About the iShares starter portfolio
The iShares starter portfolio is a modular two-sleeve core built entirely from iShares (BlackRock) UCITS ETFs: 70% developed-market equity and 30% hedged global investment-grade bonds. It suits investors who like building blocks they can extend later — for example, by bolting on an emerging-market equity sleeve or a specialist income overlay — without changing fund family. As ever, this is one illustrative model, not a recommendation.
Holdings and weights
- 70% iShares Core MSCI World UCITS ETF (SWDA) — around 1,500 large- and mid-cap holdings across developed markets only. Accumulating share class. Ongoing charges roughly 0.20%. Note this fund excludes emerging markets, which is the main structural difference from the FTSE All-World benchmark used in the Vanguard starter.
- 30% iShares Core Global Aggregate Bond UCITS ETF GBP Hedged (AGGU) — investment-grade global government and corporate bonds, hedged to sterling. Ongoing charges roughly 0.10%.
What the portfolio is trying to do
SWDA gives developed-world equity exposure with a slightly lower fee than VWRP and a tilt away from emerging markets. AGGU does the same job as VAGP in the Vanguard starter — hedged investment-grade bonds for ballast. The portfolio is deliberately modular: an investor who later wants emerging-market exposure can add a dedicated EM ETF (for example IEMA), and someone who wants an income overlay can add WINC, without disrupting the core.
Who this is for
Investors who like the iShares range, want clear modular building blocks, and may want to add specialist sleeves later. Also for anyone who deliberately wants to exclude emerging-market equity from the core, perhaps due to governance or geopolitical concerns — SWDA does that by construction.
Who should look elsewhere
If you want a single ticket, see the one-fund global portfolio. If you want emerging markets included automatically, see the Vanguard starter or any FTSE All-World/MSCI ACWI fund. If you want yield as a primary objective, see the income tilt portfolio.
Tax wrappers
Both SWDA and AGGU are UCITS ETFs domiciled in Ireland with UK reporting status, eligible for ISAs, Junior ISAs, SIPPs, and GIAs. Inside an ISA or SIPP, dividends and capital gains are sheltered from UK tax. The ISA vs GIA guide covers the long-run impact of wrapper choice.
Rebalancing and extension
An annual rebalance to 70/30 is the simplest approach. If you later add an emerging-market sleeve, a typical extension splits the equity sleeve into roughly 60% developed (SWDA) and 10% emerging (IEMA), keeping the bond sleeve at 30%. Add specialist sleeves only when the job changes — new sleeves should pay for the complexity in either better diversification or genuinely different cashflow.
Key risks
Excluding emerging markets means missing roughly 10% of global market cap and the higher long-run expected return that comes with it — though also the higher volatility. The bond sleeve carries interest-rate risk and credit risk; the GBP hedge on AGGU does not protect against either. A 30%+ fall in the equity sleeve during a global recession is a normal-range outcome. Past performance is not a guide to future returns.
Educational content only. Not financial advice. Investment values can fall as well as rise, and you may not get back what you invested. ETF holdings, charges, and weights are illustrative and may change. Always check current factsheets and consider your own circumstances before investing.