Best Developed Markets ETFs to Buy in Singapore [2026]
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The MSCI World Index returned >27% in US-dollar terms over the twelve months to June 2026, fuelled in large part by the same concentration that defines the index: the United States accounted for >70% of the index, with information technology stocks alone making up ~28%.
A developed-markets ETF invests in companies listed across established economies such as the United States, Japan, the United Kingdom, Canada, Australia and Singapore. Through a single fund, investors can gain exposure to hundreds or thousands of businesses spanning technology, healthcare, financials, industrials and consumer sectors.
These ETFs can help diversify a portfolio that is concentrated in Singapore shares, US stocks or a small number of individual companies. They can serve as the main developed-market allocation, complement an emerging-markets ETF, or add international exposure alongside an S&P 500 fund.
However, developed-market exposure is not as evenly distributed as the name may suggest. The MSCI World Index returned more than 27% in US-dollar terms over the twelve months to June 2026, with the United States accounting for more than 70% of the index and information technology making up around 28%.
A fund tracking MSCI World or FTSE Developed may invest across North America, Europe and Asia, but its returns can still be heavily influenced by US mega-cap companies.
The underlying index also determines which countries are included. MSCI classifies South Korea and Poland as emerging markets, while FTSE Russell treats them as developed. These differences affect the country exposure inside each ETF and can create gaps or duplication when developed- and emerging-market funds from different index families are combined.
Choosing a developed-markets ETF therefore comes down to several practical decisions:
- Whether the fund includes or excludes the US
- MSCI World or FTSE Developed exposure
- Large- and mid-cap or all-cap coverage
- Ireland-domiciled UCITS or US-domiciled structure
- Accumulating or distributing dividends
- Fund fees, tax treatment, currency conversion and platform costs
What is a developed markets ETF?
A developed-markets ETF invests in listed companies from economies with mature financial markets, accessible capital markets, established regulatory systems and relatively high market liquidity.
The exact list of developed markets depends on the index provider. Commonly included countries are the United States, Japan, the United Kingdom, Canada, France, Switzerland, Germany, Australia, Singapore, the Netherlands, Sweden and Denmark. The two main providers that most ETFs are based on are MSCI and FTSE Russell, and their classifications differ in meaningful ways.
Two points need to be clear before going further. First, “developed markets” does not automatically mean markets outside the US. MSCI World and FTSE Developed both include the US as their largest weighting by a wide margin. Second, the word “world” in MSCI World means developed markets only. MSCI World contains no conventional emerging markets such as China, India, Taiwan or Brazil. The name is misleading if taken at face value.
Types of developed markets ETFs
Developed-markets ETFs cover a wide spectrum of exposures, from a single broad core fund to specialised strategies targeting smaller companies, specific factors, dividend income or sustainability criteria.
| ETF type | What it covers | Representative indices | ETF examples | Typical role |
|---|---|---|---|---|
| Broad developed markets | Major developed economies including the US | MSCI World, FTSE Developed | IWDA, SWRD, VHVG, URTH | Developed-market equity core |
| Developed markets ex-US | Developed economies excluding the US | MSCI World ex USA, FTSE Developed ex US | EXUS, VEA, SCHF | Complement a separate US allocation |
| EAFE | Europe, Australasia and Far East, excluding the US and Canada | MSCI EAFE, MSCI EAFE IMI | EFA, IEFA | Developed exposure outside North America |
| Developed all-cap | Large-, mid- and small-cap companies | FTSE Developed All Cap, MSCI World IMI | VEA, relevant UCITS funds | Broader company-size coverage |
| Developed small cap | Smaller companies across developed markets | MSCI World Small Cap | WSML | Small-cap satellite allocation |
| Value | Companies with lower valuation characteristics | MSCI World Value, MSCI EAFE Value | EFV, IVLU | Value factor tilt |
| Quality | Companies with stronger profitability and balance sheets | MSCI World Quality | IQLT | Quality factor tilt |
| Momentum | Companies with stronger recent price momentum | MSCI World Momentum | IMTM | Momentum factor tilt |
| Minimum volatility | Portfolio optimised for lower expected volatility | MSCI World Minimum Volatility | EFAV | Lower-volatility equity tilt |
| Dividend | Higher-dividend companies | Developed-market dividend indices | [Data: source needed] | Equity-income allocation |
| ESG and climate | Screened or reweighted developed-market companies | MSCI World ESG and climate indices | ESGD | Sustainability-focused allocation |
| Currency hedged | Developed equities with selected currency exposure hedged | Hedged MSCI World or EAFE indices | HEFA | Reduce specified currency movements |
| Actively managed | Securities selected by a manager | No fixed benchmark | Active ETF examples | Manager-led developed-market exposure |
Broad market-cap-weighted ETFs are generally the closest option to a core developed-market allocation. Small-cap, factor, dividend, ESG, currency-hedged and active ETFs deliberately change the portfolio and should not be treated as substitutes for a broad developed-markets fund.
Broad, ex-US, all-cap and small-cap developed markets ETFs
When comparing developed-markets ETFs, there are two separate decisions:
- Which countries should the ETF cover?
- Which company sizes should it hold?
The first determines whether the ETF includes the US, Canada, South Korea and other developed economies. The second determines whether it holds only large and mid-sized companies or also includes small caps.
1. Which countries should the ETF cover?
| ETF type | What it includes | Best used for | Examples |
|---|---|---|---|
| Broad developed markets | US, Japan, Europe, Canada, Australia, Singapore and other developed markets | A main developed-market holding | IWDA, SWRD, VHVG |
| Developed markets ex-US | Developed markets outside the US | Adding international exposure when you already own US stocks or an S&P 500 ETF | VEA, SCHF, SPDW |
| Europe, Australasia and Far East (EAFE) | Europe, Japan, Australia and other developed markets, but excludes both the US and Canada | A narrower non-US allocation | EFA, IEFA |
The main difference is whether the US is included.
A broad developed-markets ETF such as IWDA already holds a large allocation to US companies. Buying IWDA alongside an S&P 500 ETF therefore increases exposure to many of the same US stocks.
A developed ex-US ETF such as VEA removes the US. It is usually the cleaner option for someone who already holds an S&P 500 or US total-market ETF.
