iShares lists global equity ETF

iShares has expanded its equity fund range with the listing of an ETF tracking the MSCI All Country World Index.

The underlying index comprises of stocks from 24 developed and 21 emerging markets; the ETF is physically-replicated and is listed on the London Stock Exchange.

Axel Lomholt, head of iShares product development Emea says that the ETF can be used as a core building block by investors or "in a combination with regional or single country iShares' ETFs, to tilt portfolio exposure when investors have strong convictions towards a selected country or a region".

He says that "iShares launched iShares MSCI ACWI ETF in response to the increasing client demand for broad global equity exposure".

Despite the fact that the ETF accesses such a broad range of stocks, it is physically-replicated but it uses optimisation and it currently holds 700 securities.

Although the provider has a handful of swap-based ETFs, it maintains a preference for physically-backed ETFs, says Lomholt: "We only launch derivative-replicating ETPs where operational, ownership or liquidity constraints mean that it is more efficient than physically-replicating implementation or where it is not possible to create a physically-replicating Ucits-compliant structure."

He adds: "Where possible we would always seek to offer a physically replicating ETF."