HSBC MSCI World UCITS ETF USD - HMWO

Cheaper MSCI World ETF than the one currently listed (iShares MSCI World) at 0.3% TER. This one has a TER of 0.15% p.a.

The MSCI World index tracks stocks from 23 developed countries world wide. As of January 2019 the index consisted of 1.632 constituents.

ISIN IE00B4X9L533, Ticker HMWO

Half the TER 0.15% of the current MSCI World index listed.

The real cost in these kinds of ETFs is more often than not, not the TER, but the tracking error. Do you know how that compares with the iShares one?

That a good point. However since both ETFs track the MSCI World and are both sampled physically they probably do not have that much of a difference. They also both do not track small caps which usually increases the tracking diff. Last but not least the Ishares ETF is hedged which does not really have any big benefits but probably produces higher costs for the index.
Tracking difference can be negative or positive I guess.
Another factor is that the HSBC ETF exists a lot longer (9 years) than the Ishares MSCI World which is just 2 years old. Only advantage of the ishares one is the bigger fund size. Just my personal viewpoint.

If you do find out that there is a massive tracking difference bigger than 0.15% let us know :slight_smile:

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Does anyone know if the trading volume of this one meets the criteria of Freetrade? Hopefully this cheap alternative to iShares is offered soon.

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My guess would be it doesn’t.
There’s virtually no volume through NEX or CBOE
The only action is on the LSE and volume and values are quite thin - about 10 trades today, only 16 trades all day yesterday.
Not exactly big!
@ytsruh has access to a lot of market data too … so interested to see what he can see on his order screens…

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@finki Any idea if there are any other MSCI World ETFs with higher trading volume?

Scanning around I’d opt for SWDA (£) or IWDA ($).
IWDA has significantly more action - so the likely contender

SWDA has decent volume (on a par with, say IWDG, that FT already make available) - so could be possible…but I know people have been asking for SWDA for ages with no luck

I’d go for IWDA @ 0.20% OCF

https://www.ishares.com/uk/individual/en/products/251882/ishares-msci-world-ucits-etf-acc-fund?switchLocale=y&siteEntryPassthrough=true

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@finki Yea I guess the americans are more ETF crazy than we are here. So maybe the only way to get an accumulating one with Freetrade to ask for the IWDA. Although I am not sure if the IWDA can be traded here? If I search on justETF for IWDA I get the SWDA.

IWDA is traded on the LSE. Currency denomination doesn’t matter.

https://www.londonstockexchange.com/exchange/prices-and-markets/ETFs/company-summary/IE00B4L5Y983IEUSDEUET.html?lang=en

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@finki Ok thanks for the clarification. Is there already a request for the IWDA?

Doesn’t look like it, no

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Rough 30k traded daily with big swings on certain days. Cant seem to post the screenshot from my iPad so I’ll try tomorrow.

Volume looks a little low for the market makers to offer it. Even if they do there will be big spreads to cover the risk

Agreed with HMWO
That’s why @reiro is opting for IWDA instead.
Volumes and Market Makers on the book look bigger … unless you see something different

Yeah tonnes of liquidity here, about 300k today. Almost every iShares product has high volumes so no issues. I suspect Freetrade team will rollout the full suite of iShares products before long

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@finki Any idea how much the extra costs are from exchanging from GBP to USD ETFs? Since that does not seem attractive if its a high conversion rate.

You’ll likely find the FX is done at the point of exection…so converted at the market makers rate… which won’t be far from spot… rather than Freetrade applying the 45 bpconversion fee…

So, back in my day although the quote might be in USD we’d autoconvert immediately and queue the settlement up in GBP… the Market Maker added virtually noting (a few BPS) to the spot FX

So to answer your question : Unsure. But probably very little. Not enough to worry about in the grand scheme of things.

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