Should I switch from the MSCI World to the FTSE All-World?

In most cases, switching does not offer any significant advantage. Returns were very similar over the periods under review, and it is not possible to predict which index will outperform in the future. Anyone who already holds an MSCI World ETF can generally keep it. Anyone wishing to deliberately add exposure to emerging markets can use a separate emerging markets ETF for this purpose.

Is the FTSE All-World ETF sufficient on its own?

A single FTSE All-World ETF may be sufficient as a global equity component. However, a comprehensive investment strategy involves more than that: your risk tolerance, a liquidity reserve, pension provision across the three pillars, and, depending on your circumstances, other asset classes.

What is the difference between the FTSE All-World and the MSCI ACWI?

Both indices comprise large and medium-sized companies from developed and emerging markets. They differ primarily in terms of country classification, the selection of companies and their weightings. The FTSE All-World contains more individual stocks than the MSCI ACWI. Nevertheless, their underlying investment strategies are very similar.

Does the trading currency of an ETF matter?

The trading currency affects any potential exchange costs when buying and selling. However, it does not alter the currency risk associated with the underlying shares. A global ETF traded in CHF is therefore not automatically currency-hedged.

Is a CHF-hedged global ETF a sensible choice for Swiss investors?

A CHF-hedged ETF aims to reduce a large proportion of the fluctuations in foreign currencies against the Swiss franc. Whilst this can dampen fluctuations in CHF terms, it incurs additional costs and does not always work perfectly. Whether hedging is worthwhile therefore depends less on a forecast return than on how important it is to you to have more stable values in Swiss francs in the short term.

MSCI World vs. FTSE All-World: Which global ETF is right for you?

Tagged etf, Invesco, MSCI World, global ETF

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