UBS (Irl) ETF plc - MSCI World UCITS ETF (hedged to GBP) A-dis
| Issuer: UBS |
| Asset Class: Equity |
| TER: 13bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 26 Apr 2024 |
| Ticker: WRDG |
| ISIN: IE000KLSD4Y8 |
This investment vehicle provides core portfolio exposure to a wide array of leading companies from developed economies around the globe. By tracking a benchmark that represents approximately 85% of the free float-adjusted market capitalization in each of the 23 developed market countries, it offers a simple and cost-effective way to achieve broad international diversification. The underlying portfolio is composed of large and mid-capitalization stocks, spanning all major economic sectors, thereby reducing concentration risk associated with investing in single countries or industries. It is designed for investors seeking long-term growth by participating in the performance of the world's most established equity markets.
A distinguishing feature of this particular share class is its currency hedging mechanism. It aims to mitigate the impact of exchange rate fluctuations between the base currency of the underlying global assets and the British Pound. This is particularly beneficial for investors whose home currency is sterling, as it helps to neutralize the potential for foreign exchange movements to either erode gains or amplify losses. By minimizing currency risk, the investment's returns are more closely aligned with the performance of the international stocks themselves, providing a purer form of exposure to global equity markets.
The fund employs a full physical replication strategy, meaning it holds the actual securities that constitute the underlying index in their respective weights. This approach offers a high degree of transparency and tracking accuracy, as the portfolio's composition directly mirrors that of its benchmark. As a distributing share class, it periodically pays out any dividends received from the underlying companies, providing a potential source of income for investors. This structure makes it a suitable foundational holding for a diversified, long-term investment strategy.
