Have you ever wondered which ETF is the most popular? Or has been? A question that can of course be answered in many ways. Also regarding the intention of this message.
Basically, however, a popular ETF could show in terms of volume: There is a solid short-term trend here. Or an evergreen that investors rely on. At least passive investors.
In July of this year there is a rather interesting passive fund, which has been voted the most popular. The selection could also be exciting for long-term investors. Because this is definitely a basic ETF that you can also think about yourself. Little spoiler, before it comes to the resolution: You may have read a lot about this name yourself.
Really the most popular ETF?
As the portal finanzdiscount has now announced in retrospect, the iShares Core MSCI World UCITS ETF USD (Acc) the most popular passive fund that has been trading in the past few days. How representative that is in turn is simply an open question. However, the selection of this winner could have at least some meaningfulness.
As the name suggests, the passive fund relies on the MSCI World. This is an accumulating passive fund, which, however, invests in a fully replicating manner in the index. In other words, one of the leading global indices, which contains over 1,600 different stocks. With a total expense ratio of 0.20%, the iShares Core MSCI World UCITS USD (Acc) is not the cheapest of its kind. In principle, however, an exciting choice.
This in turn shows that the majority of investors now want to diversify back to a market-wide cut. And it uses one of the most popular global indices. Very foolish if you ask me. In the long term, this could become the foundation of successful asset accumulation. At least if you don’t rashly pull the ripcord. Especially since the MSCI World basically offers a very, very solid diversification that can make a decisive difference in the long term.
Yield and diversification in view
According to common finance portals, the MSCI World has had a return of just over 7% per year in recent years. For example, the portal for private finance, homemade-finance, puts the average performance at 7.13% per year. A solid value that could be beaten by other indices. For example, the S&P 500 generated just over 9% per year in the same period between 1975 and 2015. You should probably consider that.
With its 1,634 different stocks, on the other hand, the global base is even broader than the US cross-section. Here, the US stocks represent the largest amount with a share of approx. 64.5%. However: A circle of 22 other represented nations round off this mix. This in turn leads to less volatility.
A look at the industries, however, reveals fewer focal points: Tech stocks are the largest group with around 16% (divided into software stocks with 9% and hardware stocks with about 7%), further focal points are pharmaceutical and common consumer goods. Shares. An overall very solid mix, which enables the foundation of a long-term return on the market.
Very unusual: but follow the crowd!
It is a strange conclusion that we can draw here. Perhaps also one that is rather short-lived: But in July, ETF investors can certainly follow the masses with their passive investments. After all, an ETF on the MSCI World can be a solid long-term solution for your own wealth accumulation.
Whether the conclusion also applies in August? Possible, but difficult to predict. In the end, however, the quality is decisive, why following the masses can be advisable here. And not the quantity.
The post This is the most popular ETF in July 2020: rightly so! appeared first on The Motley Fool Germany.
Vincent does not own any of the securities mentioned. The Motley Fool does not own any of the securities mentioned.
Motley Fool Deutschland 2020