Last updated on December 29th, 2021

You’re looking for a globally diversified ETF to invest in. However, there are so many choices! Some of the popular ETFs include IWDA and VT. So how exactly are they different? Here’s what we’re going to find out:

The difference between IWDA and VT

IWDA and VT are both globally diversified ETFs. However, VT invests in emerging markets which IWDA does not. These ETFs are also managed by different fund managers (iShares and Vanguard). The 2 main differences between these ETFs are the dividend withholding taxes and how they distribute their dividends. Here is an in-depth comparison between these 2 ETFs:

They track different indexes

IWDA tracks the MSCI World Index. Meanwhile, VT tracks the FTSE Global All Cap Index. Even though both are globally diversified indexes, their holdings are slightly different.

MSCI World Index has 1,600 constituents

The MSCI...