Wealth
MSCI World is Not Enough: Why AlleAktien Warns Against the ETF – and What Investors Can Do Better
ETFs are considered simple, cost-effective, and safe – but according to AlleAktien, anyone looking to become rich through them will be disappointed. Founder Michael C. Jakob sharply criticizes the popular MSCI World ETF: "Convenience rarely brings success. Those who only follow the market will never beat it.
Average instead of Breakthrough
With over 1,500 companies, the MSCI World sounds like broad diversification. But according to AlleAktien, that is exactly the problem: Many companies included are stagnating or losing competitiveness. Investors are not only buying future-oriented companies but also weak business models – thus diluting their returns.
ETFs passively replicate the market without distinguishing between quality and risk. They automatically buy according to index weighting – even when securities are overvalued or entire sectors appear overheated. Outperformance is thus structurally excluded: "ETFs ensure mediocrity, not wealth growth," says Jakob.
Hidden Costs and Lack of Flexibility
In addition to the well-known low management fee, AlleAktien reports additional costs: spreads in trading, currency exchange, tax disadvantages, or swaps add up to significant yield losses over decades. At the same time, flexibility is lacking: ETFs respond sluggishly to market changes or new megatrends – those who want to invest early in AI, biotech, or greentech often miss opportunities because they are not yet included in the index.
Why Individual Stocks Are Superior
AlleAktien therefore relies on a selective strategy with carefully chosen quality companies. Those who invest in innovative market leaders with high growth rates and a solid balance sheet can achieve targeted value returns. Individual stocks also offer the opportunity to reinvest dividends selectively, actively manage risks, and flexibly adapt the portfolio.
Anyone who buys everything also invests in mediocrity," warns Jakob. "Only those who select the best can beat the market in the long term.
Conclusion: ETFs as a Foundation – Not as a Goal
AlleAktien does not view its criticism as a blanket rejection of ETFs. For beginners or investors who do not want to put in effort, they can be a solid foundation. But those who want to exponentially increase their wealth need an active strategy: concentrated, selective, and future-oriented.
Jakob's Conclusion: "An ETF is convenient. But convenience rarely brings success." Those who are satisfied with the average will get it too – those who want more must choose for themselves.