MSCI EAFE is narrower than developed ex-US because it also excludes Canada. This means IEFA and VEA do not cover exactly the same markets.
MSCI and FTSE do not classify every country the same way
The country coverage also depends on which index provider the ETF follows.
| Country | MSCI classification | FTSE classification | What this means |
|---|---|---|---|
| South Korea | Emerging market | Developed market | Included in MSCI emerging-market ETFs but FTSE developed-market ETFs |
| Poland | Emerging market | Developed market | Included in MSCI emerging-market ETFs but FTSE developed-market ETFs |
This affects how developed- and emerging-market ETFs fit together.
- MSCI World plus MSCI Emerging Markets: South Korea and Poland sit inside the emerging-markets ETF.
- FTSE Developed plus FTSE Emerging: South Korea and Poland sit inside the developed-markets ETF.
- MSCI World plus FTSE Emerging: South Korea and Poland may be missing from both funds.
- FTSE Developed plus MSCI Emerging Markets: South Korea and Poland may appear in both funds.
For example, IWDA and SWRD track MSCI World and exclude South Korea and Poland. VHVG tracks FTSE Developed and includes them.
The simplest way to avoid gaps or duplication is to pair developed- and emerging-market ETFs from the same index family.
Greece: MSCI continues to classify Greece as an emerging market. FTSE will move Greece from emerging to developed-market status on 21 September 2026, creating another potential difference when MSCI and FTSE funds are combined.
2. Which company sizes should the ETF hold?
After choosing the countries, the next decision is whether the ETF should include small companies.
| ETF type | Companies held | Best used for | Examples |
|---|---|---|---|
| Standard developed-market ETF | Large and mid-sized companies | Core developed-market exposure | IWDA, SWRD, VHVG |
| Developed all-cap ETF | Large, mid and small companies | Broader coverage in one fund | VEA, IEFA |
| Developed small-cap ETF | Small companies only | Adding small caps to an existing large- and mid-cap ETF | WSML |
Most broad developed-market ETFs, including IWDA, SWRD and VHVG, focus on large and mid-sized companies.
An all-cap ETF adds small companies to the same portfolio. For example, VEA covers developed markets outside the US and includes large-, mid- and small-cap companies.
An all-cap fund may hold thousands more securities than a standard developed-market ETF, although small-cap companies usually remain a relatively small part of the portfolio because holdings are weighted by market capitalisation.
A small-cap ETF such as WSML holds only smaller companies. It is normally used alongside a standard developed-market ETF rather than as the main equity holding.
For example:
- IWDA provides developed-market large- and mid-cap exposure.
- WSML adds developed-market small caps.
- Holding both creates broader company-size coverage.
Small-cap ETFs can add exposure to businesses that are more closely tied to domestic economies, but they also tend to have higher volatility, higher fees and wider bid-ask spreads.
The main indices behind developed markets ETFs
The index determines two important features of a developed-markets ETF:
- Geographic coverage: whether the fund includes the US or focuses on developed markets outside the US
- Company-size coverage: whether it holds large and mid-sized companies, adds small caps, or invests only in small caps
Broad developed-world indices include the US because the US is part of the developed-market universe. Investors who already hold a dedicated US ETF should instead look at developed ex-US indices.
Broad developed-world indices
These indices cover developed markets across North America, Europe and Asia, including the US.
| Index | Geographic coverage | Company sizes | Representative ETFs |
|---|---|---|---|
| MSCI World | 23 developed markets, including the US and Canada | Large and mid cap | IWDA, SWRD, URTH |
| FTSE Developed | Developed markets, including the US and Canada | Large and mid cap | VHVG, VEVE |
MSCI World and FTSE Developed are the two main benchmarks behind broad developed-world ETFs.
Both can serve as a core developed-market allocation, but they do not hold exactly the same countries because MSCI and FTSE apply different market-classification rules.
The US normally represents most of both indices because companies are weighted by market capitalisation. These are therefore global developed-market funds, but not equal-weighted allocations across countries.
Broad all-cap indices also exist:
- MSCI World IMI
- FTSE Developed All Cap
These add small-cap companies to the large- and mid-cap stocks held by the standard indices. However, plain-vanilla ETFs tracking these full developed-world all-cap benchmarks are less common than ETFs tracking MSCI World or FTSE Developed.
Most of the large all-cap ETF options currently available focus on developed markets outside the US instead.
Developed markets ex-US indices
These indices remove US companies and are generally used alongside a separate US equity fund.
| Index | Geographic coverage | Company sizes | Canada included | Representative ETFs |
|---|---|---|---|---|
| MSCI World ex USA | Developed markets outside the US | Large and mid cap | Yes | XUSE and equivalent UCITS ETFs |
| MSCI World ex USA IMI | Developed markets outside the US | Large, mid and small cap | Yes | IDEV |
| FTSE Developed ex US | Developed markets outside the US | Large and mid cap | Yes | SCHF |
| FTSE Developed All Cap ex US | Developed markets outside the US | Large, mid and small cap | Yes | VEA |
| MSCI EAFE | Developed markets outside the US and Canada | Large and mid cap | No | EFA |
| MSCI EAFE IMI | Developed markets outside the US and Canada | Large, mid and small cap | No | IEFA |
| S&P Developed Ex-U.S. BMI | Developed markets outside the US | Broad market coverage | Yes | SPDW |
The main differences are whether Canada and small-cap companies are included.
Developed-market small-cap indices
Small-cap indices hold only smaller developed-market companies. They are normally used alongside a standard large- and mid-cap ETF.
| Index | Geographic coverage | Company sizes | Representative ETFs |
|---|---|---|---|
| MSCI World Small Cap | Developed markets including the US | Small cap only | WSML |
| MSCI EAFE Small Cap | Developed markets outside the US and Canada | Small cap only | SCZ |
| FTSE Developed Small Cap ex US Liquid | Developed markets outside the US | Small cap only | SCHC |
For example, an investor holding IWDA could add WSML to obtain developed-market small-cap exposure.
This differs from choosing an all-cap ETF:
- An all-cap ETF holds large-, mid- and small-cap companies in one fund.
- A small-cap ETF holds only small companies and is normally added to another ETF.
Top SGX-listed developed markets ETFs
SGX-listed developed-market ETFs mainly provide targeted exposure to the US, Japan and Singapore. Unlike an MSCI World or FTSE Developed ETF, they do not combine the full developed-market universe in one fund.
