iShares Core MSCI World UCITS ETF - SWX or which market buy is best?

Hi all,

My first buy in ETF - will choose:

  • Shares Core MSCI World UCITS ETF USD (Acc), ISIN: IE00B4L5Y983; WKN: A0RPWH

Goal: > 15 < 20 years buy and hold.

As a swiss a buy it for USD - so i will buy some USD over “Wise” (Transferwise) and transfer it to Swissquote in USD.

As i learned, the exchange rate over the long period of time is not that important but the “spread” and “volume” of the market. So you can buy this ETF on the following stock exchanges in Swissquote:

Symbol Name Markt Währ. Letzter Veränderung Volumen Höchst Tiefst
TradeEUNL ISHRS CORE MSCI WORLD USD ACC Stuttgart EUR 75.637 -3.399 (-4.30 %) 251’671 77.68 75.038
TradeIWDAN iShares Core MSCI World UCITS ETF USD (Acc) America MXN 1’840.00 - (-) 211’278 - -
TradeSWDA ISHRS CORE MSCI WORLD USD ACC Italienischer EUR 76.30 -2.68 (-3.39 %) 146’928 77.27 76.17
TradeEUNL ISHRS CORE MSCI WORLD USD ACC Düsseldorf EUR 76.12 -2.882 (-3.65 %) 6’044 77.84 76.10
TradeSWDA ISHRS CORE MSCI WORLD USD ACC UK GBX 6’466.00 -177.00 (-2.66 %) 129’500 6’532.00 6’466.00
TradeEUNL ISHRS CORE MSCI WORLD USD ACC Xetra EUR 76.298 -2.67 (-3.38 %) 795’292 77.27 76.154
TradeIWDA ISHRS CORE MSCI WORLD USD ACC Euronext EUR 76.24 -2.725 (-3.45 %) 178’578 77.325 76.17
TradeIWDA ISHRS CORE MSCI WORLD USD ACC UK USD 86.30 -2.23 (-2.52 %) 526’497 87.59 86.21
TradeEUNL ISHRS CORE MSCI WORLD USD ACC Hamburg EUR 75.93 -3.04 (-3.85 %) 2’311 77.56 75.93
TradeEUNL ISHRS CORE MSCI WORLD USD ACC München EUR 75.934 -3.082 (-3.90 %) 3’720 77.55 75.934
TradeEUNL ISHRS CORE MSCI WORLD USD ACC Frankfurt EUR 76.08 -2.902 (-3.67 %) 33’643 77.70 75.932
TradeIRRRF iShares Core MSCI World UCITS ETF USD (Acc) America USD 88.0841 - (-) 722 - -
TradeSWDA iSh Core MSCI Wrld USD Acc SIX USD 86.25 -2.27 (-2.56 %) 13’397 87.08 86.23
TradeEUNL ISHRS CORE MSCI WORLD USD ACC Berlin EUR 76.248 -2.806 (-3.55 %) 536 78.20 76.248

The domicil of the ETF is anyway Ireland so i need to fill out the specified tax form for refunding the 35% VAT. This is independent on where i buy the ETF.

The following market places are the best according to the volume and spread:

  • XETRA (biggest volume - but in EUR)
  • UK

SWX is with the volume of about 13’397 trades in comparison to 795K/520K of XETRA and UK much smaller.
Course Differences (spreads):
XETRA = 0.048
UK = 0.06
SWX = ~0.05

I would buy in UK because:

  • The volume is much higher than in CHF in the currency is the same as the ETF (USD)
  • The spread is alike the samke as in SWX or Xetra (.0.01 higher)
  • I will save the swiss “Stempelgebühren” of the swiss market SWX

BUT when i entering the transaction in Swissquote “as a test” for looking how many costs occurs (buying 55 ETF on both markets UK and SWX):

  • UK = USD 37.97
  • SWX = USD 19.59

Question: are all costs included inclusinve the swiss “Stempelgebühren” in SWX?

Question to you guys:

  • does this makes sense?
  • What Strategy if a ETF can be handled in more then one market in NON-CHF: 1) Swiss SWX first, market with bigger volume or less spread?

Any suggestions or inputs are warmly welcome.

Thank you so much for your support

Enjoy your weekend

The TER (Total Expense Ratio) for MSCI World is pretty high with 0.20% vs. the standard Vanguard funds with something around 0.04% used by most here in the forum.

Why do you want the MSCI World instead of VT or VWRL?

Neither is important.

Over a 15 to 20 year holding period, both are rather negligible. Daily, even intraday volatility is probably higher than market spread or a 0.5% cost for currency conversion through Wise. And both will be - in your scenario - pretty much one-time costs.

I’d rather focus on ongoing costs and charges.

Or, alternatively (and personally I think even more so) your choice of index and/or fund - and their performance. It’s not as if MSCI World is the be-all and end-all of possible investment opportunities. There are indices and funds that have considerably outperformed MSCI World over the long term (whether you think that’s going to continue is another matter - but personally I’m happy to make bets).

It that transfer free? It’s probably an international USD SWIFT transfer, isn’t it?

What amount are you actually planning to invest?

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You have to pay stamp duty for transactions with all Swiss brokers. The exchange is not relevant. For foreign ETFs the rate is 0.15% for buy and sell transactions.

I.e. you can’t avoid it with Swissquote (unless you switch to mutual funds). You would have to switch to a foreign broker such as Interactive Brokers.

Volume is not important as long as the liquidity is there. And there is enough for you.

Swissquote have a fixed price of 9 CHF for buying ETFs at SIX. That’s probably what you see. In the app you can see all costs separately, from what I remember.

You can buy it for USD at SIX or for EUR at XETRA, but for a Swiss resident EUR is much easier to handle and free to transfer.

With a Swiss broker, you pay Swiss stamp duty when you buy foreign securities on ANY exchange. Otherwise this forum would have 40% less messages.

Calculate total costs including currency conversion. And the answer will be - buy at degiro and request a transfer from time to time.

That one is actually pretty good if you compare tracking differences and performance of ETFs tracking this index. So if the topic starter insists on this index, ETF in question is not a bad choice.

https://www.trackingdifferences.com/ETF/Index/MSCI%20World%20Index

However Vanguard FTSE Developed World has lower TER and tracking difference, but it is a different index. Not by much, but still. But it is quoted in CHF on SIX.

https://www.trackingdifferences.com/ETF/ISIN/IE00BKX55T58

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That sounds odd, I’d assume if there’s such a thing it would at the exchange level (and unlikely to matter given the amounts involve?)

Also VAT in EU is usually in the 20% range.

You mix up something. Quite a lot.

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Like a joke goes: not VAT, but withholding tax, and not for Irish, but for Swiss securities. Otherwise it’s correct.

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Hi everyone, someone here is investing in SWDA?

I do, altough my ticker is IWDA.AS because IB smart routing buys the stock on the amsterdam exchange as it is the cheapest. Haven’t thought about buying it on SWX because I trust the IB smart routing.

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I do. Combined with EIMI.

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care to share your bets buddy (that can beat SWX/VT over the mid/long run)?

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yes sorry. As it is written in one of the Blog articles of mustachianpost.com concerning the yearly TAX. Good description with tipps in how to handle.