Many investors are surprised when they see how an initially small amount can grow into a fortune over time. A long-term investment in the global equity market via a savings plan ensures high returns and effectively limits equity risk. For the past, this is clearly evident.

We have analysed how much return investment in an MSCI World ETF would have yielded over the last 50 years. The result: Investors who had invested in an MSCI World ETF were able to benefit from an average annual return of 9% over the period under review. 

We have created the ETF Savings Plan Calculator to help you calculate how your assets can steadily increase in the future with an ETF savings plan. Enter details of your monthly savings rate, investment horizon, online broker fees and expected market return and the calculator will show you in a simulation how your investment could develop during this period. The result of this simulation is the sum of the invested capital and the performance over the specified investment period minus the costs at broker and fund level.

The costs are an important influencing factor that reduces the income generated despite positive performance. When choosing an ETF, pay close attention to how much you have to pay with which online broker for your desired ETF.