This ETF tracks the MSCI World Net Total Return Index. The index represents the performance of large and mid cap companies across 23 developed markets. Dividends received are reinvested.
How does the FT community rate this ETF?
It has a TER of .12% which seems pretty good to me compared other World trackers which are around double this.
This tracks the MSCI World Net Total Return USD Index. Does this make it susceptible to FX fluctuations in comparison to other World trackers?
Any thoughts appreciated. I hold a small amount of this but was considering increasing over the next few months.
I like it. It’s one of the cheapest MSCI World trackers around and it’s a good size at about £2bn.
One thing you have got to be a careful of with Lyxor ETFs (also VanEck and Amundi) is where they are domiciled. Some (not LCWL) are outside of Ireland or Luxembourg, which can have tax implications.
LCWL is unhedged. Over the long-term, currency fluctations shouldn’t make that much difference and it’s probably not worth the extra cost to hedge.
I nearly bought this recently but opted for SWLD instead. There’s little to choose between them but I preferred State Street as a provider.
Thank you ever so much @rehpot. That is a really good tip re domicile. Would the tax costs be presented in the TER?
I had spotted SWLD but as I don’t know much about the different providers this didn’t cross my mind. Comparing State Street with Amundi now, it’s a tricky choice. US or European provider? Second oldest bank in the US or top 10 in Europe? I might have to flip a coin!
No, the tax wouldn’t be included. You don’t want to find yourself hit with additional withholding taxes, on top of those from underlying portfolio transaction costs.
Yeah, it was a toss-up between the two. VEVE/VHVG is also 0.12% and that would be my first choice.
But I already hold it in my Sipp, so thought I’d mix things up for the passive part of my Isa.
Ok, good to know, thank you.
Looking at SWLD versus LCWL, the former performed marginally better for the last 2 years, so guess I will be going with that. When I say marginally better, SWLD had slightly less losses in 2022!