"Best" by what criteria?What's the best world market tracker?
MSCI are the company who create the index. They then sell this to companies such as iShares, Vanguard, State Street etc. These fund managers then have to try to mirror the returns as perfectly as they can taking all the inflows and outflows into account. The bit they are off by is called the tracking error. The smaller the tracking error, the better.Hi All,
I'm a newbie investor. I'm scouring the markets at the moment looking for good individual equity investments but I'm not confident enough in picking individual stocks yet and I want something that will just track the markets in general. I've heard iShares MSCI World ETF (NDDUWI) or The MSCI All Country World Index (ACWI) are the ones to go for. Any more seasoned investors here have any thoughts on that you could share? Not looking to reinvent the wheel here, just want to track the global markets.
Any feedback is much appreciated.
It's not a 'world' index if it's not dominated by US. That is the reality of where the big companies are, but remember the big 'US' companies have worldwide income. You can get Europe, UK or Asia indices, but they are not world indices.Can someone point me to world stock index which is not dominated by US?
The difference between distributing and accumulating is what happens to the dividends.You don't need to guess, you can check it on Yahoo finance.
For a newbie investor, your initial instinct is correct, just buy a world index fund.
Don't spend too much time worrying about the differences between indexes, you can't know in advance which index will do better and anyway the differences will be very small.
The Best All World ETF's that are commission free on Degiro
- HSBC MSCI World ETF (Distributing), IE00B4X9L533, TER 0.15%, Euronext Paris
- iShares Core MSCI World ETF (Accumulating), IE00B4L5Y983, TER 0.2%, Euronext Amsterdam
- Vanguard FTSE All-World ETF (Distributing), IE00B3RBWM25, TER 0.22%, Euronext Amsterdam
- Vanguard FTSE All-World ETF (Accumulating), IE00BK5BQT80, TER 0.22%, Euronext Amsterdam
These are free to trade on Degiro, but don't search using the name. Instead search using the IE code, this will get you the exact one that's free to trade.
Assuming you are in the top tax bracket I would choose the last one.
These are all UCITs domiciled in Ireland.The difference between distributing and accumulating is what happens to the dividends.
Accumulating they stay within the ETF and are reinvested.
For distributing, dividends are paid out and you will have to pay income tax on this (PAYE, PRSI and USC).
D'oh, got caught daydreaming about the olden daysThese are all UCITs domiciled in Ireland.
You don’t pay income tax on these funds they are all subject to exit tax at a flat rate of 41% and taxable every 8 years even if you don’t sell.
The Best All World ETF's that are commission free on Degiro
- HSBC MSCI World ETF (Distributing), IE00B4X9L533, TER 0.15%, Euronext Paris
- iShares Core MSCI World ETF (Accumulating), IE00B4L5Y983, TER 0.2%, Euronext Amsterdam
- Vanguard FTSE All-World ETF (Distributing), IE00B3RBWM25, TER 0.22%, Euronext Amsterdam
- Vanguard FTSE All-World ETF (Accumulating), IE00BK5BQT80, TER 0.22%, Euronext Amsterdam
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