Best Global and World ETFs to Buy in Singapore

Global equities have delivered strong returns over the past year, supported by resilient earnings, AI-led growth, and renewed appetite for risk assets. 

As of May 2026, the MSCI ACWI Index returned 30.27% over one year, while the MSCI World Index returned 27.59%. The FTSE All-World Index, the benchmark behind popular world ETFs such as VWRA and VWRD, returned around 27.13% over the same period.

For investors in Singapore, world ETFs offer a simple way to diversify beyond the local market. The STI is heavily weighted toward banks, REITs, telecoms and domestic sectors, while world ETFs provide exposure to companies across the US, Europe, Japan, China, India, Taiwan and other major markets.

But choosing the best world ETF is not just about recent returns. The structure matters: some ETFs cover developed markets only, while others include emerging markets; some are Ireland-domiciled UCITS ETFs, while others are US-listed; and some reinvest dividends automatically while others pay them out in cash.

This guide compares the main global and world ETFs available to investors in Singapore, including VWRA, VWRD, IWDA, SWRD, EIMI, ISAC, IMID and VT. We’ll look at what each ETF tracks, how much it costs, how tax treatment differs, and which option may suit different long-term portfolio needs.

Types of international ETF

Global equities are generally divided into two groups: developed markets and emerging markets. A world ETF may invest in one group or combine both, depending on the index it tracks.

Developed market ETFs invest in established economies with relatively mature financial systems, stronger market liquidity and higher standards of corporate disclosure. The MSCI World Index, the most widely followed developed-market benchmark, covers large- and mid-cap stocks across 23 developed markets. The FTSE Developed Index offers similar exposure, although FTSE and MSCI do not always classify countries in the same way. 

Emerging market ETFs focus on economies with higher long-term growth potential but also greater volatility. These markets can be more sensitive to political change, currency movements, foreign capital flows and regulatory intervention. The MSCI Emerging Markets Index covers 24 emerging markets and 1,205 large- and mid-cap stocks, while the FTSE Emerging Index covers 23 emerging markets and includes a broader set of large- and mid-cap companies.

A world ETF combines developed and emerging markets in one fund. For example, the MSCI ACWI Index covers 47 markets. The FTSE All-World Index covered 48 markets, with Vietnam scheduled to become its 49th market from September 2026. This is the simplest option for investors who want broad global diversification without deciding how much to allocate to each market group.

What is a world ETF?

A world ETF holds stocks across multiple countries in a single fund. Instead of buying Apple, Toyota, Nestlé, TSMC and Samsung individually, you buy one ETF that tracks a global equity index containing hundreds or thousands of companies.

However, the word “world” does not always mean the entire world. Some funds with “World” in their name only invest in developed markets. The underlying index is therefore more important than the ETF’s name.

The largest developed markets include the US, Japan, the UK, Canada, France, Switzerland, Germany, Singapore and Australia. Together, developed markets account for most of the value in global indices, with the US typically making up the largest share.

Major emerging markets include China, India, Taiwan, South Korea, Brazil, Saudi Arabia, South Africa, Mexico, Indonesia and Malaysia. These markets generally offer higher long-term growth potential but can also be more exposed to currency movements, political risk, regulatory changes and shifts in foreign investment flows.

The exact classification depends on the index provider. For example, MSCI continues to classify South Korea as an emerging market, while FTSE Russell treats it as developed. Greece remains an emerging market under MSCI until its planned reclassification to developed-market status in May 2027. 

For investors, this means two indices with similar names may not hold exactly the same countries. FTSE All-World and MSCI ACWI both combine developed and emerging markets, but their country weights and classifications can differ. 

Why world ETFs matter for investors in Singapore

world ETFs solve a problem many investors here already face: heavy concentration in Singapore and the US without meaning to be.

Most people working in Singapore already have local exposure through their income, CPF savings, property, SGD deposits, and any local stocks or REITs they hold. The Straits Times Index is concentrated in banks, REITs, and telcos. For diversification to actually work, it needs to add something different, not more of the same.

A world ETF extends your portfolio into European industrials, Japanese automakers, Korean chipmakers, Indian banks, and Brazilian consumer companies, all through one trade. The 2026 performance gap between developed and emerging markets illustrates why that breadth matters: investors who held only IWDA missed the 43% surge in EIMI over the past 12 months.

