The Germans’ favourite index funds should not all really useful | EUROtoday

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Anyone who invested within the American market in 2023 had purpose to be pleased.
Bild: Bloomberg

Germans notably prefer to put money into index funds that reference MSCI World. But the most well-liked should not all the time the very best. It’s price taking a better look.

Et was simply ten years in the past when only a few buyers knew what to do with phrases like ETF and MSCI World. Especially not in Germany, the place individuals have lengthy been skeptical concerning the world of investing.

Dennis Kremer

Editor within the “Value” division of the Frankfurter Allgemeine Sonntagszeitung.

That has modified radically. The abbreviation “ETF” (which, by the best way, stands for “exchange-traded fund” or exchange-traded fund) comes simply to many individuals’s lips, they usually already perceive the precept behind it: An ETF replicates the efficiency of an underlying inventory market index one-to-one. If its worth rises, the ETF additionally positive factors the identical quantity; if it falls, it loses. Even the identify “MSCI World” hardly ever causes any shock. Details comparable to the precise composition of this world inventory index are most likely solely recognized to only a few individuals (it at the moment consists of round 1,500 inventory companies from 23 industrialized nations). But most individuals most likely know that shares from totally different elements of the world discover a place on this index.