The MSCI World Index tracks large and mid-sized companies across developed markets. UK investors can invest in the MSCI World by buying an ETF that tracks the index.
This guide explains what the MSCI World Index is, why investors use it, how MSCI World ETFs work and the main risks to consider.
Capital at risk. The value of your investments can go down as well as up, and you may get back less than you invest. This article is for general information only and is not personal advice.
How to invest in the MSCI World from the UK: quick answer
You cannot invest directly in the MSCI World Index. You can invest in an ETF that aims to track it.
| Step | What to do |
|---|---|
| 1 | Choose an MSCI World ETF |
| 2 | Choose an account, such as an ISA, SIPP, GIA or Business Account |
| 3 | Decide whether to invest a lump sum or regularly |
| 4 | Check costs, dividend type and currency exposure |
| 5 | Make sure it fits your wider portfolio |
What is the MSCI World Index?
The MSCI World Index tracks over 1,500 large and mid-sized companies across developed markets.
It includes countries such as:
- United States
- United Kingdom
- Japan
- Germany
- France
- Canada
- Australia
- Switzerland
It covers sectors such as technology, healthcare, finance, consumer goods and industrials.
The MSCI World gives broad developed-market exposure, but it does not include emerging markets.
Why UK investors choose MSCI World ETFs
MSCI World ETFs can offer:
- Broad developed-market diversification
- Exposure to many large global companies
- A passive, index-tracking approach
- A potential core portfolio holding
- ISA, SIPP, GIA and Business Account eligibility where the ETF qualifies
Past performance is not a reliable indicator of future returns.
MSCI World ETFs available on InvestEngine
Examples of MSCI World ETFs include:
| ETF | Ticker | Exposure |
|---|---|---|
| iShares Core MSCI World | SWDA | Developed markets |
| Invesco MSCI World Equal Weight | MWEP | Developed markets, equal-weighted approach |
| Xtrackers MSCI World | XDWG | Developed markets |
ETF costs and details can change, so check the latest fund information before investing.
ETFs featured above may include paid partners.
How to buy MSCI World ETFs with InvestEngine
InvestEngine is a UK-based ETF investing platform, authorised and regulated by the Financial Conduct Authority, built for long-term investors who want to create DIY ETF portfolios.
With InvestEngine, you can buy and sell MSCI World ETFs with 0% dealing fees and 0% platform fee on DIY portfolios. ETF costs apply.
How it works
- Create an InvestEngine account
- Choose your account type
- Search for the MSCI World ETF you want
- Choose how much to invest
- Set up a one-off investment or regular Savings Plan
Risks of investing in MSCI World ETFs
- Market risk: ETF values can fall.
- Developed-market focus: MSCI World does not include emerging markets.
- US concentration: the index is often heavily weighted towards US companies.
- Currency risk: overseas holdings can be affected by exchange rates.
- Sector concentration: large technology companies can influence performance.
- Long-term risk: broad diversification does not remove investment risk.
FAQs
Can UK investors buy the MSCI World Index?
UK investors cannot buy the index directly, but they can buy ETFs that track the MSCI World Index.
Does MSCI World include emerging markets?
No. MSCI World covers developed markets. Investors wanting emerging market exposure may need a separate ETF.
Can you hold MSCI World ETFs in an ISA?
Yes. Eligible MSCI World ETFs can be held in a Stocks and Shares ISA.
Does InvestEngine charge dealing fees for MSCI World ETFs?
InvestEngine charges 0% dealing fees for buying and selling ETFs. DIY portfolios also have 0% platform fees. ETF costs apply.
In summary
MSCI World ETFs give UK investors a simple way to invest across developed markets through one fund. They can be useful as a core holding, but investors should understand US concentration, currency risk and the lack of emerging market exposure.
Capital at risk. ETF costs apply. Tax treatment depends on your personal circumstances and may change in future. This communication is for general information only and does not constitute personal advice.