If you want to invest long-term and can live with risk, you could invest in the MSCI World via an ETF, recommends financial expert Katharina Lüth from “Weltsparen”. Getty Images
An analysis by the savings and investment platform “Weltsparen” has shown that investors who invested in the MSCI World Index were able to beat inflation by more than six times – and have done so since 2002.
According to the analysis, an investment of 5,000 euros would have increased to 21,600 euros in 21 years, while household expenses would have increased from 5,000 to 7,600 euros.
“Weltsparen” financial expert Katharina Lüth recommends investors who want to invest long-term to invest in an ETF that tracks the MSCI World Index.
Is the MSCI World Index a good investment to beat inflation? Since the introduction of the euro, investors have achieved far better returns with the MSCI World than with classic savings methods such as daily or fixed-term deposits. This is shown by an analysis by the investment platform “Weltsparen”, which is available exclusively to Business Insider.
Specifically, according to the evaluation, the MSCI World achieved a return six times higher in the period from 2002 to 2023 than the 50 percent price increase since the introduction of the euro.
An example: An investment of 5,000 euros has multiplied to 21,600 euros in 21 years. In the same period, for example, a household’s expenses increased from 5,000 to just 7,600 euros.
According to “Weltsparen”, the calculation is based on the annual inflation figures from the Federal Statistical Office. The platform calculated the performance of the MSCI World using the MSCI World Total Gross Return in euros.
Financial expert Katharina Lüth from “Weltsparen” advises consumers to take advantage of the opportunities on the capital market. Compared to more traditional forms of investment, she considers the capital market to be particularly promising. “Historically, the MSCI World offers a significantly better return than a daily or fixed-term deposit. Ultimately, these are different asset classes that serve different purposes,” says Lüth. “If you want to invest for the long term and can live with risk, investing in the MSCI World via an ETF is a good decision. If planning security is required and the investment period is shorter, a daily or fixed-term deposit is the right choice.”
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