BlackRock Lists New iShares World ETF on London Stock Exchange

The fund is designed to track the performance of the MSCI World Index. This index measures the performance of large and mid-capitalisation stocks across developed markets globally.

This ETF is a swap-based product. Instead of physically holding all the stocks in the index, the fund will use unfunded total return swaps to achieve its investment objective. The document states the fund may use optimising techniques, including the strategic selection of securities, to replicate the index’s return.

The fund’s stated investment objective is to provide a return that reflects the net total return of the MSCI World Index through a combination of capital growth and income.

The Total Expense Ratio (TER) for the fund is 0.12%.

Why it matters

The launch provides UK investors with a new, low-cost vehicle for gaining exposure to a broad range of developed market equities. The use of a swap structure can allow the fund to track its index closely without needing to purchase every constituent security, which can be an efficient method for replicating a large, global index. The 0.12% TER makes it a competitively priced option within the global equity ETF market.