Cheapest FTSE All World UCITS ETF

FWRA used to be the cheapest ETF tracking the FTSE All World Index, but two new ETFs have usurped FWRA's throne, and hopefully will spark a price war that will benefit investors.

What is the FTSE All World Index?

For those that are unfamiliar with the FTSE All World Index, it is a market capitalisation weighted index tracking the performance of stocks from developed and emerging markets. Many of us will be familiar with indices by MSCI, but there are plenty of ETFs tracking FTSE indices as well. The closest competitor to the FTSE All World Index would be the MSCI All Country World Index, with similar performances as well. The FTSE All World delivered an annualised return 11.2% for the last 5 years, while the MSCI All Country World delivered an annualised returns of 11.18% in the same period (data as of end April 2026).

What are the two new ETFs?

The two new ETFs are launched by iShares and DWS respectively. iShares launched the iShares FTSE All World UCITS ETF (FTAW) while DWS launched the Xtrackers FTSE All World UCITS ETF (ALLW). Do take note that both FTAW and ALLW are listed on the London Stock Exchange and as of this moment, both only have GBP share classes.

Both ETFs are remarkably similar; both track the same index, automatically reinvest dividends, have Irish domiciles, and charge the same expense ratio.

Comparing FTSE All World UCITS ETFs (information as of 17 May 2026)

Both new ETFs boast the lowest expense ratio, but as mentioned earlier, are only listed in GBP. It doesn't bother me one bit, but there are investors who prefer to have their investments denominated in USD. If you are one of them, then you will have to turn to the ETFs by Vanguard and Invesco instead. As these two ETFs were listed only recently, expect larger trading spreads. However, I'm confident that the fund AUM will grow, and the trading spreads will narrow with time.

Conclusion

It is always great to see competition among asset managers, and cheaper funds for investors. If you are an existing investor in the funds by Vanguard and Invesco, I don't see an urge to switch yet. Instead, you can start a new position in the two new funds, and hope that Vanguard and Invesco will slash their fees later.

If you are based in Singapore, do note that both FTAW and ALLW are already available on Interactive Brokers (I don't see them being available on Saxo and other brokers just yet).

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