IWDA or VWCE — which should I hold?

They track different indices, which is the whole difference. IWDA follows MSCI World, covering developed markets only. VWCE follows FTSE All-World, which adds emerging markets in one fund. Holding IWDA alone means no emerging-market exposure; the usual fix is an EM fund alongside it, which VWCE saves you from having to rebalance.

Two funds track the same index. Does the cheaper one always win?

Usually, but check the tracking difference rather than the headline charge — that is what the fund actually cost against its index after securities lending and withholding tax. Then check what your broker charges to buy each one, because a free purchase beats a few basis points on a small monthly contribution.

Compare two ETFs head to head

Choosing between two funds usually comes down to four or five numbers, scattered across two factsheets in different formats. This puts them in one table so the differences are visible instead of inferred — and makes it obvious when two funds you are agonising over are, in substance, the same fund.

The calculator

How it works

Both funds are read from the same records, so the figures are directly comparable rather than transcribed from documents that define their terms differently. Where two funds track the same index, the comparison is really about wrapper and cost, because the holdings are substantially identical.

What it assumes

Past figures describe what happened, not what will. The comparison deliberately avoids ranking the funds on return: two trackers of the same index differ by fees and structure, and a difference in historic return between them is mostly noise from measurement dates.

Common questions

IWDA or VWCE — which should I hold?: They track different indices, which is the whole difference. IWDA follows MSCI World, covering developed markets only. VWCE follows FTSE All-World, which adds emerging markets in one fund. Holding IWDA alone means no emerging-market exposure; the usual fix is an EM fund alongside it, which VWCE saves you from having to rebalance.
Two funds track the same index. Does the cheaper one always win?: Usually, but check the tracking difference rather than the headline charge — that is what the fund actually cost against its index after securities lending and withholding tax. Then check what your broker charges to buy each one, because a free purchase beats a few basis points on a small monthly contribution.

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