The tables below cover the developed-market equity ETFs identified in the SGX exports, with multiple currency counters consolidated where they represent the same fund.
US equity ETFs listed on SGX
| ETF | SGX ticker | Index | Market coverage | Trading currency | Income treatment | Management style |
|---|---|---|---|---|---|---|
| State Street SPDR S&P 500 ETF Trust | S27 | S&P 500 Index | Around 500 leading large US companies | USD | Distributing | Passive |
| State Street SPDR Dow Jones Industrial Average ETF Trust | D07 | Dow Jones Industrial Average | 30 large US blue-chip companies | USD | Distributing | Passive |
Japan equity ETFs listed on SGX
| ETF | SGX ticker | Index or strategy | Market coverage | Trading currency | Income treatment | Management style |
|---|---|---|---|---|---|---|
| Lion-Nomura Japan Active ETF (Powered by AI) | JJJ / JUS | AI-assisted active strategy; TOPIX used as reference benchmark | Japanese equities across sectors and company sizes | SGD / USD | Accumulating | Active |
Singapore equity ETFs listed on SGX
| ETF or share class | SGX ticker | Index or strategy | Market coverage | Trading currency | Income treatment | Management style |
|---|---|---|---|---|---|---|
| State Street SPDR Straits Times Index ETF | ES3 | Straits Times Index | 30 large and liquid Singapore-listed companies | SGD | Distributing | Passive |
| Amova Singapore STI ETF SGD Distributing Class | G3B | Straits Times Index | 30 large and liquid Singapore-listed companies | SGD | Distributing | Passive |
| Amova Singapore STI ETF SGD Accumulating Class | GAB | Straits Times Index | 30 large and liquid Singapore-listed companies | SGD | Accumulating | Passive |
| Lion-OCBC Securities Singapore Low Carbon ETF | ESG / ESU | iEdge-OCBC Singapore Low Carbon Select 40 Capped Index | 40 Singapore-linked companies selected using market-cap and carbon criteria | SGD / USD | Distributing | Passive |
| Phillip SING Income ETF SGD Class | OVQ | Morningstar Singapore Yield Focus Index | 30 higher-income Singapore-listed companies | SGD | Distributing | Passive |
| Phillip SING Income ETF USD Class | OVS | Morningstar Singapore Yield Focus Index | 30 higher-income Singapore-listed companies | USD | Accumulating | Passive |
| Xtrackers MSCI Singapore UCITS ETF 1C | XSG / O9A | MSCI Singapore Investable Market Total Return Net Index | Singapore large-, mid- and small-cap companies | SGD / USD | Accumulating | Passive |
What SGX-listed developed markets ETFs cover
The SGX selection provides several distinct portfolio exposures:
- S27 offers the broadest US exposure in the group through the S&P 500, while D07 holds only 30 price-weighted US companies.
- JJJ/JUS provides actively managed Japan exposure rather than tracking the TOPIX or Nikkei 225 directly.
- ES3, G3B and GAB track the same Straits Times Index but differ by fund provider and income treatment.
- XSG/O9A extends beyond the STI by including Singapore large-, mid- and small-cap companies.
- OVQ/OVS targets higher-income Singapore companies, while ESG/ESU applies a lower-carbon selection approach.
Multiple tickers do not always mean different portfolios. JJJ/JUS, ESG/ESU and XSG/O9A are different trading-currency counters for their respective funds. G3B and GAB are separate distributing and accumulating share classes, while OVQ and OVS also differ in both trading currency and income treatment.
These ETFs can provide targeted exposure to the US, Japan or Singapore, but they do not form a complete developed-market portfolio on their own. Major markets such as the UK, France, Germany, Switzerland, Canada and Australia remain missing. Investors seeking all developed economies through one position would generally need an MSCI World or FTSE Developed ETF listed on the London or US exchanges.
Top US-domiciled developed markets ETFs
US-domiciled ETFs cover several different types of developed-market exposure. Some include the US, while most focus on developed markets outside the US. Others target small caps, investment factors, dividends, ESG criteria or currency hedging.
For non-US investors, these ETFs are treated as US-situs assets for US estate-tax purposes.
Broad developed markets including the US
These ETFs cover developed economies across North America, Europe and Asia, including the US.
| ETF | Ticker | Index or strategy | Market coverage | Expense ratio |
|---|---|---|---|---|
| iShares MSCI World ETF | URTH | MSCI World Index | 23 developed markets including the US; large and mid cap | 0.24% |
URTH is the main large US-domiciled ETF offering broad MSCI World exposure. Most of the larger US-domiciled developed-market ETFs instead exclude the US.
Core developed markets ex-US ETFs
These funds provide broad market-cap-weighted exposure to developed markets outside the US.
| ETF | Ticker | Index | Market coverage | Expense ratio |
|---|---|---|---|---|
| Vanguard FTSE Developed Markets ETF | VEA | FTSE Developed All Cap ex US Index | Developed ex-US; large, mid and small cap | 0.03% |
| iShares Core MSCI EAFE ETF | IEFA | MSCI EAFE IMI Index | Developed markets outside the US and Canada; large, mid and small cap | 0.07% |
| iShares MSCI EAFE ETF | EFA | MSCI EAFE Index | Developed markets outside the US and Canada; large and mid cap | 0.32% |
| Schwab International Equity ETF | SCHF | FTSE Developed ex US Index | Developed ex-US; large and mid cap | 0.03% |
| State Street SPDR Portfolio Developed World ex-US ETF | SPDW | S&P Developed Ex-U.S. BMI Index | Developed ex-US; broad market coverage | 0.03% |
| iShares Core MSCI International Developed Markets ETF | IDEV | MSCI World ex USA IMI Index | Developed ex-US; large, mid and small cap | 0.04% |
| JPMorgan BetaBuilders International Equity ETF | BBIN | Morningstar Developed Markets ex-North America Target Market Exposure Index | Developed markets outside the US and Canada | 0.07% |
VEA, SCHF, SPDW and IDEV include Canada, while IEFA, EFA and BBIN exclude both the US and Canada.
VEA, IEFA and IDEV include small-cap companies. SCHF and EFA focus mainly on large and mid-sized companies.
