(WLD) Lyxor MSCI World D-EUR - Ratings and Ratios

The Lyxor UCITS MSCI World D-EUR ETF is designed to track the MSCI World Net Total Return USD Index, providing exposure to developed markets equity performance while mitigating foreign exchange risk through a monthly currency hedge mechanism. This makes it an efficient solution for investors seeking to manage FX risk.

From a performance perspective, key metrics to consider include the funds tracking error, which measures its deviation from the benchmark index. A lower tracking error indicates a more effective replication of the index. Additionally, the funds expense ratio, which is not explicitly stated, is a crucial KPI as it directly impacts net returns. Typically, ETFs like Lyxor UCITS MSCI World D-EUR have expense ratios ranging from 0.1% to 0.5%. Assuming a competitive expense ratio, this ETF likely offers a cost-effective solution.

The MSCI World Net Total Return USD Index is a widely recognized benchmark, comprising a broad representation of developed markets. Its free float-adjusted market capitalization weighting ensures that the index is tilted towards larger, more liquid stocks. As of the latest data, the index includes stocks from regions such as North America, Europe, and Asia Pacific, with sector allocations that are diversified across industries like technology, healthcare, and finance.

To further evaluate this ETF, other relevant KPIs include its liquidity, measured by average daily trading volume, and its tax efficiency, which can be influenced by the funds turnover rate and distribution yield. A liquid ETF with low turnover can help minimize trading costs and tax liabilities. With an AUM of €7.56 billion, Lyxor UCITS MSCI World D-EUR demonstrates a significant scale, which can contribute to lower costs and tighter bid-ask spreads.