Shares worldwide – but with low volatility (photo: frepik, acnaleksy)
The stock market world is head! Many US shares have been in free fall for weeks, the MSCI World is moving-a whopping 5 percent loss since the beginning of the year. But while investors are trembling worldwide, there is a strategy that defiantly keeps calm: the minimum volatility approach. And with the Xtrackers MSCI World Minimum Volatility ETF (ISIN: IE00BL25JN58) Investors bring this strategy into the depot.
The idea: stability instead of thrills
Volatility is the horror of every investor. What if you could just switch them off? This is exactly where the Minimum Volatility ETF comes in: it is broadly scattered in over 23 industrialized countries, but – and that is the highlight – only in companies with the lowest possible fluctuation width.
The result? An ETF that fluctuates less when the markets are going crazy. While the classic MSCI World is currently deeply noted in the minus, the minimum volatility index succeeds in the balancing hike: an increase of one percent in the current year – this is stability that is impressive!
Why the ETF also convinces in the long term
The basic idea is impressive: the focus is not on the highest profits, but the lowest fluctuations. So the portfolio remains solid even if it crashes all around. Instead of a high -ran gambler papers, only shares in the basket end up here, which are characterized by particularly stable price development.
The ETF uses the huge pool of around 1,600 shares of the MSCI World Index, but filters out meticulously around 270 titles that shine with low volatility. The effect: a 3 percentage point of lower fluctuation than the overall index – and without dramatic return losses.
Global scattering with US focus
With a portfolio share of around 64 percent US shares, the ETF remains strongly American, but the share selection turns out to be the spotlight, especially in turbulent times. Supplemented by Japanese, German and Swiss titles as well as a balanced sector allocation – information technology, health and financial values - the diversification remains intact.
That pays off: In the past 5 years, the ETF has increased by a whopping 60 percent, and in the long -term view he has almost doubled with an increase of 99 percent in 10 years.
Conclusion: calmly through the storms
Who needs risk -rich roller coaster trips when it is also stable and planable? The Xtrackers MSCI World Minimum Volatility ETF shows that investors do not have to do without returns in stormy times – as long as they are willing to do without wild course jumps. So if you want to keep your nerves, you should take a look at this ETF. Because sometimes less volatility is simply more.
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Disclaimer:
No investment advice. No call to buy or sell securities.