Xtrackers MSCI World Information Technology UCITS ETF
Why is this fund on our radar?
Exchange traded funds (ETFs) have become a popular starting point for many investors because they offer a simple, low-cost way to access broad markets. An ETF is essentially a basket of investments, usually shares or bonds, that aims to track the performance of a specific index, such as the FTSE All-Share in the UK or the S&P 500 in the US.
Although we believe high-quality active managers can add value over the long term, we also recognise that many investors want simple and transparent building blocks in their portfolios. With this in mind, we reviewed the large universe of ETFs with the aim of selecting options that provide clean, representative exposure to their markets at a low ongoing cost.
This ETF provides access to many of the world’s leading technology companies, from NVIDIA and Apple in the US to ASML in the Netherlands and Tokyo Electron in Japan. Technology continues to be a major driver of global equity markets, and a dedicated ETF can offer broad exposure for investors interested in this long-term theme.
We selected this fund because it provides a good representation of the global technology sector, investing in 144 companies worldwide. It is large and liquid, backed by a provider with over £240bn in assets under management and more than a decade of experience managing ETFs across various asset classes.
Portfolio
The ETF uses full replication, investing in every company in the index, and with an ongoing charge of 0.25%, it is competitively priced relative to other options in the thematic space. Its simplicity, broad coverage and platform availability make it a practical way for investors to access a fast-growing sector that includes global champions of today and household names of tomorrow.
