L&G Expands Core Equity Range with New Global Mid-Cap ETF

Legal & General has listed a new fund, the L&G MSCI World Mid Cap UCITS ETF, expanding its suite of core, passively managed equity products.

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By ETFWorld.co.uk

David Barron, Deputy Global Head of Index & ETFs at L&G

The fund provides investors with targeted exposure to medium-sized companies across developed global markets, a segment often overshadowed by large-cap-focused funds.

Fund Overview and Objective

The ETF is listed on the London Stock Exchange and carries the ISIN IE000DPO6LM8. Its investment objective is to track the performance of the MSCI World Mid Cap Index (Net Total Return) before the deduction of charges.

Key Fund Details:

• Index Tracked: MSCI World Mid Cap Index NTR.

• Replication Method: Physical.

• Management Style: Passive.

• Dividend Treatment: Accumulating (income is reinvested).

• TER (Total Expense Ratio): 0.29%.

• Fund Domicile: Ireland (UCITS).

• Base Currency: USD.

The Underlying Index: A Focus on Global Mid Caps

The fund’s strategy is defined by its benchmark, the MSCI World Mid Cap Index. This index is designed to represent the mid-cap segment across 23 developed market countries.

Index Composition and Strategy:

• Scope: Captures approximately 15% of the free float-adjusted market capitalisation in each developed country after the large-cap segment is defined.

• Constituents: The index contained 767 constituents as of December 31, 2025.

• Market Capitalisation: The average constituent had a market cap of $15.85 billion, with a median of $13.06 billion. The largest constituent was $67.78 billion and the smallest was $477.81 million.

• Weighting & Rebalancing: It uses a free-float market capitalisation weighting methodology and is rebalanced quarterly.

Role in a Portfolio and Competitive Landscape

This ETF fills a specific niche for investors seeking a pure, market-cap-weighted mid-cap allocation. It can serve as a strategic satellite holding to complement core large-cap positions or for investors targeting the specific growth and diversification characteristics of mid-sized firms.

Summary

The launch of the L&G MSCI World Mid Cap UCITS ETF provides a low-cost, efficient tool for accessing a diversified basket of global mid-cap stocks. Its 0.29% TER and physical replication structure align with common investor preferences for core passive holdings. As with any equity investment, the risks are inherent to market fluctuations and the specific dynamics of the mid-cap segment, which can exhibit higher volatility than large caps.

Source: ETFWorld.co.uk