As the first digital investment platform in Germany Scalable Capital launches its own global equities core ETF, the “Scalable MSCI AC World Xtrackers UCITS ETF”. Scalable Capital advises the asset manager DWS on the construction and replication of the portfolio for the new ETF. DWS is one of the largest providers of ETFs through its Xtrackers brand. The underlying All Country World Index (AC World or ACWI) is provided by MSCI, a leading provider of mission-critical decision support tools and services for the global investment community. Participating in the long-term growth of global stock markets has never been easier and more cost-effective for retail investors. The new ETF is the first of its kind. It uses intelligent indexing and hybrid replication to achieve an optimal structure covering all countries and regions worldwide with maximum efficiency. The fund’s attractive Total Expense Ratio (TER) is reduced to 0% for the first year.

With the launch of its World ETF, Scalable Capital progresses its mission to enable easy and cost efficient investing. The company offers access to all European retail ETFs: for self-directed investors through the Broker and through professionally managed portfolios in digital wealth management. Scalable Capital is recognised as one of the providers with the most extensive offerings of ETFs.

Jannik Klasing, Head of Wealth at Scalable Capital explains: “The strategic choice of the best replication method in each instance within one ETF is unique worldwide and allows for structural outperformance. Our World ETF was developed as a core investment for retail investors who seek broad and cost efficient global exposure but are looking to maximise the returns of their strategy."

Special features of the World ETF:

Intelligent indexing and “hybrid” replication

For the first time ever the combination of two replication methods is available in one single equity ETF, jointly developed by Scalable Capital and DWS Xtrackers. Up until now, investors had to choose between physical or synthetic replication. Depending on the underlying stocks, each method has its merits. The European stock indices' performance is replicated directly (physical) through the purchase of the respective stocks. While for the performance of US stock indices the World ETF is using indirect (synthetic) replication to capitalise on efficiency advantages. For less liquid or less accessible stock markets such as in emerging markets synthetic ETFs can offer a more economical and precise replication. DWS is one of the most experienced providers worldwide in both physical and synthetic ETFs. The asset manager has a proven track record of optimal collateral structuring as well as managing risks linked to synthetic replication. This efficient and cost-effective way of replicating the MSCI AC World Index enables structural outperformance compared to traditional physical ETFs. In a simulated calculation, based on several assumptions, the World ETF would have outperformed other ETFs on this index by 0.22% p.a. in the previous 12 months after costs.

Stocks from all world regions

The World ETF replicates the MSCI All Country World Index and offers access to more than 2,600 large and mid-sized companies from 23 developed markets and 24 emerging markets globally in a single product. This results in a broader diversification compared to the regular MSCI World index, which does not include the fast-growing emerging markets.

Cost-efficient global investment

For at least the first year after launch the Total Expense Ratio of the World ETF will be at 0% p.a. Neither upfront fees nor performance fees are charged. With a regular TER of 0.17% p.a., the Scalable MSCI AC World Xtrackers UCITS ETF offers a structural outperformance after costs compared to the MSCI AC World Index (ACWI) itself as well as compared to other ETFs tracking this index. The ETF can be purchased via the Scalable Broker with no order fees. Recurring savings plans from just 1 euro savings amount are also offered without execution fees. The World ETF will be tradable at the European Investor Exchange (EIX, Hanover Stock Exchange), gettex (Munich Stock Exchange) and on Xetra (Deutsche Boerse). The World ETF may be purchased at any other bank or broker and will also be available on other European exchanges in the near future.