Advantages
Simple - Just one product. No need to pay attention to weights.
Diversified - Several thousand companies are bought with one product.
Cheap - Depending on the broker, there are fees for savings plans or one-time purchases. These decrease with a smaller number of ETFs.
Time - No rebalancing is required to restore an ideal weighting.
Disadvantages
Incomplete - The two major indices don't really manage to represent the "whole world". Many small businesses are missing.
Inflexible - No possibility to adjust the regions.
Exposure - The overrepresentation of USA leads to cluster risk. Emerging markets are underrepresented.
Difficulty | ⬤ |
Costs | ⬤ |
Security | ⬤⬤⬤⬤ |
Individuality | ⬤ |
Inexpensive, simple and highly diversified
A suitable beginner-friendly option, serving as a safe deposit basis for almost all investors.
All in one
Following the the world´s markets with one single product.
Option 1 - FTSE all world
Product: Vanguard FTSE All World UCITS ETF Distributing
ISIN: IE00B3RBWM25
TER: 0.22%
Income Use: Distributing
Fund volume: 14.2 billion
Positions: 3762
Currency: USD
Inception date: 05/22/2012
Sustainable (ESG)? No
The fund invests in 25 developed countries and 24 emerging countries. The top 10 holdings own a share of 13.7%. The US is the most heavily weighted region at 58%.
Alternative: There is an accumulating variant available. ISIN: IE00BK5BQT80
Option 2 - MSCI AWCI
Product: iShares MSCI ACWI UCITS ETF (Acc)
ISIN: IE00B6R52259
TER: 0.20%
Income Use: Accumulating
Fund volume: 6.2 billion
Positions: 1612
Currency: USD
Inception date: 10/21/2011
Sustainable (ESG)? No
The fund invests in 23 developed countries and 24 emerging markets. The top 10 holdings own a share of 15.1%. The US is the most heavily weighted region at 59%.
The average return was 10.16% over the last 10 years. A one-off investment of 10 000€ would have turned into €26 346 after 10 years.
Disclaimer
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