The Advantages of World ETFs
World ETFs offer investors a diversified way to hedge against market risks and navigate through volatile stock market phases. These ETFs invest broadly across various countries and sectors, which reduces the risk of individual market crises. However, World ETFs are not immune to significant price fluctuations or stock market crashes.
Historical Lessons
Historical examples show that even conservatively managed funds can incur substantial losses: for instance, the Templeton Growth Fund lost approximately 40% of its value during the global economic crisis from 1973 to 1975. This means that investors should expect temporary losses even with broadly diversified investments like World ETFs in the long run.
Psychological Preparedness is Crucial
Therefore, the crucial question is the psychological and financial preparation for such fluctuations. Those who remain invested in the long term and do not panic sell can benefit from diversification and take advantage of market recoveries.
World ETFs as Core Investments
Current analyses from 2025 further confirm the attractiveness of World ETFs as core investments in volatile markets. They allow investors to participate in the opportunities of many markets with a single product—especially when certain regions or sectors are struggling.
Summary
| Advantages of World ETFs | Limitations / Risks |
|---|---|
| Broad diversification across countries & sectors | Short-term significant price losses possible |
| Easy access to global markets | Psychological strain from volatility |
| Long-term growth potential | Capital may be temporarily under deposit |
Therefore, anyone who wants to “get through any stock market crisis” with these ETFs needs to have patience and be able to withstand setbacks. A careful selection of high-quality ETFs and a long-term investment horizon are crucial.
For investors during volatile times, World ETFs thus provide a solid foundation for risk diversification—but they are not a guarantee for freedom from loss risks during crises. The right expectations regarding fluctuations are essential.