iShares Core MSCI World ETF USD Acc. - LON:IWDA

@finki The MSCI World index tracks stocks from 23 developed countries worldwide.

TER: 0.2%

Rooting for this one since the iShares Core MSCI World (SWDA) will not be listed on Freetrade due to low trading volume. I guess the chances are higher to get this one listed.

I’d like to see more Global ETF’s on Freetrade - as much as I love VWRL, having more of a choice can’t be a bad thing.

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There’s IWDG and a few more select trackers such as momentum funds etc.

It’s some dodgy hedged option though (it should be mentioned on the main results page for clarity, not just when you click into it)

Why does the fact that it is hedged mean that it is dodgy?

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Less risk = less gain but more stable beta.

A hedged option is not necessarily less risky as it depends how the performance of the market and the FX rate interact.


@Pazza Hedging for global ETFs that use 14 different currencies and trade themselves globally in various different currencies makes absolutely 0 sense.
The only thing that is clear is, hedging ETFs produces way higher costs for the end user which means you more likely make more money with a non hedged and cheaper world ETF in the long run.

You cannot insure yourself against global currency fluctuations in a world ETF. Over time these fluctuations will nullify each other.

In my opinion hedged ETFs are a product of the marketing team of BlackRock to have a new shiny ETF product to sell. It makes people believe a hedged ETF is somehow safer\better when its not. Fluctuations can be positive and negetive in the short term and can be ignored in the long-term.

Its why I have campaigned here for a non-hedged world ETF but it seems like Freetrade has other priorities atm. I know as soon as Freetrade offers a cheaper non-hedged version I buy the cheaper one.


@anon810895 IWDG costs more, has about half as many companies, and also excludes emerging markets compared to VWRL.

IWDA is a better alternative in terms of it being an accumulating fund, and it’s slightly cheaper (although it still suffers from the later two cons above). More choice is all I’m asking for!

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Small caps basically aren’t in VWRL either. The main difference between VWRL and SWDA is VWRL has EM included

It makes total sense. Hedging allows you to insure yourself, that is the whole point.

With an unhedged ETF you are betting on share price rises in countries and the FX rate between your country and abroad. With a hedged ETF you are only betting on share price rises.

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@ukcz Well VWRL has the top 90% companies by market cap in the fund which does not include the bottom 10%.

MSCI ETF only consists of 85% and leaves out the bottom 15%. This means VWRL has 5% more of the smaller caps. It all depends how Small Caps are defined. A lot of the bottom 5% are probably not even traded on a stock exchange.

I think it’s debatable on how much difference it makes. There is no perfect ETF :wink:

@hrochfor1 again, in the short-term a hedged ETF can make sense. It can be positive or negative.
However in the long run (10+ years) currency fluctuations will most likely cancel each other out. Since I am a long-term investor I do not want to pay 0.3% p.a. for a hedging that insures me of something that most likely will be irrelevant in the future and I won’t need.

What I know for certain - non hedged ETFs are 0.12% - 0.15% p.a. Which in 10-20 years has more of an effect than the fixed fx rate.

But everyone needs to decide for themselves.

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To clarify what you’re asking for here, you want LSE IWDA? And it is LSE SWDA that has low trading volume?

(I’m not sure if Freetrade only trades on LSE, but I didn’t think so.)

PS I agree with you on hedged ETFs!

Again for clarification, isn’t VWRL one such ETF?