Comparing returns: MSCI World ETF vs. Dax ETF - Determining which investment generates greater profits for investors.
Take a Gander at the MSCI World ETF and DAX: Which Investment Option Blows the Other Away?
When it comes to popular investments in Germany, the MSCI World ETF and the DAX reign supreme. But how do these two radically distinct indices stack up? And which ETF offers investors the biggest returns?
In contrast to the DAX, which houses a mere 40 large German listed companies, the MSCI World contains nearly 1,600 companies from 23 industrialized nations. By investing in the MSCI World ETF, investors can diversify their portfolio, spreading their risk across a broader array of companies and countries. However, performance plays a critical role in investors' decisions—here's how these two indices fare in terms of results:
Comparing the MSCI World ETF and DAX: Who Comes out on Top?
Over a five-year period, the DAX has remained stagnant, hovering around the same level as it was in November 2017—a paltry 0% return. In stark contrast, the MSCI World has surged past the 60% mark during the same timeframe. It's clear that the MSCI World is the runaway winner in this face-off.
Over the past decade, the MSCI World has also outperformed the DAX. The MSCI World achieved approximately 210% gains, while the DAX clocked in at 82%—a significant disparity in favor of the global stock market index. So, what do these numbers imply for investors now?
Investment Opportunities in the MSCI World: Which ETFs Pay Off?
Since many DAX companies are also part of the MSCI World Index, investors might be inclined to choose this broader index as their investment destination of choice. By doing so, they can minimize their risks by venturing into a much more diverse pool of firms. Additionally, investors also gain exposure to the German economy through the MSCI World, as German stocks account for around 3% of the index's total weight—equivalent to the market capitalization of German stocks on international exchanges.
Two MSCI World ETFs in particular are worth considering: the iShares Core MSCI World UCITS ETF USD (Acc) (WKN: A0RPWH) tops the global stock market index ranks, while the Invesco MSCI World UCITS ETF (WKN: A0RGCS) took home the title of best performer in the past twelve months.
Germany and Europe have been facing numerous challenges, making an investment in the MSCI World ETF a strong and stable choice for investors in the foreseeable future.
- Contrasting the DAX and MSCI World ETF, the latter comprises nearly 1,600 companies from 23 industrialized nations, providing investors an opportunity to diversify their portfolio and reduce risks.
- Over a five-year period, the MSCI World ETF has significantly outperformed the DAX, jumping more than 60% compared to the DAX's stagnant 0% return, making the MSCI World the runaway winner.
- Over the past decade, the MSCI World has shown remarkable growth, achieving around 210% gains while the DAX only gained 82%, indicating the MSCI World as a superior investment option.
- In addition to diversification and exposure to the German economy, investors may consider the iShares Core MSCI World UCITS ETF USD (Acc) and the Invesco MSCI World UCITS ETF as strong MSCI World ETFs to invest in, with the former leading the global stock market index ranks and the latter being the best performing in the past twelve months.
