iShares MSCI USA Swap UCITS ETF USD Acc

Issuer: iShares

Asset Class: Equity

TER: 7

Trading Currency: GBP

Pays Income: False

Listing Date: 16 Jan 2026

Ticker: MUSD

ISIN: IE0002W8NB38

This investment product offers targeted exposure to the U.S. equity market by aiming to replicate the performance of the MSCI USA Index. This benchmark is comprehensive, covering approximately 85% of the free float-adjusted market capitalization in the United States, thereby providing a broad representation of large and mid-sized American companies. The fund employs a synthetic, or swap-based, replication methodology. This means it enters into a derivative contract with a counterparty to receive the total return of the index, rather than holding the underlying stocks directly. As an accumulating share class, any dividends paid by the constituent companies are automatically reinvested back into the fund, which helps to compound growth over the long term.

The swap-based structure can be advantageous, often resulting in very precise index tracking and potentially lower costs. However, it's important for investors to understand that this method introduces counterparty risk—the possibility that the institution on the other side of the swap agreement could default on its obligations. This risk is mitigated under UCITS regulations, which mandate strict collateralisation requirements to protect investors' capital. The automatic reinvestment of dividends simplifies portfolio management and can be tax-efficient in certain jurisdictions, as it defers potential tax liabilities and harnesses the power of compounding without requiring manual intervention from the investor.

This fund is designed to serve as a core building block within a diversified investment portfolio, providing an efficient and low-cost gateway to the world's largest stock market. It is suitable for investors seeking long-term capital appreciation who wish to participate in the growth potential of leading U.S. corporations across a wide range of sectors, including technology, healthcare, financials, and consumer discretionary. Its structure makes it a strategic tool for gaining straightforward exposure to the American economy.