Why is an MSCI World ETF alone not enough?
The MSCI World is a good building block – but not a complete portfolio. From a scientific perspective, important elements are missing:
- Extreme concentration on the US and tech: More than 70% of the MSCI World is allocated to the US, a large share of which goes to a few tech giants (Apple, Microsoft, Nvidia, Amazon, etc.). This is not genuine global diversification – in practice, you are betting on one market and one sector.
- No emerging markets: The MSCI World covers only developed markets. Emerging markets are completely absent – and they account for around 10% of global market capitalisation after all.
- No risk management: A pure equity ETF has no stabilising component. Bonds or other asset classes can significantly reduce fluctuations.
- No adaptation to your life situation: At 25 you can take on more risk than at 55. A single ETF does not know your age, your goals or your risk appetite.
- No automatic rebalancing: When equity markets rise sharply, your risk may shift upwards – without you noticing. quirion automatically brings your portfolio back into balance.
Frequently asked questions
What are ETFs (index funds)?
As an alternative to open-ended, actively managed investment funds, exchange traded funds (ETFs) have become established in recent years.
An ETF tracks a given index as closely as possible and adjusts its composition to match its reference value.
When you buy an MDAX ETF, for example, you get all the securities included in the MDAX in exactly their current market composition. If the composition of the MDAX changes, the composition of your ETF changes too.
As a result, the management and administration fees for an ETF are significantly lower. On average they are around 0.17 percent of the invested amount per year. When a fund manager actively looks after your investment funds, the costs rise to 1.5 to 2.5 percent per year.
At the same time, many studies show that in over 90 percent of cases an active fund manager cannot beat the index over the long term.
What does Global Portfolio mean?
If you opt for our Global Portfolio, you invest across the entire breadth of the market. From the risk you are willing to take, we derive the composition of your portfolio. More equities mean more risk – but also more return. More bonds, by contrast, reduce the risk – but also the return.
The Global Portfolio is generally suitable for building wealth. You can also take out our Global Portfolio in a sustainable variant.
How does account opening work?
First, you register via “Open account” on our portal. To do so, you sign up with your email address and a password of your choice.
You then receive a PIN code by email to verify your email address. Once you have entered this PIN code, your personal details, contact details and ID details are recorded.
Finally, you have the choice between identity verification in the quirion app, on your computer, or at a Deutsche Post branch. Your quirion account is then opened for you without delay.
How does online video identity verification work?
quirion has to be certain that you really are the person for whom the account or the securities account is being opened.
For banks, the German Anti-Money Laundering Act requires an identity verification check.
With quirion, you have the choice:
You can verify your identity by video call in the quirion app or on your computer.
In-person identity verification at Deutsche Post is also possible.
For this you need a valid identity card or your passport plus proof of address (e.g. a phone bill).
The easiest way is to verify your identity with our app.
Once identity verification is complete, we receive your data and can then open your account.
Just ask.
quirion.ai answers around the clock. Or write to us and we will get back to you personally.