Developed-market small-cap ETFs
These funds invest only in smaller companies and are generally used alongside a large- and mid-cap developed-market ETF.
| ETF | Ticker | Index | Market coverage | Expense ratio |
|---|---|---|---|---|
| iShares MSCI EAFE Small-Cap ETF | SCZ | MSCI EAFE Small Cap Index | Developed markets outside the US and Canada; small cap | 0.40% |
| Schwab International Small-Cap Equity ETF | SCHC | FTSE Developed Small Cap ex US Liquid Index | Developed markets outside the US; small cap | 0.08% |
SCZ excludes Canada under the MSCI EAFE framework, while SCHC follows FTSE’s broader developed ex-US country universe.
Developed-market value, growth and quality ETFs
These ETFs change how companies are selected or weighted rather than following the standard market-cap allocation.
| ETF | Ticker | Index or strategy | Developed-market exposure | Expense ratio |
|---|---|---|---|---|
| Schwab Fundamental International Equity ETF | FNDF | RAFI Fundamental High Liquidity Developed ex US Large Index | Developed ex-US; fundamental weighting | 0.25% |
| iShares MSCI EAFE Value ETF | EFV | MSCI EAFE Value Index | Developed markets outside the US and Canada; value tilt | 0.31% |
| iShares MSCI EAFE Growth ETF | EFG | MSCI EAFE Growth Index | Developed markets outside the US and Canada; growth tilt | 0.34% |
| iShares MSCI International Quality Factor ETF | IQLT | MSCI World ex USA Sector Neutral Quality Index | Developed ex-US; quality tilt | 0.30% |
| Goldman Sachs ActiveBeta International Equity ETF | GSIE | Goldman Sachs ActiveBeta International Equity Index | Developed markets outside the US and Canada; multi-factor | 0.25% |
| iShares MSCI EAFE Minimum Volatility Factor ETF | EFAV | MSCI EAFE Minimum Volatility Index | Developed markets outside the US and Canada; lower-volatility tilt | 0.20% |
These funds may have materially different country, sector and company weights from a standard developed ex-US ETF.
Actively managed and systematic developed-market ETFs
These funds use active or rules-based portfolio construction rather than directly replicating a conventional index.
| ETF | Ticker | Strategy | Market coverage | Expense ratio |
|---|---|---|---|---|
| Avantis International Equity ETF | AVDE | Active systematic strategy with value and profitability tilts | Non-US developed markets; large, mid and small cap | 0.23% |
| Dimensional International Core Equity Market ETF | DFAI | Active systematic strategy with value and profitability tilts | Developed ex-US; broad company-size coverage | 0.18% |
Both provide broad non-US developed-market exposure but deliberately depart from standard market-cap weights.
Dividend, ESG and currency-hedged developed-market ETFs
| ETF | Ticker | Index or strategy | Developed-market exposure | Expense ratio |
|---|---|---|---|---|
| iShares ESG Aware MSCI EAFE ETF | ESGD | MSCI EAFE Extended ESG Focus Index | EAFE markets with ESG screens and reweighting | 0.20% |
| iShares International Select Dividend ETF | IDV | Dow Jones EPAC Select Dividend Index | Developed ex-US; higher-dividend companies | 0.50% |
| iShares Currency Hedged MSCI EAFE ETF | HEFA | MSCI EAFE 100% Hedged to USD Index | EAFE markets with currency exposure hedged to USD | 0.35% net |
ESGD changes the investable universe using ESG criteria, IDV prioritises dividend income, and HEFA seeks to reduce movements between the underlying currencies and the US dollar.
How the US-domiciled options compare
The largest funds fall into five main portfolio roles:
- Broad developed markets including the US: URTH
- Core developed markets outside the US: VEA, IEFA, EFA, SCHF, SPDW, IDEV and BBIN
- Developed-market small caps: SCZ and SCHC
- Factor and systematic strategies: FNDF, EFV, EFG, IQLT, GSIE, EFAV, AVDE and DFAI
- Dividend, ESG and currency hedging: IDV, ESGD and HEFA
For a core developed ex-US allocation, the closest comparisons are VEA, IEFA, SCHF, SPDW and IDEV. The remaining funds introduce a specific company-size, factor, income, ESG, active-management or currency view.
Expense ratios should therefore be compared within the same category rather than across the entire developed-markets ETF universe.
Top Ireland-domiciled UCITS developed markets ETFs
Ireland-domiciled UCITS ETFs are commonly used by investors who want developed-market exposure without directly owning US-domiciled ETF shares. The ETF shares are Irish-situated rather than US-situated, avoiding direct US estate-tax exposure at the fund-share level.
The main options include broad MSCI World ETFs, FTSE Developed ETFs, developed ex-US funds and ETFs covering the all-cap or small-cap segments. Multiple exchange tickers representing the same share class are consolidated into one row.
Broad MSCI World UCITS ETFs
These ETFs track the MSCI World Index, which covers large- and mid-cap companies across 23 developed markets, including the US.
| ETF or share class | Main ticker(s) | ISIN | TER | Income treatment | Replication |
|---|---|---|---|---|---|
| iShares Core MSCI World UCITS ETF USD Acc | IWDA / SWDA | IE00B4L5Y983 | 0.20% | Accumulating | Physical, optimised sampling |
| Xtrackers MSCI World UCITS ETF 1C | XDWD | IE00BJ0KDQ92 | 0.12% | Accumulating | Physical |
| State Street SPDR MSCI World UCITS ETF | SWRD | IE00BFY0GT14 | 0.12% | Accumulating | Physical, optimised sampling |
| Amundi Core MSCI World UCITS ETF Acc | LCUW | IE000BI8OT95 | 0.12% | Accumulating | Physical, full replication |
| UBS Core MSCI World UCITS ETF USD Acc | WRDA | IE00BD4TXV59 | 0.06% | Accumulating | Physical, full replication |
| HSBC MSCI World UCITS ETF USD Acc | HMWA / HMWS | IE000UQND7H4 | 0.15% | Accumulating | Physical, optimised sampling |
| Invesco MSCI World UCITS ETF Acc | MXWS | IE00B60SX394 | 0.05% | Accumulating | Synthetic, unfunded swap |
| iShares MSCI World Swap UCITS ETF USD Acc | IWDS | IE000F9IDGB5 | 0.12% | Accumulating | Synthetic, unfunded swap |
| HSBC MSCI World UCITS ETF USD Dist | HMWD | IE00B4X9L533 | 0.15% | Distributing | Physical, optimised sampling |
| iShares MSCI World UCITS ETF USD Dist | IWRD / MXWD | IE00B0M62Q58 | 0.50% | Distributing | Physical, optimised sampling |
| Xtrackers MSCI World UCITS ETF 1D | XDWL | IE00BK1PV551 | 0.12% | Distributing | Physical |
| UBS Core MSCI World UCITS ETF USD Dist | WRDD | IE00B7KQ7B66 | 0.06% | Distributing | Physical, full replication |
| Amundi Core MSCI World UCITS ETF Dist | MWOE | IE000CNSFAR2 | 0.12% | Distributing | Physical, full replication |
The funds follow the same broad index but differ in fee, income treatment and replication method. Invesco and the iShares Swap fund obtain index exposure through swaps, while the remaining funds hold the underlying shares physically.
