While exploring ETFs, you might come across the tickers IWDA and SWDA. While they appear to be unique, they actually represent the same ETF! In this article, we'll explain why they're the same ETF, we'll look at a third ticker tracking the same ETF. Finally, we'll dive into the historical performance of the fund.
IWDA vs SWDA: it's the same ETF
When you're navigating the world of ETFs (Exchange Traded Funds), you might come across different tickers like IWDA and SWDA. While they appear to be unique, they actually represent the same ETF. Tickers are essentially shorthand symbols used by stock exchanges to uniquely identify publicly traded shares of a particular stock, fund, or ETF. IWDA and SWDA are both tickers for the "iShares Core MSCI World" ETF, which tracks the MSCI World index.
The reason for the different tickers is that most ETFs can be bought on several stock exchanges. Examples of common exchanges used by European investors are Euronext Amsterdam, XETRA (Germany) or the London Stock Exchange. And each exchange can choose to assign a different ticker to the same fund.
Does it matter on which exchange I buy an ETF?
Yes. In theory, the price of the ETF will be the same on all exchanges. Any difference in price will quickly disappear because if the same ETF is cheaper on another exchange, people will buy that ETF and quickly sell it on the more expensive exchange to earn a small profit, which brings the price back to equal.
However, the exchange you buy an ETF will likely have an impact on the broker fee you pay for the transaction. Most brokers charge different fees for different exchanges. For instance, DEGIRO charges a €1 transaction fee for buying IWDA on the Euronext Amsterdam exchange, as the ETF is part of their core selection. But buying it on XETRA will cost you €3.
So while an underlying ETF may be the same, the exchange you buy on and the broker you use make a difference in terms of transaction fees and convenience.
EUNL is also the same as IWDA and SWDA
Not to confuse you more, but EUNL is another ticker that represents the same ETF as IWDA and SWDA. Again, the ticker that's used to denote the ETF depends on the exchange:
A reliable way to confirm that IWDA, SWDA, and EUNL are the same ETF is to check their ISIN code (International Securities Identification Number). The ISIN code uniquely identifies any ETF, or other financial security. You can use justETF to find out the ISIN code of an ETF and its various tickers. ETFs like IWDA, SWDA, and EUNL, despite having different ticker symbols, will share the same ISIN if they are indeed the same fund:
By searching for the ISIN, you can easily determine that these differently named products are just the same investment product.
Historical performance of IWDA / SWDA / EUNL
The iShares Core MSCI World ETF (that is IWDA / SWDA / EUNL) tracks the MSCI World index. This index consists of over 1,500 stocks from 23 countries whose economies are considered "developed" (United States, Germany, Japan...). The returns have been excellent throughout the years. An analysis on Backtest shows that it has returned an average 11% per year since 1979. If you had invested €10,000 in 1979, you would have had around €900,000 today!
Building the right portfolio for you
Perhaps you would like to invest in more than just one ETF. We understand the complexities of investing through a broker and choosing one ETF. We've been through it ourselves. So we built Curvo to simplify investing for Europeans in index funds.
Once you download the Curvo app and answer a few questions, you’ll receive a portfolio of index funds that matches your goals. The portfolios, managed by the Dutch investment firm NNEK (who are licensed by the Dutch regulator AFM), are more diversified than investing in IWDA/SWDA/EUNL alone. For instance, they also contain stocks of companies from emerging markets such as China or Brasil. All the funds in the portfolios are provided by iShares, Vanguard or Amundi.
Curvo has the following benefits over doing it yourself:
- No expertise needed. No figuring out how to start and understand the intricacies of passive investing, fees and taxes. It's taken care of for you.
- No manual labour. You can set up automatic monthly contributions from €50 and truly put your investments on auto-pilot. No repeating all the steps above when doing it solo.
- All your money is invested. Your investments support fractional shares so you don’t have to spend time calculating units and keeping cash on your brokerage account.
- Peace of mind. Sit back and watch your investments grow as they follow the world economy. Your portfolio will be rebalanced and taken care of by NNEK.
Learn further how it compares to investing yourself through a broker.
Navigating through the world of ETFs can be less intimidating once you understand the role of ticker symbols and the importance of ISINs. While IWDA, SWDA, and EUNL might seem like different investments, they are actually the same fund listed under different symbols on various stock exchanges.
The choice between them should be guided by considerations like broker fees and the convenience of the exchange they are listed on. This will depend on the broker you end up going for. Always do your own research and if you're looking for simpler way to put your money to work, do check out what we've built at Curvo.
Questions you may have
What's the difference between IWDA and VWCE?
The most significant difference between VWCE and IWDA is that they track different indexes. VWCE tracks the FTSE All-World index, whereas IWDA follows the MSCI World index. This means that VWCE is a total market fund, investing in both developed markets and emerging markets, while IWDA covers only developed markets and no emerging markets. Also, IWDA is slightly cheaper with a total expense ratio of 0.20% (VWCE costs 0.22%). Learn more about the differences between both ETFs in our comprehensive guide.
What companies are in IWDA?
IWDA, which tracks the MSCI World Index, invests in almost 1,500 large and mid-cap companies across various developed countries. This includes:
- Tech giants: leading global technology companies, such as Apple, Microsoft, and Amazon, which have significant market capitalizations and influence on the index's performance.
- Healthcare and pharma: major healthcare and pharmaceutical companies, like Johnson & Johnson and Pfizer.
- Consumer goods and services: consumer-facing companies including those in retail, automotive, and luxury goods, are represented, with companies like Tesla and Nike.
- Financial institutions: like JP Morgan Chase and Visa are included representing the financial sector's impact on the global economy.
- Industrial and energy leaders: the ETF also includes major industrial and energy firms.