Best 3 ETFs Tracking the FTSE All-World Index

The FTSE All-World index is a global equity index that monitors stocks from both developed and emerging markets across the globe. It serves as FTSE's equivalent to the MSCI ACWI. With a total of 4,165 constituents (as of 31.08.23), the FTSE All-World index encompasses 90-95% of the investable market capitalization.

For ETF investors, the FTSE All-World index presents an opportunity to capitalize on both price gains and dividends from its constituents. Currently, three ETFs are available that track the performance of the FTSE All-World index.

Cost of FTSE All-World ETFs
The total expense ratio (TER) of FTSE All-World ETFs is between 0.15% p.a. and 0.22% p.a.. In comparison, most actively managed funds do cost much more fees per year.

1 Vanguard FTSE All-World UCITS ETF (USD) Accumulating ( VWCE)

Overview:
The Vanguard FTSE All-World UCITS ETF (USD) Accumulating aims to mirror the performance of the FTSE All-World index, which includes stocks from developed and emerging markets globally.

Key Features:

• Total Expense Ratio (TER): The ETF has a TER of 0.22% per annum.
• Replication Technique: The ETF utilizes a sampling technique, involving the purchase of a selection of the most relevant index constituents, to replicate the performance of the underlying index.
• Dividend Handling: Dividends within the ETF are accumulated and reinvested.

Fund Details:

• Size: The Vanguard FTSE All-World UCITS ETF (USD) Accumulating is a substantial ETF with assets under management totaling 8,230 million Euros.
• Inception: The ETF was launched on 23 July 2019.
• Domicile: It is domiciled in Ireland.

2 Vanguard FTSE All-World UCITS ETF Distributing (VWRL)
Overview:
The Vanguard FTSE All-World UCITS ETF Distributing aims to replicate the performance of the FTSE All-World index, which encompasses stocks from developed and emerging markets globally.

Key Features:

• Total Expense Ratio (TER): The ETF has a TER of 0.22% per annum.
• Size and Status: As the largest ETF tracking the FTSE All-World index, the Vanguard FTSE All-World UCITS ETF Distributing is a significant player in the market.
• Replication Technique: The ETF utilizes a sampling technique, involving the purchase of a selection of the most relevant index constituents, to mimic the underlying index's performance.
• Dividend Distribution: Dividends within the ETF are distributed to investors on a quarterly basis.

Fund Details:

• Size: This ETF is substantial, with assets under management totaling 11,223 million Euros.
• Inception: Launched on 22 May 2012.
• Domicile: The ETF is domiciled in Ireland.

3 Invesco FTSE All-World UCITS ETF Accumulating (FWRA)

Overview:
The Invesco FTSE All-World UCITS ETF Acc aims to mirror the FTSE All-World index, encompassing stocks from developed and emerging nations worldwide.

Key Features:

• Total Expense Ratio (TER): The ETF boasts a low TER of 0.15% per annum.
• Cost Efficiency: As the most cost-effective ETF tracking the FTSE All-World index, the Invesco FTSE All-World UCITS ETF Acc provides an economical investment option.
• Replication Technique: Utilizing a sampling technique, the ETF purchases a selection of the most relevant index constituents to replicate the underlying index's performance.
• Dividend Management: Dividends within the ETF are accumulated and reinvested.

Fund Details:

• Size: The Invesco FTSE All-World UCITS ETF Acc is a smaller ETF with assets under management amounting to 51 million Euros.
• Inception: Launched on 26 June 2023.
• Domicile: The ETF is domiciled in Ireland.

Key Considerations Summarized

Besides return, there are further important factors to consider when selecting a FTSE All-World ETF. In order to provide a sound decision basis, you find a list of all FTSE All-World ETFs with details on size, cost, age, use of profits, fund domicile and replication method ranked by fund size.