ETF Comparison

pip895

I am trying to figure out the differences between the two funds listed below. The HSBC fund is cheaper but the other has performed better recently - I presume it is something to do with currency hedging?? but looking at the two I cant seem to see a confirmation of this - the underlying investments seem very similar.

HSBC ETFs Plc MSCI World ETF GBP (HMWO)
iShares III plc Core MSCI World UCITS ETF GBP DIS H (IWDG)

I am trying to figure out what the pros and cons of each fund is as a core holding in a passive portfolio?

A_T

Yes IWDG is hedged to sterling whereas HMWO is not.

pip895

So the more expensive fund (iShares) might have lower volatility against the pound and might be a good bet if you think the pound is undervalued but you pay for that in the higher fee.

I assume then, if you have loads of UK bonds and gilts and other uk based stuff there might be an advantage to HMWO in terms of diversity. If that's not the case then IWDG could be a contender though?