Best MSCI World Index ETF UK – Compare Top ETFs 2021

The MSCI World Index is a global stock index that includes shares from 23 countries, including the US, UK, and Japan. You can invest in the MSCI World Index in the UK through ETFs.

In this guide, we’ll review the best MSCI World Index ETF UK for 2021.

Best MSCI World Index ETF UK 2021 List

Here are the 5 best MSCI World Index ETFs in the UK for 2021, read on for a more in-depth analysis of each:

  • iShares Core MSCI World UCITS ETF – Largest MSCI World Index ETF – Invest Now
  • Lyxor Core MSCI World UCITS ETF – Cheapest MSCI World Index Fund – Invest Now
  • HSBC MSCI World UCITS ETF – Best Dividend-paying MSCI World Index Fund – Invest Now
  • Amundi Index MSCI World UCITS ETF – Best Performing MSCI World Index ETF
  • Xtrackers MSCI World UCITS ETF – Best Balanced MSCI World Index Fund

Best MSCI World Index ETFs UK Reviewed

MSCI World Index ETFs (exchange-traded funds) can look very similar, but there are important differences between individual funds. So, let’s take a closer look at the top 5 MSCI World Index ETFs to help you decide which is right for you.

1. iShares Core MSCI World UCITS ETF – Largest MSCI World Index ETF

The iShares Core MSCI World UCITS ETF is the single largest MSCI World Index fund in the world. It has a whopping $35.8 billion USD in assets under management, which dwarfs other funds in this asset class.iShares MSCI World ETF

That means you’ll have no trouble with liquidity when you want to buy or sell shares of this fund. But it can also mean that the fund itself is less nimble, since it has to move huge blocks of shares everytime it wants to change its position in a company.

That doesn’t seem to have caused much problem for this fund, however. The iShares MSCI World UCITS ETF gained 51.28% over the past 3 years.

This fund uses an optimized sampling method, which means that it holds a selection of the full 1,586 stocks to track the MSCI World Index performance. This best ETF UK is an accumulating fund, so all dividends are reinvested in the fund rather than paid out to investors. The iShares Core MSCI World UCITS ETF has an annual expense ratio of 0.20%.

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Lyxor Core MSCI World UCITS ETF – Cheapest MSCI World Index Fund

The Lyxor Core MSCI World UCITS ETF is a great option if you’re looking for the lowest possible expense ratio. This fund charges just 0.12% per year in management fees, so you can save a significant amount of money compared to other MSCI World Index ETFs.Lyxor MSCI World ETF

One way the fund saves money is by using unfunded swaps to track the MSCI World Index performance. That means that this is a synthetic ETF, or one that only holds derivatives rather than the stocks that make up the underlying benchmark index. It’s rare that this will matter, but there may be times when the performance of the Lyxor ETF diverges from the performance of the MSCI World Index.

The fund has around $1 billion in assets under management, so it’s relatively small for an MSCI World Index ETF. However, that makes it more nimble when changing positions and reduces overhead costs.

The fund is an accumulating fund, so all dividends are reinvested. The Lyxor Core MSCI World UCITS ETF gained 51.01% over the past 3 years.

67% of retail investor accounts lose money when trading CFDs with this provider.

3. HSBC MSCI World UCITS ETF – Best Dividend-paying MSCI World Index Fund

The HSBC MSCI World UCITS ETF is a distributing ETF, meaning that any dividends paid by the shares it holds are distributed to investors on a quarterly basis. So, if you’re interested in income investing, this fund could be a good option for you. The fund pays a dividend yield of around 1% per year.HSBC MSCI World ETF

The fund has performed extremely well over the past 3 years, returning 52.46% to investors after accounting for dividends. The fund has a reasonable 0.15% annual expense ratio, so that extra performance doesn’t come with a high price tag.

The HSBC MSCI World UCITS ETF currently has around $3 billion in assets under management. The fund trades on the London Stock Exchange rather than on a US exchange, so it’s particularly easy for UK investors to access.

67% of retail investor accounts lose money when trading CFDs with this provider.

4. Amundi Index MSCI World UCITS ETF – Best Performing MSCI World Index ETF

The Amundi Index MSCI World UCITS ETF is the top-performing fund over the past month, posting a gain of 6.94% over the past 30 days. Over the past 3 years, the fund has a total return of 50.54%.Amundi MSCI World ETF

This fund uses unfunded swaps instead of directly buying shares of the companies in the MSCI World Index. It has $1.7 billion in assets under management, making it a mid-sized fund.

One downside to the Amundi ETF is that it has a pricey 0.38% total expense ratio. That’s higher than many of the low-cost funds we’ve listed, and it means that the ETF needs to perform that much better to make itself worthwhile. However, the fund has been able to do that so far, which proves that the fund managers are charging what their service is worth.

67% of retail investor accounts lose money when trading CFDs with this provider.

5. Xtrackers MSCI World UCITS ETF – Best Balanced MSCI World Index Fund

The Xtrackers MSCI World UCITS ETF is a middle-of-the-road fund for investors who want a blend of performance, low fees, and fidelity to the MSCI World Index performance.Xtrackers MSCI World ETF

The fund uses an optimized sampling method, so it includes shares of most of the companies that are in the MSCI World Index. It also reinvests dividends, so its position in the indexed companies is consistently growing over time.