That said, global market-cap weighted indices are still heavily US-weighted. VWRA allocates approximately 57% to US equities as of March 2026. "Global" in index terms does not mean equal country weights; it means market-cap proportional, and the US still dominates global market capitalisation.

Top US-domiciled world ETFs

*VEA, VT and VWO do not track the exact FTSE Developed, FTSE All-World and FTSE Emerging indices. They are the closest major US-domiciled Vanguard equivalents:

• VEA excludes the US and adds small-cap stocks, so it is not a complete substitute for the FTSE Developed Index.
• VT tracks FTSE Global All Cap, which is broader than FTSE All-World because it includes small-cap stocks.
• VWO tracks an all-cap variation of FTSE Emerging, rather than the standard large- and mid-cap FTSE Emerging Index.

Top Ireland-domiciled UCITS world ETFs

 VHVG vs VWRA vs VFEG: which one should you choose?

The comparison comes down to whether you want developed markets only, the whole global market in one fund, or dedicated emerging-market exposure.

VHVG is a developed-market core. It gives broad exposure to established markets, led by the US, Japan and Europe, at the lowest TER of the three. It works well for investors who want their main equity allocation concentrated in developed economies, but it leaves out China, India, Taiwan and other emerging markets. To build a complete global portfolio, VHVG normally needs to be paired with an emerging-market ETF.

VWRA is a complete global core. It combines developed and emerging markets in a single fund, with allocations adjusted automatically according to market capitalisation. This makes it the most straightforward option for investors who want one ETF to anchor their long-term equity portfolio. The trade-off is a slightly higher fee and no control over the emerging-market allocation.

VFEG is an emerging-market satellite. It provides targeted exposure to markets such as China, Taiwan and India, where long-term growth potential is higher but volatility, currency risk and regulatory uncertainty are also greater. It is generally used alongside a developed-market ETF rather than as the main equity holding.

Put simply, VHVG is the developed-market building block, VWRA is the one-fund global solution, and VFEG is the emerging-market allocation used to complete or tilt a portfolio.

UCITS ETFs vs US-listed ETFs

An ETF’s domicile affects how dividends are taxed, whether US estate tax may apply, and whether accumulating share classes are available. These differences may matter more over time than a small gap in the headline expense ratio.

For a Singapore tax resident, dividends paid by a US-domiciled ETF are generally subject to 30% US withholding tax. By comparison, an Ireland-domiciled ETF holding US shares generally pays 15% withholding tax on those dividends at the fund level under the Ireland–US tax treaty. Ireland generally does not impose another layer of withholding tax when the ETF distributes income to a Singapore investor.

As a simplified example, a 1.5% dividend yield subject to 30% withholding loses 0.45% to tax, compared with 0.225% at a 15% rate. The 0.225-percentage-point difference can exceed the TER saving offered by some US-listed ETFs. Actual outcomes depend on the ETF’s dividend yield, country allocation, fund structure and taxes withheld by other markets.

For investors building a long-term portfolio in Singapore, Ireland-domiciled UCITS ETFs are often the more practical default. They reduce the withholding-tax drag on US dividends, avoid direct US estate-tax exposure, and allow dividends to be reinvested automatically through accumulating share classes.

US-listed ETFs can still make sense when their lower expense ratios, tighter trading spreads or broader index coverage outweigh the tax and estate-planning disadvantages. The decision should therefore be based on total ownership cost, not TER alone.

Accumulating vs distributing ETFs

An accumulating ETF reinvests the dividends inside the fund. Investors do not receive a cash payment; instead, the reinvested income remains in the fund and is reflected in its net asset value. 

A distributing ETF pays the income into the investor’s brokerage account, usually quarterly or semi-annually, and its unit price adjusts downward when the distribution is paid.

Before fees, taxes and reinvestment costs, accumulating and distributing share classes tracking the same portfolio should produce broadly similar total returns if every cash distribution is reinvested immediately. 

In practice, the accumulating version may be more efficient for long-term investors because reinvestment happens automatically. However, accumulating ETFs do not avoid dividend withholding tax: any tax due on dividends received from the underlying holdings is still deducted at the fund level before reinvestment.

The real cost of owning a world ETF

The expense ratio is only one part of the cost. Investors in Singapore may also pay brokerage commissions, currency-conversion spreads and trading costs, while an ETF’s domicile affects the tax deducted from dividends.

