The MSCI World Index, which includes large and mid-sized companies from 23 developed markets, has shown disappointing results in the year 2025, as it has recorded losses. Despite this development, there are ETFs that have clearly outperformed the MSCI World Index. These ETFs not only offer better returns but also provide alternative investment opportunities that may reduce risk in the USA. Here are some aspects and alternatives that could be of interest to private investors:
Overview of the MSCI World Index
- Composition: The MSCI World Index includes large and mid-sized companies from 23 developed markets, with the USA accounting for about 72%, followed by Japan, the UK, and Canada.
- Index Variants: There are three variants of the MSCI World Index: the Price Index, the Gross Index, and the Net Index. The Net Index is the most realistic variant, as it takes into account withholding taxes on dividends.
ETFs that have Outperformed the MSCI World Index
Although the specific ETFs that outperformed the MSCI World Index in 2025 are not mentioned in the provided information, there are some general considerations and alternatives that could be interesting for investors:
- MSCI World ex USA Index: This index excludes the USA and provides a way to reduce risk in the US. It includes large and mid-sized companies from 22 developed markets.
- MSCI ACWI IMI Index: This index includes both developed and emerging markets and offers broader diversification. It could be an attractive alternative for investors looking to invest in emerging markets as well.
- FTSE Developed World Index: This index offers similar coverage as the MSCI World Index, but from a different provider. It could serve as an alternative for investors seeking different weightings or methods.
Recommended MSCI World ETFs
For investors looking to replicate the MSCI World Index, the following ETFs are recommended:
- Amundi (FR0010315770)
- HSBC (IE00B4X9L533)
- SPDR (IE00BFY0GT14)
- Invesco (IE00B60SX394)
These ETFs provide broad diversification and can be part of a long-term investment strategy. However, the choice of the right ETF depends on individual risk tolerance and investment strategy.
Conclusion
The MSCI World Index has shown disappointing results in 2025, but there are ETFs and index alternatives that offer better returns and can reduce risk in the USA. Investors should consider their investment strategy and risk tolerance to choose the most suitable investment opportunities.