IMIE vs IWDA: which should you choose?

Overview

IMIE and IWDA are both global equity ETFs, but they track different indices. IMIE tracks the MSCI All Country World Investable Market Index (ACWI IMI), which includes emerging markets and small-cap companies, whereas IWDA tracks the MSCI World index, covering developed markets only. This leads to a few key differences: IMIE provides broader diversification (covering more countries and companies) and happens to have a slightly lower annual fee, while IWDA is more limited to developed markets and is a huge, very liquid fund.

Both funds are accumulating (reinvesting dividends) and are domiciled in Ireland, making them tax-efficient for Belgian investors.

We compared IMIE and IWDA on a range of criteria important to Belgian investors:

• performance
• diversification
• distribution of dividends
• cost
• tax-efficiency
• broker fees
• replication
• suited for monthly investing
• size
• sustainability
• governance of the fund provider

Here’s a summary at a glance:

Before diving into the details, let's learn more about IMIE and IWDA.

What is IMIE?

IMIE is a ticker for the SPDR MSCI All Country World Investable Market UCITS ETF (Acc). It’s a global ETF managed by State Street Global Advisors (under the SPDR brand) that tracks the MSCI ACWI IMI index. This index includes stocks from 23 developed countries and 24 emerging markets. It covers large, mid, and small-cap companies around the globe.

IMIE lets you access almost the whole global stock market. This includes big firms in the US and Europe, as well as smaller companies in Asia and emerging markets. The fund is well-diversified across sectors and regions. This gives you access to markets like the US, Japan, Germany, China, India, Brazil, and more. A standard developed-markets fund would miss these opportunities.

SPDR (State Street), one of the largest asset managers in the world, manages IMIE. The company launched the ETF in 2011, and it has its domicile in Ireland. It has grown to about €2.5 billion in assets under management and charges a total expense ratio (TER) of 0.17% per year​. IMIE is an accumulating fund. This means it reinvests all dividends from its stocks.

The long-term returns of the global stock market that IMIE tracks have been strong. IMIE includes emerging markets and small-caps along with developed markets. This strategy aims to capture the full growth of the global economy.

Since 1994, the index has delivered an average return of 7.48%! If you had invested €10,000 in 1994, you would have €92,324 today.

What is IWDA?

IWDA is a ticker of the iShares Core MSCI World ETF (IE00B4L5Y983). Like SWRD, IWDA also tracks the MSCI World index. But it's offered by iShares, a brand of BlackRock. Just like State Street, BlackRock is an immense asset manager, with other $2 trillion invested.

IWDA is from iShares (BlackRock). BlackRock is the world's largest asset manager, managing trillions of dollars. This means IWDA comes from a provider with great scale and experience. The fund launched in 2009 and is based in Ireland. It is one of the largest ETFs globally, with around €80 billion in assets. IWDA has a total expense ratio (TER) of 0.20% per year. Like IMIE, IWDA is an accumulating ETF, so it reinvests dividends instead of paying them out.

IWDA tracks the MSCI World index, just like many other funds, including its SPDR competitor, SWRD. So, its historical returns reflect the performance of developed stock markets. The MSCI World index has averaged a return of about 10% each year since 1980. This growth is impressive, as it far exceeds inflation and savings account rates. If you had invested €10,000 in the MSCI World in 1979, it might be worth hundreds of thousands of euros today.

IMIE vs IWDA

Now that we know about each ETF, let’s compare IMIE and IWDA. We’ll look at performance, diversification, dividends, cost, taxes, and more.

Performance: IWDA wins

IMIE and IWDA have shown similar historical performance. Both funds invest in a wide range of global stocks. Differences in returns are due to index composition (developed vs developed+emerging) and fees. Over the last decade, IWDA has done a bit better than IMIE. This is because emerging markets, which IMIE holds, have not performed as well as developed markets.

But, this performance difference has been small and could shift in the future. If emerging markets rally in coming years, IMIE could in turn outperform. Both funds have shown strong long-term returns that match global stock market growth. This is considerable, especially when compared to a savings account.

For a long-term investor, IMIE and IWDA should yield similar results. This is because both rely on the same key factor: global economic growth. Short-term and decade-by-decade differences will happen. This depends on how emerging markets perform and small fee variations. Yet, neither fund shows a clear or consistent performance edge. We consider performance a tie between IMIE and IWDA.

Diversification: IMIE wins

Diversification is where IMIE distinguishes itself. IMIE's index (MSCI ACWI IMI) covers the whole world. It includes around 3,700 stocks from 47 countries, with 23 developed and 24 emerging markets. These stocks span all market capitalisations. With IMIE, you really get “all-country” exposure. This list features major companies like Apple and Microsoft from the US, Samsung from South Korea, Nestlé from Europe, and Tencent from China. You also get access to smaller companies in the index. It’s about as diversified as an equity fund can get.

