Page 28 - DIY Investor Magazine | Issue 41
P. 28
3 ETF PORTFOLIOS, £10,000, AND 10 YEARS: WHICH PORTFOLIO WINS?
· August 2024 28
DIY Investor Magazine
HOW MUCH WOULD 10,000€ HAVE GROWN IN AN MSCI WORLD PORTFOLIO OVER THE LAST TEN YEARS? A TREMENDOUS AMOUNT AS IT TURNS OUT... BY JANNES LORENZEN
3 ETF PORTFOLIOS, £10,000, AND 10 YEARS
Imagine you had £10,000 squirreled away in a simple MSCI World portfolio ten years ago. How much would your money have grown? This chart tells the story:
We’ve selected three straightforward ETF portfolios for this comparison – each one using an MSCI World equity ETF as its engine room.
The 100% MSCI World equity ETF portfolio (orange line) has performed staggeringly well over the past ten years: £10,000 grew more than threefold: transforming into £30,990 simply by using a buy and hold strategy.
That’s a 210% cumulative growth rate or an astounding 12% annualised.
You had to withstand a sharp dip during the Covid crash of 2020, and choppy waters during 2022 to 2023, but overall, the past ten years has been a fantastic time to hold a diversified global stock index like the MSCI World.
