The iShares Edge MSCI World Quality Factor UCITS ETF USD (Acc) (IWQU) is an Ireland-domiciled equity ETF managed by BlackRock and traded on the London Stock Exchange.

The fund seeks to track the performance of the MSCI World Sector Neutral Quality Index, a benchmark composed of large- and mid-cap companies across developed markets selected for characteristics associated with the quality factor.

IWQU provides exposure to developed equity markets through a factor-based strategy focused on companies exhibiting strong financial quality characteristics. The ETF follows a passive investment approach and uses optimized physical replication to track its benchmark. It operates under the UCITS framework and follows an accumulating income policy.

The MSCI World Sector Neutral Quality Index starts with the MSCI World universe and selects companies exhibiting stronger quality characteristics relative to their peers within the same sector. 

Composition / Exposure Profile

IWQU holds companies across several sectors of developed economies, including:

• Information technology.

• Financials.

• Industrials.

• Health care.

• Consumer discretionary.

• Communication services.

• Consumer staples.

• Energy.

• Materials.

• Utilities.

• Real estate.

Geographically, the fund provides exposure to companies across developed markets, including the United States, Japan, the United Kingdom, Canada, and countries across Europe and Asia-Pacific.

Because the methodology evaluates companies relative to peers within the same sector, the strategy seeks to provide exposure to the quality factor without introducing significant sector deviations from the MSCI World. 

Structure and Costs

IWQU trades in U.S. dollars on the London Stock Exchange. Both the fund's base currency and share class currency are the U.S. dollar.

The ETF has a total expense ratio (TER) of 0.25% per year and uses a physical structure with an optimized replication methodology. It is domiciled in Ireland, operates under the UCITS framework, is part of iShares IV plc, and is managed by BlackRock Asset Management Ireland Limited.

IWQU is an accumulating share class, meaning dividends and other income generated by its holdings are reinvested within the fund rather than distributed periodically to shareholders.

History and Evolution of the ETF

The iShares Edge MSCI World Quality Factor UCITS ETF USD (Acc) (IWQU) was launched in 2014 by BlackRock to provide systematic exposure to the quality factor across developed-market equities.

Since its launch, the fund has maintained a passive strategy linked to the MSCI World Sector Neutral Quality Index, selecting companies with high ROE, low leverage, and greater earnings stability relative to peers within their respective sectors.

Throughout its history, the fund's performance has reflected both cycles in developed equity markets and the relative performance of companies associated with the quality factor.

Additional Information

iShares Edge MSCI World Quality Factor UCITS ETF USD (Acc) (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $6.53 billion.

Over the past 12 months, iShares Edge MSCI World Quality Factor UCITS ETF USD (Acc) recorded a return of 14.97%, with its price trading between $76.24 and $90.94 during the same period.

The ETF is traded under the ticker IWQU.