IWDA’s index (MSCI World) is narrower. It holds roughly 1,500 stocks from 23 developed countries. This does not include emerging markets such as China, India, Brazil, and Russia. It usually ignores small-cap companies since MSCI World mainly targets large and mid-cap firms. IWDA offers wide diversification across industries and regions in the developed world. You gain exposure to places like the US, Western Europe, Japan, Canada, and Australia. It also spans various sectors, including technology, finance, healthcare, and consumer goods. For many investors, this offers enough diversification. Developed markets represent most of the global market capitalisation. But, it’s not the complete global market.

The difference is that IMIE already includes everything under one roof. With IWDA alone, you miss about 10-15% of the global stock market. This includes shares from fast-growing emerging economies and the small-cap segment. To match the diversification of IWDA, you should add an emerging markets ETF, like one tracking MSCI Emerging Markets. You might also consider a small-cap fund. Many IWDA investors often use it with an emerging markets ETF. This helps create an “All World” portfolio. IWDA alone doesn’t cover markets like China or India. IMIE spares you from that complexity by bundling developed and emerging markets together.

For beginners or hands-off investors, the one-fund global approach of IMIE is very attractive. You gain complete geographic diversification without the hassle of mixing funds. Some advanced investors, however, may want to manage their allocations to emerging markets by purchasing a separate EM fund. Still, when it comes to breadth of diversification, IMIE wins. It provides broader exposure as you’re investing in the entire world, including markets that might become tomorrow’s big winners, not just the developed areas.

Distribution of dividends: tie

IMIE and IWDA are accumulating ETFs. This means they reinvest dividends from their stocks back into the fund instead of paying them out. For Belgian investors, this offers a key benefit. Why? Because Belgium applies a 30% withholding tax on dividends that you receive.

When funds distribute dividends, investors must pay a 30% tax. However, accumulating funds like IMIE and IWDA avoid this tax. They don’t pay out dividends; instead, the fund retains them to increase your holding's value. By investing in accumulating ETFs, you can sidestep the dividend tax.

Both IMIE and IWDA are tax-efficient for Belgians regarding dividends. Instead of losing part of your returns to tax each year, that money remains invested. Over time, reinvested dividends compound. This can greatly boost your total returns because of compound interest.

Cost: IMIE wins

Cost is an important factor for any investment, as fees can eat into your returns over the long run. The main cost for ETFs is the Total Expense Ratio (TER). This is the annual fee the fund provider charges for managing the fund. It's shown as a percentage of your invested amount. Both IMIE and IWDA are low-cost ETFs, but IMIE has a slight edge here.

• IMIE’s TER is 0.17% per year​
• IWDA’s TER is 0.20% per year

Both of these ETFs are very cheap by traditional standards. They are even cheaper when compared to active funds.

Tax-efficiency: tie

Taxes can have a significant impact on your net returns. Belgian investors must consider specific taxes. The good news is that both IMIE and IWDA meet all the requirements for tax-efficient investing in Belgium.

• ✅ Accumulating funds: We’ve talked about this, but it's important to repeat: both funds reinvest dividends and don’t pay out. This means you avoid the 30% dividend tax in Belgium.
• ✅ Irish domicile: Both IMIE and IWDA are domiciled in Ireland, which is a plus. Ireland has good tax treaties and it's well suited for Belgian investors.
• ✅ No bond component (stocks only): Both ETFs invest 100% in stock. This is key to avoiding Belgium’s Reynders tax. The tax is a 30% tax on capital gains from the bond part of a fund.

In summary, both IMIE and IWDA are very tax-efficient choices for Belgian investors.

Broker fees: IWDA wins

Many Belgian and foreign brokers have cheaper fees for ETFs traded on Euronext exchanges. IWDA trades on the Euronext Amsterdam. IMIE doesn't but does on Euronext Paris and other major exchanges. IWDA has a slight advantage as it's part of DEGIRO's core selection, making it very cheap through DEGIRO.

Replication: tie

Both IMIE and IWDA are physically replicated ETFs, meaning the fund providers hold the actual stocks in the respective indexes. This method is generally considered safer than synthetic replication, where the index's performance is mimicked through derivatives or other complicated financial instruments.

Suited for monthly investing: IWDA wins

Investing part of your income every month is the best strategy for most people. It simplifies saving and budgeting because your investments follow the rhythm of your income. It also removes the temptation of timing the market. Market timing is incredibly difficult and most often leads to a worse outcome. On top that, it can bring negative emotions such as stress or regret. In contrast, monthly investing brings peace of mind.

At time of writing, IMIE trades around €200 whereas IWDA trades around €90-100. Most brokers do not offer fractional shares, meaning you have to buy whole units of a share. The lower stock price makes IWDA easier for monthly investing, as you will have less cash on your brokerage account not working for you.

