Introduction
The MSCI World Index has suffered losses this year, which is significant for investors in the German-speaking region. This development could lead investors to seek alternative investment opportunities to reduce risk and improve the diversification of their portfolios. Here are some points and alternatives to consider:
MSCI World Index Performance
- Current Performance: The MSCI World Index has achieved an annual return of 14.21% in 2025 up to May 30, although this may not reflect the entirety of the year. The precise development in the current year is not fully represented, but there are indications of losses.
- Long-term Perspective: Over a longer period, the index has shown stable returns, with an average annual increase of about 8% to 9% over the past 30 years.
Alternatives for Risk Reduction
To reduce risk and improve diversification, investors can consider alternative ETFs that do not rely solely on the MSCI World Index. Here are some options:
- MSCI World ex USA Index: This index excludes US companies and offers an alternative way to invest in developed markets outside the USA.
- MSCI World Quality Index: This index focuses on companies with high quality characteristics such as high profit margins and low debt.
- Regional or Sectoral ETFs: Instead of investing in a global index, investors can also consider regional or sectoral ETFs to target specific markets or industries.
- Emerging Markets ETFs: Investments in emerging markets can also be an interesting alternative, as they often exhibit higher growth rates than developed markets.
Diversification and Risk Management
Diversification of the portfolio is crucial for minimizing risk while benefiting from various market conditions.
In summary, alternative ETFs and investment strategies offer investors the opportunity to reduce their risk and tap into new investment possibilities. However, a careful analysis of market conditions and individual investment goals is essential to make the right decisions.