Which ETFs perform better than the MSCI World? Business Insider presents five. Getty Images / gopixa, Torsten Asmus
Business Insider picked five tech ETFs that beat the MSCI World over at least a year.
The ETFs invest in the technology industry worldwide and offer a performance of up to 180 percent over one year.
But: More returns also mean more risk. The volatility of the selected index funds is significantly higher than that of a world ETF.
The MSCI World is one of the most popular indices among investors. The index includes stocks from over 1,650 companies from 23 industrialized countries. But the index has come under increasing criticism, especially recently. The problem, according to some experts: the high US weighting. The USA currently accounts for almost 70 percent of the index fund. A significant portion of this, around 20 percent, goes to the so-called “Maginficent 7”. These are seven companies, most of which come from the technology sector.
Investors who are not afraid of the US focus or tech stocks might ask themselves: are there ETFs that offer even more returns? Business Insider picked five tech ETFs that also invest globally and beat the MSCI World for at least a year.
First of all, it should be said: The US focus remains – in terms of performance, however a performance of up to 180 percent over a year. For comparison: The iShares Core MSCI World ETF – with an investment volume of 67,931.01 million US dollars – only achieved an increase of just over the same period around 22 percent.
Finanzen.net
This means: Anyone who had invested 5,000 euros in the iShares Core MSCI World ETF exactly one year ago would have had a performance of 22 percent Profit of 1,100 euros madet and now 6.100 Euro im Depot.
If you had put the same amount into the best tech ETF, you would have seen a performance of 180 percent Plus 9,000 euros made and now 14,000 euros in the depot (without deducting taxes and fees).
However, what investors should definitely pay attention to: More return also means more riskwhy the Volatility is significantly higher for all five ETFs than a world ETF. It’s also always worth taking a look at fees. Although these are lower for ETFs than for active funds, there are differences here too.
The data used comes from Finanz.net and Fondsweb. All ETFs invest in the “Technology” sector. Care was taken to ensure that the index funds beat the MSCI World for at least one year. In order to be able to present several approaches, the one with the stronger performance was chosen from comparable ETFs. This is not a comprehensive ranking. The data was retrieved on February 27 and 28, 2024.
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Finanzen.net