Invesco lowers the commission of its MSCI World UCITS ETF from 0.19% to 0.05%
30 MAR, 2026
By Joanna Piwko from RankiaPro Europe
Invesco will reduce the annual management fee of the Invesco MSCI World UCITS ETF from 0.19% to 0.05% effective April 1, 2026. In an environment of strong demand for global equities from retail and professional investors, the manager states that, after the adjustment, it offers the lowest cost exposure to the MSCI World index, compared to an average fee of 0.20% in competitor ETFs. The fund exceeds $6.6 billion in assets under management.
The reduction of 14 basis points places Invesco with one of the most aggressive price proposals within the exposure to the MSCI World. The firm expects that the trend of inflows into global equity ETFs will continue and maintains that the new fee level allows it to offer the most competitive cost alternative for this market benchmark.
With this measure, Invesco seeks to capitalize on the interest in globally diversified portfolios, in a segment where cost efficiency is a critical factor for long-term investors.
Synthetic replication and possible impact on performance
The ETF uses a synthetic replication model through swaps, the same approach that the house applies in its S&P 500 ETF, with $49 billion in assets, which Invesco qualifies as the largest synthetic ETF in the world. According to the manager, this structure has provided an average annual improvement of 0.05 percentage points in exposure to the MSCI World thanks to lower tax withholding on dividends in certain markets.
Invesco states that, by combining the potential replication advantage with a fee 0.15% lower than the market average, its ETF could offer leading relative performance within this benchmark index.
According to Gary Buxton, Head of Product EMEA at Invesco, this fee reduction is driven by strong growth in the use of ETFs.
The assets of the European ETF industry have recently reached $3.5 trillion, and we anticipate that this figure will double in the next five years, as ETFs become the preferred vehicle for an increasingly broad range of professional and retail investors. As a global provider of ETFs, with $1 trillion in assets, Invesco has been a major beneficiary of the industry's growth, and we want to position ourselves to continue expanding, leveraging the scale and efficiency of our efficient ETF platform, to offer these core beta portfolio building blocks at very competitive prices for our customers
According to Gary Buxton, Head of Product EMEA at Invesco
Invesco has long been a market leader in offering investors some of the lowest cost exposures to major equity, fixed income and commodity indices. With this new price adjustment, our MSCI World ETF aligns with the annual fee of 0.05% of our ETFs: MSCI USA, S&P 500 and EURO STOXX 50, whose four products today total more than $64.00 million in assets under management, compared to $10 billion at the beginning of 2020.
Laure Peyranne, Head of ETF Iberia, LatAm & US Offshore at Invesco
