 7.63% | 7.10% |
| Consumer Staples | 5.2% | 6.36% | 6.36% | 6.19% | 6.05% |
| Materials | 3.2% | 3.72% | 3.72% | 4.11% | 4.53% |
| Energy | 4.5% | 4.26% | 4.26% | 4.37% | 4.41% |
| Utilities | 2.9% | 2.53% | 2.55% | 2.54% | 2.66% |
| Real Estate | 2.3% | 2.18% | 2.21% | 2.06% | 2.83% |
4. Liquidity
Imagine if you require cash for an emergency and needed to liquidate your positions quickly. It could be problematic if there are not enough buyers, forcing you to sell your positions below market price.
Hence, liquidity is an important factor when you’re choosing an ETF for your portfolio because it would determine if you can “cash out” your holdings quickly at market price.
You can use an ETF’s bid-ask spread (smaller is better), AUM (larger is better) and traded volume (larger is better) to gauge its liquidity.
| Bid-Ask Spread | AUM | Traded Vol | |
| VWRA | 0.03% | US$13.266B | 67.12K |
| VWRD | 0.03% | US$15.16B | 20.73K |
| IWDA | Not specified | US$78.2B | 381.08K |
| IWDD | Not specified | US$317 Mil | 18.84K |
| SWRD | 0.05% | US$7.45B | 401.77K |
| ACWD | Not specified | US$2.9B | 6.67K |
| IMID | 0.20% | US$1.73B | 2.67K |
5. Dividends
An interesting feature of Irish domiciled ETFs is their option to accumulate dividends.
You’ll often find Irish domiciled ETFs denominated as accumulating or distributing ETFs. The former will accumulate and reinvest dividends for fund holders while the latter distributes the dividends to holders.
Accumulating ETFs are typically chosen by investors who are focused on capital growth rather than income. Since the dividends are reinvested, the value of the ETF can grow more quickly over time due to the compounding effect.
Distributing ETFs are often chosen by investors who are looking for a regular income stream, such as retirees or those seeking to supplement their earnings.
US domiciled ETFs are legally required to distribute all dividends, hence investors would have to manually reinvest the dividends they receive.
6. Past Performance
Past performance doesn’t guarantee future results, but here’s a glance of how these ETFs have performed since their inception.
Annualised returns since inception:
- VWRA: 10.72%
- VWRD: 10.50%
- IWDA: 10.15%
- IWDD: 18.97% (*note that this ETF was only launched in Jul23)
- SWRD: 12.43%
- ACWD: 8.72%
- IMID: 8.87%
You may be also interested in how the indices they track have performed historically:
| 1 year | 3 year | 5 year | 10 year | |
| FTSE All-World Index | 17.5% | 6.3% | 11.5% | 8.52% |
| MSCI World Index | 18.89% | 7.37% | 12.60% | 10.10% |
| MSCI ACWI Index | 17.55% | 6.26% | 11.57% | 9.29% |
| MSCI ACWI IMI Index | 16.92% | 5.74% | 11.26% | 9.10% |
The benefits of investing in an Irish Domiciled World index ETF
We’ve provided a summary of the best Irish Domiciled World ETFs above.
As a quick summary, here’re the benefits of investing in an Irish Domiciled World Index ETF:
1) Get globally diversified portfolio in a single investment
World Index ETFs gives you exposure to a globally diversified portfolio with just one ETF.
These are great for the lazy or busy investors who want to grow their money at market rate, without having to care about how the stock market is performing.
2) Enjoy good growth with less work
Historically, the indices grew by about 11-12% over the past 5 years. Comparatively, the STI grew by about 5%.
Just by investing in any of the Irish Domiciled World ETFs, you could potentially grow your money about 2x faster than investing in the STI ETF. All with almost no effort.
You would typically dollar cost average into such world index ETFs, buying a fix dollar amount at regular intervals. You can read more about dollar cost averaging here.
3) Avoid Dividend Withholding Taxes
These Irish Domiciled World ETFs also allows you to reduce the dividend withholding taxes that you could be liable for from 30% to 15%.
And if you invest in the accumulating version of these ETFs, your dividend payouts get accumulating automatically by the fund. This means you don’t have to remember to manually reinvest your dividends!
What if I want higher returns?
Such ETFs may not be as enticing for self-motivated investors who are chasing higher returns. If you are willing to put in the effort to pick strong stocks, you may end up with a portfolio that could outperform these world index ETFs.
To learn how, you can refer to our investing guides here, or learn from our trainers at one of our investing courses here.
We’ve included only the ETFs that are listed on the London Stock Exchange and with USD as the listing currency.
If you have been doing your own research, you would have noticed that there could be other ticker codes used for the same ETFs. The differences could be due to the listing exchange or the listing currency where the ETF is being traded on.
As ticker symbols are exchange / currency dependent, you can also uniquely identify a fund by using its International Securities Identifying Number (ISIN). By searching for the ISIN, you can easily determine that these differently named products are just the same product.
Example: IWDA vs SWDA
Example: VWRA vs VWCE
