Morningstar

Vanguard FTSE All-World UCITS ETF (EUR) | VWRL

Analyst Report
Morningstar's Take
|25/03/2025
by Eugene Gorbatikov
The FTSE All-World Total Net Return Index represents approximately 90% of the global equity market capitalization across developed and emerging markets. The index is dominated by the US, which accounts for roughly two thirds of its value, with the information technology sector making up about a fourth of the overall weighting. The top 10 constituents, primarily tech giants like Apple, Microsoft, and Nvidia, account for around 20% of the index’s value.

The strategy has delivered superior risk-adjusted net-of-fee returns compared with its peers. The fund’s double-digit returns in 2024 were primarily driven by strong performance in the US market and technological innovation. Slower growth in emerging markets has moderated overall performance relative to benchmarks focused solely on developed markets.

Vanguard replicates the index performance through a physically optimized replication strategy. The fund maintains a representative sample that mirrors the risk/reward profile of the index. This approach, especially effective for indexes containing small and illiquid securities, helps balance tracking error and transaction costs.

Vanguard’s collaborative approach ensures broad expertise and continuity across the investment team. In early 2024, Dale Brooksbank was appointed head of the equity investment group Europe, further strengthening Vanguard’s management team with over 20 years of financial services experience.

To conclude, we have a positive view of the strategy as defined by the FTSE All-World Index, as it is broad, diversified, and representative of the opportunity set available to investors. The exchange-traded fund is also one of the cheapest options offering global developed equity exposure.
 
Morningstar Medalist Rating™A solid choice for adding core global markets equity exposure to an investment portfolio.
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Morningstar Pillars
PeopleAbove Average
ParentHigh
ProcessAbove Average
 
Morningstar Medalist RatingMorningstar assigns the Medalist Rating to funds that are qualitatively and quantitatively assessed through manager research and algorithmic processes. The assessment turns on three key “pillars” – People, Process, and Parent – that yield an estimate of how well a fund will perform before fees but after adjusting for risk.
In order to provide consistency across the report data provided by different Asset Managers, the calculated data points presented are generated using Morningstar’s proprietary calculation methodology which is set out in more detail at(https://www.morningstar.com/research/signature)
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