FTSE Developed UCITS ETFs
These funds track the FTSE Developed Index rather than MSCI World.
| ETF or share class | Main ticker(s) | ISIN | TER | Income treatment | Replication |
|---|---|---|---|---|---|
| Vanguard FTSE Developed World UCITS ETF USD Acc | VHVG / VHVE | IE00BK5BQV03 | 0.12% | Accumulating | Physical, optimised sampling |
| Vanguard FTSE Developed World UCITS ETF USD Dist | VEVE / VEVD | IE00BKX55T58 | 0.12% | Distributing | Physical, optimised sampling |
Both funds hold the same underlying developed-market portfolio. VHVG reinvests dividends, while VEVE distributes them to investors.
FTSE Developed follows different country-classification rules from MSCI World, so the Vanguard funds do not hold an identical portfolio to IWDA, SWRD or another MSCI World ETF.
Developed markets ex-US UCITS ETFs
These funds remove US companies while retaining exposure to other developed markets such as Japan, the UK, Canada, France, Switzerland and Australia.
| ETF or share class | Main ticker(s) | ISIN | Index | TER | Income treatment | Replication |
|---|---|---|---|---|---|---|
| Xtrackers MSCI World ex USA UCITS ETF 1C | EXUS | IE0006WW1TQ4 | MSCI World ex USA | 0.15% | Accumulating | Physical, full replication |
| iShares MSCI World ex-USA UCITS ETF USD Acc | XUSE / IXUA | IE000R4ZNTN3 | MSCI World ex USA | 0.15% | Accumulating | Physical, full replication |
| Amundi MSCI World Ex USA UCITS ETF Acc | WEXE / WEXU | IE00085PWS28 | MSCI World ex USA | 0.15% | Accumulating | Physical, full replication |
| Xtrackers MSCI World ex USA UCITS ETF 1D | EXU1 | IE000Z0FC0G5 | MSCI World ex USA | 0.15% | Distributing | Physical, full replication |
| Amundi MSCI World Ex USA UCITS ETF Dist | WEXF | IE0009BI8Z04 | MSCI World ex USA | 0.15% | Distributing | Physical, full replication |
These funds provide very similar geographic exposure because they track the same MSCI World ex USA benchmark. The main practical differences are issuer, fund size, trading liquidity and whether dividends are accumulated or distributed.
They are most relevant for investors who already hold their US allocation separately through an S&P 500, Nasdaq-100 or US total-market ETF.
Developed all-cap and small-cap UCITS ETFs
These funds extend beyond the large- and mid-cap stocks held by standard MSCI World ETFs.
| ETF or share class | Main ticker(s) | ISIN | Index | Market coverage | TER | Income treatment | Replication |
|---|---|---|---|---|---|---|---|
| Xtrackers MSCI World IMI UCITS ETF 1C | WIMI | IE000X1GW0A7 | MSCI World IMI | Developed-market large, mid and small caps | 0.15% | Accumulating | Physical |
| iShares MSCI World Small Cap UCITS ETF | WSML / IUSN | IE00BF4RFH31 | MSCI World Small Cap | Developed-market small caps only | 0.35% | Accumulating | Physical, optimised sampling |
The Xtrackers MSCI World IMI ETF holds large-, mid- and small-cap companies in one portfolio.
WSML holds only small-cap companies. It is generally used alongside a large- and mid-cap fund such as IWDA, SWRD or VHVG rather than as a standalone developed-market allocation.
How the Ireland-domiciled options compare
The funds fall into four main portfolio roles:
- Broad developed markets through MSCI World: IWDA, XDWD, SWRD, LCUW, WRDA, HMWA, MXWS, IWDS and their distributing alternatives
- Broad developed markets through FTSE Developed: VHVG and VEVE
- Developed markets excluding the US: EXUS, XUSE, WEXE, EXU1 and WEXF
- Broader company-size exposure: WIMI for an all-cap portfolio and WSML for dedicated small-cap exposure
For a standard accumulating MSCI World allocation, the closest comparisons are IWDA, XDWD, SWRD, LCUW, WRDA, HMWA and MXWS. They track the same index but use different fee and replication structures.
Investors who prefer cash distributions can compare HMWD, IWRD, XDWL, WRDD and MWOE. VHVG and VEVE provide the main FTSE Developed alternatives, while the ex-US funds are designed to complement an existing US allocation.
TER should therefore be compared within the same index and portfolio category rather than across the entire table.