The Xtrackers ETF has $7.1 billion in assets under management, making it the second-largest MSCI World Index ETF behind the iShares fund. It has produced a gain of 51.25% over the past 3 years and has an annual expense ratio of 0.19%.

67% of retail investor accounts lose money when trading CFDs with this provider.

What is the MSCI World Index?

The MSCI World Index is a global equity index that tracks the performance of the world’s largest companies. It includes 1,586 large-cap stocks from 23 countries, including the United States, the United Kingdom, Japan, Canada, Australia, Germany, the Netherlands, Switzerland, Norway, France, and Spain. Altogether, the index represents around 85% of the total market capitalisation in each country.MSCI World Index Allocation

It’s important to note that the MSCI World Index is heavily weighted towards US stocks. In fact, over 66% of the index represents US companies. Japanese companies represent 7.5% of the index, and UK companies represent 4.4%.

Top holdings include the FAANG stocks (and Microsoft shares) as well as healthcare stocks like Johnson & Johnson. There are no small cap stocks or emerging markets stocks in the MSCI World Index.

Are MSCI World Index ETFs a Good Investment?

MSCI World Index ETFs can be a good investment depending on your investment objectives. The main purpose of these funds is to invest in developed economies while attaining geographic diversification. By getting exposure to the UK and European stock markets, you are less dependent on volatility in the US stock market for your investment returns.

Still, US companies have a heavy allocation in the index. They make up more than two-thirds of the index’s weight, so the MSCI World Index performance is heavily dependent on the US stock market.

UK investors may want to consider an S&P 500 ETF, which includes the 500 largest US companies, and it has a better past performance than the MSCI World Index over the past 3 years: the S&P 500 has returned 14.0% compared to 12.8% for the MSCI World Index.

In addition, MSCI World Index ETFs tend to have higher expense ratios than S&P 500 ETFs. The cheapest MSCI World Index fund has an annual management fee of 0.12%, compared to 0.03% for the Vanguard S&P 500 ETF.

Another thing to consider is that MSCI World Index ETFs do not offer exposure to emerging market funds UK. If you want to invest in China stocks or in growth stocks from Africa and Southeast Asia, you will need to consider an alternative ETF.

Best MSCI World Index ETF UK Investment Platforms 2021

In order to invest in the best MSCI World Index ETFs, you’ll need a stock broker that offers ETF trading. There are many options to choose from, so to make your choice easier we’ll highlight 2 of the top ETF investing platforms in the UK.

1. eToro – Overall Best ETF Broker in the UK – 0% Commission

etoro logoeToro is our top recommended broker for UK investors who want to buy the best MSCI World Index ETF in the UK. This online broker offers trading on more than 450 ETFs from around the world, including funds from iShares, Vanguard, Xtrackers, and more. You can also invest directly in over 2,000 stocks from the US, UK, Europe, Japan, Australia, and around the world.

One of the best things about eToro is that all share and ETF trades are 100% commission-free. All you pay when investing is a small spread, which is typically a fraction of a percent of your investment. eToro does charge small withdrawal and inactivity fees, but these are easy to avoid.eToro ETFs

67% of retail investor accounts lose money when trading CFDs with this provider.

eToro offers excellent tools for portfolio management, which enables you to stay on top of your investments. You can easily track the performance of your individual holdings and dive deep into your MSCI World Index ETF to see which stocks are overperforming and which are underperforming. In addition, the broker offers access to analyst research, in-depth price charts, and a global economic calendar.etoro renewable energy copyportfolio

Another thing to love about eToro is that the broker’s platform includes a built-in social trading network. You can follow other ETF investors to share ideas and strategies, as well as see what funds people who are investing in the MSCI World Index are also buying. You can even take advantage of the copy portfolios feature, which enables you to mimic the positions of experienced investors in just a few clicks.eToro Social Trading Network

eToro’s investment platform is available for web and mobile. The broker is regulated by the UK Financial Conduct Authority (FCA) and is widely considered trustworthy. If you ever need help with your account, eToro’s customer support team is available 24/5. You can open an account with a 160 GBP deposit and eToro accepts debit cards, credit cards, and PayPal.

Pros:

  • Invest in over 450 ETFs and 2,000 stocks
  • 100% commission-free share and ETF investing
  • Excellent portfolio management and research tools
  • Follow other ETF investors with a social trading network
  • Regulated by the FCA
  • 24/5 customer support

Cons:

  • Small withdrawal and inactivity fees

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Fineco Bank – Low-cost Dealing on Thousands of Global ETFs

Fineco Bankfineco logo is another top ETF investing platform in the UK. This broker offers tens of thousands of shares from the US, UK, and Europe, as well as more than 10,000 ETFs to choose from across these markets. So, if you’re interested in having the widest possible selection of ETFs to choose from, Fineco Bank is a great option.

