Alternatives in the same category

Invesco MSCI World vs Xtrackers FTSE All-World

Invesco MSCI World tracks MSCI World and Xtrackers FTSE All-World tracks FTSE All-World. They are realistic alternatives for the same slot in a portfolio, but because the indices are different nobody can tell you in advance which will return more. What can be compared objectively is the cost, the replication method, the domicile and how each one is structured — and that is what this page does.

What each one tracks

This is the underlying difference: they do not follow the same index, so their returns will diverge.

Invesco MSCI World

MSCI World

Xtrackers FTSE All-World

FTSE All-World

Comparison

Invesco MSCI WorldXtrackers FTSE All-World
IndexMSCI WorldFTSE All-World
TER0.19%0.15%
Hist. return*~8%~8%
ReplicationPhysicalPhysical
DistributionAccumulatingAccumulating
DomicileIrlandaIrlanda
CurrencyUSDUSD
Risk4/74/7
ISINIE00B60SX394IE000L6ZMMC4

What the fee gap actually costs

Applying the SAME 7% gross return to both and contributing €300/month, the only thing moving the result is the TER. This is not a return forecast: it is how much the fee weighs.

HorizonInvesco MSCI WorldXtrackers FTSE All-WorldDifference
10 years€51,678€51,793€115
20 years€153,589€154,339€750
30 years€354,563€357,370€2,807

Xtrackers FTSE All-World is the cheaper of the two. Remember they track different indices: cost is one factor, not the verdict.

Nobody can know which will perform better: they track different indices and past performance is not a prediction. What is objective today is the cost, the replication, the domicile and the distribution policy.

Xtrackers

Xtrackers FTSE All-World

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Frequently asked questions

What is the difference between Invesco MSCI World and Xtrackers FTSE All-World?+

They track different indices: Invesco MSCI World follows MSCI World and Xtrackers FTSE All-World follows FTSE All-World. They also differ in cost (0.19% vs 0.15% TER), replication (physical vs physical) and domicile (Irlanda vs Irlanda).

Which one will perform better?+

Nobody can know that: they track different indices, so their returns will diverge, and past index performance is not a prediction. What you can control today is the cost, the tax structure and whether the index actually covers what you want exposure to.

Which one is cheaper?+

Xtrackers FTSE All-World has the lower annual fee. Applying the same 7% gross return to both with €300/month, that fee gap alone is worth about €750 after 20 years — that part is arithmetic, not a forecast.

Accumulating or distributing?+

Both are accumulating, so on this point there is no difference between them.

Can I hold both?+

Yes. Unlike two funds tracking the identical index, these give you genuinely different exposure, so holding both is not automatically redundant — just be aware you may end up overlapping on the largest companies and doubling your rebalancing work.

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