Broad, ex-US, EAFE, all-cap and small-cap developed markets ETFs
These strategies provide different geographic and company-size exposure and should not be treated as interchangeable options.
| Factor | Broad developed markets | Developed markets ex-US | EAFE | Developed all cap | Developed small cap |
|---|---|---|---|---|---|
| Sample ETF | iShares Core MSCI World UCITS ETF (IWDA) | Xtrackers MSCI World ex USA UCITS ETF (EXUS) | iShares MSCI EAFE ETF (EFA) | Xtrackers MSCI World IMI UCITS ETF (WIMI) | iShares MSCI World Small Cap UCITS ETF (WSML) |
| Index tracked | MSCI World | MSCI World ex USA | MSCI EAFE | MSCI World IMI | MSCI World Small Cap |
| Main exposure | Developed markets including the US | Developed markets excluding the US | Developed Europe, Australasia and Far East | Broad developed markets across all company sizes | Smaller companies across developed markets |
| US exposure | Included | Excluded | Excluded | Included | Included |
| Canada exposure | Included | Included | Excluded | Included | Included |
| Europe and Japan | Included | Included | Included | Included | Included |
| Emerging markets | Excluded | Excluded | Excluded | Excluded | Excluded |
| Company sizes | Large and mid cap | Large and mid cap | Large and mid cap | Large, mid and small cap | Small cap only |
| Typical portfolio role | Core developed-market allocation | Complement an existing US allocation | Non-North-American developed allocation | Complete developed-market allocation across company sizes | Satellite allocation alongside a large- and mid-cap ETF |
| Main concentration | US and global mega-cap companies | Japan, Europe and Canada | Japan and Europe | US remains dominant, but exposure is spread across more companies | Smaller and more domestically focused businesses |
| Main risk | Heavy reliance on US large-cap performance | Greater dependence on Japan, Europe and foreign currencies | Excludes both the US and Canada | More holdings but still market-cap weighted and US-heavy | Higher volatility, wider spreads and greater sensitivity to economic conditions |
A broad developed-markets ETF includes the US alongside Japan, Europe, Canada, Australia, Singapore and other developed economies. It can serve as the main developed-market holding, but the US usually accounts for most of the portfolio.
A developed ex-US ETF removes US companies while retaining other developed markets. It is generally used alongside an S&P 500, US total-market or another dedicated US equity ETF.
An EAFE ETF is narrower than a developed ex-US ETF because it excludes both the US and Canada. Its portfolio is therefore concentrated mainly in Japan, Europe and Australia.
A developed all-cap ETF includes large-, mid- and small-cap companies. It provides broader company coverage than a standard MSCI World or FTSE Developed ETF, although small caps usually remain a modest share because companies are weighted by market value.
A developed small-cap ETF holds only smaller companies. It is normally added to a large- and mid-cap developed-market ETF rather than used as the main equity allocation.
These categories can overlap. “Developed ex-US” and “EAFE” describe which countries are included, while “all cap” and “small cap” describe which company sizes are held. For example, VEA is both a developed ex-US ETF and an all-cap ETF.
The appropriate exposure therefore depends on what is already in the portfolio:
- Broad developed markets can serve as the core allocation.
- Developed ex-US can complement an existing US holding.
- EAFE provides a narrower allocation excluding North America.
- All cap adds smaller companies within one fund.
- Small cap deliberately overweights the smaller-company segment.
All-cap and small-cap ETFs are not automatically more diversified or better than standard developed-market funds. They expand or emphasise a particular company-size segment and should be selected according to the role they are intended to play.
UCITS ETFs vs US-listed ETFs
An ETF’s domicile affects its tax structure, estate-tax exposure, available share classes and exchange access.
| Factor | Ireland-domiciled UCITS ETFs | US-domiciled ETFs |
|---|---|---|
| Broad developed-world examples | IWDA/SWDA, SWRD, XDWD, LCUW, WRDA, HMWA, MXWS, VHVG/VHVE | URTH |
| Developed ex-US examples | EXUS, XUSE/IXUA, WEXE/WEXU | VEA, IDEV, SCHF, SPDW |
| EAFE examples | Fewer major options | IEFA, EFA |
| Developed all-cap examples | WIMI | VEA, IDEV, IEFA |
| Developed small-cap examples | WSML/IUSN | SCZ, SCHC |
| Accumulating share classes | Widely available | Generally unavailable among major developed-market ETFs |
| Distributing share classes | Available | Standard structure |
| US estate-tax exposure | Irish ETF shares are not US-situs assets | US ETF shares are US-situs assets; estate-tax filing generally applies when total US-situated assets exceed US$60,000 |
| US dividend treatment for broad developed-world funds | US dividends received by the Irish fund generally face 15% treaty withholding | Distributions paid to Singapore investors generally face 30% US withholding |
| Headline expense ratios | Often slightly higher, although some major funds charge between 0.05% and 0.15% | Often lower, particularly for developed ex-US funds |
| Product range | Strong for MSCI World, FTSE Developed, ex-US and accumulating funds | Strong for developed ex-US, EAFE, small-cap, factor and dividend strategies |
| Trading currencies | Commonly USD, GBP or EUR trading lines | Primarily USD |
| Exchange access | London Stock Exchange and other European exchanges | NYSE Arca, Nasdaq and other US exchanges |
| Typical portfolio use | Long-term accumulation and reduced direct US estate-tax exposure | Low-cost exposure, deeper liquidity and more specialised strategies |
The 15% versus 30% withholding comparison is most relevant to broad developed-world ETFs because US companies make up most of the portfolio.
For developed ex-US funds, dividends mainly come from Japan, Europe, Canada and Australia, where withholding rates vary. In that case, actual tracking difference, fund structure and total ownership cost are more useful than applying the US withholding comparison alone.
Accumulating vs distributing developed markets ETFs
Accumulating and distributing share classes may track the same index and hold the same companies. The difference is what happens to the dividends received by the fund.
| Factor | Accumulating ETFs | Distributing ETFs |
|---|---|---|
| Dividend treatment | Reinvested automatically inside the fund | Paid into the investor’s brokerage account |
| Regular cash payment | No | Yes |
| Reinvestment | Automatic | Investor decides whether to reinvest |
| Reinvestment cost | No additional investor-level trade | May involve brokerage and FX costs |
| Cash drag | Limited | Cash may remain uninvested |
| Portfolio administration | Simpler for long-term compounding | More suitable for regular income needs |
| Broad MSCI World UCITS examples | IWDA/SWDA, SWRD, XDWD, LCUW, WRDA, HMWA, MXWS | HMWO/HMWD, IWRD/MXWD, XDWL, WRDD, MWOE |
| FTSE Developed UCITS examples | VHVG/VHVE | VEVE/VEVD |
| Developed ex-US UCITS examples | EXUS, XUSE/IXUA, WEXE/WEXU | EXU1, WEXF |
| Developed all-cap and small-cap UCITS examples | WIMI, WSML/IUSN | Fewer major options |
| US-domiciled examples | Uncommon among major ETFs | URTH, VEA, IEFA, EFA, SCHF, SPDW, IDEV, SCZ, SCHC |
| Best suited for | Long-term growth without a current income need | Investors who want portfolio income paid in cash |
Accumulating ETFs still incur any withholding tax applied before the dividend reaches the fund. They simply reinvest the net amount automatically.
