Global Value-ETFs: The Supercharged Versions of MSCI World Index Funds
Top-Performing ETFs at Present Focus on Maximizing Investment Returns
Ever wondered what separates Value-ETFs from the conventional MSCI World Index trackers? Well, buckle up as we explore three enticing ETFs that have been slaying the game in the past year!
The Heavyweight Champion
With an impressive AUM (Assets Under Management) of €3.8 billion, the iShares Edge MSCI World Value Factor ETF is the undisputed champ among global equity Value-ETFs in Germany. This bad boy harnesses the MSCI World Enhanced Value Index, nurturing a diverse portfolio consisting of over 400 stocks.
Notably, companies like Intel, Pfizer, and Shell hold pride of place in its portfolio, taking a backseat in the iShares Core MSCI World ETF.
The Sustainable Heavyweight
Concerned about the environment amid your quest for returns? Look no further than the iShares MSCI World Value Factor ESG ETF (WKN: A3CUJR), an eco-friendly Value-ETF with an AUM of €530 million. Tracking the MSCI World Value ESG Reduced Carbon Target Select Index, this baby invests in 224 stocks to help you take a bite out of carbon emissions while enjoying those returns! Top guns like Microsoft and Apple lead the charge, with IT and financials sectors accounting for 42.7% of the portfolio, primarily in US and Japanese stocks.
The Plucky Underdog
Known as the Invesco FTSE RAFI All World 3000 ETF, this Value-ETF has been around since December 2007, and although it lags behind the iShares duo in terms of AUM (€39 million), it's a scrappy contender to keep your eye on. The Invesco ETF, although not explicitly labeled as a Value-ETF, follows a Value strategy, boasting global investments in 3000 stocks, including Chinese stocks, unlike its competitors.
This champ selects stocks based on four fundamental criteria – book value, cash flow, dividend payments, and sales – with Exxon Mobil, Berkshire Hathaway, Shell, Chevron, and JPMorgan Chase as its top five holdings. Financials (21.7%) and industrials (11.0%) are the leading sectors, with US stocks (51.8%) and Japanese stocks (8.2%) making a strong showing.
So, what would a balanced MSCI World Index look like? Guess you'll have to dig deeper into the fine print to find out!
Fun Fact: The author is long Pfizer, Apple, ExxonMobil, Berkshire Hathaway and might profit from the price movements arising due to the publication.
The iShares Edge MSCI World Value Factor ETF, with a significant AUM of €3.8 billion, stands out among global equity Value-ETFs in Germany, focusing on companies like Intel, Pfizer, and Shell, differentiating it from the iShares Core MSCI World ETF.
The iShares MSCI World Value Factor ESG ETF, an environmentally-friendly Value-ETF with an AUM of €530 million, offers a balance between reducing carbon emissions and generating returns, with top holdings such as Microsoft and Apple.