Size: tie

Over €70 billion is invested in IWDA, and IMIE has €2.5 billion invested. That's a large difference. But both funds are sufficiently large that the risk of either shutting down by their provider is minimal especially as they are significant providers to the market.

Sustainability: both lose

Neither IMIE or IWDA exclude companies based on sustainability criteria. Fossil fuel industry, weapon industry, companies that do not meet certain standards for labour rights... it's all in there.

Governance of the fund provider: tie

This criterion examines the governance and ownership structure of fund providers. This can affect how well the provider aligns with its investors. IMIE is managed by SPDR (State Street), and IWDA is managed by iShares (BlackRock). Both are publicly traded companies owned by shareholders. This means that fund investors do not own shares or have voting rights; they are just customers.

Both State Street and BlackRock are reputable firms. They manage their ETFs responsibly under UCITS regulations. Their goal is to keep fees low and ensure accurate tracking to stay competitive. IMIE and IWDA have similar structures and strong track records. So, there are no major differences in their governance. It’s a tie in this regard.

Verdict: slight win for IMIE

IMIE and IWDA are both excellent options for Belgian investors seeking long-term global equity exposure. They have important strengths: low fees, an accumulating structure, Irish domicile, and broad diversification. You can't go wrong with either option but if we had to pick, IMIE comes out on top.

IMIE offers more diversification. It includes emerging markets and small caps. Plus, it has a lower fee of 0.17%, compared to 0.20%. For long-term, passive investors, it provides a better way to capture global growth. However, IWDA still stands out with easier broker access (like DEGIRO’s free list) and a lower share price. This is a great option for monthly investing or for those keen on developed markets.

Bottom line: IMIE wins by a narrow margin but both funds can be solid foundations for building long-term wealth.

Curvo: more diversification with less effort

The difficulties of managing your own portfolio of ETFs

Choosing a single ETF like IMIE or IWDA is not the entire story when investing your life savings. Stocks are a risky asset class, and not everyone can psychologically handle their fluctuations. To bring success over the long term, you need to build a portfolio of ETFs that is suited to your goals, your appetite for risk and your capacity for taking risks. But this is not an easy task as there are thousands of ETFs to choose from. Furthermore, this portfolio of funds needs to be kept in balance over time, and adapt to changes in your life situation. When managing your own portfolio, these responsibilities fall onto you.

We saw most of our friends not investing because of these difficulties. Or they tried but stopped after a while because they didn't trust themselves enough to make the right financial decisions for their future. Yet, we think investing in ETFs or index funds is a powerful tool to improve our financial well-being. That's why we built Curvo: to take care of all the complexities of good investing so you don't have to worry.

Index investing without hassle

Curvo addresses the challenges of managing your own investments through a broker:

• Portfolio of index funds built for you. You are asked a few questions at the start to learn about you and your goals. Based on your answers, you are matched with the best portfolio of index funds for you. This can be the Growth portfolio, but also any of the other portfolios. The point is that you don't need to decide which ETFs to buy.
• Diversification. We firmly believe in the power of diversification to lower risk and seek investment returns. Each portfolio consists of over 7,500 companies, diversified across sectors and countries.
• Invest sustainably. Your investments focus on one guiding principle: don’t invest in companies that are considered destructive to the planet. Sectors like non-renewable energy, vice products, weapons and controversial companies are all excluded.
• Rebalancing done for you. No need to worry about keeping your portfolio in balance, this is handled for you.
• Fractional shares. All your money is invested. There’s no cash left sitting on the side.
• Automated monthly investing. Set up your monthly plan and get peace of mind that your money is working for you.
• Start from €50. No need for a large lump sum to get started.
• Project your savings into the future. Through Curvo you can see how much your portfolio is expected to be worth in the future. You can answer questions like “how will increasing my monthly contribution by €50, €100 or €200 affect my long-term savings?” to give a concrete idea for the “future you”.
• Withdraw anytime. There’s no long-term contract or exit fees if you wish to stop investing.

Learn further how it compares to managing your investments through a broker.

Conclusion

After comparing IMIE and IWDA across multiple factors, we can see they're both excellent options for Belgian investors. IMIE shines with its all-world coverage and slightly lower fees, while IWDA offers practical advantages for monthly investors through its lower share price and inclusion in DEGIRO's core selection.

So what's the best choice for you? If maximum diversification and exposure to emerging markets matter most, IMIE is your fund. If you value accessibility and ease of monthly investing, IWDA might be the better fit. Both will help you capture the growth of global markets while avoiding unnecessary tax burdens in Belgium.

What's next depends on your comfort level with DIY investing. If you're confident selecting and managing ETFs yourself, you can open an account with a broker and start building your portfolio today. If you'd prefer a more guided approach that handles diversification, rebalancing and sustainability concerns for you, services like Curvo provide an alternative path to reaching your financial goals without the complexity of managing everything yourself.