For individuals investing personally in Singapore, the choice is therefore usually practical rather than tax driven: accumulating funds suit long-term compounding, while distributing funds suit investors who want regular cash flow.
Currency exposure: SGD, USD and the currencies inside the ETF
Developed-markets ETFs hold companies exposed to US dollars, Japanese yen, euros, British pounds, Canadian dollars, Swiss francs and Australian dollars, among others. The trading currency of the ETF is separate from its underlying exposure.
A USD trading line does not mean the portfolio is invested only in US dollars. A GBP trading line does not make the ETF economically exposed only to sterling. Trading currency affects how the ETF is bought and sold. Underlying currency exposure comes from the ETF’s investments. SGD returns are therefore affected by changes between SGD and all the currencies the ETF’s underlying companies operate in.
Buying the same share class through a different trading currency does not remove foreign-exchange risk. An investor funding their account in SGD must convert SGD to USD, GBP or EUR regardless of which trading line they choose, unless they already hold the target currency.
Currency-hedged developed-market ETFs
A hedged ETF seeks to reduce movement between the portfolio’s currencies and a specified reference currency. It does not eliminate equity-market risk, company risk, all currency exposure, hedging costs or tracking difference. Currency hedging may help or hurt returns depending on exchange-rate movements and interest-rate differentials between Singapore and the hedged market. Hedged ETFs also typically carry higher costs than their unhedged equivalents.
Physical vs synthetic developed markets ETFs
| Factor | Physical replication | Synthetic replication |
|---|---|---|
| Exposure method | Holds all or a sample of the index securities | Receives index performance through a swap |
| Transparency | Underlying holdings are generally visible | Requires reviewing swap and collateral structure |
| Counterparty risk | Limited direct swap counterparty exposure | Exposed to swap counterparties within UCITS limits |
| Tracking | Can be affected by trading costs and sampling | May track some indices more closely |
| Main advantage | Intuitive holdings structure | Potentially efficient index replication |
| Main drawback | Sampling and withholding taxes may create tracking drag | Greater structural complexity |
Most major core MSCI World ETFs use full physical replication or optimised physical sampling. The Invesco MSCI World UCITS ETF and the iShares MSCI World Swap UCITS ETF use synthetic replication via unfunded swaps. Synthetic ETFs can be considered when their TER is lower and their tracking difference is stronger, provided the counterparty and collateral structure is acceptable.
The real cost of owning a developed markets ETF
The expense ratio is only one component of ownership cost.
Total ownership cost = TER + tracking difference + dividend tax drag + brokerage + FX conversion + bid-ask spread
| Cost component | What to measure |
|---|---|
| TER or expense ratio | Published annual fund fee |
| Tracking difference | ETF return relative to its benchmark |
| Brokerage commission | Fee charged when buying or selling |
| FX conversion | Cost of converting SGD into USD, GBP or EUR |
| Bid-ask spread | Difference between the buying and selling price |
| Internal withholding tax | Tax deducted from dividends before reinvestment or distribution |
| Reinvestment cost | Brokerage and FX cost when cash dividends are reinvested |
| Premium or discount to NAV | Difference between market price and underlying net asset value |
| Securities-lending impact | Revenue and counterparty exposure from lending securities |
| Currency-hedging cost | Cost embedded in hedged share classes |
| Platform fee | Annual or transactional charge imposed by the investment platform |
Monthly vs quarterly investment example
Consider S$500 invested monthly versus S$1,500 invested quarterly in a London-listed ETF such as IWDA using FSMOne at a flat S$3.80 commission (using the SGD equivalent).
For monthly investing: the S$3.80 fee on a S$500 purchase represents an immediate 0.76% cost, applied before a single day of market exposure. Across 12 monthly purchases, that is S$45.60 in commissions per year.
For quarterly investing: the same S$45.60 in commissions is paid across four trades of S$1,500 each. The fee as a percentage of the trade falls to 0.25%. However, an average of S$1,000 remains uninvested between quarterly purchases, missing out on potential market returns.
A 0.08% TER difference between two ETFs, on a S$10,000 portfolio, amounts to S$8 per year. A S$3.80 to S$5 commission on a S$500 investment can exceed that immediately. Transaction costs matter more for small regular investments than a marginal TER difference. Quarterly investing reduces that cost but means money sits in cash for longer.
Where to buy developed markets ETFs in Singapore
Developed-market ETFs trade across the Singapore Exchange, the London Stock Exchange, NYSE Arca, Nasdaq and other European exchanges. Investors generally have three routes: local bank brokerages, global or fintech brokerages, and simplified investment platforms.
| Platform type | Platform | SGX ETF fees | US ETF fees | UK ETF fees (LSE) |
|---|---|---|---|---|
| Local bank brokerage | DBS Vickers (cash) | 0.28% (min S$25) | 0.16% (min US$27.25) | 0.30% (min £27.25) |
| Local bank brokerage | DBS Vickers (cash upfront) | 0.12% (min S$10.90) | 0.15% (min US$19.62) | 0.25% (min £21.80) |
| Local bank brokerage | OCBC Securities | 0.18%–0.275% (min S$25) | 0.30% (min US$20) | 0.70% (min £55) |
| Fintech / global broker | Interactive Brokers | Not available | No commission | US$6 per order |
| Fintech / global broker | Saxo Markets | 0.08% (min S$3) | 0.08% (min US$1) | 0.08% (min £3) |
| Fintech / global broker | Tiger Brokers | 0.03% (min S$0.99), plus platform fees | US$0.005 per share (min US$0.99), plus platform fees | Not available |
| Fintech / global broker | moomoo SG | 0.03% (min S$0.99), plus platform fees | No commission; around US$0.99 order fee | Not available |
| Fintech / global broker | FSMOne | S$3.80 flat | US$3.80 flat | 0.15% (min £15) |
| Simplified investing platform | StashAway | USD 1 per order | USD 1 per order | USD 1 per order |
| Simplified investing platform | Syfe | 0.06% (min S$1.98) | US$0.99–US$1.49 | 0.04% (min US$1.99) |
Platform fees as reported in published brokerage rate cards. Verify current rates directly with each platform before placing an order, as fees are subject to change.
