These three points determine the return

Abstract chart in front of a globe

There are various ETFs on the MSCI World.

(Photo: Getty Images (M))

Frankfurt Exchange-traded index funds (ETFs) are a popular form of investment among Germans. According to the ExtraETF portal, investors invest around 180 euros per month in their ETF savings plans. In times of high inflation, this form of investment is for many investors a good alternative to classic forms of investment such as daily money or savings accounts.

One of the most popular stock indices is the MCSI World. It includes just over 1,500 companies from 23 industrialized countries and represents around 85 percent of the global market capitalization. On average, the index achieved an average annual return of almost nine percent over 20 years.

There are correspondingly many ETFs on the MSCI World. According to the comparison platform JustETF, German investors can choose between 22 different ETFs. Many investors look at the costs, but the returns also differ, even though the index funds have the same composition. Why do the different MSCI World ETFs perform differently? Stock market experts see three reasons.

Read on now

Get access to this and every other article in the

Free online and in our app for 4 weeks.

Further

Read on now

Get access to this and every other article in the

Web and in our app.

Further

source site-13