Importantly, Fineco Bank offers several ways to invest. You can open a share dealing account and pay £2.95 per UK ETF trade or $3.95 per US ETF trade. Alternatively, Fineco Bank offers stocks and shares ISAs. With an ISA, you’ll pay no trade commissions and instead be charged a 0.25% annual management fee based on the amount you have invested.fineco fees

Your capital is at risk.

Fineco Bank allows you to manage your portfolio online or through a mobile stock app. The investment platform is easy to navigate and makes it as simple as possible to track the growth of your portfolio over time. However, Fineco Bank doesn’t offer in-depth research into the ETFs it offers, so you’ll need to do your own research when choosing funds.fineco index funds

If you’re interested in trading ETFs, Fineco Bank offers the PowerDesk technical analysis suite. This includes customisable price charts with dozens of built-in technical indicators. It’s a terrific tool for more advanced traders, although we’d like to see something in between that and the Fineco investment portal for long term investing in ETFs.Fineco powerdesk

Fineco Bank is regulated by the Central Bank of Italy and is publicly traded on the Milan Stock Exchange. You can get in touch 5 days a week via phone or email if you need help with your account.

Pros:

  • Invest in over 10,000 ETFs
  • Offers a stocks and shares ISA
  • Low commissions for share and ETF dealing
  • Mobile app with portfolio management features
  • Support available 5 days a week
  • Regulated by the Central Bank of Italy

Cons:

  • Limited ETF research available

Your capital is at risk.

How to Buy the Best MSCI World Index ETFs UK

Ready to invest in the best MSCI World Index ETF in the UK? We’ll show you how to get started with eToro, which offers 0% commission ETF investing and in-depth portfolio management tools.

Step 1: Open an eToro Account

To begin, head to eToro’s website and click Join Now to create a new account. You can sign up with your email or using your Facebook or Google login.Create an eToro account

67% of retail investor accounts lose money when trading CFDs with this provider.

In order to comply with UK financial regulations, eToro requires that you verify your identity before trading. Upload a photo of your driver’s license or the picture page of your passport along with a photo of a recent utility bill or bank statement.

Step 2: Deposit Funds

Next, add funds to your new eToro trading account. You must deposit at least £160, which you can pay by credit or debit card, bank transfer, PayPal, Neteller, or Skrill.Deposit funds on eToro with credit card, PayPal, e-wallet.

Step 3: Buy an MSCI World Index ETF

Now you’re ready to buy an MSCI World Index ETF. Search for the name of the fund you want to purchase and click Trade when it appears in the drop-down menu.Search MSCI World Index ETF eToro

67% of retail investor accounts lose money when trading CFDs with this provider.

In the order form, enter the amount you want to invest in the fund. You can also choose a stop loss or take profit level to accompany your order.

When you’re ready, click Open Position to buy your first MSCI World Index ETF.

eToro – Invest in a MSCI World Index ETF with 0% Commission

Investing in an MSCI World Index fund gives you exposure to stocks from the US, UK, Europe, Japan, and more. While many MSCI World Index ETFs are similar, choosing the right one can help keep your costs down and ensure you’re getting the best possible performance.

Ready to invest in the best MSCI World Index ETF in the UK? Click the link below to get started with eToro today!etoro logo

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What is the MSCI World Index?

The MSCI World Index is a stock index that tracks the largest companies in 23 developed countries. It includes 1,586 stocks in total across the US, UK, Europe, Canada, Japan, and Australia.

How do I buy the MSCI World Index?

You can invest in the MSCI World Index through an ETF. There are many ETFs that invest in the same set of stocks and track the performance of the MSCI World Index.

What is an ETF expense ratio?

An ETF’s expense ratio is its annual management fee. This is usually charged as a percentage of the amount you have invested in the fund.

How much money do I need to invest in an MSCI World Index ETF?

The minimum amount of money you need to invest is the share price of the ETF you want to buy. However, many brokers, including eToro, allow you to invest in fractional shares of an MSCI World Index ETF with as little as £40.

Can I invest in an MSCI World Index ETF in an ISA?

Yes, you can invest in an MSCI World Index ETF in an ISA or SIPP. Your ISA or SIPP plan provider must offer trading on an MSCI World Index ETF.

How can I learn more about an MSCI World Index ETF?

The best way to research an MSCI World Index ETF and make financial decisions is to read the fund prospectus. You can also speak with a financial advisor to get professional investment advice.

About Michael Graw PRO INVESTOR

Michael Graw is a freelance journalist based in Bellingham, Washington. He covers finance, trading, and technology. His work has been published on numerous high-profile websites that cover the intersection of markets, global news, and emerging tech. In addition to covering financial markets, Michael’s work focuses on science, the environment, and global change. He holds a Ph.D. in Oceanography from Oregon State University and worked with environmental non-profits across the US to bridge the gap between scientific research and coastal communities. Michael’s science journalism has been featured in high-profile online publications such as Salon and Pacific Standardas well as numerous print magazines over the course of his six-year career as a writer. He has also won accolades as a photographer and videographer for his work covering communities on both coasts of the US. Other publications Michael has written for include TechRadar, Tom’s Guide, StockApps, and LearnBonds.

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