Platform choice depends on which exchange the ETF is listed on and how frequently the investor plans to trade. London-listed UCITS ETFs such as IWDA, SWRD and VHVG require access to the LSE. US-listed ETFs such as VEA, IEFA and SCHF require access to US exchanges. SGX-listed ETFs such as SPY and G3B trade through any Singapore brokerage with SGX access.
Can you use SRS to buy developed markets ETFs?
Yes, but the available ETFs depend on the investment platform. Many conventional SRS brokerages focus on SGX-listed securities and may not provide direct access to all London-listed UCITS ETFs such as IWDA, SWRD or VHVG.
StashAway gives investors two ways to put their SRS funds to work:
General Investing provides professionally managed, globally diversified ETF portfolios. StashAway handles portfolio construction, rebalancing and ongoing risk management.
ETF Explorer lets investors choose from more than 90 asset classes, including developed-market equity exposures, using their SRS funds. Investors can make one-time deposits or set up recurring investments.
| Investor type | Annual SRS contribution cap |
|---|---|
| Singapore citizens and permanent residents | S$15,300 |
| Foreigners | S$35,700 |
SRS contributions may qualify for tax relief, subject to the overall personal income tax relief cap of S$80,000. Contributions must be made by 31 December, or by the earlier cut-off imposed by your SRS operator, to qualify for relief in the following Year of Assessment.
Direct availability of a specific ticker should not be assumed. Instead of transferring SRS funds to a conventional brokerage and searching for eligible listings, StashAway lets investors access developed-market exposure through its managed portfolios or ETF Explorer.
Developed markets ETF vs all-world ETF: do you need both?
A developed-markets ETF excludes emerging economies, while an all-world ETF combines developed and emerging markets. The comparison below uses VHVG (FTSE Developed) and VWRA (FTSE All-World) as representative examples, but the logic applies across other fund pairs.
| Factor | Developed ETF: VHVG | All-world ETF: VWRA |
|---|---|---|
| Index | FTSE Developed | FTSE All-World |
| Developed markets | Included | Included |
| Emerging markets | Excluded | Included |
| Company sizes | Large and mid cap | Large and mid cap |
| US exposure | Around 69% | Around 62% |
| South Korea | Included as developed | Included as developed |
| China | Excluded | Included |
| India | Excluded | Included |
| Taiwan | Excluded | Included |
| Portfolio role | Developed-market building block | One-fund global equity core |
VWRA already holds most of the companies in VHVG as part of its developed-market allocation. Adding VHVG to VWRA therefore increases developed-market exposure and reduces the portfolio’s relative emerging-market weight rather than filling a missing allocation. This is an intentional developed-market overweight, not a diversification improvement by default.
A developed-markets ETF may suit investors who deliberately do not want emerging-market exposure, hold emerging markets separately, want to control the developed-emerging allocation, or prefer the different risk characteristics of developed markets.
An all-world ETF may suit investors who want developed and emerging markets in one fund, do not want to rebalance the split manually, or prefer fewer holdings and transactions.
Avoid index-family overlap
Combining VHVG (FTSE Developed) with an MSCI Emerging Markets ETF may duplicate South Korea and Poland, because VHVG includes them as developed while the MSCI Emerging index also holds South Korean companies. Combining an MSCI World ETF with a FTSE Emerging ETF may omit them entirely. Use matching index families or inspect the combined country allocation.
Developed markets ETF vs S&P 500 ETF: should you split the US and international allocation?
The comparison is between one broad developed-world ETF such as IWDA, or an S&P 500 ETF combined with a developed ex-US ETF.
| Factor | IWDA alone | CSPX plus developed ex-US ETF |
|---|---|---|
| US exposure | Set by developed-market capitalisation (around 72%) | Set manually |
| Non-US developed exposure | Included automatically | Held separately |
| Number of funds | One | Two |
| Rebalancing | Automatic within the index | Investor must rebalance |
| Control over US weight | Limited | High |
| Emerging markets | Excluded | Excluded unless added separately |
| Small caps | Excluded | Depends on ex-US ETF |
| Complexity | Lower | Higher |
| Transaction costs | One ETF purchase | Two ETF purchases |
IWDA suits investors who accept market-cap weighting, want a single developed-market ETF and do not want to rebalance the US and international allocation. Adding CSPX (iShares Core S&P 500 UCITS ETF) to IWDA increases exposure to US equities and to companies already held inside IWDA. That is an intentional US overweight, not a diversification improvement.
A two-fund structure of CSPX plus a developed ex-US ETF suits investors who want to set the US weight manually, already own an S&P 500 ETF, want to choose between FTSE, MSCI EAFE or MSCI World ex USA exposure, and are willing to rebalance two funds.
Invest in developed markets with StashAway
For investors who prefer not to manage brokerage accounts, currency conversion and market access manually, StashAway ETF Explorer offers flat-fee access to developed-market ETFs and 90+ other asset classes for a flat USD 1 per transaction, with no annual platform fee. SRS accounts are supported.
How developed markets ETFs can fit into your portfolio
Developed-markets ETFs can form the core of a long-term equity portfolio, complement an emerging-markets allocation, or add non-US exposure to a portfolio built around the S&P 500.
The first decision is whether the fund should include the US. MSCI World and FTSE Developed cover established economies across North America, Europe and Asia but remain heavily US-weighted at around 70 to 72%. Developed ex-US ETFs and MSCI EAFE remove the US and serve a different portfolio role.
The underlying index also determines whether countries such as South Korea and Poland are included. Combining funds from different index families can create unintended gaps or duplication, particularly when developed- and emerging-market ETFs are held together.
After choosing the exposure, compare company-size coverage, fund domicile, income treatment, replication method, tracking difference, fund size, trading spread, brokerage costs, FX conversion, dividend withholding and platform access.
Investors already holding an all-world ETF generally have substantial developed-market exposure. Adding another developed-market ETF should be treated as an intentional overweight rather than an automatic diversification step.
Used with a defined portfolio role, a developed-markets ETF provides broad access to established companies across North America, Europe and Asia without requiring investors to select and rebalance individual country funds.
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