The statement that the MSCI World has recorded losses this year is not correct according to the available data: According to the latest factsheet, the YTD performance (Year-to-Date) of the MSCI World Index (as of May 30, 2025) was +14.21% on an annual basis and also showed positive returns in recent months. The SPDR® MSCI World UCITS ETF reported a performance of about +4.95% for the year 2025 up until the end of May. Therefore, there are no indications of losses in the current year.
Four Alternative ETFs to the MSCI World
1. MSCI World ex USA Index ETF
- Description: Invests in developed markets outside the USA.
- Advantage: Reduces concentration risk from US stocks.
- Performance: The YTD performance (until the end of May 2025) was approximately +9.22%, which is below the overall MSCI World – but historically these ETFs often provide more stable returns during periods of weaker US markets.
- Relevance: For investors concerned about an overweight in the USA.
2. MSCI World Quality Index ETF
- Description: Focuses on companies with high profitability and strong balance sheet quality.
- Advantage: Lower volatility and better crisis resilience.
- Performance: The performance has recently been weaker than the classical world index (–0.49% over three months until the end of May 2025), but this approach often offers a lower-risk development in the long term.
- Relevance: For risk-averse investors.
3. Regional Specialists (e.g. Europe or Asia-Pacific)
- Example: Stoxx Europe 600 or Nikkei 225 ETFs
- Advantage: Diversification away from large US corporations.
- Performance & Risk-dependent: Depending on the market phase, regional indices can perform better than global indices.
4. Thematic/Sector ETFs
- Example: Clean Energy, Robotics & AI
- Advantage: Access to growth sectors independent of regional weighting.