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I have been researching about ETFs, and have been looking a bit into different ones for the MSCI world index. I realized that there sometimes is a substantial difference in the development of the ETF and the base index, for example, the ETF ISHARES CORE MSCI WORLD UCITS ETF - USD ACC (which has ISIN IE00B4L5Y983), has lost 1.5% in value since March 31, whereas the baseline index, MSCI world, has gained 3% in the same time frame.

Where do these differences come from, and are they normal?

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  • Will be worth checking the currencies involved carefully (probably worth looking at some GBP listed MSCI world indexes etc), as that can create these kind of gaps. It shouldn't be that far out for replication reasons on an index like this.
    – Philip
    May 31, 2017 at 16:27

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Yep, looks like a currency issue. SWDA is a GBX index listed on the LSE so looks exposed to swings in the pound. Compare the USD version of the HSBC MSCI world index traded in Switzerland in dollars (yellow here) by the same HSBC fund traded in London in GBX (red), and finally SWDA (blue):

enter image description here

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