iShares MSCI World EUR Hedged UCITS ETF (Acc)

Issuer: iShares

Asset Class: Equity

TER: 55bps

Trading Currency: EUR

Pays Income: False

Listing Date: 01 Oct 2010

Ticker: IWDE

ISIN: IE00B441G979

This fund offers a strategic solution for investors seeking core exposure to the global developed equity market while neutralizing currency fluctuations against the Euro. It aims to replicate the performance of a benchmark index comprising large and mid-capitalization stocks across 23 developed countries. The primary feature is its currency-hedging mechanism, which uses one-month forward foreign exchange contracts to minimize the impact of movements between the Euro and the various currencies of the underlying international stocks, such as the US Dollar, Japanese Yen, and British Pound. This approach allows investors to focus on the performance of the companies themselves, rather than being exposed to the volatility of the foreign exchange markets, making it a suitable core holding for a Euro-based portfolio.

The portfolio is highly diversified across thousands of securities, providing broad exposure to multiple sectors and regions. Major sector allocations typically include Information Technology, Financials, Health Care, and Industrials, with a significant geographic concentration in the United States, followed by Japan and the United Kingdom, reflecting the market-capitalization-weighted nature of the underlying index. As an accumulating fund, any dividends paid out by the constituent companies are automatically reinvested back into the fund's assets. This process of compounding can significantly enhance long-term returns, making it particularly well-suited for investors with a long-term growth objective who do not require immediate income from their investments.

This investment is designed for those looking to build a globally diversified equity portfolio with a single, cost-effective instrument. The inclusion of the currency hedge adds a layer of risk management that can be particularly appealing during periods of currency market volatility. It is ideal for an investor who believes in the long-term growth potential of the world's leading companies but wishes to mitigate the unpredictable element of currency risk from their international equity allocation.