iShares Edge MSCI World Minimum Volatility vs Vanguard FTSE Developed World
iShares Edge MSCI World Minimum Volatility tracks MSCI World Minimum Volatility and Vanguard FTSE Developed World tracks FTSE Developed. 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.
iShares Edge MSCI World Minimum Volatility
MSCI World Minimum Volatility
Vanguard FTSE Developed World
FTSE Developed
Comparison
| iShares Edge MSCI World Minimum Volatility | Vanguard FTSE Developed World | |
|---|---|---|
| Index | MSCI World Minimum Volatility | FTSE Developed |
| TER | 0.30% | 0.12% |
| Hist. return* | ~7% | ~8% |
| Replication | Physical | Physical |
| Distribution | Accumulating | Distributing |
| Domicile | Irlanda | Irlanda |
| Currency | USD | USD |
| Risk | 3/7 | 4/7 |
| ISIN | IE00B8FHGS14 | IE00BKX55T58 |
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.
| Horizon | iShares Edge MSCI World Minimum Volatility | Vanguard FTSE Developed World | Difference |
|---|---|---|---|
| 10 years | €51,362 | €51,880 | €518 |
| 20 years | €151,549 | €154,904 | €3,355 |
| 30 years | €346,974 | €359,492 | €12,518 |
Vanguard FTSE Developed 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.
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Create free accountFrequently asked questions
What is the difference between iShares Edge MSCI World Minimum Volatility and Vanguard FTSE Developed World?+
They track different indices: iShares Edge MSCI World Minimum Volatility follows MSCI World Minimum Volatility and Vanguard FTSE Developed World follows FTSE Developed. They also differ in cost (0.30% vs 0.12% 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?+
Vanguard FTSE Developed World has the lower annual fee. Applying the same 7% gross return to both with €300/month, that fee gap alone is worth about €3,355 after 20 years — that part is arithmetic, not a forecast.
Accumulating or distributing?+
iShares Edge MSCI World Minimum Volatility is accumulating (dividends are reinvested inside the fund) and Vanguard FTSE Developed World is distributing (dividends are paid out to you). For long-term compounding in Spain, accumulating usually defers taxation; distributing gives you income you are taxed on each year.
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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