XTrackers MSCI AC World UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 25bps

Trading Currency: GBX

Pays Income: False

Listing Date: 01 Jul 2014

Ticker: XMAW

ISIN: IE00BGHQ0G80

This investment product offers exposure to a broad and diversified portfolio of global equities. It aims to replicate the performance of the MSCI All Country World Index, a widely recognized benchmark for the global stock market. The underlying index captures large and mid-cap representation across approximately 23 developed markets and 24 emerging markets. This comprehensive coverage means investors gain access to thousands of companies from various sectors and geographies, providing a single-instrument solution for building a core global equity holding. The fund is physically replicated, meaning it holds the actual shares of the companies in the index.

This fund is particularly suitable for investors seeking a foundational, long-term building block for their portfolio. Its extensive diversification helps mitigate concentration risk associated with investing in single countries, sectors, or stocks. By including both developed and emerging markets, it offers a balanced exposure to established economies and higher-growth potential regions. It is an ideal core holding for those who prefer a passive investment strategy, aiming to capture the overall growth of the global economy rather than trying to outperform the market through active stock selection. The accumulating share class structure means that any dividends paid by the underlying companies are automatically reinvested, which can enhance the effects of compounding over time.

While highly diversified, the investment is still subject to the inherent risks of equity markets, including market fluctuations, economic downturns, and geopolitical events. The inclusion of emerging markets can add an extra layer of volatility and risk compared to a developed-markets-only fund, due to factors like political instability and currency fluctuations. Investors should have a long-term investment horizon to ride out potential market volatility.