The MSCI World Index is a widely followed stock market index that tracks the performance of large and mid-cap stocks from 23 developed markets. It's a crucial benchmark for investors and financial professionals alike.
The ticker symbol for the MSCI World Index is ACWI, which stands for All Country World Index. This is a widely recognized and used symbol in the financial industry.
One of the most popular ways to invest in the MSCI World Index is through an ETF, or exchange-traded fund. The iShares MSCI ACWI ETF is a popular choice, with the ticker symbol ACWI.
Performance
The top MSCI World ETFs by 1-year fund return are led by the Amundi MSCI World II UCITS ETF Dist, with a return of 26.66% as of 31.12.24.
The Amundi MSCI World II UCITS ETF Dist is followed closely by the Xtrackers MSCI World Swap UCITS ETF 1D, with a return of 26.54%.
Here are the top 3 MSCI World ETFs by 1-year fund return:
1 Year
Looking at the top performers in the MSCI World ETFs, it's clear that the best ones have delivered impressive returns over the past year.
The Amundi MSCI World II UCITS ETF Dist takes the lead with a 1-year fund return of 26.66%.
Xtrackers MSCI World Swap UCITS ETF 1D comes close with a 1-year fund return of 26.54%.
The SPDR MSCI World UCITS ETF rounds out the top three with a 1-year fund return of 26.49%.
Here's a quick rundown of the top three performers:
Cost of ETFs
The cost of ETFs is a crucial factor to consider when evaluating their performance. The total expense ratio (TER) of MSCI World ETFs ranges from 0.10% p.a. to 0.50% p.a., which is significantly lower than most actively managed funds.
One of the cheapest MSCI World ETFs is the UBS ETF (IE) MSCI World UCITS ETF (USD) A-acc, which has a TER of 0.10% p.a. This means that investors can save a substantial amount of money on fees over time.
Here's a list of the top 5 cheapest MSCI World ETFs by TER:
These low TERs can add up to significant savings over time, making them an attractive option for investors.
ETF Details
The iShares Core MSCI World UCITS ETF USD (Acc) has a fund size of 90,222 million euros, making it the largest MSCI World ETF by fund size in EUR.
This ETF has a TER (total expense ratio) of 0.20% p.a. and uses an optimized sampling replication method.
The top 5 largest MSCI World ETFs by fund size in EUR are:
Some ETFs have a distributing use of profits, while others accumulate profits. For example, the HSBC MSCI World UCITS ETF USD has a distributing use of profits, while the iShares Core MSCI World UCITS ETF USD (Acc) accumulates profits.
The fund domicile for most MSCI World ETFs is Ireland, with a few located in Luxembourg and France.
Comparison and Rankings
If you're looking for a reliable MSCI World ETF, there are several factors to consider. The best MSCI World ETF by 1-year fund return as of 31.12.24 is the Amundi MSCI World II UCITS ETF Dist, with a return of 26.66%.
The cheapest MSCI World ETF by total expense ratio is tied between UBS ETF (IE) MSCI World UCITS ETF (USD) A-acc and UBS ETF (IE) MSCI World UCITS ETF (USD) A-dis, both with a total expense ratio of 0.10% p.a.
Here are the top 3 MSCI World ETFs ranked by fund return and total expense ratio:
The cheapest MSCI World ETFs by total expense ratio are UBS ETF (IE) MSCI World UCITS ETF (USD) A-acc and UBS ETF (IE) MSCI World UCITS ETF (USD) A-dis, both with a total expense ratio of 0.10% p.a.
ETFs in Comparison
In the world of ETFs, there are many options to choose from, and selecting the right one can be a daunting task. One of the most popular ETFs is the MSCI World ETF, which tracks the performance of developed markets worldwide.
The MSCI World ETF has over 20 different providers, each with their own unique characteristics. For example, the iShares Core MSCI World UCITS ETF USD (Acc) has a fund size of 90,222 million EUR, making it one of the largest MSCI World ETFs available.
The TER (total expense ratio) of an ETF is an important factor to consider, as it directly affects the overall cost of investing. The Xtrackers MSCI World UCITS ETF 1C, for instance, has a TER of 0.19% p.a., which is relatively low compared to other ETFs in the market.
