Question about iShares Edge MSCI Wld Mom

parker1982

Hi there,

I currently hold the Vanguard FTSE Developed World ex UK fund for some time and pleased with it.

I've been looking at how this has compared against other funds (Fidelity Index World P, L&G International Index I etc) 

Whilst looking into other investments I came across the iShares Edge MSCI Wld Mom ETF which has confused me hence me posting here.

On iWeb, the ISIN given is IE00BP3QZ825, and this brings up 2 different versions, GBP (IWFM) and USD (IWMO) currency versions.
The difference in the 5 year performance, 120.32% (IWFM) vs 71.27% (IWMO) is what really surprised me.

The questions I have about this are:

1) Is the difference in performance simply down to the different currencies or is there something else?

2) On Fidelity (I invest through Cavendish Online), they only bring up the IWFM version when searching on the ISIN. On Blackrocks site nothing come's up when you search for IWFM. Does this mean that Blackrock no longer offer the product directly but let the platforms still offer it to their customers?

3) When you come across an investment in different currencies, what sort of things should you be thinking about to make a decision on the correct version for you?

Thanks

masonic

parker1982 said:

1) Is the difference in performance simply down to the different currencies or is there something else?

2) On Fidelity (I invest through Cavendish Online), they only bring up the IWFM version when searching on the ISIN. On Blackrocks site nothing come's up when you search for IWFM. Does this mean that Blackrock no longer offer the product directly but let the platforms still offer it to their customers?

3) When you come across an investment in different currencies, what sort of things should you be thinking about to make a decision on the correct version for you?

1) Yes, if you measure the performance in dollars, it will be a different number than if you measure the performance in pounds. If you rebase to either USD or GBP the performance is identical.

2) Blackrock normally only create a page for the main share class and provide a table of other listings on that page.

3) You should use the home currency version if you wish to avoid forex charges levied by your broker. Instead the currency exchange will be made by the fund manager, usually on more favourable terms.

See the following posts for more information:

https://forums.moneysavingexpert.com/discussion/comment/76284049/#Comment_76284049

https://forums.moneysavingexpert.com/discussion/comment/76011927/#Comment_76011927

parker1982

Thanks for this masonic, really helpful and clear.