Invesco has cut the management fee on the MSCI World ETF to 0.05%. The fund is now the cheapest option for exposure to the benchmark

The management group is reducing the annual cost by 19 basis points. The move brings the product in line with three other core equity ETFs from the firm, which collectively hold over $64 billion in assets.

The change takes effect from 1 April 2026. At the time of the announcement, the fund managed $6.6 billion.

With this revision, the ETF positions itself as the product with the lowest cost among those tracking the MSCI World Index. According to data cited by Invesco, the average fee charged by competitors on the same benchmark stands at 0.20% per annum.

The move follows a series of similar adjustments to other core equity products from the manager. The MSCI World ETF now aligns with the 0.05% fee already applied to the MSCI USA, S&P 500 and EURO STOXX 50 UCITS ETFs. These four instruments, according to the company, collectively manage over $64 billion, compared to $10 billion recorded at the start of 2020.

Gary Buxton, Head of Product, EMEA at Invesco, said: “Assets in the European ETF sector recently reached $3.5 trillion and we expect this to double over the next five years, as ETFs are likely to become the preferred vehicle for an ever-wider range of investors, both professional and retail. As a global provider of $1 trillion in ETFs, Invesco has benefited enormously from the growth of the ETF sector, and we intend to position ourselves for further expansion by leveraging the scale and efficiency of our swap-based ETF platform to offer our clients these fundamental ‘core beta’ elements for portfolio construction at highly competitive prices.”

Matthew Tagliani, Head of EMEA ETF Product at Invesco, added: “Invesco has long been a market leader in offering investors some of the most cost-effective exposures to key equity, bond and commodity benchmarks. This recent fee adjustment aligns our MSCI World ETF with the 0.05% annual fee applied to our existing MSCI USA, S&P 500 and EURO STOXX 50 UCITS ETFs; these four products now manage total assets of over $64 billion, up from $10 billion at the start of 2020.”

The fee reduction is accompanied by considerations regarding the product’s structure. The ETF employs a swap-based replication model, the same used for the $49 billion S&P 500 UCITS ETF, described by Invesco as the world’s largest swap-based ETF.

Florian Förster, Head of Digital Clients EMEA at Invesco, explains: “Costs are just one aspect – products must also deliver strong performance. Our Invesco MSCI World UCITS ETF uses the same swap-based replication model as our US$50 billion S&P 500 ETF – the world’s largest swap-based ETF. Since 2018, this model has benefited in certain markets from a reduced withholding tax rate on dividends, which offers an advantage of around 0.05 per cent per year over physically replicated funds for MSCI World exposure. The combination of this structural advantage with an expense ratio that is now 0.15 per cent below the market average should deliver significant benefits for this exposure.”