Milliarden Euro werden in Fonds auf den MSCI World investiert, making it one of the most popular index funds among German savers. However, there is increasing criticism of the composition of the MSCI World Index, particularly regarding the heavy weighting of US stocks. This has raised concerns about the associated risks.
The index, which currently dominates the portfolios of many funds, is heavily influenced by US stocks, making up 70 percent of the index. The significant presence of large high-tech companies in the index further exacerbates the concentration of US equities.
Despite delivering high annual returns for fund holders, the over-reliance on US stocks has sparked concerns about the vulnerability of the index, especially in times of economic and geopolitical instability.
Investors and financial experts have suggested various strategies to reduce the dominance of US stocks in the MSCI World Index. One approach is to increase the weighting of regions that play a minor role in the index, such as Asia or Emerging Markets. Another option is to consider purchasing funds focused on other regions to diversify away from the overwhelming presence of US equities.
It is advisable for savers to consider these recommendations in order to mitigate the risks associated with the concentration of US stocks in the MSCI World Index and to create a more balanced and diversified investment portfolio.