Best Global Shares (MSCI World) ETF in Australia (2026)
A broad global shares ETF, usually tracking the MSCI World ex Australia index or something close to it, gives you about 1,300 to 1,500 of the world's biggest companies outside Australia in one trade. Here's how the main options compare.
Of the 8 ETFs we compared, VEU has the lowest fee (0.07% a year) and VGS is the largest ($18.7bn). IWLD had the best five-year return, +12.3% a year. Over 5 years, IWLD tracked its index most closely after fees. The right one depends on your goals: read what to consider below.
Data to 30 September 2026 from the TMX Australia funds report. Returns include distributions. General information only, not a recommendation.
All the options compared
Unhedged global shares
Returns move with the Australian dollar. When the dollar falls, these do better.
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| VGS | Vanguard MSCI Index International Shares ETFLargest | 0.18% | $18.7bn | +10.1% | +11.8% | 0.02% |
| VEU | Vanguard All-World ex US Shares Index ETFLowest fee | 0.07% | $6.5bn | +14.0% | +9.2% | 0.03% |
| BGBL | Betashares Global Shares ETF | 0.08% | $5.5bn | +10.4% | – | 0.02% |
| IWLD | iShares Core MSCI World All Cap ETFBest 5Y | 0.09% | $2.0bn | +10.4% | +12.3% | 0.04% |
| WXOZ | State Street SPDR S&P World ex Australia Carbon Aware ETF | 0.07% | $858m | +7.6% | +9.3% | 0.10% |
Currency-hedged global shares
Hedging takes the Australian dollar out of the picture, so you get the share market return only.
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| VGAD | Vanguard MSCI Index International Shares (Hedged) ETF | 0.21% | $7.9bn | +17.1% | +10.8% | 0.02% |
| HGBL | Betashares Global Shares Currency Hedged ETF | 0.11% | $3.0bn | +17.4% | – | 0.03% |
| IHWL | iShares Core MSCI World ex Australia ESG Leaders ETF | 0.13% | $1.1bn | +17.1% | +11.0% | 0.05% |
Compare the biggest side by side → · Check how much they overlap →
Spread is the average gap between the buy and sell price: lower is cheaper to trade. 5Y a year is the average yearly total return over five years. Past performance is not a reliable indicator of future performance.
How closely each global shares ETF tracks its index
An index fund should return its index, less its fee. The gap below is each fund's return after fees minus its own benchmark. A gap close to zero means it has done its job well. Over 5 years, IWLD tracked its index most closely among the unhedged global shares, beating it by 0.13% a year.
| ETF and benchmark | Fee | 1Y gap | 3Y gap a year | 5Y gap a year | Verdict |
|---|---|---|---|---|---|
| IWLDMSCI World ex Australia Custom ESG Leaders Index (AUD) | 0.09% | +0.13% | +0.13% | +0.13% | Ahead of its index |
| VGSMSCI World ex-Australia Index (net dividends, AUD) | 0.18% | +0.02% | +0.04% | +0.05% | Tracking well |
| VGADMSCI World ex-Australia Index (net dividends, AUD hedged) | 0.21% | -0.05% | -0.01% | +0.03% | Tracking well |
| IHWLMSCI World ex Australia Custom ESG Leaders Index (AUD hedged) | 0.13% | -0.04% | +0.02% | +0.02% | Tracking well |
| VEUFTSE All-World ex-US Index | 0.07% | -0.51% | -0.02% | -0.02% | Tracking well |
| WXOZS&P Developed ex-Australia LargeMidCap Carbon Aware Index | 0.07% | +0.00% | -0.03% | -0.06% | Tracking well |
| BGBLSolactive GBS Developed Markets ex Australia Large & Mid Cap Index | 0.08% | +0.14% | +0.16% | – | Ahead of its index |
| HGBLSolactive GBS Developed Markets ex Australia Large & Mid Cap Index (AUD hedged) | 0.11% | -0.05% | -0.02% | – | Tracking well |
Gap = fund return after fees minus its benchmark. Issuer figures to October 2026. Hedged funds are measured against the hedged version of their index. Funds without published benchmark figures are left out. See every ETF vs its benchmark →
What to consider
- Hedged or unhedged? Many investors hold some of each. Unhedged has tended to cushion falls, because the Australian dollar often drops when markets do.
- What's left out. Most of these exclude Australia and emerging markets. VEU also leaves out the US.
- ESG screens. IWLD and WXOZ apply light ESG or carbon screens, which changes the holdings a little.
- Check the overlap with any US or Nasdaq ETF you already own: the US is about 70% of a global fund.
