After a year of working, I made my first investment of $10K into VTI. My […]
This is a comparison of EIMI vs IWDA. Both are managed by iShares.
EIMI: iShares Core MSCI EM IMI UCITS ETF
IWDA: iShares Core MSCI World UCITS ETF
If you are keen to buy one ETF, instead of EIMI & IWDA, you can consider VWRA (acc) from Vanguard.
VWRL is the same as VWRD (but on different stock exchange). The difference between VWRD and VWRA is the nature - distributing / accumulating.
ETF
ETFs, which invest in an underlying basket of securities, are traded on an exchange. These ETFs will track an index and provide you with an exposure to the asset class. The differences between various ETFs is the tax efficiency, which can affect the long term returns of your investment.
EIMI
- Exposure to over 2,800 large-, mid- and small-cap emerging markets companies
- MSCI Emerging Markets Investable Market Index is its benchmark index
IWDA
- Broad exposure to a wide range of global companies within 23 developed countries
- Covering 85% of the listed equities in each country
- IWDA tracks the MSCI World Index
The advantage of an index fund/ETF over an actively managed fund, is its ability to outperform individual stocks over time. According to Vanguard, in a study of index funds vs active funds, 87% of Vanguard mutual funds and ETFs performed better than their peer-group averages over the past 10 years
Both indexes include large and mid-sized companies in both developed and emerging markets.
If you seek a low-cost way to gain broad exposure to Global market, you may consider these index funds.
Similarities
- Both are accumulating funds, which means that your dividends will be automatically reinvested for you at no extra charges.
- They are domiciled in Ireland and you will incur a 15% dividend withholding tax.
- The fees for trading on the LSE are quite high compared to buying on the US stock exchanges, so this will be an additional cost to bear.
EIMI
- Exposure to over 2,800 large-, mid- and small-cap emerging markets companies
- Entire market exposure means not missing out on potential growth surprises from often overlooked smaller companies
IWDA
- Broad exposure to a wide range of global companies within 23 developed countries
- Covering 85% of the listed equities in each country
- Benchmark: MSCI World Index
Comparison
| MSCI ACWI | VWRL | EIMI (Acc) | IWDA (Acc) | |
| YTD return | -21.29 | -25.46 | -26.8 | -23.71 |
| 1 Year Return | -20.61 | -20.59 | -27.53 | -19.54 |
| 3 Year Return | 3.7 | 3.71 | -3.59 | 4.63 |
| 5 Year Return | 4.52 | 4.37 | -6.95 | 5.38 |
| 10 Year Return | 7.43 | 7.29 | - | 8.19 |
| Since Inception | 5.15 | 8.05 | 5.21 | 7.98 |
Key findings
| IWDA | EIMI | |
| Description | iShares Core MSCI World UCITS ETF | iShares Core MSCI EM IMI UCITS ETF |
| Asset Class | Equity | Equity |
| Net Assets | $42B | $14B |
| Inception Date | 9/25/2009 | 5/30/2014 |
| Expense Ratio | 0.2% | 0.18% |
| Number of stocks | 1514 | 3030 |
| PE ratio | 16.14x | 10.28x |
| PB ratio | 2.63x | 1.53x |
Both expense ratios are higher than VTI (0.03%) and SPY (0.09%). The sectors and top holdings breakdown for these two ETFs are relatively similar to VTI and SPY. Though emerging markets is an attractive market to enter in the future, the YTD performance is weak at the moment.
EIMI
IWDA
Caveat
The key risk for these funds is the volatility that comes with its full exposure to the stock market. Both carry the inherent risk of loss associated with owning assets that follow the stock market.
Differences between the 2 ETFs
Liquidity
Both can be bought or sold throughout the trading day.
They provide real-time pricing since they are an ETF, so you can see their prices change throughout the day during trading hours.
Unlike a mutual fund, it isn’t priced until the trading day is over. You will not know the price until you’ve placed your trade. As Vanguard explains on their investment page:
Regardless of what time of day you place your order, you’ll get the same price as everyone else who bought and sold that day. That price isn’t calculated until after the trading day is over.
Share Price
Both their share price changes according to the stock market's fluctuations.
Expense Ratio
It's essential that expense ratio is kept low as it can affect the performance of the index funds.
Minimum Fees
- For the price of 1 share
FTSE ALL-WORLD VS MSCI ACWI summary – which one is better?
The weightage of US firms of both ETFs are relatively similar art around 60% compared to before. It is attractive to hold an ETF that covers both developed and emerging markets. But it seems that emerging markets is not performing that well, so the YTD performance of an ETF covering developed countries and ETF with a global coverage is alike.
Related article
VTI vs VOO: which index fund is a better investment (updated 2020)
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