As an ETF that invests globally, it is not dependent on individual regions (Photo: Freepik, jcomp)
The Xtrackers MSCI World Financials ETF (ISIN: IE00BM67HL84) offers investors broadly diversified access to the financial sector of industrialized countries. As an ETF that invests globally, it has the advantage that it is less dependent on the economic development of individual regions – an important aspect for reducing risk. Its reference index, the MSCI World Financials Total Return Net Indexincludes large and medium-sized companies from the financial sector.
With a low total expense ratio of just 0.25 percent per year and a fund volume of around 763 million euros, it is an attractive option for cost-conscious investors.
Performance is convincing
The performance of the ETF is also impressive: over a five-year period it achieved an impressive total return of over 80 percent, and over a one-year period an increase of around 40 percent. Since its launch in March 2016, there has been an increase of 194 percent.
USA dominates, but also internationally diversified
The ETF’s portfolio is regionally diversified, with around 60 percent of the focus being on the USA. Canada, Japan and Great Britain are also represented.
The top holdings include well-known names such as JPMorgan, Berkshire HathawayVisa, Mastercard and Bank of America. These 5 companies together make up over 20 percent of the total portfolio and illustrate the concentration on established market leaders in the financial sector.
Disclaimer:
Not investment advice. No call to buy or sell securities.