iShares MSCI World Small Cap vs iShares MSCI USA Small Cap
iShares MSCI World Small Cap tracks MSCI World Small Cap and iShares MSCI USA Small Cap tracks MSCI USA Small Cap. 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 MSCI World Small Cap
MSCI World Small Cap
iShares MSCI USA Small Cap
MSCI USA Small Cap
Comparison
| iShares MSCI World Small Cap | iShares MSCI USA Small Cap | |
|---|---|---|
| Index | MSCI World Small Cap | MSCI USA Small Cap |
| TER | 0.35% | 0.43% |
| Hist. return* | ~8% | ~8% |
| Replication | Physical | Physical |
| Distribution | Accumulating | Accumulating |
| Domicile | Irlanda | Irlanda |
| Currency | USD | USD |
| Risk | 5/7 | 5/7 |
| ISIN | IE00BF4RFH31 | IE00B3VWM098 |
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 MSCI World Small Cap | iShares MSCI USA Small Cap | Difference |
|---|---|---|---|
| 10 years | €51,220 | €50,992 | €227 |
| 20 years | €150,633 | €149,180 | €1,452 |
| 30 years | €343,586 | €338,245 | €5,341 |
iShares MSCI World Small Cap 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 MSCI World Small Cap and iShares MSCI USA Small Cap?+
They track different indices: iShares MSCI World Small Cap follows MSCI World Small Cap and iShares MSCI USA Small Cap follows MSCI USA Small Cap. They also differ in cost (0.35% vs 0.43% 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?+
iShares MSCI World Small Cap has the lower annual fee. Applying the same 7% gross return to both with €300/month, that fee gap alone is worth about €1,452 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.