Some costs recur every year. Others apply only when you buy, sell or convert currencies.

Brokerage costs vary substantially by platform. Local bank brokerages generally charge percentage-based commissions with higher minimum fees, while fintech and global brokers charge lower minimums.

For small regular investments, transaction costs can matter more than the ETF’s annual fee. A S$5 charge on a S$500 purchase is an immediate 1% cost, while a 0.19% TER is deducted gradually over an entire year. Investors making smaller contributions may therefore reduce costs by consolidating purchases, provided they are comfortable leaving cash uninvested between trades.

FX conversion can also exceed the TER. A typical local bank brokerage may charge an FX spread of around 0.81%, equivalent to S$81 on a S$10,000 conversion. StashAway’s indicative FX spread of around 0.32% would cost approximately S$32 on the same amount.

Buying a GBP-denominated trading line does not remove currency-conversion costs. An investor funding the account in Singapore dollars must still convert SGD into GBP unless they already hold GBP. The trading currency also does not change the currencies of the ETF’s underlying investments.

For long-term investors, the most useful comparison is:

TER + dividend tax drag + brokerage + FX conversion + bid-ask spread

A lower TER does not automatically make an ETF cheaper overall. An Ireland-domiciled ETF may charge slightly more at fund level but still produce a lower total cost after dividend withholding tax and estate-tax considerations are included.

Where to buy world ETFs in Singapore

Once you have chosen an ETF, the next step is selecting a platform that gives you access to its exchange listing.

This matters because popular world ETFs trade on different exchanges:

• Ireland-domiciled UCITS ETFs such as VWRA, VHVG, IWDA and VFEG are commonly listed on the London Stock Exchange.
• US-domiciled ETFs such as VT, ACWI and URTH trade on US exchanges.
• SGX offers fewer world ETF choices, but may be more convenient for SGD funding and SRS investing.

Singapore investors generally have three routes: local bank brokerages, global or fintech brokers, and simplified investment platforms.

Can you use SRS to buy world ETFs?

Yes, but direct access depends on the investment platform. Many traditional SRS brokerages offer SGX-listed products but limited access to London-listed UCITS ETFs such as VWRA and IWDA.

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 global equities and emerging markets, using their SRS funds. Investors can make one-time deposits or set up recurring investments.

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 global equity exposure through its managed portfolios or ETF Explorer.

World ETF vs S&P 500 ETF: which is right for you?

A world ETF and an S&P 500 ETF can both serve as a long-term equity core, but they make different portfolio decisions.

A world ETF such as VWRA spreads your investment across developed and emerging markets. It still has substantial US exposure but it also includes Japan, the UK, Canada, China, Taiwan, India and other markets.

An S&P 500 ETF such as CSPX invests entirely in large US companies. It provides deeper exposure to the US market, but no direct allocation to companies listed outside the US.

Holding both is not the same as adding a completely separate asset class. Because US stocks already make up around 62% of VWRA, adding CSPX increases exposure to many companies already held in the world ETF. The result is an intentional overweight to the US and to its largest companies.

Put simply, choose a world ETF when you want global diversification determined by market size. Choose an S&P 500 ETF when you want the US to be the centre of your equity portfolio. Hold both only when the additional US exposure is a deliberate portfolio decision.

Invest in world ETFs with StashAway

For investors who prefer not to manage brokerage accounts, currency conversion, and market access manually, StashAway's ETF Explorer offers flat-fee access to global equity ETFs and 90+ other asset classes for a flat USD 1 per transaction, with no annual platform fee. SRS accounts are supported.

How world ETFs can fit into your portfolio

country, one sector, or one market cycle. They can form the core of a long-term portfolio, complement an existing US or Singapore allocation, or simplify a mix of regional holdings into one global position.

The important part is understanding what the ETF actually owns. A fund tracking MSCI World is developed-market exposure, while FTSE All-World and MSCI ACWI include emerging markets, and MSCI ACWI IMI adds small caps. Domicile, dividend treatment, fees, tax and platform costs then determine how efficiently that exposure is delivered.

A world ETF will not remove market risk, but it can reduce the risk of relying too heavily on a single market. Used with a clear portfolio role and a long-term horizon, it remains one of the simplest ways to participate in global growth.