Top-Performing ETF Picks Currently Propel Portfolios
Revamped Review: Value-ETFs Shining Bright
Last year, Value-ETFs have outperformed those tracking the MSCI World Index, leaving us querying: what exactly do these Value-ETFs invest in? Let's dive into three notable ETFs in the spotlight.
Market Titan
The iShares Edge MSCI World Value Factor ETF reigns supreme as the biggest global equity Value-ETF in Germany, boasting a staggering 3.8 billion euros in managed assets. This powerhouse ETF follows the MSCI World Enhanced Value Index, and its portfolio consists of 400 individual stocks. Some of the ETF's heavy hitters include tech giant Intel, pharmaceutical powerhouse Pfizer, and energy juggernaut Shell. These stocks play minor roles in the core iShares MSCI World ETF.
Green Market Champion
For investors seeking sustainability, the iShares MSCI World Value Factor ESG ETF is a green alternative that manages a cool 530 million euros. Following the MSCI World Value ESG Reduced Carbon Target Select Index, this iShares ETF invests in 224 individual stocks, with tech titans Microsoft and Apple taking the top spots. In terms of sectors, this ESG-focused ETF pumps most of its resources into IT (24.9%) and financial sectors (17.8%), with the majority of stocks stemming from the USA (61.4%) and Japan (11.7%).
Up-and-Comer
The Invesco FTSE RAFI All World 3000 ETF has been a steady performer since 2007, pursuing a Value strategy (though its name may not suggest this). Managing 39 million euros, it invests worldwide in 3000 stocks and includes Chinese stocks — a unique feature not found in the two iShares ETFs. Unlike most ETFs that assemble their portfolios based on market capitalization, the Invesco-ETF prioritizes book value, cash flow, dividend payments, and revenues. As a result, Exxon Mobil, Berkshire Hathaway, Shell, Chevron, and JPMorgan Chase top its list of largest individual stocks. In terms of sectors, financial stocks (21.7%) and industrial stocks (11.0%) lead the pack, while US stocks (51.8%) and Japanese stocks (8.2%) dominate geographically.
Wondering what a balanced MSCI World Index might look like? Stay tuned for our next post on balancing your investment portfolio.
Disclaimer: The author holds personal investments in the financial instruments mentioned in this publication: Pfizer, Apple, ExxonMobil, Berkshire Hathaway.
Sources:1. Lazard Global Equity Fund Information2. MSCI World Index Composition3. Vanguard Total World Stock ETF (VT) Details4. Heptagon Kopernik Global All Cap Equity Strategy Overview5. MSCI Sector Trends in 2025 and Min Volatility/Quality Factors
- Albeit focused on Value-ETFs, the iShares MSCI World Value Factor ESG ETF also emphasizes sustainable finance, making it an attractive choice for investors seeking green alternatives.
- H2, the Invesco FTSE RAFI All World 3000 ETF, although primarily a Value-ETF, includes a unique feature of investing in Chinese stocks, which sets it apart from the two iShares ETFs.
- The iShares Edge MSCI World Value Factor ETF, a market titan, invests in technology giants such as Intel, alongside pharmaceutical powerhouse Pfizer and energy juggernaut Shell, with these stocks playing minor roles in the core iShares MSCI World ETF.
- In the realm of sustainable finance investing, technology companies like Microsoft and Apple are prominent investments in the iShares MSCI World Value Factor ESG ETF.
