State Street Global Advisors, has launched a new ETF, the SPDR MSCI World UCITS ETF on Xetra exchange and as of next Monday on the London Stock Exchange, Borsa Italiana and Euronext.
State Street said the new ETF offers investors access to a broad basket of over 1,600 stocks across 23 advanced economies, representing roughly 85 per cent of the float-adjusted market capitalisation of developed equity markets or circa $40trn of investible assets.
State Street pointed out that global equity ETFs represented approximately 30% of total equity ETF inflows in EMEA the year-to-date, gathering in excess of with $2.6bn.
The new SPDR MSCI World UCITS ETF complements SPDR’s existing global equity offering including SPDR MSCI ACWI UCITS ETF, the SPDR MSCI Emerging Markets UCITS ETF, the SPDR MSCI World Small Cap UCITS ETF and all 10 of the 10 MSCI world sector ETFs.
The new fund is priced at 0.12%.
Antoine Lesné, head of EMEA strategy and research for SPDR ETF, said: “As a transparent and physically replicated solution, the SPDR MSCI World UCITS ETF offers investors a very efficient beta exposure, while the attractive pricing means this fund can be used for long term holdings and a tool for eliminating cash frictions in a portfolio.”
He added that the MSCI World Index is “often considered as the bedrock of a large international portfolio.”
“Many investors use it as a core building block around which to build satellite tilts with sector or regional exposures or blend it with global or regional bond allocations in a diversified portfolio. The MSCI World Index’s high level of both country and sector diversification has historically exhibited better risk-adjusted returns compared to other developed market regional indices.”