The use of profits is another key aspect to consider when selecting an ETF. Some ETFs, like the HSBC MSCI World UCITS ETF USD, distribute their profits to investors, while others, such as the iShares Core MSCI World UCITS ETF USD (Acc), accumulate them within the fund.
Here is a comparison of some of the key characteristics of the MSCI World ETFs:
As you can see, each ETF has its own unique characteristics, and selecting the right one depends on your individual investment goals and preferences.
Best ETF
If you're looking for the best MSCI World ETF, you'll want to consider the fund return. As of 31.12.24, the top performer is the Amundi MSCI World II UCITS ETF Dist, with a 1-year fund return of 26.66%.
The cheapest MSCI World ETF by total expense ratio is a great option for those on a budget. UBS ETF (IE) MSCI World UCITS ETF (USD) A-acc takes the top spot, with a total expense ratio of 0.10% p.a.
If you're willing to pay a bit more for a reputable brand, Amundi MSCI World UCITS ETF UCITS ETF Acc is a solid choice, with a total expense ratio of 0.12% p.a.
Here are the top 3 MSCI World ETFs by fund return:
You can also consider the cheapest option, UBS ETF (IE) MSCI World UCITS ETF (USD) A-acc, which has a total expense ratio of 0.10% p.a.
ESG and Sustainability
The MSCI ESG Fund Rating is a direct mapping of ESG Quality Scores to letter rating categories, ranging from leader (AAA, AA) to laggard (B, CCC).
The rating is calculated based on a fund's exposure to environmental, social, and governance (ESG) factors, with AAA representing the highest level of ESG quality. For example, an ESG Quality Score of 8.6-10 corresponds to an AAA rating.
MSCI also provides an ESG Quality Score - Peer Percentile, which compares a fund's ESG performance to its Lipper peer group, offering a benchmark for evaluation. This score is a useful tool for investors looking to assess a fund's ESG credentials relative to its peers.
A fund's exposure to carbon-intensive companies can be measured using the MSCI Weighted Average Carbon Intensity metric, which estimates greenhouse gas emissions per $1 million in sales across the fund's holdings. This allows for comparisons between funds of different sizes.
ESG Quality Score
The MSCI ESG Quality Score is a way to measure a fund's environmental, social, and governance performance compared to its peers.
It's calculated based on ESG Quality Scores that are then mapped to letter rating categories.
The ESG Quality Score is compared to its Lipper peer group to determine its percentile ranking.
Funds with higher ESG Quality Scores are considered leaders in ESG performance.
The ESG Ratings range from leader (AAA, AA) to laggard (B, CCC).
The MSCI ESG Rating is based on a direct mapping of ESG Quality Scores to letter rating categories.
Funds with lower ESG Quality Scores are considered laggards in ESG performance.
Weighted Average Carbon Intensity (Tons CO2e/$M)
The MSCI Weighted Average Carbon Intensity is a crucial metric for evaluating a fund's exposure to carbon-intensive companies. This figure represents the estimated greenhouse gas emissions per $1 million in sales across the fund's holdings.
Historical data for the last 12 months are provided to the extent available. Effective April 24, 2023, MSCI ESG Research revised their methodology for calculating MSCI's Fund ESG Ratings.
The MSCI Weighted Average Carbon Intensity allows for comparisons between funds of different sizes. For a more detailed understanding of MSCI's methodology, refer to footnote 2 at the bottom of the page.
Business Involvement Coverage
Business Involvement Coverage is a key aspect of ESG and Sustainability. It refers to the percentage of a fund's holdings that have MSCI business involvement data.
MSCI's methodology for collecting this data is detailed in footnote 3 at the bottom of the page.
Frequently Asked Questions
How can I buy the MSCI World Index?
You can buy the MSCI World Index by investing in an exchange-traded fund (ETF) that tracks the index, available through most online brokers. This is a convenient way to gain broad exposure to global stocks.
What is the symbol for MSCI USA index?
The MSCI USA index symbol is MIUS00000PUS. This index offers a diversified basket of stocks for broad market exposure.
Is MSCI a publicly traded company?
Yes, MSCI is a publicly traded company, listed on the New York Stock Exchange (NYSE). This means its shares are available for purchase by individual investors and institutions.
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