IWDA vs EIMI

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 ACWIVWRLEIMI (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 Return3.73.71-3.594.63
5 Year Return4.524.37-6.955.38
10 Year Return7.437.29-8.19
Since Inception5.158.055.217.98

Key findings

IWDAEIMI
Description

iShares Core MSCI World UCITS ETF

iShares Core MSCI EM IMI UCITS ETF
Asset ClassEquityEquity
Net Assets$42B$14B
Inception Date9/25/20095/30/2014
Expense Ratio0.2%0.18%
Number of stocks15143030
PE ratio16.14x10.28x
PB ratio2.63x1.53x

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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